48 OUR FEDERAL LANDS 



dians. This department has endeavored to set an 

 example to other lessors by encouraging where prac- 

 ticable the cessation of drilling and production on 

 its lands. As a result productive capacity of 120,- 

 ooo barrels per day, or more than the entire current 

 daily production, is now shut in on public lands, and 

 drilling relief has been granted with extreme liber- 

 ality. Nevertheless, the Government is not free from 

 blame. Since the passage of the mineral-leasing law 

 on February 25, 1920, this department has granted 

 more than 40,000 permits to prospect for oil and gas 

 on about 80,000,000 acres of land. 



"With respect to drilling and producing opera- 

 tions, the department, through its supervisory forces, 

 has continued its earnest efforts to reduce waste, at 

 all times subordinating its royalty returns to the 

 primary duty of conserving mineral values. In this 

 work it has had the hearty co-operation of many 

 lessees and operators. The cost of this supervisory 

 work has been small compared even to the immedi- 

 ate benefits of conservation in royalty returns. Ex- 

 tension of supervisory activities to cover more ade- 

 quately the field of operations would pay immediate 

 dividends in royalties as well as future benefits in 

 prolonging the life and increasing the ultimate pro- 

 duction of Government-owned fields. In the fiscal 

 year ended June 30, 1927, 25,648,101 barrels of oil 

 were taken from Government lands, and royalty 

 products valued at $6,006,455 were s ld for the 

 benefit of the several states, the reclamation fund, 



