the Geological Survey conducted an aerial magnetometer survey of the entire area north of the Brooks Range, including Naval Petroleum Reserve No. 4 and adjacent public lands. A gravity meter survey of the flat Arctic plain within Naval Petroleum Reserve No. 4 was accomplished during the years 1946 to 1950, inclusive. This survey has been completed.

About 15 percent of the basin has been covered by seismic work; however, an additional 50 percent of the area is either not workable by seismic methods or is not considered at this time to require seismic surveying for a reasonable evaluation. Surface geological surveys by the Navy Seabees in 1944 and 1945 and by the United States Geological Survey from 1946 to the present have covered about 90 percent of the workable areas in Alaska north of the Brooks Range. The entire reserve and adjacent areas have been aerially mapped by the Army and Navy photographic units.

A policy decision made by the Assistant Secretary of the Navy after the June 1951 Operating Committee meeting in Fairbanks, Alaska, and concurred in by Representative Vinson, chairman of the House Armed Services Committee, was to continue exploration in Naval Petroleum Reserve No. 4 on a year-toyear basis provided results so justify and funds are made available. Emphasis has been shifted to possible pre-Cretaceous horizons and the program for calendar year 1953 includes two exploratory wells to test all prospective producing zones through the Mississippian Lisburne limestone.

A total of $45,265,000 has been appropriated for this program through fiscal year 1952.

5. The oil shale reserves.--While the Secretary of the Navy has congressional authority, under the act of June 4, 1920, as amended, for the exploration, development, and operation of the naval petroleum reserves, no such authority exists for the development and operation of the oil shale reserves. The Bureau of Mines is presently conducting experimental work at the oil shale demonstration plant near Rifle, Colo., on Navy lands with Interior Department appropriations. Present estimates are that the Navy's oil shale reserves in Colorado contain approximately 7 billion barrels of recoverable shale oil in rich shales assaying 25 gallons or more per ton, and about 36 billion barrels from the entire deposit, both rich and lean. No estimates have been made of the recoverable shale oil from the Utah Reserve. A table showing the area of the oil shale reserves and the estimated shale oil reserves in Government lands is appended as table V.

6. Conclusion.-Navy's policy as to the future administration of the naval petroleum reserves will be, as it has in the past, that there shall be the maximum conservation of oil consistent with the needs of the national military and naval security. The Navy has regarded itself as charged by Congress with the responsibility for maintaining its present holdings of oil lands as a reserve in the ground, insofar as that can possibly be achieved, and for restricting production to the minimum necessary to maintain the field in a state of readiness.

As to the oil-shale reserves,the Navy's policy is to watch and encourage research, both governmental and private, in synthetic-liquid fuels from shale. The potential value of the shale reserves must not be underestimated.

From fiscal year 1916 through fiscal year 1952, the sum total of $103,924,008 had been appropriated for the naval petroleum reserves of which approximately $95,544,939 had been expended to June 30, 1952.

Total income from all sources from the naval petroleum reserves during the same period was $97.855,228 which has been deposited in the United States Treasury.

It may, therefore, be pointed out that after exploring and developing Naval Petroleum Reserve No. 1 to its present potential and having proven a reserve of approximately 700,000,000 barrels of oil in this field, and having carried out the Alaska exploration program and administration of the other reserves, the total income figure exceeds all capital and noncapital expenditures made to date by approximately $2,300,000.