Production - Foreign - Petroleum Activities in Columbia during 1930 (With Discussion)

There were no important changes in the producing situation in Colombia in 1930, because the emergency bill passed by the Colombian Congress in 1927 is still in effect, and therefore no change has taken place in the law governing petroleum. At the close of 1930 the Colombian Congress began to consider a new petroleum bill. This measure is an improvement on the preceding bills which had been the subject of so much debate in the Congress. However, it cannot by any means be regarded as perfect, and a number of criticisms may be justly leveled at it. The most substantial one probably is that the royalties on public lands, and the taxes on private lands, while apparently low, are deliverable at seaboard, or payable based on seaboard price at the option of the government. If the government exercises its option to take the oil at the mouth of the well, the cost of the transportation figured back into oil is also deliverable to the government. This phase of the law has the effect of making seemingly low royalties a burden on the operator. The fact that taxes on private properties are deliverable in kind is also an unusual provision for which there is no good precedent. The pipe line provisions are also noteworthy, and the government has authority to fix rates and also to deny permits to construct pipe lines for reasons affecting national economy. There are also clauses enforcing unit operation on both public and private lands, and collecting a tax of 1 c. per 1000 ft. of gas wasted. It remains to be seen whether this bill will be enacted, or whether it will be substantially modified. This much may be said, however, that unless it is modified, it will defeat its own purpose; i. e., promotion of petroleum development in Colombia. Company Activities The South American Gulf Oil Co. shut down its operations during the year, and now employs only watchmen at its camps, Las Monas and El Tigre. The Standard Oil Co. of California continued operations on the Coast at Repelon and Gualapa. At the close of the year Repelon