Today In Wyoming's History: February 25: The Mineral Leasing Act of 1920

Today In Wyoming's History: February 25:

1920  Woodrow Wilson signed the Minerals Leasing Act of 1920. This act created the modern system of leasing Federal oil and gas  and coal interests, which previously had been subject to claim under the Mining Law of 1872.  

 Grass Creek Wyoming, 1916

The extent to which this revolutionized the oil, gas and coal industries in economic terms can hardly be overestimated.  Prior to 1920, these fossil fuels could be exploited via a simple mining claim, and the land itself could be patented after the claim was "proved up."  The 1920 act ended this practice as to these resources (the 1872 Act continues on for other minerals, in a very modified form, to the present day).  The leasing system meant that the resources never left the public domain in absolute terns, and the payment of the lease was a huge economic boon to the state and Federal government.