ABSTRACT

In 1894 the first offshore oil deposits were discovered near Santa Barbara, California, when it was discovered that the Summerland Field extended out under the Pacific Ocean.1 Five other offshore pools were discovered in the Continental Shelf adjoining the California Coast between 1921 and 1936. The latter discoveries were made under lease from California, because in 1921 that state enacted a general leasing statute that applied to the marginal sea. With the development of oil production under state lease, organizations and individuals began to file applications with the Department of Interior for oil leases on the submerged lands adjoining the California offshore producing areas. Between 1921 and 1937, the Department of Interior rejected hundreds of applications on the grounds that the lands applied for belonged to the State of California. Secretary Ickes wrote:

However, by 1937 the importance of offshore oil was apparent. Also by that time, with so many applicants insisting that the land belonged to the United States Government, Secretary Ickes began to have doubts.