Petroleum Production - Foreign - Oil Development in Colombia in 1928

No important producing developments took place in Colombia during the year 1928. This was at least partly due to the paralysis of operations by the passage, during the latter part of 1927, of a law which was regarded by the oil companies as confiscatory and unjust, and the promulgation of exceedingly stringent regulations of this law under decree No. 150, published Jan. 28, 1928. This decree, which contained 24 articles, practically prevented not only producing operations by the oil companies but even such activities as geological explorations and surveying, as severe fines were imposed for the possession of maps not registered with the Ministry of Industries. Both this regulatory decree and the law were subject to attack in the courts by several of the oil companies. The regulatory decree was suspended May 22 by Presidential proclamation, until the suits against it are decided by the Supreme Court and Council of State. Though another law was introduced into the Colombian Congress at a later date, no action was taken on it, and at the time of the writing of this paper, it would appear that no oil bill will pass the Colombian Congress during the present session. The Barco concession, which was revoked in February, 1926, still continues an unsettled matter, although there have been rumors that the government was attempting to come to some decision on this rather difficult question. A hopeful sign toward the close of the year was the settlement of negotiations with the Tropical Oil Co. over the acceptance of the payment for royalties due the government from that company. This settlement, which covered a royalty on crude oil produced from June 30, 1926 to June 30, 1928, represented a cash payment for approximately 3,000,000 barrels. It is to be hoped that during the coming year the Colombian government will see its way clear to clarify its position on petroleum legislation. A good augury for the future was the statement made by President Abadia Mendez on New Year's Day, in which he courageously admitted the errors of previous legislation and said, regarding oil, "Very soon