The Mineral Leasing Act of 1920 regulates the exploitation of fuel and fertilizer minerals on the public lands. The act resulted from the perceived failure of existing federal laws dealing with coal and oil resources. Coal lands had been managed under an 1873 law, allowing the coal to be mined for either $10 or $20 per ton on tracts of 160 or 320 acres (64.8 or 129.6 ha). These acreage limitations led to abuse of the law, and in 1906 over 65 million acres (26.3 million ha) of land were withdrawn from coverage under of the coal lands law. These lands were then reclassified according to whether they contained coal or not, and the price for lands containing coal was increased. The withdrawal and reclassification process slowed development and led many to argue for a new approach. The fate of these coal lands was soon tied to the fate of oil lands.

Oil resources were...