- 1. The Teapot Dome Scandal In the early part of the 20th century large oil reserves were discovered in Elk Hills, California and Teapot Dome, Wyoming. Rocky Mountain Oilfield Testing Center on the Teapot Dome Naval Petroleum Reserve No. 3 near Midwest, Wyoming.
2. In 1912 President William Taft decided that the government owned the land and its oil reserves should be set aside for the use of the United States Navy. On June 4th, 1920, Congress passed a bill that stated that the Secretary of the Navy would have the power "to conserve, develop, use and operate the same in his discretion, directly or by contract, lease, or otherwise, and to use, store, exchange, or sell the oil and gas products thereof, and those from all royalty oil from lands in the naval reserves, for the benefit of the United States." 3. Elk Hills, California 1912 U.S. NAVY O I LTeapot Dome, Wyoming Property of U.S. NAVY The oil reserves of Teapot Dome, Wyoming, and Elk Hills, California shall be for US Naval use only. President William H. Taft 4. In March of 1921, President Warren Harding appointed Albert Fall as Secretary of the Interior. Pres. Warren Harding Secretary of the Interior Albert Fall 5. Secretary of the Interior Albert Fall Harry Sinclair (Mammoth Oil Corp.) Edward L. Doheny (Pan- American Petroleum) Yo, Albert buddy! How about letting Edward and I drill for oil in Elk Hills and Teapot Dome! But thats Naval property! You cant drill there! Maybe $100,000 would help you change your mind! Why didnt you say so, Ed? Youve got a deal! 6. I appoint Albert Fall to be the Secretary of the Interior. PresidentWarrenG. Harding Psssssst. Albert, Take this.Ooh la la! A hundred thousand dollars! Why thank you very much Harry Sinclair of the Mammoth Oil Corp and Edward Doheny of Pan American Petroleum. 7. Later that year Fall decided that two of his friends, Harry F. Sinclair (Mammoth Oil Corporation) and Edward L. Doheny (Pan-American Petroleum and Transport Company), should be allowed to lease part of these Naval Reserves. In 1923, Harding died of a heart attack. Vice-President Calvin Coolidge took over. 8. Elk Hills, California Teapot Dome, Oil reserved for U.S. NAVY 1921 U.S. NAVY O I L Hey, the bribe worked, Harry. Our buddy Albert let us lease Naval reserves and drill for oil. Sssssweet Ed! 9. In 1927, Fall was found guilty of accepting a $100,000 bribe from Doheny. He was forced to resign from office and spent one year in jail. The land was naval property, and should not have been leased to private oil companies. 10. Except Im in jail! 1927