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Because the Newhall property is essentially raw land, the location of
drilling islands can be planned more easily than would be pas sible in
built-up areas.

Oil companies prefer to drill in open countrysid_e where a minimum
of restrictions are placed on drilling operations. However, more and
more drilling is taking place in city and country areas where residential
or industrial development exists. The oil fields that were relatively
easy to discover have been discovered; and the oil companies must now
search for oil under increasingly difficult situations. If the oil com-
panies are to efficiently exploit oil and gas natural resources, drilling
in residential areas must take place .

Another problem that the Company should recognize is that of slant
drilling {whipstocking) exploratory wells. Generally, oil companies
would prefer to drill straight holes in wildcat areas; however, Union
drilled several exploratory slant holes in L~_ Habra Heights, and the
Texas Company is currently exploring under the Long Beach Municipal
Airport from a drilling island situated at the west end of the field. The
technique of slant hole drilling has progressed remarkably, to the point
where most major oil companies are not at all adverse to using this
type of drilling in almost any situation. Slant holes are somewhat more
expensive than straight holes, but it is reported that holes deviated no
more than about 20 degrees are almost equal in cost to straight holes.

Although exploration from islands us'ing slant holes is not the pre-
ferred method of searching for oil, it iq being done. In the future, it
can be expected that more of this type of exploration will take place.
Newhall Land and Farming Company should follow oil exploration de-
velopments in such community tracts as La Mirada, where for the first
time a large number of drilling islands have been retained in a residential
subdivision.

The Towns of Newhall and Saugus

Newhall has an estimated population of ·about 3000. It is charac-
terized by low cost, marginal dwelling units and a business district that
has not kept pace with the times. Some of the factors which have led to
this situation are:

1. Many of the people in the Newhall area find it convenient to
shop in the nearby San Fernando Valley.

2. The towns lack an adequate industrial base .

3. Both towns show the ill effects resulting from an absence of
zoning ordinances. House trailers on blocks, small houses
· next to bigger ones, few sidewalks, and a generally run-
down appearance give the unmistakable impression that New-
hall and Saugus are substandard communities.

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