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Section I

INTRODUCTION

Newhall Land and Farming Company has been considering the sub-
division of about 9,500 acres of the Newhall Ranch in the Newhall, Saugus,
Castaic Junction are {see inside back cover). A preliminary master plan
of land use has been developed under which specific areas are to be zoned
for residential, commercial, and industrial use. The entire acreage in-
cluded in the master plan is in the unincorporated portion of Los Angeles
County north of San Fernando Valley (see Figure 1).

Currently, income from the acreage is derived from agricultural
and commercial leases, and from bonuses and rents paid for oil explo-
ration rights. Income from the agricultural leases has been relatively
stable during the postwar years, whereas income from commercial leases
and oil exploration rentals has increased markedly. Oil drilling activity
in the surrounding countryside has been high in recent years, and several
good oil fields have been discovered. Continued interest in exploration on
land proposed for subdivision has been exhibited by the oil companies.
Approximately one-half of the 9,500 acres is now under lease to three oil
companies for exploration.

The Newhall Company is fully aware that, in the past, oil exploration
and surface subdivision have not been compatible. However, watching the
gro'irth of the Los Angeles basin, the Company is faced with the problem
of how long it should wait, while oil exploration either proves or dis -
proves the presence of oil fields, before going ahead with a subdivision
plan.

As indicated in the Stanford Research Institute proposal for research,
the key question is whether the best time to initiate the subdivision is now
or later. The prime objective of this study, therefore , has been to de-
velop data that would point out which segments of the planned community
the Company could develop without inhibiting oil exploration. This study
has not examined any alternative uses of the land other than its current
use or its projected development as a planned community.

The initial phase of the project included a first hand examination of
the Newhall property and surrounding area. Several visits to the area
were most ably guided by Mr. George Bushell, President of Newhall Land
and Farming Company, a.nd other members of his staff.

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