The Teapot Dome Scandal In the early part of the 20 th 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.

In 1912 President William TaftWilliam Taft decided that the government owned the land and its’ oil reserves should be set aside for the use of the United States NavyUnited States Navy. On 4th June, 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."

In March of 1921, President Warren Harding appointed Albert Fall as Secretary of the Interior. Pres. Warren Harding 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 that’s Naval property! You can’t drill there! Maybe $100,000 would help you change your mind! Why didn’t you say so, Ed? You’ve got a deal!

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.Harry F. Sinclair In 1923, Harding died of a heart attack. Vice-President Calvin Coolidge took over.

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.