There was a longstanding argument that the reserves should be developed; Wilson's first Interior Secretary Franklin Knight Lane was an advocate of this position. When the Harding administration took office, Interior Secretary Fall took up Lane's argument and Harding signed an executive order in May 1921 transferring the reserves from the Navy Department to Interior. This was done with the consent of Navy Secretary Edwin C. Denby.[210][211]
The Interior Department announced in July 1921 that Edward Doheny had been awarded a lease to drill along the edges of the Elk Hills naval reserve in California. The announcement attracted little controversy, as the oil would have been lost to wells on adjacent private land.[212] Wyoming Senator John Kendrick had heard from constituents that Teapot Dome had also been leased, but no announcement had been made. The Interior Department refused to provide documentation, so he secured the passage of a Senate resolution compelling disclosure. 