Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-07-13
REGULATION FOR
0SAGE LEASES
.FuLE TEXT OF THE RULES AS
LAID DOWN by THE DEPAHr-
MENT OF INTERIOR.
MUST Be Sealed BIDS
A Lessor Must Wade Through Miles
of Red Tape "a Have Chance
Ia Drill.

WASHINGTON, July l2.-(spe-
cial.-lhe department OF the Interior
issued regulations TO govern the leas.
ing OF lands In the Osage reservation,
Oklahoma for oil and gas mining
properties,
The regulations provide for royal
ties OF not less than. pneslxth OF The
oil and for sealed bids for drilling
rights. In the case Of corporations
bidding for leasing rights many facts
as to the lessee must be stated, some
of which do not appear TO be neces-
sary TO establish the fact of the cor-
poratiOn's responsibility.
The regulations provide that the oil
gas, coal and other mineral covered
by the lands for the selection and de
vision Of which provision Is m<de are
Reserved 10 the Usage tribe for tWDn-
ty-fiye years from April $, 1906,
should the Usage council or any per-
son or cooperation desire 20 have any
particular tract of land offered for
lease, written request 10 that effect
should be Transmitted 20 the officer
In charge (the superintendent OF the
Usage Indian school OF other repre-
sentative Of the government who may
for the time, be In charge Of The
Usage agency and reservation, who
Will promptly transmit such requests
TO the secretary Of the Interior with
his recommendation.
The lands selected for lease VIII,
are rule, be offered in large tracts
with designated subdivisions Of from
$50 to 5,l20 acres. Bids viii be con
sidered for any one or more OF the
smaller tracts or designated sub-di'
visions up to the maximum acreage,
which may be leased by any one per-
son, firm or corporation, as provided
in tht regulations. No bid for any
fractional part or subdivision Of any
tract except as advertised, win be
considered.
Sealed bids must be submitted and
each bid must be accompanied by
certified check In an amount repre-
senting 10 per cent of the bonus Of
fered, plus the first years advance
rental Of Is cents per acre, as a guar
antee Of good faith. corporation
shall file with its first bid one certl-
fled copy Of articles Of incorporation
and, II foreign corporation, evidence
showing compliance with local corpo-
ration laws; list of all officers and
stockholders, with their post office adj
dresses, and showing the number Of
shares OF capital stock held by each,
together with various Information
concerning the financial affairs Of the
corporation.
Bids are to be opened in the pres
ence of the Usage council and placed
before the council for It's action. No
drilling or mining shall be permitted
until the lease shall have been ap-
Nr.1 Nj q a. t..,.
or. All leases shall be made for
period of ten years from the date of
approval by the secretary of the in
terror and as long thereafter as oil
and gas are found In paying quanti-
ties but no lease shall extend beyond
April s, 1881.
No individual firm, pipe line COM
pany or other corporation engaged in
the business of transporting OIL shall
be permitted to acquire any lease or
any interest therein.
Bonds for the proper execution of
the lease to the amount of $4,000 for
every designated Subdivision covered
by the lease are to be furnished by
the lessees. No lessee may hold at
any one time under lease, assignment,
drilling contract or otherwise, more
than $4,000 acres of Usage lands at
present not under lease for Oil or gas
production, but any lessee who may
surrender or in good faith transfer in
the manner prescribed in the regula-
tions all or any part of his holdings,
may acquire other lands in lieu of
those surrendered or transferred.
Leesees shall pay in addition to
other considerations annual advance
rentals as follows: 10 cents per acre
for the first year; 80 cents per acre
for the second year; so cents per acre
for the third year and 81 per acre
per annum for the fourth and each
succeeding year during the life of the
lease. Provided that all such pay
ments, Of advance rentals shall be
credits on royalties on production
during the year for which payment of
advance rental is made. The payment
of annual advance rental shall not re-
lease the lessee from the obligation
to drill test wells as required by the
terms of the lease.
Oil Royalties.
IL