Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-03-17

when such successful bidder shall have
executed the lease and shall deposit
with the committee good and suffice
lent bond, conditioned upon the faith
ful performance Of the covenants and
agreements Of the lease.
No land shall be advertised for lease
and no lease shall be granted by tho
committee or the department when
the price OF oil at the wells in the
Usage Nation shall be less than fifty
(5O) cents per barrel.
The independent operations here as
sembled respectfully suggest to the
secretary of the interior and the Usage
Indian council that the regulations
governing the leases Of the Usage land
should conform In all other partiru-
lars with the regulations heretofore
promulgated by the secretary OF the
interior, and now in force, in refer
ence to the leasing of lands IN the five
civilized tribes.
And that the form Of application for
permission TO lease and the form of
lease Itself shall conform I'm all par
ticulars 10 the form of lease now in
use in the five civilized tribes, except
as heretofore stated and with the fOl-
lowing exceptions, VIZ: The royalty to
be paid shall in all leases be one-
eighth of tho oil produced on the
premises and three hundred 5000 dol-
lars for each gas well from which
gas is used off the premises
The bonus bid and paid by the pro-
ducer shall be stated in each lease and
be part OF the consideration thereof.
The rentals TO bo paid on each
lease shall be fifteen G5) cents per
acre for teh first year, forty (40)
cents per acre for the second year and
one % dollar per acre for the sue
ceeding years, and shall be paid in ad-
dltion to and not deducted from the
royalties under said lease.
The lease should provide that the
lessee shall have the right to surren-
der any quarter section of the land
under lease. and be relieved from the
rental on such lands so surrendered
by the lessee, but shall not be permit
ted to surrender any fraction Of any
quarter section.
The lease should provide that any
manufacturers or gas pipe line COM
pany doing business wholly within
Usage county shall have the prefer
ence right to purchase gas developed
upon said lease from the lessee at the
rate of two CD cents per thousand cu-
bic feet at five pound pressure basis,
but that such preference right to be
binding upon the lessee must be eXer-
cised by such manufacturer or pipe
line company within a period Of sixty
(6O) days from the date Of discovery
of any gas well upon such lease.
That the lease should further pro-
vide that the lessee shall be liable to
the owner of the surface for any dam
age done to crops or improvements
upon the surface and that should the
lessee and the surface owner be un-
able to agree upon the damage and
loss sustained by such surface owner
then the lessee and the surface own
er shall appoint each one appraiser
which appraisers shall have the right
to choose third, who shall arbitrate
the question and amount of damage
and the findings OF such arbitrator
shall be final and binding upon the
lessee and surface owner.
The bond filed by the lessee with
the oil and gas committee, as hereto
fore stated shall cover the liability of
the lessee for the damage done by him
to the crops or improvements on the
surface.
The Independent producers here as
sembled agree that should the regula-
tions heretofore suggested and the
lease heretofore suggested be adopted
by the Usage council and the secretary
of the interior, and should the method
for bidding for said leases be pursued
that they will bid as liberal bonuses
for the land offered for lease as the
nature of the business will permit;
and
The Independent operators further
represent that should this system be
adopted 1t will serve the best inter-
ests of the Usage Indians, as we'll as
the producers of oil in the Usage Ma
ton; that It will meet the require
ments OF the business and prove to be
the best method of holding the price
of oil in Oklahoma above fifty (50) |
cents per barrel: and
The Independent operators further
represent that after due consideration
1t IS their belief that any form of blan-
ket lease or lease of larger tracts than
forty-eight hundred (4,SOO) acres 10
one person, firm or corporation would
be against the best interests Of the
Usage Indians and of the Independent
producers of oil.
Respectfully submitted,
S. +. GILLESPIE,
Chairman.
To the Hon. Samuel Adams,