Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-08-10
AGENCY HAS THE BLANKS
ALI INFORMATION CAN BE OBS
TANNED FROM AGENT Al
PANHUsKA.
ACTIVITY Is EXPECTED
Regulations ns Arranged, Give the OH
Men Much the Worst OF the
Leasing Gnmc.

PAWHuSKA. okla. Aug. 9.--tspo-
cial) Acting on Information from
that President Taft has
sustained the department In turning
down the application OF the Uncle
sam OH company for a rehearng in
the matter Of oil leases Tor the Usage
Nation the superintendent Of the
agency here today announces that he
Is ready to receive applications under
rules ana regulations recently promul-
gated and applicants can obtain blanks
and fun information by calling on or
addressing him,
This practically settles all questions
al TO the oil leases In the Usage ma
ton, and great activity Is expected as
a result Of the final determination Of
disputed points.
The hearing before President Taft
was taken up on the application OF
the Uncle Sam OH company, who Sc
cured control OF the Usage council at
the last election and sought to bring
pressure upon President Taft to re-
open the matter and conisder Its ap-
pllcaton for n blanket lease on az
least portion OF the oil lands OF tho
nation. The president has sustained
the department throughout In refns-
ing to give n blanket lease.
The royalty is one-slxth Of the
gross proceeds Of all produced II the
market value OF oil be 60 cents or
higher The regulations require that
such royalty shall be paid in money,
based on the actual market value, not
less than the guaranteed minimum
value OF go cents per barrel" The
lease contains the following provision:
1T is understood and agreed. however,
that should the actual market value OF
such oil be less than 60 cents per
barrel. the lessee guarantees to pay
royalty based on the minimum prico
Of 60 cents per standard barrel"
These leases run until April 3, 1881.
II at any time during the life Of these
leases, the market price OF oil falls
below GO cents, the producer still has
h. pay 60 cents per barrel in money
for the Indians one-sixth OF the dl.
In years gone by oklahoma oil was
higher than II Is now. II fell to 30
cents. II Usage oil should fall to 30
cents in the future, the producer
would still have to pay go cents per
barrel to the Indian for one-slXth "of
all oil produced" It would take Just
one-third of his gross production TO
10 al uhnn1I 90 tO
s1.2O per barrel however, the Indian
gets that price for all his oil, In
other words. the producer has TO take
the chances on his one-sixth royalty
being increased by oil falling below GO
cents.
The "gas" provisions In these leases
are especially irksome. Section 90 Of
the regulations reads as follows;
IAN gas discovered and produced
must be Utilized within the limits Of
Usage county, except with the con-
sent OF the Oscage National Council,
approved by the secretary Of the in
terror" And the regulations show
that that word utilized was used
advisedly.
The royalty on gas is one-siXth "ot
| the market value of such gas at tho
well" Although the market for this
gas Is limited to Usage county, yet
whenever the Usage council or the Sec
rotary Of the interior "be of the opin-
ion that the prize at which the lessee
sells such gas is not the true market
value at the we'll the secretary OF
the interior shall. after notice and
hearing, determine the market value,
and the lessee shall account to tho
lessor at the rate fixed by the secre-
tary Of the interior as aforesaid No
producer can find a market for gas
except upon contract at a fixed price
for definite period, yet whenever
A secretary Of the interior takes a no.
ton to tilt this price the producer
n ust stand the loss on the Indians
royalty gas.
Section "a OF, the regulations con-
talns this provlslon In all those
cases where well Is producing oil
and gas and It Is impossible or I'M
practicable to case the gas off from
the oil. it shall then be within tho
discretion OF the officer in charge.
subject to appeal to the secretary or
the interior to determine whether
such well shall be operated as an oil
wen or shall be closed IN until such
time as the gas may be utilized and
the oil produced without waste OF
gas"
one good big gas well would fur
l, - . ~ 80, hn nnillignnn