Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-02-23

who was willing 10 bid on all scctionS
and develop land in all Of the coun'
ties a dvertised. The Board had only
the alternative Of leasing this land
advertised TO this ono man, and Sc
cure as much work from him as pos
siblc, or refusing all bids, and road
yertisins It's land again.
There was no reason to suppose
that embarrassment would secure
any moro generous bid than that
which was made. It is doubtful
whether II would, and 1t Is doubtful
whether. II that same land was re-
advertised today. II bid could be Sc
cured carrying with II the great
amount OF development work offered
by the bidder.
The Board had had previous expert
ence with this bidder, they had leas-
ed to him another large tract OF land
under conditions which required him
to drill ten wells. they had knowledge
that he had performed his obligation
under that lease and had pursued the
development Of the first lands leased
to him with the utmost skill ana
speed
The terms Of that lease required
that he should drill ten wells ana
he has since drilled twenty-five on
school land covered by that lease
within space Of eight months. They
had every reason to believe that he
should pursue the development of the
lands which they awarded to him
under this last lease, with Ike skill
and speed, and that the twenty wells
which he agreed to drill would be but
the beginning Of an enormous amount
of development work on scholo lands,
which would inure to the benefit or
the various school funds Of the
state.
It was patiently IN the interest OF
the State that its land should be de-
vcloped as rapidly as possible, ana
tested prior to January l. 1915. This
development or testing could only be
secured by such a lease as the one
granted by the Board; It could not be
secured by a bonus or rental lease,
which permitted the lessee to hold
the land without drilling test wells.
Thousands Of agricultural lesses
throughout the State were pressing
the Board for an immediate sale OF
this school land; delay in leasing It,
and determining its mineral value
would have entailed immeasurable
loss to the state which would not
have been. In any degree, compensat-
ed by any bonuses or rentals which
, the State might hereafter receive.
The income Of the State from royal
ty on the oil and gas wells drilled on
its land under this lease will amount
TO "A larger sum of money in twelve
: months, than the state could hope
to receive from probable bonuses II
might in the future receive.
Had one of these sections been omit
ted from this lease and sold. the state
might lose greater sum OF money
from the oil underlying It, than IL
could ever hope to receive from
bonuses. Many sections, which have
heret ofore been sold by the state, are
now proven oil lands. and it was to
save the state from a repetition OF
. these mistakes that this large amount
Of land in probable oil territory was
segregated and leased for oil
In making this lease. the School
Land Commission protected the inter-
, ests of the state more fully than any
] state or individual has ever protected
its interest as an oil and gas lessee In
, the past.
The lease runs only for period OF
five years, at the end OF which the
lessee must pay to the State, the high
est bonus bid for the lease at that
time. IN order to secure n renewal for
further period of five years for his
lease.
The lease expires, as to the land
situated in any county In which the
lessee fails to find oil or gas on tho
lands leased to him, within two years.
y Under this provision any lands which
have not proven available for oil at
the expiration Of two years may be
sold. and the agricultural lessee eXer-
else his preference right to purchase
the same, In this way sarrying out the
intent and meaning of the enabling
act. and the laws OF the State Of Ok
lahoma.
The school Land Commission has
Il reason to be proud Of the leases made
y by It to e. W. Marland. for the reas-
l. on OF the amount OF development
work II has secured upon said lands
= within the past eight months. thirty
wells having been drilled on these
leases, which wells are now payini
monthly a large revenue to the state
which revenue will be increased from
month to month as the development
progresses.
1t might be well to point to two
sections OF land, one in Kay County
and one In Pawnee County, grantee
y to Marland. From one OF these sec
- tions. the state is receiving at th'
rate OF six thousand dollars yea
% from gas royalty. and from the othe
at the rate of twenty thousand dollar
year as oil royalty. These two sec
tions are now making for the stat
I at the rate of twenty-siX thousan'
3; dollars per year. Last year the.
earned for the state as agriculture
o leases, considerable less than on
n thousand dollars,
a ,,,ie soil Of tho land nf