Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-02-05
THLOCCO LEASE Be
FRUBtD INTO NOW
Eleven Of Fifteen Members
of House Committee
Join in Letter
PROPOSITION is GOOD
Cancellation Is Sought in
Event All Apparent
Facts Are Proved.

Special to The World
WASHlNGTON, Feb. g. Signed 10y
eleven Of the fifteen members Of the
house Indian committee, who attended
the hearings ON the Murray resolution
TO withdraw uuallotted lands of the
Creek nation from allotment nave
joined In letter to Secretary lane
calling upon him TO investigate inc
terms of the oil lease on the BARNEY
Thlocco allotment held hy tho Black
Panther oil a Gas CO., and approved
by the federal court of the eastern
district Of oklahoma, upon recon-
mendatiou Of United states Attorney
-. IT. lIncbaugh. According TO com
mittce members, the royalties would
be eaten up paying for permanent I'M
provemcnts placed on the land 10y the
Black Panther company Secretary
Lane is asked 10 cancel the lease II
after investigation the above propo-
sition proves TO be true
II is the contention Of majority
OF the membership OF the house Indian
committee, that under the terms of the
lease that the property would be
practically valuelcss before the own
ership of the allotment could finally
be determined by the courts
mony brought out recently, points out
that under the present lease IT would
result in the Black Panther company
acquiring the property without hay
ing paid out one cent Of royalty.
The committees communication TO
Secretary Lane reads in part as fol-
lows:
ct further developed that it IS
probable, according 10 the statement
of the district attorney Mr. Line
haugh. that this litigation may con-
tinue for period of from two to five
years and that according 10 the terms
of said lease the Black Panther on a
Gas Co., the lessee, will take from
said property the thrCc-quarters OF all
of the oil and gas for the development
and operation OF the same. The oyi-
dence before the committee indicated
that prior TO the termination of the
litigation the property would perhaps
be completely exhausted. Therefore,
IL will be seen that the said company
under the peculiar terms Of tho lease,
differing from the customary leases
either commercial or departmcntaD,
requiring that the prevailing litigHnt
shall reimburse the lessee for all per
manent improvement placed upon said
property, a copy Of which Is enclosed
Nould Itnuef property OF niue Ndlut
or no value to the ultimate owner
thereof
THE district attorney further stated
that the property was perhaps worth
$1,000, 900 Therefore. It follows that
the royalty held by the receiver will
TO $4,000, less expenses OF
receivership, court costs, cts. II is also
testified TO that the number OF wells
necessary to fully develop the prop rty
would De from 36 TO 40 in number
that the average cost of the perman-
ent improvements Of said wells would
be from $4,000 to $4,000 cash. for
which the Black Panther OH ~ Gas |
Co. would eventually be reimbursed
Therefore, simple calculation T.
will show that at the end of the /
litigation the party prevailing would /.
be In debt 10 the Black Panther OH /
s Gas co. II il were not for the say /
ing clause i'm the court order proyid- /.
ing that I'm no case should the pay /
meut for improvements exceed the .
amount Of royalties paid to the re- .
Ceiyer
"m view of the above statements, .
as Evidenced by the printed hearings .