The Washington times., 1915-03-10
Headed by Guy Marchand,
Syndicate Offers to Take
i; : Over $4,000 Acres.
LANE OPPOSES LONE LESSEE
Secretary Of interior indicates
Oklahoma Tracts Are to Go
F.. to Small Operators.

only means by which the Indians can
reap the greatest financial benef1t for
their valuable oil and gas rights in
the Osage Nation in Oklahoma was
suggested to Secretary of the In
terror Lane and Commissioner Sells
today At the hearing into the terms
by which the so-called Foster lease
to 6so.000 acres shall be made.
Guy Marchand, Of Alliance, Ohio.
who said he represented himself and
other Independent oil men. declared
tire area and was willing to enter the
competitive field in the bidding.
Mr.. Marchand in praying for open bid
ding on the gas and oil rights put into
the record the words of Congress that
tho lands as improved by present lessees
must be returned to the Indians at the
expiration Of the present leases without
remuneration.
Held No Equity.
He declared that the present operators
on the property held no equity In the
property after the expiration OF their
leases. He said himself and associates
were prepared to bid on the entire area
Of land or upon any separate tract. His
preference. however. was for the en-
During the inquiry Secretary Lane
indicated that the Government looked
with favor upon the leasing to many in
dividuals rather than to one large con-
Germ. The Secretary also indicated that
the new leases would be SO framed as
to prevent small holders turning their
lease over to any one large interest.
nocnins were Judge John II. Brennan.
q Ba- tlesville. Okla, representing the
Indian Territory Illuminating Company.
the concern that has taken up the origi-
Bartlesvire. who said he represented in
dependent oil men.
During the statement of Mr.. Marc
hand. D. F: Connolly. representing the
rupted to make the brief statement that
no decision had yet been reached as to
present holders mot having an equity
,n.ti IN the lands in the shape Of improve
To this Mr. Marchand replied that the
only claim Of the Foster lease was
charitable one not to be ss.:ously con-
sidefed by the Secretary of the In
terror"
More For New Lease.
Asked by Secretary Lane what the
general practice In Ohio was with ref
erence to renewing leases. Mr.. March
and replied that the plan was to get
more for the new lease. To this David J.
Kelly, an Ohio operator, declared that
he had drilled $50 wells In Ohio and in
each case where the operator was salts
factory to the owner OF the land. no
additional rental fee was required from
year to wear.
Mr.. Tucker. an operator in the Chero-
kee Nation. was asked by the Secretary
Of his experiences. He declared that his
leases ran to a fixed term, and, he
added. I'VE then go into competition
with others to renew them"
Touching on the amount of royalty
the Usage Indians should receive on oil
and gas produced on their lands. Sec
retary Lane was told by Mr.. Marchand
that he realized the advantage of
graduated royalty. but that he preferred
a fixed royalty.
Mr.. Marchand in urging the secre:
tary not to limit the acreage Of land
oil operators were prepared to make a
bid for the entire area,
I'VE don't want to turn this land
ever ever to any one big company like the
'nor to any other single corporation
or to a foreign corporation"
Mr.. Marchand suggested that 1t would
be bad policy to give the lease to any
private concern or concerns who later
would turn the property over to any
one corporation.
Would Prevent Trouble.
To this Secretary Lane advised that
the contract lease would be SO worded
as to prevent this contingency He de-
clared also that the Government would
not contenancc the running of pipe
lines to tidewater and the sale of the
sole product to any foreign corporation
or nation.
Arguing against the leasing of small
tracts. Earl Oliver declared that small
leases created waste and necessitated
the Government making restrictive
regulations that otherwise We're not
needed" Mr.. Oliver was questioned at
length by the Secretary on the matter
Of royalties to be paid the Usage In
dians. Both the Secretary and the op-
orator were agreed that the oil in the
land would be far more valuable within
three or fivc years than at the present
time. and that this point should be con-
sidered by the Government In making
the lease for the Indians.
Tho hearing will not be completed
until tomorrow. a number of repre-
sentatives Of sub-lesses now on the
ground being present to urge re-
newal of the present lease at its termi-