Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-08-13
GOVERNMENT RULES
ARE C0NFISCATORY
Restrictive Power Of S5ecre-
tary Of Interior I'M
tcnable.
ARE MOST DRASTIC
Action Means That An APP
peal Must BE Taken to
L. $. Congress.

The regulations prOyide Acreage
limitation Of 4,S00 acres for oil and
gas lease; drilling one well on every
40 acres within one year or pay rental
Of am acre; royalty Of one sixth on
every well producing less than 100
barrels per day and one fifth on every
well producing 100 barrels a day or
more; payment of 500 for every acre
of cultivable land on which well is
drilled and S35 on every acre not
cultivated but. subject TO cultivation,
$40 for the site of each $50 barrel
tank, compensation for tanks Of
larger size to he agreed upon later;
all casing must be left i'm the hole
at expiration of lease; all buildings on
lease to become property of lessor at
expiration Of lease bond of 81, 600 for
every l60 acres leased; line wells
must be drilled 800 feet from the line
and inside wells must be 500 feet
apart; all damages to crops through
drilling or otherwise to be adjusted
between the lessor and the lessee;
$500 a day fine for failure to carry
out regulations; no drilling on home
Steads except by consent of both part
les approved by secretary of the in
terror, one sixth royalty on all gas
wells, one sixth royalty on all gasO-
line produced from gas: one sixth
royalty on all gas sold from casing
heads for manufacturing or domestic
purposes; all lessces in the Usage
must maintain offices at PaWhuska:
all drilling must be under direction of
an inspector to be appointed by the
secretary of the interior, contracts
may be made by persons owning com
hinatOn gas and oil well for the sale
of either the oil or the gas under
the direction Of the inspector; all
wells producing more than 25 barrels
Of oil daily ON J0ly |, 1915, to be put
mp at auction and sold to the highest
bidder; term of lease to be five years
or as long thereafter as oil and gas
are found in paying quantities up to
1891, the date of the expiration of the
tribal agreement, acceptance OF regu-
lations must be filed by or before
sept. I, 1915, or sublessees forfeit
their preferential right Of purchase;
lessees drilling in good faith by or
before December /, 1915. will be
given right TO new lease.
COnfisCaton of Property.
The above is condensation Of
what the secretary of the interior has
laid down as the law for the govern
ment Of leases i'm the Usage reserva-
ton beginning March 16, 1916 1t is
the mark of restrictive effort on the
part of the government and i'm the
opinion of those who have given the
subject mature consideration, is more
nearly an out and out cleancut con-
fiscatiOn of property than anything
ever before attempted by any govern
mental agency. The regulations are
far and away more drastic than the
terms Of The resolution of the Usage
council adopted in June which caused
such an uproar i'm the oil country and
which the oil producers have been
seeking to have modified during the
past few weeks. Apparently the Cf-
forts Of the oil producers i'm the Usage
who had staked their fortunes on
renewal Of existing leases on terms
whereby they could at least get along
have resulted in making the depart
ment but the more determined to put
on the brakes and absolutely pro-
hibit the further development OF
Usage lands
Among the new features which
have been inserted In the regulations
and which were not n part of the
resolution adopted or said to have
been adopted by the Usage council
at Washington in June are those re-
miring payment for land when occu-
pied by oil wells, payment for sites
for field tanks, bonds for faithful per
IOTllaItC OF lttNt tbNtIblllSt llllt l'i
failure TO comply with regulations,
fixing distance between wells, ap-
pointing, inspect or refusal to permit
drilling on hOmosteads without con-
sent Of the lessors establishing and
maintaining an office i'm Pawhuslla.
Not Digcstcd Yet.
oil men have not yet had sufficient
time 10 read the regulations and
digest them sufficiently TO express
opinion other than to say that If the
Usage council adopts the regulations
II will make all the more certain an
appeal to congress to do something
for the people who have put the
Osage reservation on the map as an
oil producing country. and who have
added millions of dollars to the tax
able wealth Of this state 20 say moth
ing of making millions for the Indians
I'm the form OF royalties. Having
tried in vain TO convince the secretary
Of the interior and his undor-officials
of the Injustice Of the regulations at
several hearings held I'm Washington.
the producers I'm the Usage feel that
there is little if any use In trying to
make an impression on the Usage
council. If the members Of the
council see things as they ought TO
see them. well and good, hut n the
members Of the council are so com
pIetelv under the domination OF the
dcpartmcnt and ratify the regulations.
the matter will then Doe checked right
up to congress which meets i'm pccem-
her. The preparation made for the
hearings before the secretary In
Washington will come in handy when
the cquities Of the matter are being
considered by congressional conf
mitteC. The producers are fUrtutd
with the facts and would hc ready
10 make n showing ON few days
notice In truth they are ready now.
Supcrintcndent Wright OF the
Os1rc agency. has notified the mcm-
hers OF the Usage council that he will
arrive in pawhuska from Washing
ton on Friday afternoon and be pre-
pnrcd 10 make report of his trip and
submit the regulations which have
been approved by the secretary for
the approval OF the council.
The FIRST lntimation.
4 poet. once upou time. was toss