Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-03-22
In the Oil Fields
CONTINUED FROM PRECEDING PAGE
SCHOOL LAND LEASES
ON COMMERCIAL BASIS
Legislature Passed Bill Of
Great Interest to Oil OPP
orators of Oklahoma.

passed by the recent Legislature and
is now in the hands of the governor.
who will approve it. This measure
commentaries school land leases in
the state and will no doubt prove of
incalculable benefit to school land
lessees. II gives the state the same
advantage in leasing lands for oil and
gas purposes as are now enjoyed by
private individuals. Heretofore the
leases only extended for period of
five years and If n lessee was FORUM
ate enough to develop "A good property
he was forced To turn the stuff back
to the stare Just when it had begun to
pay out. The Knic bill gives him pre-
ference rights for renewal of the lease
on an appraised valuation at the end
of the five-yCar period. The rctroac-
tive clause, inserted 10y the house
was stricken out in conference COM
mittee, so the bill, as il finally passed,
does not apply to present lcssees.
The fun text of the act follows:
Senate Bill No. 1St.
CBy KNIE)
A bill entitled an act regulating the
leasing of school and other public
lands owned by the state for oil and
gas PURPOSES, and declaring an emer-
gency.
BE 1t enacted by the people of the
state of oklahoma:
Section l. The commissioners of
the land office are authorized to lease
for oil and gas purposes any of the
school or other lands owned by the
state of Oklahoma, which such com
missoners may deem valuable for oil
or gas, for the term of five years and
as long thereafter as oil or gas may
be produced therefrom I'm paying
quantities, upon such terms and con-
ditions and in such quantities as the
commissioners shall by rules and
regulations prescribe. Each such
lease shall provide for the delivery to
the state of a royalty of not less than
one-eighth part of the oil or gas pro-
duced from the leased premises or in
lieu thereof the payment To the state
of the market value of said royalty
interest, as the commissioners may
elect. Such leasing shall be made by
public competition after not less than
thirty days notice by publication in
two newspapers authorized by law to
publish legal notices, one of which
newspapers shall be published at the
state capitol and the other in the
county where the land is situated.
Such leasing shall be let by sealed
bids and each lease awarded to the
highest responsible bidder. Such oil
and gas leases may be assigned only
with the consent and approval of the
commissioners of the land office;
provided, that the commissioners
have the right to reject any and all
bids.
Section 2. The commissioners are
empowered to segregate any of the
school or public lands for mineral
lf faI. fln ,tgsfas ,fse
may by order entered of record, de-
termine to be valuable for oil, gas or
mineral purposes, and each agrlcul
tural, grazing or other lease of the
surface rights or interest in any lands
so segregated shall reserve to the
state. its lessons or grantees, the right
to explore, drill, operate for oil or
gas on such lands as well as the right
to enter upon the said lands and en-
JOY the mining rights so reserved.
Section 3. All oil and gas leases
executed by the commissioners of the
land office shall be for a term of five
years and as long thereafter as oil or
gas may be produced in paying guam
titles provided, upon the forfeiture,
or cancellation, or surrender, or eX-
piration of u lease by reason of its
termination on account of the five
| year limit provided for in the En-
abling Act" or any other cause, the
school land commissioners shall pro-
vide for the leasing of such land in
the same way and in the same man
ner that the school land commission
eIs lease land which has never been
leased; provided, on such leases sur
rendered or which may expire or
| which have expired, the lessees or as
signs shall have the value of the
physical properties on such lease,
which value shall be determined by q
| board of appraisers especially ap-
pointed by the school land commits
sioners for the appraising of physical
property of leases. Provided, no
| physical property valuation shall be
attached or considered in the making
| Of n lease on tract consisting Of
more than $40 acres. II no well shall
be completed upon any leased prem
! ises within one year from the date OF
| the lease the lessee shall pay to the
| state OF Oklahoma an annual rental
! in advance of such sum per acre as
the commissioners shall prescribe in
the lease, which payment shall
operate to defer the completion of n
we'll during the year for which such
rental payment is made.
Section 4. All leases for oil and
gas shall contain a provision to drill
one well on each leased tract within
| one year from the date of such lease.
or on failure to complete such well to
pay an annual rental per acre as
hereinbefore provided. All such
leases shall further provide that the
lessee shall drill sufficient number
| OF wells upon the leased lands to off
set all producing wells upon any
adjoining or contiguous lands, and a
| further provision that the failure Of
| the lessee to diligently and in good
| faith operate the leased premises for
| oil and gas to as full an extent as
| other lands are operated in the gen
| eral oil and gas field where such
L IL Il