The circle banner. [volume] (Circle, Mont.) 1914-1939, 1920-04-02
HOlneSteaders Given
Preference Right

Homesteaders are very much inter-
ested in that provision of the new min
eral leasing bill which gives them a
preference right to a prospecting per-
nit and lease from the government
covering the lands embraced in their
entry.
Below is given a synopsis of the
leaseing bill as it was finally passed
| by congress:
As To Gas and Oil
The secretary is authorized to grant
to any qualified applicant a prospect
ing permit for period Of two years
for tract of public land Gncluding
those in national forests) not exceed
ing 1850 acres, not in known geo.
logical structure or producing field,
which gives the permittee for that
period an exclusive right to prospect
for and develope oil and gas. He must
begin drilling operations in six months
and within one year drill one or more
wells to a depth of not less than 500
feet, and in the two years to depth
of 1900 feet, unless oil or gas is soon
er discovered. On a proper showing an
extension of time may be granted. On
the discovery of valuable deposits of
oil or gas, the permitee is entitled to
lease for one-forth of the area in
the permit.
Rights may be initiated as follows:
If the applicant will erect in con-
spicious place on the land for which
he wants permit a monument feet
high and post thereon notice stating
that within 80 days he will apply for
permit, he shall be entitled for 80 days
to preference right over others to q
permit for the land so identified. With
in 80 days after receiving the permit,
he must mark each of the corners
with substantial monuments. The pre-
liminary notice to be posted must con-
tain the name of applicant, date and
description of the land Surveyed or
unsurveyed lands may be applied for.
Leases are for term of 20 years
upon royalty of 6 per cent and
rental of s1.00 per acre for the land.
the latter to be paid in advance. The
permitee is also entitled to pre-
ference right to lease the remainder
Of the land in his permit on royalty
basis of 121z per cent.
Lands within the known geological
structure Of producing oil or gas
field are to be leased by the secretary
under competitive bidding.
Homesteaders Protected
The section giving agricultural
claimants preference right to pros
pecting permit reads as follows:
Sec. 20. In the case ofland bona
fide entered as agricultural, and not
or classified as mineral at
the time of entry, but not including
lands claimed under any railroad
grant the entryman or patentee. or
assigns, where assignment was made
prior to January /, 1851 the entry
has been patented with the mineral
preference right to a permit and to
ease, as herein provided, in case OF
discovery, and within an area not
greater than at ownership entryman
md patentees, or assigns holding re-
,tricted patents may combine their
not to exceed 1850 acres for
he purpose of making Joint applica.
ion.
The exact wording of this section is
given as same will be found in in
crest to prospecting applicants.
The synopsis is intended only to
,over the general scope of the bill and
specially the provisions bearing on
he rights granted and procedure in
connection with applications for per.
nits or leases.