The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-02-25

the prospecting permit,
Provided. that the pcrmittee shall
be Efanted a lease for as much a.
Ice acres OF said lands. II there be
that humber o. acres within the per-
mir.
The area. TO be selected by Inc
permlttce. shall be In compact form
ana. II surveyed. 10 Ne described ~
the legal subdivisions OF the public
land surveys, u unsurVeyed. "a be
described by the Eovernme,. 4 the
expense % the upplhant for lease IN
accordance with rules and regula-
tons 10 be prescribed BY the score
tars Of the interior and the lands
leased shall be conformed to and
taken IN accordance with the legal
subdivisions OF such surveys; deposits
made TO cover expense OF surveys
ah1ll be deemed appropriated FOR that
purpose. and any excess deposits may
be repaid to the person or persons
makinE such deposit or their legal
representatives
Term Royalties and Rentals on
irascS
such leases shall be for a term OF
go years upon a royalty OF five per
eent in amount OF value OF the pro-
Huction M the annual payment In
advance Of a rental 0f 81 per acre. the
rental paid Tor any one year to be
credited against the royalties as they
accrue for that year with tho right
Of renewal as prescribed 10 section
~ hereof.
The permittee shall aiso he entitled
TO q preference right to a lease Cor
the remainder Of the land In his pros
pecting permit at n royalty ~ not
less han ~ i-2 per cont in amount
or value OF the production aud under
such other conditions M are fixed
for oil or gas leases IN this Oct. the
royalty 10 he determined bv COMPETE
tive bidding or fixed by such other
method as the secretary may by reeu-
lations prescribe; provided. that The
secretary shall have She right to re-
jcct any or all bids.
Prior to Application for Lease, Per-
mittee PAYS q Per cent Royalty.
Sec. i5.-That Until the pcrmiitee
shall apply for lease to the v,.e-
quarter OF the permit area hereto
fore provided for he shall pay to the
United States 90 per cent OF the gross
value Of al oil or gBs secured By
him from the lands embraced With
In his permit and sold or otherwise
disposed Of or held by him Tor sale
or other disposition.
No MaI Shall Be Drilled Wiihln
200 Feet of boundaries.
Sec. 1s.-That all permits and
leases OF land containing oil or gas.
made or issued under the provisions
Of this act. shall be subject to the
condition that no wells shall be
drilled within 200 feet Of any OF the
outer boundaries OF the lands 30 per-
mitted or leased. unless the adioin-
Ing lands have been patented or the
title thereto otherwise vested IN pri-
vate owner. and TO the further con
dillon thar the permittec or lessee
viii. in conducting his explorations
and mining operations, use all reu-
sonaole pr%Ncautiuns To prevent waste
u OIL or GnE developed IN the land,
or the cutfanCe Of water through
wells drilled by him TO the oil sands
ar the oil bearing strata, 10 the de-
%struction or injury OF the oil de-
posiis. Violations OF the pro, isions
Of this sectlun shall constitute
grounds for the forfeiture OF the per
nit or LEASE 10 be enforced through
appropriate proceedings In courts of
competent Jurisdiction.
Lands within known Geologic Struc-
turc 81 Producing Field to Bc
leased to Highest Bidder.
Section ~. THAT all unapprppri-
atcd deposits OF oh or gas situated
within the known geologic structure
OF q PRODUCERS oil or gas field q the
untntereu lnndH containing The same.
not subject a. preferential lea1e. mas
be leased by the secretary OF the IN
terror to the highest responsible bid
der by competitive bidding Under
general regulations 10 qualified APP
plicunts la areas not exceeding go
acres and In tracts which shall not
exceed in length two and ouc-hult
times their width, such leases to be
conditioned upon the payment boy the
lessee OF such bonus a. may be ac-
cepted and Of such royalty as may be
fixed In the lease. which shall not
DE less thar - 10 per centum per
,anmum iu amount or value Of pruduc-
tlon. and tho payment la advance ot
"a rental OF not less than 81 per acre
Der annum thereafter during thc
continuance Of the lease, the rcntnl
pe.I FOR any one year TO be credited
against the royalties as they accrue
Tor that year. Leases shall be FOR IL
period ot 20 years, with th" prefer
ential right In the lessee 20 renew
the SANE Tor successive periods of ten
years upun such reasonable terms
and conditions as may he prescribed
by the srcretary ct the Interior. uu-
loss otherwise provided by law az the
time OF the expiration OF such periods,
S~csrctar, MAY Reduce Royalty on
Les. Than iOii BarrcI We'll.
Whenever the average daily pro-
duciiou of any oil wei shall not on
coed ten barrels per day. the secro-
tury OF the interior rs authorized 10
reduce the royalty when h. his judi
ment the wells can not he success
fully co. rated upon the royalty iiNch
in the lease. The provisions Of ihtH
paragraph shall apply 10 all OH ana
gus leases under this act.
ACCOMPLISHMENTS OF Claims Have
Preference Right "a New iea~c.
section IS. That upon relinquish-
mcnt 90 tho United states, filed m
the raIoral land onice within siN
months after the approval Of TINS
luci. GOD ul rights, tltle and Interest
claimed and posssssed prior 10 uly
30. 1919 and continuously since h}
the olu mant ar his predecessor IN IN
Itcrcst under the ~prc-cNisting placer
mining lev 10 any oil or gas beuring
land uuou which there has been drhl-
ed ono ur more oil or Fas wells TO
discovery embraced In the executive
order oil withdrawal issued Sept, ~
1903. and not within aaS naval petrol
cum reserve, and upon payment oi
royaIt, 10 the United states OF an
amount equal TO Tho value az INC
time oi production OF one-eiyhth OF
am tho oil or gas already produced
except ol or gas for production plt