Carrizozo outlook. [volume] (Carrizozo, N.M.) 1910-1945, 1920-03-05
Resolution


/. The objecto Of this Company Is that
Of development Of the resources Of the
vicinity lying withina distance Of eight
cen miles Of Carrizozo, New Mexico,
and to begin such development by Sc
curing a deep test we'll within the limits
Of said Territory.
2. That, owing TO the reports Of the
government Of the United States having
pointed out that such a test could not
be considered complete or thorough
without a depth Of about 1000 feet he
attained owing TO the fact that said
territory lies several hundred miles
from any territory proven for oil or
gas, II Is necessary that leases for oil
and gas be secured on practically all the
patented acreage, and considerable Of
the state land. before a competant
Drilling Company can be induced TO
to furnish Capital for making a Geolo-
gical Survey and drilling a test we'll TO
the depth Of 1000 feet; that II Is neces-
sary. In order 10 secure n drilling con-
tract that will insure the desired test
and protect the community and leases
from fraud and speculation. to demand
that a substantial forfeit or bond be
provided by the Drilling Company az a
guarantee Of their faithful performance
Of the terms Of n contract; that all re-
liable Drilling Companies operate on a
safe basis in ovid Cat Territory and
make sure that no loss will occur to
them ms a result Of proving a territory
TO be dry, by demanding sufficient acre-
age under lenses to enable them. by as
signing such acreage for a consideration
10 finance their drilling operations.
3, That the New State Oil g. Gas
Co., ngree TO furnish the time and en-
ergy necessary. without cost to the
community, of securing the leases on
patented lands, and, If successful in
getting enough patented acreage. under
lease, to warrant them, TO endeavor to
secure sufficient acreage under State
leases which together with the patent
ed acreage under lease will justify a
reliable Drilling Company in making
the test for oil and gas under the pro-
visions of a contract ms outlined above.
4. That they will require, in their
contract with such II company, that a
substantial forfeit or bond be made by
the Drilling Company, and that a well
be drilled to a depth of 4000 feet, unless
terminated by proof of striking granite
or other igneous formation after the
depth Of 5000 feet has been reached, or
unless oil or gas in paying quantities
be struck before such depth be attained.
s. That all leases secured shall be
secured for the purpose of turning on
a drilling contract, and that all leases
shall be for the term of five years and
as long thereafter rs oil or gas is pro-
duced on the land covered by each
lease and shall provide for n eighth
royalty for the owner of the land leased,
for 20 cents per acre rental, payable in
advance after the first year and fol
compensation for gas used from gas
wells.
q. That the New State Oil a. Gas
Company will look entirely to the Drill.
ing Company with which they contract
for compensation for their services.
I. That as II further guarantee OF
protection to the land owner and proof
that their proposition is not speculative,
the said Company agree to turn al
leases back TO the lessons in case OF
failure TO secure a bona fide contract
with the provisions as above set out,
and that will m a test wei
within twelve months from date OF
lease.
AND WHEREAS. The benefits to be de.
rived In the successful completion of
test we'll as proposed, In the proof Of
the existance or non-existance of oil
/ gas, coal. gypsum, sodium, phosphates
salt and possibly other minerals. ais
artesian water. and also the direc
benefit TO the land owners derived iron
values placed on royalties and in tn
increase Of land values themselves, an
: the increase Of business In all line
|, due to the increase Of capital and popu
| lation brought into this vicinity, ar,
extensive and are properly matters /
be considered by this board;
Now THEREFORE,, Be Il resolved, tina