The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1920-04-16
new LAW ABOUT
OIL DEVELOPMENT

The recent kentucky Legislature
very quietly passed some very impor-
| tant legislation vitality affecting own
ers of oil bearing lands or leases, and
operators of leases.
4 1t will pay all interested parties to
read il carefully:
Section !. Whenever, in any of lands
for oil and gas purposes, it is provid :
ed in substance that actual drilling or
development may be postponed by the
payment or tender of rentals on or be-
fore the date fixed in said lease for
such payment or tender If the lessee
or assignee of said lease shall fail to
pay or tender said rents on or before
the date stipulated in the lease or
contract to pay, then said lease or
contract shall be void, unless the les
sor thereafter and before executing;
a new lease or contract. shall accept
said rentals
Section 2. That all valid, existing or
future contracts and leases for oil and
gas rights upon and under the lands Of
this Commonwealth, wherein by their
terms a rental clause is provided in
event of failure to drill for oil or gas
within given period, are hereby val
idated and declared to be, and shall
be, construed by the Courts of this
Commonwealth enforcible and binding
contracts according TO 3the terms
thereof between the parties so long as
the rentals therein provided shall be
paid or rendered at and as provided by
their terms during the period of said
lease and contract.
Section 3. That the drilling of one
non productive well shall be sufficient
consideration for the discharge of rem
tails for holders of said contract and
lease for period of twelve months
after its completion, and at the expira-
ton of which time another well shall
be commenced or rentals renewed as
per said lease or contract, and If les
sor fails TO commence a well or renew
payments of rentals said lease shall
automatically expire and become null
and void.
Section 4. That in the event of oil
or gas being discogere1 in paying
quantities on an adjoining leasehold
and the products therefrom being ta-
ken out of the ground and marketed
and said well is within two hundred
Ieel OF anOlIleT lessor > properly line,
then within three months after written
notice has been given lessee to the
effect that such oil or gas has COM
menced to be transported off and
marketed from the said adjoining
premises the lessee or lessees of the
land lying within two hundred feet of
the said wells shall begin TO drill an
Offset well TO each of such wells SO To-
Gated, provided said offset wells to be
drilled are not less than five hundred
feet of each other, and upon his fail
ure to so commence said Offset well
and complete same with diligence the
said contract and lease shall automat-
ically expire and become null and void.
Provided this shall not apply to leas-
es that are being operated, or on which
wells are being drilled.
Section 5. All acts and parts of acts
in conflict with this act are hereby re-
pealed.
Section 6. Whereas, the uncertainty
as to the true intent and meaning of
oil and gas leases, within this State,
has not been definitely construed by
the Courts, and their uncertainty is
destroying development of the indus
try and driving capital from the State,
an emergency is hereby declared to
exist, and this act shall go into effect
from and after its passage can ap-
proval by the Governor.