The Lee County journal. (Leesburg, Ga.) 1904-19??, 1920-03-05
OIL LEASE BILL
PASSED At LAST
NATIONAL RESOURCES ON GOV.
EMINENT LAND WILL NOW BE
DEVELOPED RAPIDLY.
COAL is ITS CHIEF FEATURE
Conditions Under Which This Fuel
and OIL May Be Prospeeted For
and Taken From the Public Do.
main.
BY JAMES p. HoRNApAY.

6J JAMES p. HORNADAY.
Washington.-After some years of
parieying congress has finally agreed
on the conditions under which the gov
eminent will permit the mining of
coal, oil, gas, phosphate and sodium
on the public domain. The bill agreed
TO Is commonly known as the oil leas-
ing bill. II is the expectation of con-
sress that under the legislation the
natural resources to which IL relates
VIII be developed rapidly. The at
tempt to fix conditions under which
the government would permit the TAX
ing OF coal, oil, gas. etc. from lands
owned by II was started away back
In the Roosevelt administration. In
every congress since that time the sub
lect has been up. A pending piece of
legislation relates to the development
OIL WaierpoWer on the public domain.
1t seems likely that this legislation
VIII also be perfected at this session.
Perhaps most interest in the legisla-
ton that has just been completed cen
tiers in the conditions under which
coal is to be taken from the public
domain. All the arrangements for
taking coal as well as the other de-
posts covered by the legislation will
have to be made with the secretary
of the Interior. The first step toward
the development OF the government
{
owned coal land will be to subdivide
this land into leasing tracts of 40
acres each or multiples thereof. In no
case will anyone leasing tract contain
more than $3.50 acres. Leases are to
be awarded by competitive bidding.
There are some provisos or exceptions
written into the legislation. For in
stance, where prospecting or explOr-
atory work is niece isary to determine
the existence or workability of coal
deposits, the secretary of the interior
may issue prospecting permit for a
term of two years for not exceeding
25G0 acres; and If within that period
the permittee shows to the secretary
that the land contains coal in CONNER
cial quantities. he is to be entitled to
lease.
Restrictions on Railroads.
No lease Of coal land is to be ap-
proved or issued until after a notice
of thirty days has been given in a
newspaper of general circulation in
the county in which the lands or de-
posits are situated. There is also a
provision that no railroad shall be per-
mitted to hold lease TO mine coal on
the public domain except for its own
use and no railroad company can re-
Ceive more than one permit or lease
for each 200 miles Of its railroad line
within the state in which the coal land
is situated
The most of the delay in getting
through this legislation was due to
the Inability TO agree on the compen-
sation which the government should
exact. As finally agreed on the bill
provides that when the government
decides to lease tract of coal land,
it shall announce in advance of the
offering of the leases the royalty that
to be less than cents n ton, payable
at the end of each third month sue
ceeding that of the extraction Of the
coal from the mine and an annual
rental payable ut the date of the lease
and annually thereafter on the lands
or coal deposits covered by the lease at
such rate as may be fixed by the sec
rotary of the interior prior to offer
ing the lease This rental is not to
be less than % cents an acre for the
first year. not less than so cents an
acre for the second, third, fourth and
fifth years, and not less than 81 an
acre for each year thereafter during
the continuance Of the lease.
Coal Leases Indeterminate.
Leases are to be for indetermlnate
periods on condition of diligent devei-
opment and continued operation of the
mine, except when operation shall be
interrupted by strikes. At the end of
each 20-year period the secretary of
the interior may require a readjuSt-
ment of terms and conditions.
AS to the oil and gas, the legislation
provides that the secretary of the in
terror may grant to any qualified APP
,)licant the exclusive right for Pc
riod not exceeding two years to pros
pect for oil and gas upon not TO exceed
1850 acres OF government land. On
establishing TO the satisfaction 0f the
interior department that he has locat-
ed valuable deposits of oil or gas the
permittee is to be entitled to a lease
for one-fourth of the land embraced
in his prospecting permit. The lease
is to be for term of 20 years upon
a royalty of 5 per cent of the value
OF the production and the annual pay
mcnt in advance of a rental of 81 an
acre. the rental paid for any one year
to be credited against the royalties as
they agree for that year.
No Big Military Legislation Likely.
It looks now as if the United
states would continue to drift so
far as preparedness for possible
war is concerned. The Immediate en-
sct,nent of military legislation of i'm