The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1920-04-22

I AlAO4O u T. At1& PAO ~
In general, the act provides for the
leasing to citizens of the United
States, individually or in associations
or to corporations, of deposits or
lands containing such deposits, be-
longing to the United States, of the
minerals mentioned above, including
oil, oil shale, gas, coal, phosphate and
sodium. Lands in national forests
are included, but lands in national
parks are excluded, as are also lands
in areas reserved for military uses.
All laws providing for the sale of
lands containing such minerals are
repealed, and hereafter they can be
developed and worked only under the
leasing system. But valid claims, ex-
listing at the time of the passage of
the new act and maintained in ac-
cordance with the laws under which
initiated, may be perfected. Permits
and leases may embrace surveyed or
unsurveyed land.
AS TO COAL
The secretary of the interior may
lease public lands, including those in
national forests, containing deposits
of coal, in tracts of from 40 to 1850
acres. The secretary is authorized
to, and on petition of any qualified
applicant shall, divide any coal lands
or deposits of coal, into leasing tracts
of 40 acres or multiples thereof and
the same shall be offered for leasing
under competitive bids, or by such
other methods as the secretary by
regulation may adopt.
Permits to Prospect
Where exploratory work is necces-
sary to determine the existence of
coal in an undeveloped area, pros
pecting permits for a period of two
years may be granted, to be followed
by leases if coal in commercial quan-
THY is found.
Royalty and Rentals
The lessee is required to pay to
the United States such royalties as
may be fixed by the secretary, not
less than 5 cents a ton of 1000
pounds and an annual rental on the
lands or coal deposits covered by the
lease, at such rates as may be fixed
by the secretary, not less than 25 i
cents an acre for the first year, so
cents an acre for the second, third,
fourth and fifth years, and $1.00 an
acre thereafter. Such rentals for
any year shall be credited against the
%accruing for that year.
Terms of Lease
Leases are for indeterminate pc
upon condition of diligent de-
yelopment, operation, ETC., and on
he further condition that at the ex-
of each 20-year period there
shall be a reimbursement under the
contract.
In the discretion of the secretary,
where the maximum amount of coal
land does not exist as one body, nom
contiguous tracts may be included in
4 lease if same can be operated as a
mine or unit.
Continuous operation is required
barring strikes, casualties, etc.
1ut if the condition of the market is
such that the property can not be
operated except at a loss, a suspen-
sion of six months may be allowed.
Domestic Use j
There is a provision for granting j
permits to municipalities to mine
GOAL for sale to residents without |
and also for permits to in |
lividuals to mine coal for domestic |
Use, but not for sale, free of royalty. /
AS TO OIL AND GAS '
The secretary is authorized under
equations to be adopted to grant to L
ny qualified applicant a prospecting q
'ermit which gives for a period not {
exceeding two years the exclusive i
light to prospect for oil or gas upon I
lot to exceed 1850 acres wherein I
UGH deposits belong to the United \
upon the condition that drill L
ng operations must begin within six t
months from date of permit, that one S
IT more wells will be drilled to a a
of not less than 500 feet in one
ear from the date of permit and a
within two years from such date a e
veil is sunk to a depth of 1000 feet II
Inless oil or gas is sooner found. On t
n acceptable showing the time may o
extended not to exceed two years. T
The Lease v
On the discovery of valuable de- r
osits of oil or gas the permitee shall '
entitled to a lease for one-fourth a
f the land embraced in the permit Il
hitch he may select, the same to be
4 compact form. If it is a small e
rea, O. lease for as much as 100 o
will be granted if there is that o
luch in the permit. t
Leases are for a term of 20 years Is
pom a royalty of 5 per cent in q
mount or value of the production p
nd the annual payment in advance h
f a rental of $1.00 an acre for the
Ind, such rental to be credited n
gainst the royalties as they accrue p
1r any year. At the end of the lease y
eriod renewal for ten years is au- II
lorized upon such reasonable terms Il
nd conditions as may be prescribed u
y the secretary of the interior" Ii
Initiating Rights a
The right to a permit to prospect
Dr. oil or gas may be initiated by go t
lg upon the land, erecting a monu- p
lent in a conspicuous place four feet
Ugh and posting thereon, or near, a a
which should contain the name o
the applicant, description of land, q
ate of posting etc., stating he will S
thin 80 days make application for n
permit under the act. This posting b
nd marking gives him a preference u
.ght over others to a permit to pros p
ect the land described. individuals,
ssociations of individuals and cor n