The Fallon standard. (Fallon, Nev.) 1920-1958, 1920-07-22

/ performed on each claim. The first
ruling stated that the whole amount
should be expended In actual dovel-
opment in way of mining on claims.
He has since signified his intention
to make due allowance for the build
ing of roads. cabins, erection of der
ricks and other incidental expense
preliminary to actual drilling. al
so hope that due allowance will be
made for small overhead. such as
Incorporation. | think each case
should be judged on Its merits. TAX
Ing into consideration the surround
Ing conditions and circumstances
The fact that section 81 was In
terjected into the bill Is evidence
that II was not the Intent of con-
gress to deprive the prospector of
his due and just rights under the
law.
Payne's interpretations
Regarding the use of the word
diligence and some other matters,
have letter from Secretary Payne
Ia which he states: You urge that
the regulations should at least be SO
amended that 1t would be under
stood that this requirement is of
reasonable diligence: that the phrase
should have its usual and fair inter-
probation. / am inclined to believe
that this Is correct and that where
the expression "diligent prosecution
of work leading to discovery" is
used In the regulations 1t should be
construed as reasonable diligence"
1t being my understanding that
where the word diligence" is used
in a statute or legal expression with
out qualifying words, 1t mems
reasonable diligence" and not a
high or extraordinary degree OF dill
eence. My attention has been d.
rected to several court decisions on
this question under the general min
ing law.
In the care of Miller vs.. Chris
man GAO Cal, 440-447) the court
said: Zone who in good faith makes
his location, remaining In possession
and with due diligence prosecutes
his work toward a discovery, Is fully
protected against all forms Of fore
ible, fraudulent. surroptitious or
clandestine entries and intrusions
upon his possessions"
In the case of Wood VS.. Shook
tcal.439), the court said: In the
case OF petroleum lands the discoy-
cry cannot, In most cases. be made
except by considerable labor and ex-
pense In sinking wells In making
the location the locator takes into
consideration the surface indica- |
tions. geological formations and
proximity to known mines or wells
producing oil. He must make his
location In good faith and use prop |
er diligence to make discovery OF
oil. II he does not do SO he Will |
lose all rights under his location as
to parties who may afterward In |
good faith acquire rights"
But where a locat Is In pos |
session under his location and Is ac- /
lively at work through his leases or
otherwise and expending money for |
the purpose OF discovering oil his
rights cannot be forfeited to third |
parties who attempt to make loca-
tions under such circumstances, The
law must be given a liberal inter-
probation with view to protecting |
prior rights acquired In good faith.
IN another portion of his letter
Secretary Payne stated:
"'As to the matter of regulation |
2 fb) relative to the discretionary |
power of the secretary Of the inter-
ior over granting OF prospecting per-
mits, you may rest assured that such
discretion will be exercised only In
the interest of good administration
and In prompt settlement OF con-
fliets and disputes. and not with
view to any arbitrary denial CT rights
under the act or to render the act
impossible
Il am also assured that the ques-
tion asked end required to be ans
wered In the rules and regulations
as to the applicants financial stand
Ing Is simply for he purpose OF get
ting some line on the applicants
good faith
secretary Payne In closing his
letter to me says:
~ am not unmindful OF the tre-
mendous development under the old
mining law. and my only desire In
this connection Ia to adminiGter this
leasing act 10 as to lead TO the great
eat possible nse and development
with proper protection OF the pubic
interest.
Il am inclined TO bslieye that
when your applications Tor permits
come before Secretary Payne for
you will find that each
case will be judged according TO lis
merits and that he will live up TO
the very letter Of the closing para
graph OF his letter.
IN all your endeay0rs please
bear In mind that until Fallon Is
proven field you can only apply Tor
permits to prospect for oil, also that
the minute a we'll comes In In COM
mercial quantity then no permhs
will be given near that we'll until
the geological structure han been
examined aud Its limits defined.
However, once those permits are
granted, should wells then come In.
they cannot be revoked except Tor
failure to perform the necessary
amount of work required by the oil
leasing bill"
In company with George Edison
Porter, Il. p. Osgood and other lead
ing geologists. Senator Pittman
made a trip over the fields. visiting
each of the rigs In the district and
covered territory Of some 10 miles. !