The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1920-04-16


not to exceed two years. When it ia
established to the satisfaction Of Sec
retary Of the interior that there has
been q discovery of valuable deposits
of either oil or gas the permittee is
entitled to 20 year lease on one
fourth of the acreage covered by his
permit, provided that in any event
he shall have a lease covering 100
acres if there be that much acreage
covered by the permit and he shall
pay to the government a royalty Of
five per cent of the amount or value
of the production and the payment
in advance of rental of 81 per acre.
the rental for any one year to lie
credited against the royalties as they
accrue for that year. The permittee
is also entitled to preference right
to lease Of the balance of the land
covered by his permit at royalty
OF not less than 12 l-2 per cent the
! amount of this royalty to be deter
mined by competitive bidding.
There are different provisions as
to acreage (royalties and preference
rights covering leases granted on uu-
appropriated government land situa-
ted within the known geologic struc-
ture Of a producing oil or gas field
hut at the present time the people
of this vicinity are not especially in
terested in this character of lease
The qualifications OF an applicant
for permit or lease Of coal 'andss
classified or unclassiiied. owned by
the United States, are the SAME as
those for oil lease or permit. except
that no company or corporation oper-
ating common carrier railroad can
be given oranold Il lease or permit
under the pr.>&S'oas Of this act ex-
cep, 'for its own nse for railroad pur-
poses and then only to limited ex-
tent. In land where prospecting or
explanatory work is necessary to de
termine the existence OF workabili,y
of coal deposits the secretary may
issue prospecting permit for a term
OF two years for not exceeding 1850
acres and ii within The two years the
permittee is able to show that the
land conains coal in commercial
quantities he is entitled TO lease
!. or oil prS >
the land covered by his permit but
no lease can be given until after ne
tice of the proposed lease has been
given for 80 days in some newspaper
published in the county where the
land is located.
The coal leas. differs from the oil
and gas lease in several RESPECTS. An
| oil and gas lease or permit must be
in a compact form while in coal or
phosphate lands the secretary may
grant non-contisuous lands in one
lease where, i'll mis- opinion, the in
terests OF the public and the leassee
will he thereby subserved. providing.
however, that no one lease shall EN-
brace more than $500 acres.
Another difference is that no per-
son. association or corporation can
. take or hold more than one coal,
phosphate or sodium lease during the
life OF such lease in any one state.
while one person. association or cor
| poratiun may hold three oil and gas
leases in one state providing that
not more than one lease may be held
| within the geologic structure of the
same producing oil ami gas field
Coal leases are made for indetermin-
gent development and continued up-
| Grafton and upon the further con
dition that at the end OF each 20
years period such reimbursement OF
terms and conditions may be made as
the secretary of the interior may de-
termine. The royalties to he paid
the government under the coal leases
may he fixed by the secretary of the
| interior but it shall not be less
than five cents per ton OF the coal
extracted from the mine and an an
nual rental payable at the date OF
such lease and annually thereafter
which shall not he less than 25 cents
per acre-for the first year. so cents
!, per acre for the second, third, fourth
and fifth years. respectively. and not
less than 81 per acre for each and
every year thereafter during the
continuance OF the lease, except that