, 1921-11-08

lie paid the government u = Ah1AN
ed. viii increase from year to year.
Settlement OF old land litigation :
held OF great good to all parties con
cerned while the equitable dsstriou
ton OF proceeds among the fedora
government. the states and the re
oianstion service IS believed to b
sound public policy conducive TO per
mnnent development OF large import
ance.
Figures are now available Showing
thes concrete results in dollars nne
cenfs to the Federal government
the states and United States Recla'
nation Service. OF tho actual opera
ton of the Mineral Leasins Act VI
to July /. 1891.
As the Act had been IN operation
only a little more than four months
By July LIST. 1890. and as the ACT al
lowed claimants for relief six months
from the passage Of the Act within
which to present their claims. there
was little OF tangible result to show
for the fiscal year ending June go
1880. Hence. practically all opera
tons under h Act involving income
are included in the figures for the
fiscal year ending June 30. 1921.
1t Will be recalled that the so-cailed
"reiief' sections of the Act are those
which We're designed TO provide n
nethod for settlement and coDpro-
|mise of the numerous cases OF oil
bands in litigation with the govern
[meut. In brief. as to proven oil
bands. these sections provided that
|fhe claimant could. on the relinquIsh-
|nent Of his lain under the placer
&aws and the payment OF n one-eighth
on ali oil heretofore taken
but, receive a lease for the and with
Royalty I o be fixed by the Secretary
|pf the Interior at not less than 1873
Der cent. This is class OF cases
from which the largest sums have
been realized IN the way OF cash re-
kurns.
Figures now available show that
np 10 J.ly LIST the government had
Received on o of operations I'M
[der the Leasing Act. exclusive of fees
|paid Local Land offices, a total OF
|~seF25.sT7. OF this sum s7.s5e,5sp
twas for the payment of so-called
sback royalties" hat IS to say. the
one-eighth royalty paid h govern
ment on OF past production
as a basis of compromise. The bal
ance OF s1.773.437 was from royalties
accruing since the granting of the
leases and from bonuses paid on ac-
count OF the purchase Of leases. in
addition to the cash receipts above
mentioned. the government has talk
en- over United States bonds. TO the
extent of s3S2,050 in which i'm
pounded moneys had heretofore been
Invested: these bonds have not yet
been converted into cash.
AS 10 the benehciaries of the sums
referred to above the Act provides
that the general treasury shall re-
ceive 10 per cent; that the states
within which the production occurs
shail receive 20 per cent of past pro-
auction and 37h per cent Of future
production. and that there shall be
deposited in the treasury 10 the
credit OF the United States Reclama-
tion Fund, 1000 of past production
end 5aisG OF future production. But
fhis provision did not apply TO Naval
Reserves: royalties and nus &C
cruing from tho operation under the
Leasing Act OF such Reserves arc
turned into the general treasury as
miscellaneous Receipts subject 70
the right OF the Navy Department
TO operate such Reserves or take the
royalty oil in kind under authority
of a provision in the Naval Appro
pr4ation Act of two years ago.
Applying these provisions Of the
law as to the distribution c. the pro
ceeds. We find that the above men
TONED benehciaries participate a.
follows.
United States Treasury,
from Naval Reserves------s3.11s,5l
United states Treasury.
from the 1870 of all pro
ceeds arising from public
lands --------- -------- eoo,fa'
The states from which pro-
duction was made 1,5ss,oo
United States Reclamation
Service --------- 4,5fbfli
All Of the sums above stated excep
a comparatively small portion hav'
arisen from oil royalties asd bonuse
in the states OF California and wyom
ing: a small portion has arisen from
royaity on coal leases or from Of
leases in other states
California Leads In Production
As the figures stood on July }
California was well in the lead Of a
other public and states in the wa.
Of money returns under the Leasin
Act. This IS due in part. however
to the fact that the California o
fields are older than those in Wyou
ing and larger sums had accumulate
or accrued as a result Of the Ion
continued litigation with the govern
ment. California operators pal
hack royalties ~aggreEating $3.50
5To.ss. OF which s2.7T5s443.41 wa
from production in Naval Reserves
hence all OF the latter sum went int
the L. 6. Treasury as 'Miscellaneo
Receipts" and neither the state ne
the United States Reclamation Sc
vice participated therein. Up I
July I. California royalties frol
production under issued leases ar
bonuses paid for leases aggregate
1905 73s.53. OF which s35e.057 {
was from Naval Reserve leases. tt
receipts from public land in Califo
nia therefore were s2.e7o.s27.47 G
M 500