The New York herald., 1922-05-02
Continued from First Page.
referred to). known as the leasing act
but only in so far as applicable.

| put only IN so far as appiicapie
| Fixing of the Value.
! The value In the field where produced.
Of gas and casing head gasoline, for
royalty purposes unless such gas or
| casing head gasoline is disposed of
under an approved sales contract as
provided in section 5 of this article or
other method, shall be as fixed by the
! Secretary Of the Interior.
In cases where the gas produced and
| sold has a value both for casing head
gasoline content and as dry gas from
which the casing head gasoline has
been extracted then the royalties above
provided shall be paid on both of such
| values.
(B) The royalties on oil payable here
under shall be based upon the-amount
of oil produced from said lease, less
deductions for sediment. impurities, &c,
to the extent and in the manner pre-
vailing in the Salt Creek oil field. Wy
| on1ins. at the time said oil Is produced.
] (except oil used for production purposes
thereon or unavoidedly lost). the sched.
ule- of royalties to be as follows:
| Cd FOR OIL PRODUCED OF "a DEGREES
BAIrME or OVER
On that portion of the average produc-
| ton per we'll not exceeding 50 barrels
per Gay for the calendar month loh
| per cent.
On that portion OF the average produc-
ton per well Of more than so barrels
and not more. than 100 barrels per day
Tor the calendar month 16 2-3 per cent.
On that portion o. the average produc-
ton per we'll Of more than 100 barrels
and not more than 200 barrels per day
Tor the calendar month 20 per cent.
On that portion of the average pro-
| nar ~
rel: and not more than 800 barrels per
day FOR the calendar month % per cent.
On that portion of the average pro-
dlction per we'll Of mere than 800 bar
res and not more than 400 barrels Der
cay FOR the calendar month 80 per cent.
Or that portion of the average pro.
duction per well OF more than 400 bar
refs and not more than 500 barrels per
cay for the calendar month 80 per cent.
On that portion of thes average pro-
duction per we'll of more than 800 bar
r.ls and not more than coo barrels per
day for the calendar month 40 per cent
Or that portion of the average pro-
duction per we'll of more than 500 bar
rcls and not more than 500 barrels per
day for the calendar month 42h per
cent.
On the portion OF the average pro.
duction per we'll Of more than 500 bar
rels and not more than 1000 barrels per
day for the calendar month As per cent
On that portion of the average pre-
| cuction per well of more than 1000 bar.
rcls per day for the calendar month SO
er cent.
(2) FoR ALL OIL PRODUCED OF LESS
1HAN "a DEGREES BAuME
On that portion of the average pro-
duction per we'll not exceeding 20 barrels
FER day for the calendar month 12l,
per cent.
On that portion Of the average pro
duction per well Of more than 20 bar
re,s and not more than so barrels per
Cay for the calendar month IA 81 per
cent.
On that portion OF the average pro-
duction per well of more, than so bar
rels and not moro than 100 barrels per
day for the calendar month-16 2-3 per
cent.
On that portion Of the average pro-
duction per well OF more than 100 bar
rels and not more than 200 barrels per
day for the calendar month--20 per
cent.
I On that portion of the average pro-
duction per well OF more than 200 bar
rels per day for the calendar months
per cent.
emit of Quantity.
The unit of quantity for the fuel oil
and royalty oil hereinunder shall be
the barrels OF 42 United States gallons oi
231 cubic inches at a standard tempera-
ture OF so degrees Fahrenheit. Any
temperature corrections shall be made
for the fuel oil at the time OF delivery
by the divisional method at the rate OF
.dt04 for every ] degree Fahrenheit Z
the temperature Of the oil is above OF
below so degrees Fahrenheit.
Only wells which have a commercial
production during at least a part o.
the month shall be considered in ascer-
tanning the average production as above
provided for the purpose of computing
the royalty. The method Of determining
number of wells having a commercial
production on the lease shall be as
follows:
Case /. Where no new wells have been
brought in during the calendar month
count as producing wells each well which
had produced IS days or more during
tie month and disregard those which
have produced less than 10 days during
the month.
Case .. When initial production OF a
lease is made during the calendar
month. compute royalty on basis of well
days producing.
Case 3.--when a new we'll Is brought
i'm during the calendar month on o
producing lease on or before the goth OF
the month each new well will be con-
sidered as a producing well for the en-
tire month. but If such new well comes
in after the goth of the month II shall
not be considered as a producing well
Case 4.-"Head Wells that make
their best economical production by in
termittcnt pumping will be considered
as steady producers IL so operated
throughout the month.
Conveyance of Rights.
(c) The lessor agrees to. and does
hereby, sell to the lessee, and the lessee
agrees TO, and does hereby, purchase
from the lessor all tho royalty oil
hereinbefore mentioned, as and when
the same Is produced by the lessee. SO
that the lessee shall take and have title
TO and possession OF. and the right to
dispose of all oil. as and when the same
is produced. In payment for said roy
atty oil, and In lieu OF the delivery II
kind TO the lessor. lessee agrees to sci
up an oil exchange credit to lessor there
for, and TO issue to the lessor, as evi'
dence thereof. oil certificates showing
the amount of said royalty oil taken by
the lessee and the value thereof. The
value Of said royalty oil produced and
run from the lands hereby granted shall
be the game as the highest posted
market price offered or paid either.
Il (1) In tho Salt Creek oil field, Wyo-
ming, for a majority OF the oil purchased
| In s,fA Aald