Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1932-04-30
UNIT OPERATION

~N~ANN" At"M A4& t4MHf
recognition Of a preferennee rich
IN favor OF those appleansa a..
permit holders whom tbs orde
of March Is. 1929. affectea.
These regulations win b pro
mulgated Immediately. How.
ever, a 6O-day preferences perioa
Is provided for permittsas and
Applicants whose claims we've
pending on March Is, 10as and
were rejected under the order q
that date.
tsince March 10. 1925 no
prospecting permits have been
issued or extended unless eqnfties
existed prior to that date ana
then only on condition OF restrict
edi drilling. and consequently the
public domain has not eontrib-
uted to the conditions Of ever
drilling and potential oysr-pro-
duction which the oil prodnclne
States have been endeav0ring TO
correct during this period me
departments action was sustained
by the United States sunreme
Court.
However, during this period
Legislation authorizing unit OBJ
Grafton has been enacted It
has now had several months
working trial, and our experience
under It affords a basis Tor REL
.newed exploration on the public
domain without tnjuring con-
servation OF our irreplaceable oil
and gas resources.
''In general, the attached regu-
lations require that certain stipu-
latiOns accompany any application
for a prospecting permit. These
stipulations do not impair the
permittee's privilege to driu Inn
mediately, If he 50 desires. but
do require that prior to the ex-
piration date OF a permit a CO.
operative development plan for
the entire structure be submitted.
and that when and II production
is obtained. that area be produced
under a unit plan Of operation
which. under the direction Of
the permittees, themselves, and
under the general supervision Of
the Secretary OF the Interior, will
insure a ratable share OF prbdnc-
ton to an Of them on the same :
structure. and, at the same time,
insure against oYer-production
and consequent waste. 1t ID an
ticipated that many permittees
will voluntarily work out their
plan in advance and
prospect in accordance with III.
THE permittees will also be
bound by certain other stipuIa-
tions. including compliance with
both Federal and State conserve ,
ton laws.
Very truly yours. (
RAY LYMAN WILBUR.
Regulations governing appliea- II
lion for oil and gas prospecting II
permits subject to unit operation
follow:
/. STTPULATTONs 10 ACCOM-
RANY PERMIT APPLICATIONS: :
Registers OF the district land
offices viii receive applications
or oil and gas prospecting per-
nits when rendered in accordance
With existing regulations. Circu-
ar No. 81, and in addition con-
aiming the following stipulations;
The Z applicant consents and
lgrees that any permit or lease
ssued under his application shall
,e subject to the following addi-
ional provisions which shall
lind himself. his successors. as
igns and all others claiming un-
Ter or through him.
(a) Cooperative prospecting
and unit plans: i
The applicant agrees to sub
nit to the Secretary Of the In
erior for his approval within
wo years from the date OF the
,ermit an acceptable plan for
he prospecting and development
s a unit Of the pool, field or
rea affecting the permit land
nth evidence either that such
Ian has been agreed to by the =
arties in interest and will insure II
Elective unit operation II oil and Q
J discovered, or that in the event v
( failure to so agree the parties
ill conform to such plan as
be Secretary may prescribe. N