Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-04-08

Montana'S department of lands
and investments had total perman-
ent assets of $71,0o2,755.14 at the
end of the states fiscal year June
30, after a 12-month period which
saw an aggregate gross income of
81, 050, 1884, Mrs. Nanita B. Sher-
lock advised Gov. Roy E. Ayers
in the annual report of the land
department. The state realized a
total of $86,536.S4 in income on
land Yields relative to the taking
OF coal. oil and gas the report stated.
outlining that source 1878 income
this way, coal, sand and gravel rentals
and royalties. 5000 SO: rentals on oil
and g7s leases. S33 62024; oil and gas
royalties. $47,9l5.07.
Increased Activities
Increased activities of the state de-
partment of lands during the past 20
years was Indicated In a comparison
OF figures which showed total income
from such. sources to Nov. 30, 1919.
yielded only S26 46904 and increases
over the fiscal year ended last June
In only 10 other years.
The report also stated: "Of the oil
and gas royalties listed. s7071 ~ re-
celved during the last four fiscal years
belongs TO the capitol building grant
and has been expended IN payment OF
capitol building bonds"
Under the oil and gas activities the
report explained leases on state lands
are granted for period not exceeding
10 years and as long thereafter. during
the term OF IS years commencing with
the date OF the lease. as oil or gas In
quantities is produced from 4
the land The minimum annual rental .
Is fixed at a flat rate OF rs cents an
acre but with a minimum total rental (
under each lease of $50 a year. No oil !
or gas lease may include more than
one section Of land although several
leases may be granted TO the same
person.
Failure to Drill
During the past fiscal year a total
s9.57l.29 was assessed for a failure TO
drill and for extension of time lex
tensions of time in which to maintain
drilling activities requires a fee Of 81
IN acre year..
In addition to the rentals and pen-
alties for delay In drilling there is re-
ierved to the state a royalty on the
III and gas produced and saved OF 121
percent of the production. In case OF
leaVy production q graduated scale of
higher royalties becomes effective.
During the fiscal year 39026 acres
# land were granted in IS rights OF
way for public highways; 1929 acres
or telephone. telegraph, pipe and
)owerlineS in so easement deeds: 201 |
Icres for two schoolhouse sites; 1870
.cres for % canals, bitches, reservoirs
md bikes. Compensation from these
otaled Sl0,223.28 and fees $700
Bond investments over a wide field
Turing the period resulted In a total
Investment of s2084,736, the report
aid.
Conservation of Grass
In general statement the report (
cad:
"The conservation Of grass. one Of
Gontanas greatest natural resources, /
) engaging the attention of all state /
gencies interested in the promoting !
I proper land usage, and the state
apartment Of lands is cooperating to !
he fullest extent possible
"T1he state land department has in !
ugurated a $3.50 program in connec- !
lon with the use of its agricultural !
and: so percent of all acreage under :
Utilization summerfallowed each year, :
nd so percent In crop. All agricultural {
eases are being made in accord with
his plan
THE state board of land commits
oners has authorized the cooperation
the state land department with fed 4
raj agencies, looking to the orderly
Easing of state lands lying within In
ian reservations"
Concerning total receipts for the .