The people's voice. [volume] (Helena, Mont.) 1939-1969, 1952-12-26

SHOULD LEGISLATURE ToUGHEN SCHOOL
OIL LEASING LAWS?
NOTE: article from Wall Street Journal the
visable read that article before reading this editorial
Spokesman the oil interests emphasizing four major
points attempts revision of leasing laws
erning school oil lands
The present 1919, 1719 and per sliding royalty
scale tends to destroy the attracveness of state leases
2 Delay drilling rentals unfair assessment
Annual rentals should cease production achieved
T. The 2O-year limitation leases should be removed.
Oil interests represent major industry in the state
They seek statutory revisions that will be profitable to them
they capable of securing from the legislature.
The problem thus becomes one far greater than the
and the immediate future 1t calls for vision,
ton and business by the board of directors of this
business-the members of the state legislature
administration school lands is enterprise
of major proportions fair the actions taken
by another industrial giant the Northern Pacific toward the
business management of its oil lands when judging the
ness of the attitude of the State of Montana toward the oil
companies
This comparison of present state leasing provisions with
those the Northern Pacc-whch probably the third
est landowner in Montana exceeded only by the federal and
state governmenmay lend light the validity of the
oil company contentious previously listed.
/. sliding royalties tends destroy at
Effectiveness of state leases The Northern Pacific leases
tain for the company the landowners 1912 In
addition the remaining 87 per split
and the oil producing MP leases although much stiff
fer than state leases cannot be labelled being unatracv
both Texas and Shell have already leasing
agreements with the railroad She'll only last signed up
(ow much the school would
leases after the be
well in adjoining coumn)
e. Delay drilling rentals unfair assessment? First
should be borne mind that the purpose delay
is to speedy development for the possible
benefit of the schools discourage the holding
undeveoped state development
for speculative by leasehoder Delay rentals
amount to 81 assessed after the
of the 10year primary lease period of
outright cancellation of lease The state school Income
terest Fund will receive estimated $750000 in delay
ais all nonproducing leases during the coming
Under MP lease delay drilling rental provided for
However the operator must drill before stipulated
he foreis the of money would
In the Wiston Basin according to oil each we'll
the neghborhood of S250000 Compare that figure the
nominal 500 delay drilling rental charged by the
64Oacre lease Refer Wall Street Journal article
tough" provisions of MP leases.) +
3. Annual rentals should not be paid after production is
achieved? Annual rentals Is per leases
do not call for annual rentals However, this foregoing of
nual rentals minor item with the 56H
royalty received by the railroad Further
lease agreements increased taxation
assessments due to oil discovery, paid com
pany Increased taxes might easily offset IS cents
per state rental.
a. The 2Oyear limitation should be removed? If proper
administration IN the public interest by the land