The people's voice. [volume] (Helena, Mont.) 1939-1969, 1954-12-17
Editorial
The OIL LEASING LAW DECISION

Fridays decision the State Court multiplying
the 1868 indefinite state oil land leasing represents sub
santia victory the people preserving
trust status school lands The effect said
that the legislature the duly elected
of the State Land Board the authority administer these lands
that the schools receive the possible return
such trust properties
The late Justice Freebourn handing down the majority
opinion of the court concerned himself with single
porant point before the court in this controversial Did
the 1868 leasing law which provided that oil
being produced leases should extend long either mineral
being produced in paying quantities comply with the
qurements the Enabling Act amended by the 8Oh
Justice Feebon ruled that the 1868 did
the Enabling Act amended specified that leases be
for ga term of years..
During the months of litigation before the finally
settled the ISSUE Attorney General Olsen had repeatedly
tended that indefinite lease such written into the
1868 law really constituted sale of the lease question:
that under such lease the Land Board lost much of its a
thory that the the highest possible return
from such producing lease because of the law tying the
hands of the Land Board it would be impossible for that
of elected officials out their constitutional
billy the schools of Montana the full market value
off each lease.
law and result the ongecognzed authority of the Land
Board state land leases again clearly defined
may be that Montanas oil and leasing laws need
revision The court has said that the 1853 law
the about securing such revision The issue will
likely be before the 1855 Legislature for further study and
action Should such be the them to be hoped that all
parties the Land Board the school people
of the state the oil companiesw make real effort to go
into the matter OF revision and reach reasonable basis
recommending to the legislature whatever amendments that
be required to expedite development of the potentially
huge oil now held in trust for the education of Mon
tana's children.
of law brought opinions by Justices Anderson Bot
tomy and Angstman which although they will in no wise
bear renewed leasing of lands by the Land Board
at this time later have to be resolved via either
further court rulings or by legislative act.
Justice Anderson called attention to the 1851 amendment
the leasing act which set royalties natural produced
lands at flat 1912 per cent IT, he concluded
the 1853 leasing unconstitutional because would not
fu market value" from state oil land pro-
duction then the a 1912 cent royalty amendment
unconstitutional the state precuded from
receiving fu market value under the 1851 amendment Con
leases depending quantity of production well each
month, royalties range from 1912 to 25 per cent?
Probably the most fundamental question of all raised
Bottomy when he questioned the legislatures right
and Congressional amendments to the En-
abng This right Boomy contends rests the people
themselves They they alone have the right vote accept
rejection of amendments to the Enabling Act and they
delegate this right the legislature n this connection
noted that the Enabling Act integral Of
Constitution The State Constitution only be
vsed by the electorate voting approval of amendments
posed by the legislature)
Pointing ILL., of Constitution which
A political power vested in and derived from the
people, of right originates with the people,
upon their will only and is instituted solely for the
the whole BoomIy warned that the attempt by
by legislation to white the provisions of
Ordinances parts Constitution dangerous prac-
the final crumblng of whole structure
and form of government" v
Justice Angman in dissenting against the majority opinion
that the Legislature has the authority
the Enabling Ac-at such revisions do not
have to be given popular approval via elections However,
continued the that such Enabling Act
must be approved by majority vote of the people
then the State Land Board cannot again begin issuing
4ho1 offn