per cent (75%) of the oil'and gas produced, and the pipe line taking the.oil Is authorized to pay to contractor the sums here- in stipulated.
"11. State shaii pay contractor: "(a) For drilling and completing eaoh of the wells.drilled and completed In accordance withthe.terms .A. -+d.&onditions hereof, the sum of Sixty ~Thousand (%b0,000.00l~~ollars, such sum to be payable.onlg out of seventy-five per oent .(75%) 'of all the oil and gas produced. saved and marketed from the .welle so drilled ux@er the .termshereof.
and m&e&d from eaoh we.il. desol'ibed tracts of-&u~d shall be dellvered';%othe crda$t .&f the'"State .Xree' of '&bet,-..@ the 'pipe line Co whlah .eont,rractoT msy~.ewct:: said wells. ~-.. :*...
"(a) First to the cost-of operating said wells as.hereinabove prov,idea. :(Ten oents per barrel while flowing andtwentyoents per barrel wblle pumping). ._. '*(a) To the compensatd.onto qo~traotei".fbr'.drllling and com$leting said wel'ls.as'hereinabovep~vided,,(Jb60,00b,-00)for each and completed.. .,
. each well..equlppehfor p'iimping? ..C~ eS&t.tb.do; it'shall have : "17; If the State at any time':,ahgll. the right to'gake'over the operation~,.: ,of sa/d.well : or,,wellsand to . -
Hon. Walter C. Woodward, June 2, 1939, Page 4, O-865
thereafter operate said 'we.11 or wells, or in the event the .State elects to se.&&the'property subje,ctto the~terms of this drilling contract, then tiontractor'obligatesand binds Itself to relinquish the operation of said well or wells to the purchaser of said property, if.saldpurchaser desires to operate the same." Secti& 22 and 23 provide for ass%gnment,of 'the ccktractorls : . 'rights and,.obligation*under the contradt, whether in whole- or inpart. .. We uridereta'ild~thatthe.weIls have been drilled and completed .ae preduoers Insofar as the int+rest seeurlng the notes la eon- o@rned, 'andtherefore dO..notCoZMlder the question of whether ~9; Wrt.Drl- a present vested interest In real t?aifpanji'to$li: ~ estate when the,aontraot'was'exeoutea and.prlor to the.'drllllng ..@:a swell or,rwells.uhder' .: th,e*'contraot. .. drtlele~&x~kevlaed Mvll Statutes; i925;Sedtlon 8a,.-under Mot this contract w&~e*ecuted,~clearly aontemplates that the Boc:d of ,Ylnera&Development .tiy provide for .the deveiopakit'of river beds andphaaiue~s for-011 and .&as purposes, either by leaae,.drllllug.;oontraot, or outr&ght'aaXe'of the'inineralein. ; .. -. plade'wlthout,deve$opment requ+sments. " ~ Eketick &t, S'ubsectlon:& :provldes as follows: . "%i~'Roard'.ef&In&al Development 1s hereby aut.horlzedard It Is ,madedts: duty. for: . ., - .. :'~. to drill sala'rlver~beds and'ohannelii lnvolvtig compensation In gas and/or money of the state'whereby~the state.will receive a proportionof the 011 and/or gas as the same Is .produGd, or by way of-edv~anoe scyalaltles -pa&d $n money.' _,' ,~ 'This department rendered'an'oplnion blay.2.~1938, addressed to the Honorable R. IL Daniel, g&airman; B&a 'of'Insurarice Commissioners In which It was held that real.estate wlthliithe meating of Artlele 472.5'lndlude.sprodu~lng.oli, gas aiidmineral leases In-the r0m ln.general use ln'this state; royalty dnterestimder producing 011, gas and mineral leases; ahd.mineral interests excepted or re+-ved ln'or convey,edby a deed or other appropriate oonveyance. That oll,.andgas leases ,are.conveyakes 'of-minerals ln plaae, and the royalty interestexcepted'or~'reserved In the usual oil and gas lease in use in this state;'tionstitutesreal estate, for purposes of .recor~ation,,,taxatlon,and are wXthin the statute of frauds, .whether&able~in.money &'klnd, 1s too well settled to be open to