Page:United States Statutes at Large Volume 44 Part 1.djvu/984

 § 227 J _ ·. TIjTLE JQ.-—-MINERAL periods ot ten years upon such nmsonable terms and conditions as mayiw prescribed `by the Secretary of theclnterior, unless otherwise provided by law' at the time of the expiration oi ` such °perlods.·‘o\Vhenever the average daily production of any oil -yvell‘fshall not exceed ten··@barrels_ per day, the Secretary 01 _the `Interlor is authorized to reduce the royalty on future pro · duction when in hisjudgment the wells can not he successfully operated upon the royalty! iixed in the leasej The provisions of this section shall anply to all oil and gas `leases made pnder this subchapter., (Feb. 25; 1920, c._s85, §.17, 41 Stat. 443.) »227.  to persons relinquishing rights under ·§»rio1 claims on withdrawn lands under preexisting placerg mining lair; claims: on naval petroleuni reserves; fraud of clairnant _ adjustment of suits.=——Upoii; relinquishment to the United Statw Hiled in ‘ the General Land', Qflice within six monthsn after ° February 25,1920, of all right; title, and interest claimedané , possessed prior to July 3, 1910, and continuously since by the claimant or his predecessor na interest under the preexisting placer mining law ·`to any oil or gas bearing land upon whicl there has beendrilled one ornxore oil or gaswells to discover; embraced in the Executive order of withdrawal issued-'Septem ber 27,..1909, and not within any naval petroleum reserve, and `uponpayment. as ·royali:y‘ to Nthe United States of anarnount equal"to the value at the time of production of ¢one·eighth`o1 all the oil or gas already produced except toil or gas_·used fon production purposes on the clalnng or unavoidahly lost, from _ such land, theclahnant, or his successor, ifoin mssessiou oi suchland, undisputed by any other claimant prior·to·'July 1 — 1919, shall be oentitled to a· lease thereon fron1_ the United States for a period of twenty syears,. at a royalty of not Aess than 12% per centum of all the oil or.;·as,;5roduced except oil or gas used for production purposes ou·the· claim, ordunavoidably lost: Provided, Thattnotw more than one—hall`of_ the area, but inqno case toexceed three thousand twyo hundred _ acres. gwithin the geologic oil' or gas structure of a producing oil or. gas ileld shall be leased to any one claimant under the provision of this section when the area- of such geologic `oil structure exceeds six hundred and forty acres? ·AnyY cla-imani lor his successor, subject? to this limitation, shall, however o have the right Ito select and\·receive the leaseas in this seo " tion provided for that portion of his claim or claims equal to but not in excess of, said one-half of theareaof such geologk oil structure, but not ni ore _ than three thousand two hundred acres. ’ .· .· Q to    . All such leases shallhe made, and the.—amount of royalty to~ he paid for oil and gas produced, exceptwoil or gas used for production purposes on the claim, or. unavoldahly lost after the execution of such lease shall be Hxed by the Secre tary of the Interior under appropriate rules and oregulations: Provided,. however, That as to all like claixnsositnate within; any naval petroleum reserve the producing wells thereon only shall be leased, together with an area of land sufficient ton the operation thereof, upon the terms and payment ot royalties for past and futufl! production as herein provided for cir the leasing of claims. No weés shall be drilled in the land subject to. this provision within six hundred and sixty feel of any such leased well without the consent! ot the lessees: Ivoreidcd, however, That; thegresldent may, inqghis discretion lease the remainder or any parbof any such claim upon which such wells have been drilled, and as "thelevent of such leasing said claimant or his successor "shall hare a preference right to such lease: And provided ~, further, That he may ixernniticthe dri1dling`ot additional wells by the claimant or his successm `within the limited area of six hundred` and sixty feet thererofore provided for upon such terms and conditions as he may prescribe.? ‘ i i _‘ »_· —. ·' . Noclaimant for a lease who has been guilty of any fraud , or who had knowledge or` reasonable grounds to know of any

» LANDd’ ANDJIINING * ,970 g fraud, or who has not acted honestlf and lin good faith, shall s ,be‘ entitled to any of thebenetlts ot this section. » ` E, i Upon the delivery and acceptance, of the lease, as in this · section provided, all suits brought by the`.Govérnment affecting I such land may be settled and adjusted in accordance¤herex»·ith ~ and all moneys impounded in such suits or under section 104 t of this title shall be paid over to the parties entitled thereto. 3 In case of conflicting claimants for leases under this section, a the Secretar§ of the Interior is authorized to grant leases te » one or more ot_them as shall be deemed just .All_leases" herer under shall inure to the benefit of the claimant andlall persens 5 claiming through or under _‘him..·",by lease, `contract, or other- 3 wise, as their interests may appear, subject, '.ll0tV€V91?, to the ,~ same limitation as to area and acreage as. is provided .fer· l any interest and- such _ lands since September 1, 1919, from Ja z claimant on or gsince said date claiminglor holding more than 1 a leasegthereon or`, any interest" therein, but the inhibition of z this proviso shall not applyto an exchange of any interest in - -.su‘ch'1ands, made prior to the Ist day of January, 1920, wlman l .· didnot ihcrease_or`reduce‘the area or acreage held· or claimed t ;ln excess of said maximum by either party to the exchange: E ··Provide¢l_f1¢fther, That no lease. or leases under this section r shall begranted, norshall any/interest therein, inure toany i perso.n,'assoclation, Qorcorporation for a- greater aggregate area E. or acreage than the maximum -ln this section provided for., _(·Feb. 25, 1920, c. 85,  18, .41 Stat;`.443.)   _ ”_ h I · · I . *228. Prospecting permits-and leases to persons ofllgnds net s withdrawn.; terms and conditions of ; fraud of claimants.-qyany t person whoj on October 1; 191:9,‘wasFa bonalldde occupant-or , claimant of oil oi: gas lands under aclalm initiated while such ai lands- were not withdrawn from oil or gas location and entry, I and who had. previously performed all acts under then existing
 * claimantarindthisj section: Provided, That no claimant acquiring
 * the. maximum"allowed claimant under this section shall secure
 * laws necessary to `valid locations thereot except to make dis-
 * covery, and upon which discovery_~had. not been made prior to

t February 25, 1920, and who has performed were or- expended t on or- for the beneilt of such locations `an·,alnount equal in the , aggregate to`$25t) for each locationif application therefor shall -, be xnadewithin six months fr0m.Februar$r’25,_'1920, shall be, entitled to prospecting permits thereon upon the same-·terms 2, andwonditions, and limitations as to acreage, as other permits l provided for in thissubchapter, or where any such person has - made such discovery, prler to said February 25, 1920, he shall r be entitlégl to "a lease thereon under such termssas the Secrel tary got the Interior may prescribe unless otherwise provided ,Q tor- in section 221 of this tltlé: Provided, That where such -· prospecting permit is » granted upon land within anyeknoxen
 * geologic" structure of a producing oil or gas tield, the royalty

{ to be ilxed id any lease thereafter granted thereon or any r portion thereof shall be not less than .12% per centum of all r the gil or gas produced? escept oll lor gas used for production - ° purposes on the claim, or unavoldably lost: Provtded,_ however, 1 That the provisions ot this section shall not apply to lands l reserved for the`u.se`.of‘the;»Nav;x. No claimant for a permit or t lease who has been guilty of any fraud or who had knowledge
 * . or reasonable grounds·to know of any fraud, or who has not

, acted honestly and ln good faith, shall be entitled to any of the ir benefits of tliissection. Z ·`. ‘ 4 §‘ All permits or leases hereunder shall lnure to the benedt of t the claimant and, all persons claiming through or under him a by lease, contract, or- otherwise, as their interests may appear. r (Feb. 25,1920, c. 85, 5 19, 41 Stat. 445.)` l · _— - 229; Preference. right to permits ‘or leases of claimants, of r lands bona Bde entered as agriculturalmlsnd; terms and conditions of.-—-—In` the case of lands bona fide entered as agricultural, l and. t withdrawn. or classified as mineral at the time of V elrtrgébut not including lands claimed under any railroad