Page:United States Statutes at Large Volume 49 Part 1.djvu/723

 678 74TH CON GRESS. SESS. I. CH. 599. AUGUST 21, 1935. in th e Secre tary of the dep artment or depa rtments having jurisdic - tion over such land to alter or modify from time to time in his discretion the rate of prospecting and development and the quantity lug etc fn of ill- and rate of production under said plan. The Secretary of the Interior is authorized whenever lie shall deem such action necessary or in the public interest, with the consent of lessee, by order to suspend or modify the drilling or producing requirements of any oil and gas lease not subject to such a cooperative or unit plan, and no lease shall be deemed to expire by reason of the suspension of production pursuant to any such order. d aonagpens weils n no for t "Whenever it appears to the Secretary of the Interior that wells Government owned . drilled upon l ands not owned by the U nited S tates a re drain ing oil or gas from lands or deposits owned in whole or in part by the United States, the Secretary of the Interior is hereby authorized and empowered to negotiate agreements whereby the United States or the United States and its permittees, lessees, or grantees shall be compens ated fo r such d rainage, such a greemen ts to b e made w ith the consent of the permittees and lessees affected thereby . Royalty reduction "Whenever the average daily production of the oil wells on an far small produ ction. entire leaseho ld or on any tr act or p ortion thereof segrega ted for royalty purposes shall not exceed ten barrels per well per day, or where the cost of prod uction of oil or gas is s uch as to render further production economically impracticable the Secretary of the Interior, for the purpose of encouraging the greatest ultimate recovery of oil and in the interest of conservation of natural resources, is authorized to reduce the royalty on future production when in his judgment the wells cannot be successfully operated upon the royalty fixed in App li cabi lity the lease. The provision of this paragraph shall apply to all oil and gas leases issued under this Act, including those within an approved coopera tive or unit pl an of d evelopme nt and operati on. si Canc elat ion provi- "Any lease issued after the effective date of this amendatory Act under the provisions of this section, except those earned as a prefer- ence right as provided in section 14 hereof, shall be subject to can- celation by the Secretary of the Interior after thirty days' notice upon the failure of the lessee to comply with any of the provisions of the lease, unless or until the land covered by any such lease is Notice to be sent . known to contain valuable deposits of oil or gas . Such notice in advance of cancelation shall be sent the lease owner by registered letter directed to the lease owner's record post-office address, and in case such letter sh all be returned as undeli vered, such notice shall also be posted for a period of thirty days in the United States Land Office for the distric t in wh ich the land co vered b y such l ease is situated, or in the event that there is no district land office for such leased land, then in the post office nearest such land. Leases covering lands known to contain valuable deposits of oil or gas shall be canceled only in the manner provided in section 31 of this Act. Rights-of-way on " Sea. 28 . That rights-of-way through the public lands, including publ ic domain f or pipe- line purposes . the forest reserves of the United States, may be granted by the conditions . Secretary of the Interior for pipe-line purposes for the transporta- tion of oil or natural gas to any applicant possessing the qualifica- tions provided in section 1 of this Act, to the extent of the ground occupied by the said pipe line and twenty-five feet on each side of the same under such regulations and conditions as to survey, loca- tion, application, and use as may be prescribed by the Secretary of the Interior and upon the express condition that such pipe lines shall be con structed, opera ted, and mainta ined as common carriers and shall accept, convey, transport, or purchase without discrimina- tion oil or n atural gas produced fr om Government lands in the vicinity of the pipe line in such proportionate amounts as the Sec- retary of the Interior may, after a full hearing with due notice