Free Notice (Other) - District Court of Federal Claims - federal

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 1 of 31

3-23-99 Vol. 64 No. 55 Pages 13881-14096

Tuesday March 23, 1999

image m m

,.--. .-

m

i ,ll

a m J w J

m

lJ N J

--

A l

P=

~=-

]

HeinOnline -- 64 Fed. Reg. I 1999

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 2 of 31

13896

Federal Register/Vol. 64, No. 55/Tuesday, March 23, 1999 / Rules and Regulations (2) If the oil lessee chooses to take over the well, he/she must pay to the gas lessee: (i) The cost of drilling the well, including all damages paid; and (ii) The cost in place of casing and other equipment. (3) If the oil lessee and the gas lessee cannot agree on the cost of the well, the superintendent will apportion the cost between the oil and gas lessees. If the lessees do not accept the apportionment, the oil or gas lessee who drilled the well must plug the well.
* * * * *

PART 162reLEASING AND PERMITTING 23. The authority for part 162 continues to read as follows: Authority: 5 U.S.C. 301, R.S. 463 and 465; 25 U.S.C. 2 and 9. Interpret or apply Sec. 3, 26 Star. 795, Sec. 1,28 Stat. 305, sees. 1, 2, 31 Stat. 229,246, sees. 7, 12, 34 Stat. 545, 34 Stat. 1015, 1034, 35 Stat. 70, 95, 97, Sec. 4, 36 Star. 856, Sec. I, 39 Star. 128,41 Stat. 415, as amended, 751, 1232, Sec. 17, 43 Star. 636, 641, 44 Stat, 658, as amended, 894, 1365, as amended, 47 Star. 1417, Sec. 17, 48 Stat. 984,988, 49 Stat. 115, 1135, Sec. 55, 49 Stat. 781, See. 3, 49 Stat. 1967, 54 Stat. 745, 1057, 60 Stat. 308, sees. I, 2, 6, 64 Star. 470, 69 Stat. 539,540, 72 Star. 968; 25 U.S.C. 380, 393,393a, 394, 395,397, 402,402a, 403, 403a, 403b, 403c, 413,415,415a, 415b, 415c, 415d, 477,635. §162.13 [Amended] 24. In § 162.13(a), "Except as provided in part 174 of this chapter, any lease covering" is revised to read "Any lease covering."

PART 256---HOUSING IMPROVEMENT PROGRAM 28. The authority for part 256 continues to read as follows: Authority: 42 Stat. 208. (25 U.S.C. 13).

§256.2 [Amended], 29. In § 256.2, the definition of "Service housing office is removed," the definition of "Servicing housing office" PART 226--LEASING OF OSAGE is added, and the definition of RESERVATION LANDS FOR OIL AND "Standard Housing" is revised to read GAS MINING as followsi 25. The authority for part 226 § 256.2 Definitions. continues to read as follows: * * * * * Authority: Sec. 3, 34 Stat. 543; sees. 1, 2, Servicing housing office means the 45 Stat. 1478; sec. 2(a), 92 Stat. 1660. tribal housing office or bureau housing assistance office administering the §226.21 [Amended] Housing Improvement Program in the 26. tn § 226.21, the second sentence of service area in which the applicant paragraph (f) is revised to read as resides. follows: Standard Housing means a dwelling that is decent, safe, and sanitary. § 226.21 Procedure for settlement of damages claimed. (1) Except as provided in paragraph * * * * * (2) of this definition, standard housing must meet each of the following (f) * * * The decision shall be in conditions: writing and shall be served forthwith (i) General construction must conform upon the parties in interest.* * * to applicable tribal, county, State, or * * * * * national codes and to appropriate §226.25 [Amended] building standards for the region; (ii) The heating system must have the 27. In § 226.25, paragraph (b) is capacity to maintain a minimum revised to read as follows: temperature of 70 degrees in the §226.25 Gaswell drilled by oil lessees and dwelling during the coldest weather in vice versa. the area; (iii) The heating system must be safe (b) Oil well to be turned over to oil to operate and maintain and deliver a lessee, If the gas lessee drills an oil well, uniform heat distribution; he/she must immediately, without (iv) The plumbing system must removing from the well any of the include a properly installed system of casing or other equipment, notify the oil piping and fixtures; (v) The electrical system mu st include lessee and the superintendent. (l) If the oil lessee does not, within 45 wiring and equipment properly installed to safely supply electrical days after receipt of notice and cost of energy for lighting and appliance drilling, elect to take over the well, he/ she must immediately notify the gas operation; lessee. From that point, the (vi) Occupants per dwelling must not exceed these limits: superintendent must approve the (A) Two bedroom dwelling: Up to disposition of the welI, and any gas four persons; produced from it.

(B) Three-bedroom dwelling: Up to seven persons; (C) Four-bedroom dwelling: Adequate tbr all but the very largest families; (vii) The first bedroom must have at least 120 sq. ft. of floor space and additional bedrooms have at least 100 sq. ft. of floor space each; (viii) The house site must provide economical access to utilities and must be easy to enter and leave; and (ix) Aesthetics and access to school bus routes must be considered. (2) The following exceptions apply to the standards in paragraph (1)of this definition: (i) If access to a particular utility is not available and there is no prospect of access becoming available, then the standard relating to that utility does not apply; and (ii) In regions of severe climate, the size of the house may be reduced to meet the region's applicable building standards.
* * * ¯ *

30. In § 256.6, paragraph (e) is revised to read as follows: §256.6 Am I eligible lor the Housing Improvement Program?
* * * * *

(e) You meet the ownership requirements for the assistance needed, as defined in § 256.8, § 256.9, or §256.10; PART 273--EDUCATION CONTRACTS UNDER JOHNSON-O'MALLEY ACT 31. The authority for part 273 continues to read as follows: Authority; Secs. 201-203, Pub. L. 93-638, 88 Stat. 2203, 2213-2214 (25 U.S.C. 455457), unless otherwise noted. § 273.1 [Amended] 32. In §273.1(c), the words "part 271" are revised to read "part 900." PART 275--STAFFING 33. The authority for part 275 continues to read as follows: Authority: Sec. 502, Pub. L 91-648, 84 Stat. 1909, 1925 (42 U.S.C. 4762); Sec. 105, Pub. L. 93-638, 88 Stat. 2203, 2208-2210 (25 U.S.C. 450i); 26 U.S.C. 48. §275.3 [Amended] 34. In § 275.3(b), the words "part 271" are revised to read "part 900." PART 276--U N IFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS 35, The authority for part 276 continues to read as follows:

HeinOnline -- 64 Fed. Reg. 13896 1999

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 3 of 31

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 4 of 31

MONDAY, APRIL 8, 1974 WASHINGTON, D.C.
Volume 39 ¯ Number 68 Pages 12721-12848

PART !

HIGHLIGHTS OF THIS ISSUE
This listing does not offectthe legal status of any document published in this issue. Detailed table of contents appears lnsMeo LEAD-BASED PAINT--HEW requests Information; hearing 5-20-74 12774 MEDICARE--HEW proposes limitation on liability;, comments 5-8-74 ...................... 12763

SUPPLEMENTAL SECURITY INCOME~HLm,V rules on verification of age; effective 4-8-74 ...... . .... 12731 "o
N

COMMUNITY FACILITIES---USDA rules oil loans; effective 4-8-74 ........... 12728 NET WEIGHT LABEUN~USDA extends comment period; comments by 5--31-74 .................. :12763 ENVIRONMENTAL IMPACT STA~J~tEtC[S---DoD rules on policy, preparation, and coordtnaUon; effective 4-15-74~ 12737

0

on
¢q

BIOMEDICAL RADIO TELFJ,~ETERING---FCC permits use of Band 38-41 MHz; effective 5-14--74 ...... 12748 PRIME~ME ACCESS RULE~FCC extends filing period for oppositions to petitions for reconsideration; opposit/ons by 4-3-74 and replies by 4--10-74, 12748 ST. LAWRFJ4CE SEAWAY--DoT prescribes penalties for rule violators; effective 4-1-74 ............... 12746 (Continued inslde}

b~ ~4 to I-I ! to co 4~ co

1-1-

PART Ih .ON~ZRROUS MET,~J.S ~w~uFAcrUm.r- POlm"
SOURCE CATEGORY~ EPA rules on effluent limitations guidelines; effective 6-7-74 ..... EPA proposal on effluent limitations guidelines; comments by S--~.74~..

12829

PART Ilh
FERTILIZER MANUFACTURING POINT SOURCE CATEGORY~ EPA rules on effluent guide~nes and standards;. :12832 effective 6-7-74_- ........ --- ~ .... EPA proposal on effluent limt~tions guldeilnes; comments by 5-8-74 :12842

PART IV:
PROPANE~FEO proposal on aflocat/on; comments by 4-15--74 ....... ,

~o. 68-.-Pt. I 1

HeinOnline -- 39 Fed. Reg. 12721 1974

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 5 of 31
12755

Proposed Rules
I

i

.. Th,s.sect~on to give mtarested persons an contains noUces to the public of the propo~ed the =dopUca ¢Jtha tin.~ ruM~ these nouces =s of the FEDERAL REGISTERopportunity to parflclpota in the rulemoklng prior to I¢~tmnce of rule~ and resulatlon~ The puq:c~e of I

1

18338 Information to be ~lvcn m~facoownBureau of Indian Affairs ors prior to commencement of drill-. tug opemttons. [25 CFR Part 283] 183.19 "(}'So oZ surSaco of ]nnd. LEASING OF OSAGE RESERVATION LANDS 183-2o Settlement of dam~geu claimed. 183,21 Procedure gor ~ett]cmont; 0~; dare,go ¯ FOR OIL AND GAS MINING chimed. . Leasing Procedures and Operations 183.22 l~oldblUon of pollution. 183.23 ~a~Jnent~ for wells o~r Ion.ted premAP~ 1, 1974. This notice IS publL~hed in exercLse of 183.~a 7.e~eo's uce of w~ter. authorlty delegated by ,the Secretary of 183.25 Gas wen drilled by o11 le.~c~ and the Interior to the Commissioner of In(liar AflaL~ by 230 D]Y£ 2 (32 ~ 13938). 183.26 Dotermining co3"t of wo]L 183.27 C-~ for operating purl~ce3 and triNotice is hereby given that it is probal u~o. posed to completely l"evise ~ 183 of Subchapter Q, Clml0ter I, TR]e 25 of the C'~T~O~ OP Oe~¢ons Code of Federal Regulations. This revi183.28 Shutdowa, abaudonmcnt end plugsion is proposed pursuant to the authorgrog of welt~ i17 cont~ned in section 3 of the Act of 183.29 :D~posltlo~. of Ca.~u~ and other It,. June 28, 1906 (34 State 539, 543). The provement~. purpose of the complete revLslon is to im:R~omzz~z~s oP prove the management of the Osage oil 183~30 Lessees subl~c~ to Suporlntendont'u aud gas m~era~ estate. orders; boo]m end rcco~d~ open to It is the ~oliey of the Departmenf~ of lnspecUon. the Znterior, whenever practicable, to af183.31 I~.~O'S proce~ nconta. ford the pub]~c an oDportunity to partici183;32 Well l~cord~ madr0portn. pate.in the rulemaking process. Accord- 183.23 Llno drllllnE. ~mgly, interested pemons may submtb 183.3~ Wells and tank b3tterle~ tO I=o written comments, suggestions, or objecmarked. tio]~-s with respect to the proposed revl- 183~q5" Formations to be protected. 183.36 Control devlce~. ~on to the Commissioner of Indian Affairs, Bureau of Ind/an ~alcs, ~N~g- 1~7 Waste of oll aud gao, 183.38 ~easur~g n.nd ntorboE oil ton, D.C. 20245, on or before ~ay 8,1974. 183.,39 ~ea~drement o£ 183.0 Use of gas for lifting oil It is proposed to zevlse Part 183, Sub183.~I Accidents to be reported. ch,~pter Q, C1~pter I, Titie 25 of the Code of Federal Regulations to read as ~o]lo~s: 183.42 lOenalty for vlotatlon of Icaco term3. PART 183--LEASING OF OSAGE RESER- 183.43 PenaRle~ for ~lo~tlon of certain oF. orating r~ationc~ VATION LANDS FOR OIL AND GAS MINING Jam Z/o~zcc~ Seco 183.~ ]~earlngs 0Jad ~]ppealn. 183.1 De.O.~tiO~JEL 183.d~ Notices. Xz~L~ZCG ~OCZ~O~ ~AL A1¢9 ]~O*ZJLT,T3r 3~enc~ or l~zao~naorm 283~ SaIe of leases. 183A6 Z~re~ of regu~Uons on le~cc~. 183.3 ~urrsnder of lease. Am~o~-~: S~¢. 3, 34 St~t. ~3. Interpret or 183.4 Form o~ 10ayment. ~pply ~;ecs. 1, 2, 45 Star. 1~78, 1479, un]c~ 183.5 Leases subJec~ to current regulation. 183.6 Bonds. otherwise noted. 183.7 Provl~tons of forms made a ]~ari; of § 183.1 Definifio.s. t;e regulations. 183.8 Corporation and corporate lntorm~As used in rids Part 183, terms shalt tlon. have the meanings set forth in this sec183.9 Rental aud ~ obligations. tion. 183.10 Term of lease. (a) "Secret~ry" means the Eecre~y 183.11 Royalty payments. of the Interior or his authorized repre183.12 Government x~rves ~tght %0 p~sentative acting under delegated authorchase oil -. 183.13 ~'lme of ~oy~lty payzn~nt~ aud lty. ports.. (b) "Osage Tribal CounPJl" mP,~ns the 183-I4-. Contracts and dtvlston orders. du~ elected govemtng body of the Osage 183.15 Unl~ leases, a.ssig,m~ents and related ¯ Nation or "1~lbe of Indians of Oklahoma ~ent~ ' vested with authority to lea~e or to~e other actions on oH and gas mining per~O~S tatning to the Osage :Mineral Estate. 183.16 Commencemen~ o£ operattens. (c) "Superintendent" mean, the Su183.17 ~row tO t~-qulre ]~on to be~Lu perlntendent of the Osage Agency, Pawoperations on a restricted homestead a11otment. huzka, Ok]ahomo, or his authorL~ed rep-

DEPARTMENT OF THE INTERIOR

r -~.ntative acting under delegated authorlW. (d) "OH ]~see" means any ]~mon. firm, or corporaUon to whom an oll mln~g lena is made under the re~L~f~ons in this part. (e) "Ga~ levee" means any person. firm, or corporaUon to whom a gas mLuing lense is made under the regu~tions in this p~. CD "O11 told g-~s ]~see" me2~s any person, firm, or cor~omf~on to whom an o11 and gu.s mining lease Is made uudeJ: the recul~t~ons in tlds p~c. (g) '~-Imm-y term" means the basic period 0f time for whtch ~ ]e~e is k%nzed during which the Ie~e contract may be kept in force by p0~ment of rents/s. (h) '~.~aJor p~rch~.ser" mes~ any one of the minhnum number of purchase.r~ tak~g 80 percent of the oil 111 the ]~m~s-Otd~hon~ ~r~. .(I) "C~Lughe~d ~,~' means ga~ duccd from an o11 well as a consequence of o11 ]Production from the same formatiOll. (J) "Natural gas" means any fluid, e/thor combustible or noncombust~Ie, ~covered a~ the su.,~ace in the g~eous ph,~se und/or hydrocarbons recovezed at the surface as Jltlulds w1~ch are the x~ ~ult of condensation caused by reduction of pr~n-e and ~empe.mture of :byd.cocarbons orlghmI]y ~ in = zeservoir in the gaseous phase. §183.2 S=Ie or lea.~ (~) WrIRen application, together wif~ any nomlnatlon fee. for tzac~ to be offered for lease m~y ]0e filed vri~h the Superintendenk (b) The Su~eflntendent, with the con~ent of the Osage Tribal Cffancil,_ shall pub]L~ notices for the sale of oR le'~es, gas ]ea.s~, and oll and gas le~e~ to the htgh~ re~on_~lble bidder on speckle tracts of the unleased O~ge ~inera1 F-state. ~e ~pe~dntendent ~-y requ~e m~ bidder to ~uhmt~ satL~actory evidence of his good f~th and abKt~ ~O comply with ~U prolri~ons of the noriCO 0~ sale. Succe~ul bidders mus~ de]~o~t with the Superlntenden~ on d~y o5 ~alo a check or co~ in an amount not less than 25 ]~ercenf~ of the ~ bonus o~ered~s a gu~m~t~ of good~dttL ~0~ ond~ll bids ~ be subject; to the accepf~uce of the Osage T~b~l Council e~d approval of file Su~erlntendenb. Wltldn 20 ~ a£ter ~ot~ca~lon of belng the succes~ul htdder, ~std l~dder must eubml~ to the Superintendent the balance of the cash ~onu~, a ~U.O filing fee, and the ]e~e in con~Jeted £ozm.~e Superintendent may ~ ~ time for

FEDERAL'~EGISTER, VOL 39, NO. 68---?,~ONDA¥, APRIL 8, 1974

HeinOnline -- 39 Fed. Reg. 12755 1974

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 6 of 31

12756

PROPOSED RULES

the completion and submission of the ered to the Osage Agency, Pawhuska, intent of the regulations in this part, and lease form, but no extension shall be Oklahoma 74056. Such sums shall be a such information shall be furvdshed granted for remitting the balance of prior llen on all equipment and unsold within a reasonable time. moneys due. If the bidder fails to pay oil on the leased premises. § 183.9 Rental and drlll|ng oblJg,do.~, the full cash consideration within said § I83.5 Leases subject to current regula(a) 011 leases, gas leases, and ell and period or fails to file the completed tions. gas leases. Unless Lessee shall complete lease within said period or extension Leases issued pursuant to this part and place on production a well producing thereof, or if the-lease is rejected through no fault of the Osage Tribal shah be subject to the current regulations and sel~g oil and/or gas in paying Council or the Supdrintendent, 25 per- of the Secretary, all of which are made a q~antities on the land embraced within cent of the cash bonus bid will be for- part of such leases: Provided. That no the lease within 12 months from the date or change of such regulaof feited for the use and benefits of the amendmentafter the approval of any of approvalthe the lease, or as otherwls0 provided in lease terms, or 12 montl~ tions made Osage Tribe. lease shall operate to affect the term of from the date the Superintendent conThe Superintendent may reject a the lease, rate of royal~y, rental, or acre- sents to drilling on any restricted homolease made on an accepted bid, upon age unless agreed to by both parties and stead selection, the lease shah terminate evidence sat~ctory to him of collusion, approved by the Superintendent. unless rental at the rate of not less than fraud, or other h~regularl~y in connec$I per acre for an oil or gas lease, or not §. 185.6 B6nds. less than $1.50 per acre for an oil and tion with the notice of sale. The Superintendant may approve oil leases, gas Lessees shall furnish with each lease a gas lease, shah be paid before tht~ end of leases, and oil and gas leases made by corporate surety bond acceptable to the the ~rst year of the lease. The lease may the Osage Tribal Council in conformity Superintendent as follows: also be held for the remainder of lt~ priwith the notice of sale, regulations In (a) A bond on Form D shall be filed mary term withdut drilling upon paythis part, bonds, and other Instru- with each lease submitted for approval. ment of the specified rental annually in Such bond shall be in the penal sum of advance, commencing with the second ments required. (c) Each oil and/or gas lease and ac~ not less than $1,000 for each quarter lease year. The lease shall terminate as queer section covtivities and installations associated section or fractional Provided, however, of the due date of the rental hnle~ such rental shall be received by the Supertherewith subject to these regulations ered by said lease: shall be assessed and evaluated for its en- That one bond in the penal sum of not intendant, or shall have been n~alled as vironmental impact prlor to its approval less than $15,000 may be filed on Form indicated by postmark on or before said G covering all leases on the Osage Min- date. The completion of a well producing by the Superintendent. (d) Lessee shall accept a lease with eral Estate not in excess of 10~240 acres to in paying quantities shall, for so long ~s the understanding that a mineral not which Lessee is or may become a party. such production continues, relieve Lessee (b) :ill lieu of the bonds required under from any further payment of rental, excovered by his lease may be leased sepparagraph (~) of this section, a bond in cept that should such prodfictton cease arately. of (e) No lease, assignment thereof, or the penal sum for $75,000 maY be filed on during the primary term the lense may full only interest therein will be approved to any Form 5--5438 withoutnationwide coverage be continued of the during the remahdng geographic or lease by payment employee¯ or employees of the Govern- of all leases, to which the Lessee acre- primary term which shall commenceof is or advance rental on ment and no such employee shall be age limitation, the next anniversary date of the lease. party. permitted to acquire any interest in may become a on Form H shall be filed in Rental shall be paid on the basis of a full (c) A bond leases coverh~ the Osage Mineral Es- the penal sum of not less than $1,000 year and no refund will be made of adtate by ownership of stock in corpora- covering alease acquired through assign- vance rental paid in compliance with the tions having leases or in any other ment where the assignee does not have a re~ation~ in this part: Provided, That manner. collective bond, or the corporate surety the Superintendent in his discretion may does not execute its consent to remain order further development of any lea~ed § 183.3 Snrrender of lease. Lessee may, with the approval of the bound under the original bond given to acreage or separate berlin if, in his faithful performance would conSuperintendent and payment of a one secure thecondR~ons of the lease. of the opinion, a prudent operatorIf Le~eo roduct further development. dollar filing fee, surrender all or any terms and (d) The right is specifically reserved to fu~es to comply, the refusal will be conportion of any lease, have the lease cansidered a of the celled as to the portion surrendered and increase the amount of bonds prescribed said lease violationsubjectlease terms and shall be to cancellation be relieved from all subsequent obliga- in paragraphs (a) and (c) of this secthe Su- as to the acreage or horizon, the further tions and liabilities. If thd lease, or por- tion in any particular case when~he na- development of which was ordered: Protion being surrendered, is owned in un- pet~intendent deems it proper. vi~le~ lurther, That, the Superintendent divided interests by more than one tionwide bond may be increased at any may impose restrictions as to time of time in the discretion of the Secret~ry. party, then all parties shall Join in the application for cancellation: Pr~ic~, {~ ]83.7 Provisions of forms made n part drilling and rate of production from any well or wells when, in his Jud~nent, such That ff this lease has been recorded, of the regtdations. action may be necessary or proper for Lessee shall execute a release and record Leases, assignments, ancl supporting the protection of the natural resources of the same in the proper office. Such sur- instruments shall be in the form pre- the leased land and the interests of the render shall not entitle Lessee to a To- scribed by the Secretary, and sYzch forms Osage ~ribe. The Superintendent may fund of the unused portion of rental are hereby made a part of the regula- consider, among other things, Federal paid in lieu of development, nor shall it tions. and Oklahoma laws regulating either relieve Lessee and his sureties of any drilling or production. obligation ~nd liability incurred prior to § ]83.8 Corporation and eorporale in(b) The Superintendent may, with the formation. such surrender: Provk~g/urthcr, Thal~ consent of and under terms approved by when there is a partial surrender of any (a) If the applicant for a lease is a grant an oxtenlease and the acreage to be re~Mned corporation, it shall file evidence of au- the Osage Tribal Cottucil, of a lease for a slon of the primar~ term is less than 160 acres or there is a sur- thorlW of its omeers to execute papers; period not to exceed sLx months on which render of a separate horizon, such sur-. and with its first application it sliall also the actual drilling of a well shall fiave render shall become effec~ve only with file a certified copy of its A~leles of :Ill- commenced within tl~e term thereof or the consent of the Osage ~ribal Coun- corporation and, if foreign to the State for the purpose of enabling Lessee to obcil and approval of the Superintendent. of Oklahoma, evidence showlng compli- tain a market ~or his oil and/or gas proance with thecorporation laws thereof. duction, § 185.4 Form of payment. (b) Whenever deemed.advisable the Suma due under ~ lease contract and/ ¯ superintendent may require a corpora- § 183.10 Term of lease. or the re~latl0ns in thls part shall be tion to file any additional Informatlo~ Leases issued hereunder shall be for a paid by cash m" check made payable to 5-year primary term and so long thero~ the Bureau of Indian Affairs and deliv- necessary to carry out the purpose and FEDERAL REGISTER, VOL 39, NO. 68--tAONDA.Y, APRIL 8~ 1974

HeinOnline -- 39 Fed. Reg. 12756 1974

Case 1:99-cv-00550-ECH

Document 309-52
PROPOSED RULES

Filed 06/30/2008

Page 7 of 31
12757

-after as the minerals specified are pro- by the gas lessee, ~s~tbJect to the pre- oH, gas, or derivatives therefrom which will provide for the purchaser to make . duced in paying qualities unless a dif- serlbedroyalty of 16~ percent. (2) Gas ~euse. Lessee shall pay a roy- pa~rment of royalty in accordance with ferent primary term is e~tablL~hed by the his fete: tb'ov~ed, Tlm~ such division Osage Tribal Council, approved by the alty of 16-~ percent of the value of all Superintendent,-and so stated in the ~atural gas and producL~ extracted orders or contracts stroll not relieve Lestherefrom produced and sold from his see from r~ponsibility for the paymen~ notice of sale of such lease or lease~ lease. Natural gas used in the reasonable of the royalty should the purchaser fail § 183.11 Royaltypayments. and prudent operation and development to pay. NO production ~ be removed (a) /~#~J~# on oiL (1) Royalty rate. of said lease shall be exempted from roy- from the leased premlses until a division order and/or contract and its terms are ¯ Lessee shall Pay or cause to be paid to ally payment. (3) O~ a~ gas lease. Lessee shall pay approved by the Superintendent: Prothe b-~pe~J~tendent, as royalty, the sum of 16~ percent of the gross proceeds from royalty as provided in (1~ and (2) above. ~deo! ~urther, That the Superintendent sales after deducting the oti used by ~.s(4) V~Jtm o! gas. For royalty purposes, may gran~ temporary perm1~on to s~e for development and operation pur- the value of nil gas is fl~ed at 24 cents per OH or g~s from a ]e~e pendlug the apposes on the lease: Provide, That whenthousand cubic feet unless it is sold at a Proval of a d~vl~on order or contract.the quantity of oil taken from all the higher rate, in ~h]eh event the v~lucLessee shall file a certified monthly zeport and pay royalty on the value o£ producing wells on any quarter-sectlpn or shall be the sale price¯ f~ction thereof, according to the public (C) Jlf|fl|mur/~, fo2/ff|t~. ~n no event all oil and gas used off the premises for survey, during any calendar moi~th is shall the royalty paid from producing development and operating purposes. shall be responsible for the corsuf~ient to average one hundred or mo~ leases during any year be l~ess than ~n barrels per active producing ~veil per day mnount equal to the annual rental speci- rect meesurement and reportfng of all the royalty on such oil shall be 20 per- fied for the ~ease. Any underpayment of 0il taken from the lea~ed pxP.mtses. (b) Levee shall require the purcent. The Osage Tribal Cou~ciI may, minlmum royalty shall be due and payupon preparation of justifiable econonflc able within 45 days following the end of chaser of oil and/or gas from his ]ease evidence I~. I~ssee, agree to a revved the lease ~esr. After the primary term, or lease~ to furnish the Superintendent . royalty rate, subject to approval by the_ Lessee shall submit with his p~nent with a monthly ~tatemenb of the gross Superiutendent, applicable to additional evidence that the lease is producing in ba=els and/or gross ~cf sold not l~ter oil produced from a lease or leases by paying quautlties. The SuperLutendent than the 15th day of each month which secondary zecovery methods, which rate is authorized to determine whether the shall cover the preceding month. shall not be less than 12~ percent'of the lease is actually producing in paying § 103.15 Unh le~e% as.~gnment~ and gross proceeds from r~e of oil produced quantities or has terminated for ]~ck of *~]atet][ hastnaments. bY seconc~ l~m~overy processes, other such production. Payment for any (a) Unftfzatfon o! lecses. The 0~ than gas injection, after deducting the underpayment not made wRhln the time oil used by Lessee for development and specified shall be subject to a late charge Tribal Council and Lessee or Levees. the 8pprovaI of operath~ purposes on the lease or leases. at the rate of not le~s than I~,~ percent may, with unitize or merge,the Supertwo (2) Unless the Osage Tribal Council, per month for each month or fraction intendent, and gas leases into a or more oil or oil uni~ or w/th the approval of the Secretary, shall there?., f unto paid. elect to take the royalty in kind, payment 183.12 Covernment rcscrve~ right to cooperative operating plan to promote the ~atest ultimate recovery of o~ and s~a]l be made at the time of sale or re- ¯ purchase otl. gas from n common source of supply or moval of the oil, except where pa~ents Any of the covm~e made on division orders, and settle- . the Untted executive departments of portion thereof embrucing the ]zudscoopsuch lease or leases. The States ment shail be based on the actual seillng ¯ have the opLion toGovernment shall ered by or trait agreement shall be subpurchase all or ~ny eraflve price, or the highest posted or offered pr~e by ~ major purel~.ser-in the part of the oH produced from any lease Ject to the regulations in this part and ]~msas-Okla~oms area whichever is at not less than the highest po~ted price applicable laws governing the leasing of the Osage l~inernl F_~ate. Any a~reement higher on the day of sale or removal as defined in § 183.11. Where different prices are paid sImuI- § 183.13 Time of royalty payments and betaveen the parties in inte.res~ to termtmate a unit or cooperative agxa?emenl; as tzneously for oil from a lease and the reports. to all or any portion of the ]ands inhighest such price exceeds the higher of (a) Royalty payments due m~y be eluded shall be submitted to the Superthe afurementioned p~ces, then that paid by either purchaser or Lessee. Unprice shall be the basis of royalty on all less ~therwlze provided by the O~fie lntendent for his approval. Upon approval the lewes included thereunder oil from saidlease~ the Su(3) tP, oya]ty in kind. "Should Lessor, Tribal Council and approved bybe due shall be r~'torod to their origin~ terms: perintendent, all payments shall /b'o~ed, "gha~; for the purpose of prewith the approval of the Secretary, elect by the 25th day of each month and venting waste and to promote the great- to take the royalty in kind, Lessee cover the preceding month. Failure to eat nlUm~te zecover~ of oil and gas from furnish free storage for royalty oil for make such payments shall subject Levee a period not to exceed 60 days from date or purchaser, whoever Is ~sponsible for a common ~ource of supply or portion thereof, all oil leeses.'oil and ~as leases. of production after no~ice of such elec- zoyalty payment, to a late charge at the and gas leases issued ]aeretofore and t~on. rate of not less than I ~ percent for each hereafter under the provisions of the re~Co) ~by#aZtg on. gCS----(1) Off lease. All month or fraction thereof until paid. nlations in this part shall be subject to c~ugheaxl gas shall belong.to the oil (b) Lessee shalI furnish certified lessee subject to anyrtghtsunder existing monthly reports by the 25th of each fol- any unit development plan affecting the Ies~ed lands thor; may be required by the gas leases. All casinghe~d gss removed froz~the lease from which it is produced lowing month covering all operations, SuperLutendent with the consen~ of the shall be metered unless otherwise ap- whether there has been production or Osage Tribal Council, and which plan therein the total proved by the Superintendent and sub- not, indicating gas, casinchead amount sh~ adequ~te],v protect the rights of gas, and parties in interest including the Osage ject to a royalty of 16% percent of the of oil, natural market value of the gas and all products other products subject to royaity pay- }~tueml Estate. (b) .4ss~gnment~. Approved leases or extracted therefrom, less a reasonable meat. (c) Failure to ~emit payments or re- anY interest therein may be assigned or allocate for mma'ufaeture or processing. If oil lessee supples casinghead gas pro- ports shall subject Lessee to further pen- transferred only with the approval of duced from one lease for operation and/ allies as provided in §§183.~ aud the b-klperlntendent. The a.s~ee mus~ or development of other leases, either his 183.43 and ~hail ~ub~ect the divislon order be qualified to hold such lease under or others, a ~oyalty of 16% percent shall to cancellatio~ existing rules and zegulations and shall "be paid on the value of all casinghead § 183.14 Contracts and d;vb;on orders. furnish a satisfactory bond conditioned gas so ~ed. All ca~ghead gas not util(a) Lessee may enter ~nto division or- for the falt~uI performance of the covized by:th~ oil lessee may, with the approyal of the Superintendent, be utilized ders or contracts with the purchasem of enants and conditions thereof. I~ssee

REGISTER~ VOL 39~ NO. 68--MONDAY, ,M~RII, 8, 1974

HeinOnline -- 39 Fed Reg. 12757 1974

Case 1:99-cv-00550-ECH
12758 must assign either his entLre interest in a lease or legal subdlv~on thereof, or an undivided interest tn the whole lease: Provtde~, That when an assignment covers only a portion of a ]ease or covers interests in separate horizons such assignment shall be subject to both the consent of the Osage Tribal Council and approval of the Superintendent. If'a lease ts divided by the assignment of an entire interest in any part, each part shall be considered a separate lease and the a~tgnec shall be bound to comply with all the terms and condlUons of the original lease. A fully executed copy of the assignment shall be ~led with the Superintendent within 30 days after the date of execution by all parties. If requested within the 30-day period, the Stlperintendent may grant an extension of 15 days. Aflling fee of $10 shall accompany each assignment. (c) Oue~ing redcap. Agreements creating overriding royalties or payments out of production shall not be considered ~s an interest in a lease as such term ]s used in paragraph (b) of ~his section. Agreements creating ove~tding royalties or pa~rments out of production are hereby authorised and the approval of the Department of the Interior or any agency thereof .shall not be required with respect thereto, but such agreements shah be subject to the condition that nothing tn any such agreement shall be construed as modifying any of the obligations of Lessee ~mder ida lease and the regulatioas in Eais part. All such obltgafleas are to remain in full force and effect, the same as if free of any such royalties or payments. The ~ce of agr.eements creating overriding royaltie~ or payments out of production, whether or not actually paid, shall not be considered in Justifying the shutdown or abandonment of any well Agreements creating overridtngxoyalties or payments out of production need not be filed wlth the Superintendent uzfless incorporated in assignments or Instruments xequlred to be filed purb-uaut to paragraph CO) of this section. An agreement creating overriding royalties or payment out ~f production sha~ be snspended when the working interest Income per active producLug well is equal to or less than the operational eo~ of the well, as determined by the~up~Intendent~ (d) DrYing ¢on~rac~. The Superintendent is authorized to ~pprove drilling contracts with a stipulation that ~uch approval does not In any w~y bind the Department to ~pprove subse~luent assignments tha~ may be provided for in said contracts. ~pproval mere~ authortzes entry on the lease ~or the ~urpose of development work. OPER&TIONS 18~.16 Commencement 0£ operations. (a) No operations sha~l be permitted upon any tra~t of ~land untll a lease covering such tract shall have been approved by the Supezintendent: Provh~e~, ~hat the Sthuerintendent may grant authority to nay party under such ruIes, eonsisf~'.nt ~vith the reZul~4ous in this part that he

Document 309-52
PROPOSED RULES

Filed 06/30/2008

Page 8 of 31

deems proper, to conduct geophy~l and geological exploration work. (~) ~.ssee ~"n~l]. submit applications on forms to be furnished by the Sup'erintendent and secure his approval before: (I) Weell ch-Rl~g, treating, or workover operations are started on the leased premisec. (2) Removlngea.~ug from any well. (c) Lessee shall notify the Supe~qntendent a reasonable time in advance of starting work, of intention to dr~l, redrRI, deepen, plug, or abandon a we]]. § 183.17 How to ~cqulre permL~on to Legln operations on a restrlctcd homestead allotment. (a) Lessee may conduct operations within or upon a restricted homestead -~electlon only with the written consent of the b-~lpertntendent. (b) If the allottee IS unwilling to permit operations on his home~ead, the Superintenden~ will eause an axandnatlon of the p~ to be made with the n3]obtee and Lessee or his representafive. Upon finding that the interests of the Osage Tribe require that the tract be developed, the Superintendent will endeavor to have the parties agree npon the terms under ~hich operations on the homestead may be conducted. (c) ~In the event the allottee and I~ssec cannot reach an' agreement, the ~tter ~ be presented by all parties before~he O~ge Tribal Council, and the Councll shall make Its xecommendations, Such recommendations ~haU be considered as final and binding upon the al~ lottee and Lessee. A guardian may represent the allottee. Where no one is authorized or ~vhere no person is deemed by the Superintendent to be a proper party to speak for a pe~on oY unsound ndnd or feeble understanding, the Pdncipal Chief of the Osage Tzibe shall xepresenthhn. (d) If the allottee or h~ representative does not appear before the Osage Tribal Council when notified by the ~uperintendent, or if the Council fails to act within 10 days after the matter Is re~erred to it, the Superintendent may authorise Lessee to proceed with operations in conformity with the provis/ons o~ his lease and the regulations in this part. § 18~.18 Information to ]be given surface owners prior to commencement of dn~lllnE o~eratlons. .'Except ~or file ~xveytng and ~taklng of a well, no operations of any kind shall ~ommence until Lessee or his xepresauta~lve shall meet with the surface owner or ~epresentative, if a resident of and present in Osage County, Oklahoma. At such meeting Lessee shall compl~ with the following requirements: ¯ (a) Indicate the location of the well or wells to be drilled. Co) Arrange Yet route of ingress and egress. Upon failure to agree on route of ingress and egress, said route shall be set by the Superintendent. (c) Impart to said surface owners the marne and address of the party or ~epresentattve ~pen whom the surface o~ner shall serve any claim for damages which

he may sustain from ndneral development or operations, and ns to thb procedure for settlement thereof as provided in § 18321. (d) Where the drilling IS to be on rostadcted ]and. Z#..~ee in the mnnner provided above shall meet With the Superintendent. (e) ~There the surface owner or his ¯ epresentative is not a resident of or is not phyalca]]y present in O~Zo County, then the Superintendent shM1 be so advised whereupon the Superintendent may authorize Levee to proceed with operations: ProHdec~, That in the event the Superintendent should ~o arrange with the surface owner orhis tenant, Levee or his representative within 5 dayz after receipt of notice from the Superintendent shah meet with the surface ovmer or his tenant on the leased premdsc~ and arrange for the procedure to follow ns indicated in this section. § 183.19 Use Of surface o~ ]and. (a) Lessee or his authorized representative shall J~we the right to use ~o much of the surface of the Innd within the Osage Mineral F_~tate as may be reasonable for operations and m~rketing. ff3~ts includes b~t is not limited to the zight to lay and maintain pipelines, electric lines, pull rods, other appll~ccs necessary ~or operations and markoting~ the right,of-way ~or ingr~s und e~ress to any point of opera,ion; and ~o right to use water £or release operations as sot out in § 183,24. Levee .~h._ll Conduct his operations in a workmanlike manner, connnit no waste o~d z~]low none to be comndtted upon the land, nor permit any nuisance to be maintained on the premises underlds control (b) Before commencing a drilling Dperation, Lessee ~hMl pay or tender to the surface owner commencement money in the amount of $25 per s~mtc shot hole and commencement money in the amount of $300 for each we]], after which Levee shall be en~.tled to Immediate possession of the drintng site. A drilling site shall be held to the minimum area ~ential £or operations and shall not ~ceed one and one-lmlf acres in area unle~ authorized by the Superintendent. Commencement money shM1 be a credit toward the settlement of the total dam~es. Acceptance of co)~eneement money by the surface owner does not in ~v ~vay affect his rl~t to compensation ¯ or damages as flescribed in § 183.20, occasioned by the drilling and completion of the ~ell for which it was paid. Since actual damage to the surface ~rom oper- ~tions cannot nece~Mly be ascerP~ined prior to the completion of a vmU as a serviceable well or dry hole, a flamngo settlement coverin¢ the drilling operation need not be made unt~l after completion of dri]]in~ operation~. (c) WThere the surface is re~ricted ~and, commencement money shall be paid to the Superintendent ~or the landowner. All other ~urface owne~J shall be paid or tendered such commencement money direct. TThere ~uch surface owners are not residents of O~age County nor have a represen~a~ive located therein,

F£DERAL I~GISI~R, VOL 39, NO. 68----MONDAY, APRIL 8, 1974 ,

HeinOnline -- 39 Fed. Reg. 12758 1974

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 9 of 31

PROPOSED RULES

12759

such paymen~ shall be made or tendered .§ 183.21 Procedure for setl]cme~t of action in a court of competent jurisdicdamngcs chased. to the last known address of the surface tion. If no such action is filed within s~d owner at least 5 days before commencing Where the surface owner or his levee time and the award is against Lessee, he driK~g operations-on any well: Pro- suffers damage due to the operation of shall pay the same together with ~~,~e~, That should/~.~ssee be unable to any oH or gas lessee, the procedure for tere~ at the rate of 6 percent per anzeach the owner of the surface of the recovery shall be as follows: num from date of award, within 10 days ~d ~or rite purpose of tendering the (a) The party or parties aggrieved after the exph'~tlon of said pexiod for commencement money or if the owner of shall, as soon as possible aIter the dls- filing an action. :If he fails to do so, £n the surface of the land ~ refuse to covery of any damages, serve xvrltten the discretion of the Superintendent, . accept the ~me, Lessee shah deposit notice to Lessee or his representative as the Levee ~ be subJec~ to a penalty mnoun~ .with the Superintenden~provided by § 183.18. ~Vrltten notice of $10 per day for each day thereafter by check p~yable to the Bureau of Izl- contain the n~ture and location of the that he r~ in default. dian Affa~a. The Superintendent (g) Lessee shall file with the Superalleged damages, the date of occurrence, thereupon advise the owner of the sur- the names of the party or purties causing intendent a report on each settlement face of the land by mail at his last said damages, and the amount of dam- a~ement, setUn~ ou~; the natuze and known address that t~he commencement ages. It is not intended by this require- location of the damage, date, and money is being held for lo~yment to him ment to limit the thne within xvhlch amount of the settlement, and any other upon his written request. action maY be brought in the courts to pertinent information. (d) ~.ssce shall also pay fees for tank less ~ the 90-d~y period allowed by § 1~SS.2 Prohlblt~on'ofpoHuf3on. sites not exceedi~ 50 feet square at the section 2 of the Act of .Mmrch 2,.1929 (45 (a) "AII oper~tor~, contractors, drmers, ~te of $40 per tank or other vessel: Pro- star. 14~8,1479). "Dh~ed~ That ]no payment shall be due (b) Zf the alleged damages nxe not se~ce companies, pipe pulling and s~l.for a tank temporAu3~ set on a wellloca- adjusted at the time of ~-uch notice, Les- va~nff contractors, or other persons, at all thnez conduct their operation'site for drS3ing, completing, or test- see or his repre~entative shall try to ading. The sum to be paid for a tank oc- just the claim with the p~rty or pin'des tlons and drY, equip, operate, produce, cupying more than 50 feet square shall be ~ggrteved within 20 days from ~pt of plug and abandon all wells drgled for oH ~ upon between the surface owner the notice. :If the claimant is the owner or g~m, service ~vells or exploratory and Lessee or, on f~tilure to agree, the of restricted property and a settlement wells (including se~m[c, core and stratszme shall be fixed by arbitration as r~ts, a copy of the zettlcment agree- iffraphlc holes) in a manner that the migration of provided by § 183.21. ment shall be filed with the Superintend- prevent polIution and or other substance eat. If the settlement agreement is ap- o~l, gas, salt ~,ater another, Includ§ 183.20 Settle]neat of damages d "~ned. proved by the Superintendent, payment ~zom one stratum into (a) Lessee or geophysical permittee shall be.m~e to the Superintendent for ing any fr~,h water be~ formation. {b) Z=its for drminff mud or deleterious shall pay for. all damages to gzow~ the benefit of said claimant. sub~hmce used tR the drilling, complecrops, any improvements on the Iands, (c) If the p~rties fail to adjust the and all other surface danmges as may be claim within the 20 daYS speclflCd, then tion, recomPletlon, or workover of any -ccca~oned by opera~ons. Colanlencewithin I0 days therealter each of the well shall be constructed and maintained -meat money shall be a credit toward interested parties shall appoint an urbl- so as to prevent pol]utlon of surface ~ud -the seCtiement of the total dnm~.ges trator who immediately upon their ~ub~zrface fr~.h v,v~ter. These pit~.sh~ occasioned by the drilling and com-¯ appointment shall agree upon a third be euclozed with a fence o£ at least four pletion of the well for which it was paid. arbitrator. If the two arbitrators shall strands of barbed wire, or an approved Such damages shall be ]raid to the owner fail to agree upon a third arbitrator substitute, stretched taut to adequately --of the surface and by him apportioned within lO days, they r~ hnmedJatcly braced comer posts, unless the su~ace among the pa~es futerest~l in the surnotify the partie~ in interest. If said owner, u~er, or the Supe.,dntendent gives consenf~ face, whether as owner, surface lessee, l~.r~es cannot agree upon a third nrbi- sible afterto the contrary. As soon as poscompletion of operations, pits - or otherwise, as the parties may mutually trator within 5 days alter r~cdpt of such shall be emptied alld leveled ~nless otheregree or as their interests may appear. notice, the Superintendent ~ appoint Wise requited by surface owner or user. If-Lessee-and surface owner are unable the third arbitrator. (c) Drll]ino-" pits shall be adequate to to agree concer~ing dam~es; the same (d) As soon as the tblrd arbitrator is be deter~ed by "arbitration. appointed, the nrbitrators shall meet; contain mud and other material exNothing herein contained shall be con- hear the evidence and arguments of tracted from wells and shah have adestmed to deny any l~rty the right to file the parties; and examine the lands, quate storage to maintain a supply of an ad~on in a court of competent JU- crops', improvements, or other property mud for use in emergencies. r~c~on if he is ~ed with the alleged to have been injured. Within I0 in (d) I~To eax~en pit, excep~ those used the drfll~g, completion, recompletion -amount of the award. days they shall render thelr deci~on ¯ - (b) Surf~ce owners shall notify their as to the amount of the damage due. The or workover of a well, shall be conreconstructed or used lessees or tenents of the regulations in ¯ arbitrators shall be dl~Interested per- strutted, en]a~ed, of the Superintendent. this part and of the necessary procedure sons. The fees and expenses of the third withou~ approval pits shall not be used to follow in ~di eases of alleged damages. arbitrator shall be borne equally by the Unlined earthen Tf so authorized in writing, su_.-~ace les- claimant and Lessee. Each Lessee and for the continued storage of salt water sees or ten~uts may represent the sur- claimant shall pay the fee and expenses or other deZetertous substances. (e) B,S., ~t water and other delefzce owners. for the arbitrator appointed by him. terious ~bstance~ be (¢) In the settlement of daznages on (e) When an act of au oH or gas proper receptaclesshaIl no~ contained, in and permitted to restricted land all sums due and payable lessee or any of Ids employees results in eseape. V~here existing lease facilities shall be paid to the Superintendent for injury to both the surface owner and inadequate for proper disposal of lessee, the parMes aggrieved _ crddit to the account of the Indian ensuch substances, I~see sha~ notify the titled thereto. Joln in the appo~hnent of an arbitrator. ((1) ~ person, other than a sin-f~e Where the injury complained of is Superintendent, who shall give instruclessee or an allottee or the heirs of a de- chargeable to one or more oil or gas tions as to their disposal. ceased allottee, claiming an interest in lessees, such lessees shall Join in the § 1~L~.23 ]~se_ments for wells off leased pr~ ¯ any leased tract or in dsmages thereto° appointment of an arbitrator. must fhrnL~h to the Superintendent a (f) Any two of the arbitrators may The Superintendent° ~vlth the consen~ statement in. writing showing said make a decision as to the amount of the O~ge Tribal Correct, m~y gra.ut o~ claimed futere~t. Failure to furnish such damage due. The decision shall be in e~ments for wells off the le~ed prem:statement ~ constitute a waiver of w~Iting and forthwith shall be served : notice &ud estop saidpersen from clahn- upon the parties in interest. Each party ises to be used for waste or sal~ vrater ing any part of such damages after the shall have 90 days from the date the dlspo~-'al,'water Injection, v~ter ~-"app]y', decision is ~erved in whtch to file an or other necessary sezvlces. Rental pa~same shall have been disbursed. FEDERAL REGISTER, VOL 39, NO. 68---~ONDAY, .A.P~L 8, 1974

HeinOnline -- 39 Fed. Reg. 12759 1974

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 10 of 31

12760

PROPOSED RULES

able to the Osage Tribe for such ease- 9ald and cost in-place of casing and other ~clpal xesldence at a rate not to ~ment~ shall be an amount agreed to by equipment. ceed the amount paid by a gas purchaser Grantee and the Osage ~ Council, (c) Lands not Ieaserl. If the gas lessee plus 10 percent: Prov/~e~, That such resubject to the approval el the Super- shall drill an oil well upon lands not quirement shall be subject to the deterintendent. Grantee shall be respon~ble leased for oil purposes or the oil lessee mlnation by the Superintendent that ga3 in su~cIEut quantities is available above for all damages resulting Irum the use shall drill a gas well on lands not leased of such wells and sat~lement therefor for gas purposes, %he Superintendent that needed ~or lease operation and that may, until such time as said lands are no waste would result. :In the absence" of ~hail be made as provided in § 183 ~1. leased, permit the lessee who drlIled the a gas purchaser the amount to be paid § 183.24 Le~scc's use of water. well to operate and market the produc- by the Tribal member shall be deierLessee or his contractor may~ with the tion therefrom. Where said lands are mined by the Superintendent* Gas to approval of the Superintendent, use leased, the lessee who drilled and com- Tribal members is not royalty free, The water from streams and natural water pleted the well shah be reimbursed by Tribal member is to furnish all necessary courses to the extent that same does not the oll or gas lessee, as the ease may be, material and labor for such connection to diminish the SUpply below the require- the cost of drllling said weil, including Lessee's gas system, and shall maintain ments of the surface owner from whose damages paid and the cost in-place all lds.own lines. The use of such gas shall land the water is taken. Similarly, Lessee of casing and other equipment. If the be at the risk of the Trlb~l member at or his contractor may use water ~romlessee does not elect to take over said well, all times. reservoirs formed by the impoundment v.~ provided above, the disposttlon of such (3) Gas furnt~ed by :Lessee under of water from such streams and natural well and the production therefrom shall paragrapI~ (b)(I) and (2) of this ~eewater courses, provided such use does then be subject to the ~pproval of the ~ion may be terminated only with the ~ot exceed the quantity ~o w~hlch they Superintendent. approval of the Superintendent. Written originally would have been entitled had application for termination must be § 183.26 Determlningcosl of well. made to the Superintendent showlng the reservoirs not been constructed. "Fne term "cost of drilling" as applied justification. Lessee or his contractor may ~ necessarj lines and other equipmen~ within where one ]essee takes over a well drilled CI~SA:~ION OF OPEIUWIONS the Osage ~dneral Estate to obtain such by another, shall include all reasonable, water. Any damage r~sulting from such usual, necessary, and proper expendt- 183.28 Shutdown, abandonment, and tares. Allst of expenses mentioned in this plugging of ~lls. installation shall be settled as provided section shall be presented to proposed In § 183~L No productive well shah be abandoned within 10 days after § 183.25 Gas well drilled by oil lessees pu~chaslng lessee the well. In the event until its lack for further profitable prothe completion of duction ,of oH and/or gas has been and vice vers', of a disagreeme~t-bet~veen the parties as the When an oil lessee in cl~Ung a well to the charges assessed agains~ the well demonstrated to the satisfaction ofshu~ encounters ~ formation or zone having that is to be taken over, such charges Superintendent. Lessee sh~ll not or oth~rw~e discontinue indications of possible gas production, shall be determined by the Superintend- down, abandon, use of any well v.dthout the operation or or the gas lessee in drilling a well en- ~n~. the written approval of the Suparlncounters a formation or zone having inapplications for such apdication of possible oil production, he § 183.27 Gas for operating purposes and tendent. Allbe submitted to the Superproval shall trlbal use. sl~ll immediately notify the other lessee intendent on ~orms £~efl by him, (a) Gas ~.o be ]urn~shg~ oil lessee. and the supe "nntendent. lessee drilling (a) Application £or authority to shu~ the well shall obtain all information .Lessee of a producing gas lease shall Iur- down or discontinue use or operation of which a prudent operator would nor- ntsh file ell lessee ~fficient gas for op-a well shall set forth Justification therereally obtain to evaluate the productive erating purposes at ~ rate to be agreed for and probable duration, %he mean~ by capabillt~y of such formation or zone. upon, or on ~ailure to agree the rate which the well bore is to be protected, (a) Ga~ roelJ :~o be ~w'~ over ~o gas shall be determined by "the Superintend- and the contemplated eventual dispo~iZessee. If the oillessee ~ gas well, he ent: PrevieW, That the oil lessee shall, tion of the well The method of condishail, vdthou~ zemoving from the well any at his own expense and risk, furnish and t4oning such well shall be subject to th0 ~f the casing or other equipment, im- install the necessary connections to the approval of the Superintendent. mediately shut the well in and notify the gas ]essee's well or pipeline, All shch (b) Prior to permanent ~bandonment gas lessee and the Superintendent, If the connectious shall be reported in writing of any well, the oll levee or the gas ~o the Superintend6nt. gas lessee does not, within 15 days after the (b) Use o/gas by Osage Tribe. (1) Gas lessee, as,thecase may be, shall offer .the receiving notice, elect to take over such well to other for his recompleUon from any well or wells shall be furnished "or use nnder such terms as may be mutuwell and reimburse the oIllessee the cost any of drilling the same, including all dam- Tribal-owned building or enterprise ally agreed upon but not in confltot with ages paid and the cost In-place of casing, a~ a rate not to exceed the prMe less the regulations. Failure of the Lessee retubing, and other equipment, the oil xoyalty being received or offered by a ceiving the offer to reply within 10 d~y~ gas purchaser: Prov~dedo That such re- after receipt thereof shall be deemed as lessee shall Immediately confine the gas to the original stratum. The disposition quirement shall be subject to the deter- rejection of the offer. If, after indicating of such well and the production there- ruination by the Superintendent that gas acceptance, the ~wo parti~ cannot azree in ~ient quantities is available above o~ the terms of the offer within 30 doys, from shall then ]be subjebt to the apthat needed for lease operation and that the disposition of such well shall be deproval of the Superintendent. (b) O/Z welt fo be ~.urne~ over f;o o~Z no waste would result. :In the absence of termined by the Superintendent. a gas purchaser the rate to be paid by Zessee. If the gas lessee ddlls an ~il well, he sh~l inunedlately, without removing the Osage T~Ibe shall be determined by §183.29 Disposh~on of casings and other improvemcnlS. from the well any of the casing or other ~he Superintendent based on prices being (a) Upon termination of lease. Perequipment, notify the oil lessee and the paid by purcha~r~ in the Osage M.tner~ Superintendent. If the ell lessee doe~ not, :Estate~ The Osage '~Erlbo is to furnish manent improvements, uule~s otherwise such within 15 days after xeceipt of notice, .all necessary material and labor for'l~no provided by written agreement with the connection with Lessee's gas system. elect to take over the well, he .shall im- use of such gas shall be at the risk of the surface owner and filed with the ~uperintendent, shall remain a par~ of ~aid mediately notify the gas lessee, and the land and become the property of the surdisposition of such well and the produc- Osage Tribe at all times. (2) Any member of the Osage Tribe face owner upon termlnatien of the le~e, tion therefrom shall .be sub]ec~ to the residing In Osage County and outside a other than by eaneeilati0n, exeeptiug approval o£ the Supexintendent. Should the oil lessee elect to take over the well, ~orporate city is entitled to the use at personal property which may inohuio he shall pay the gas lessee the cost of his own expense of not to exceed 400,000 teols, tanks, plpeltue~, ptunpinff and drllllng the ~ame. iucludtng all damages cubic~eet of gas per c~lendaryear for his drliling equipment, dendcks, engines,

FEDERAl. REGISTER,, VOL 39,. NO. 68---MONDAY., APRIL 8, 1974

HeinOnline -- 39 Fed. Reg. 12760 1974

Case 1:99-cv-00550-ECH

Document 309-52

Filed 06/30/2008

Page 11 of 31

PROPOSED RULES 12761 n~h~ery, and the casings of all ~ells: I~see shah keep a full and corcect ac(di L~-~ee ~ measure Production of Pr~, That when any lease termi- count of all operaUons, receipts, and dlsfrom nates all ~ch personal property ~ he bur~ement~ and make reports t~ereof, oH, ~s, and ~.ater ~n~ individual to the zemoved within 90 da~s or such reason- as required. Les~e's books and records at r~onabl~ fret Superintendent. s~thfactton of t~e abXe extension of time a~ may be granted ~haU be available to the Superintendent (c) U~on ~que~ and in the by the Superintendent. Otherv~e, the for Inspection. and form prescribed by the Superintend. ownership of ali:~, shall revert to § 183.31 Less ce's process ~gents. Put, Levee shall furnish a p~at showing Le~or and all other personal property the location, de~Ign~don, and ~t~tns 0£ and permanent improvements to the s~r(a) Before ~ctual drilling or. develop- all wells on the feted lands, together" ~ace owner. ~Tothtng herein shall he con- meat operations are commenced on with such o~r perthzent h~ormst~o~ strued to relieve T~see of responstbllRy leased lands, Levee or A~gnee, if not a as the Sup~rinteudent may require. for r~oving any such personnl Property resident of the Stste of Oklahoma, or permanent improvements from ,the appoint a local or ~ldent ~epre~entative :~ 183.33 L~nc drilling. premises ~ so required by. the Superin- within the State of Oklahoma on whom Levee shall not drill rr/thin 300 fee~ tendent al~d restoring the premises as the Superintendent may ~rvo notice or of bounda_--y line of le~ed lands, nor near as practicable to its origlnal state. otherwise commtmlcato in securing corn- locate any ~ or taz~ within 2O0 feeb (b) Upon cauce3la~on of lease. ~Then please with the regulations in this Vaxt, of any Public highway, any establiahed ~here has been a ~tion for cause, and shall notify the Superintendent of watering plRce, or any buildin~ used as Lessor shall be entMed and authorized to the name and ~ o~ce addre~ of the a dwening, grnnary, or ham. e~¢ept With take Immediate possession of the lease repre~entative appointed. the w~tten p~on o~ the Superinpren~es and alt permanent improve*- (b) ~here ~everal pa~tiez own a leo~ tendent~ ment~and all other equipment necessary jointly, one representative or agent for the operation of the lease. be designated whose duties sh~ll be to act § I~3.~4 We]Is nnd tank batzerles to Le marked. (c) ~ells to. be abandoned shall he for all parties concerned. De~|gn~tion o£ Z~see shall clearly and vermanently prompfJ~V plugged as prescribed by the such representative should be m~de by mark all wells and tank batterie~ in a Superintendent. Applications to plug the party in charge of operations. shalt include a statement afllrming com(c) In the event of the h~apndty or r~r~plcuous Place with number, le~Al deP ~ and operator, as ~plicabl~ and pl/ance with § 18328(bY ~bove and shall absence from the State of Oklahoma o£ set forth reasons Ior plugging, a detailed such deslgnated local or resident repre- ~hall ~ all nece~a~ precautions to ~catement of the proposed work includ- sentatlve, Y-~ee ,sha~ appoint a ~l~tl- preserve th~-e n~ ing kind, location, wud length uf plugs Cog tute to serve in his ste~d, In'the al~ence 1~]3.~ Forrnal~on~ to Leprotccled. depth) , plaz~ for mudding and cement- of such representaHve or nppointed subZR~ce shall, to the s~ti~faction of the ing, testing, parting and remo~in~ casing, stitute, any employee of Les~e upon the and any other pertinent informatlon: leased premises or per£on in ch~-ge of Superfutenden~ take all proper preeg,~Pro~g, ~lat the Superintendent may drillln~ or reIated operations thereon tlons and mea~ure~ to Prevent damage. give oral perm~ion and lustructions sh~dl be considered the representative o£ or pollution of oH, gas, £r~__~h water, or pending ~eIpt o~ a ~itten application Lessee for the purpose of service of or- other mineral bearing formations. to plug a ~ewly drilled l~le. Lessee ders or notices as h~eln proldded, § 183.36 Control dc~ees. remlt a fee 0£ $15 with each written ap- § 183.32 Well recordsand rcport~ In drilling operations tn"wildcall" ~erp~catio~ for anthoritF to" plug a well (a) Lessee shall keep accurate and rttory, or in fields where high This £ee will be ze~unded H permission is complete records of'the drilling, xedrlll- lo~t circulation, or other condii~s n0~ ~nted. (d) Lessee sha~Lplu~ sad fill ~II d~ or ing, deepening, repairing, treating, plug- which could r~uIt in bIowout~ are lieved to e.~t, I,e~ee shell have on such a1~andoned ~ve31s in ~ manner to confine ~u~, or abandonment of all wcl1~. Thee ]eased premls~ an approved gate valve the fluid in each formation bearing fresh record~ ~ show all the formation~ or other controlling device 1nstaffed and water, oil,. gas, ~ ~ and other penetrated, the content and cl~moter o~ in proper working condition for use until minerals, and~ to protect it againsb inva- oil, gas, or water in ench formation, and the ~ell ts completed. ~lon of ~uids J~rom other sources. ~ud- the kind, weight, size., landed depth and laden fluid, cement, and other plug~ ~hall cement record of casing used in drilling § 183,37 WSsteofo;InnJgns. be used to fill the hoIe from bottom to each ~elI; the x~cord of drill-stem and ~¢e shall conduct all o~ons in top: Provh~ed, ~hat if a ss~Isfs~tory other bottom hole pressure or fluid r~.m- a manner th~ Will prevent vraste of o~1 agreement is reached bebween Lessee and ple surveys, temperature m~rvcys, direc- and gu~ and sh~ll no~ rra~tefully the surface owner, subject to the ap- tional ~urveys~ and the like; the materials oH or gas. The Superintendent shall have proval of the Superintendent, Lessee may and procedure used In the treattng or the authority to hnpa~e such requirecondition the well for use as a fresh water plugging of ~clI~ or in prep.~ring Lhem for meats as he deems nece~ar~ to preve~ well and sh2II so indicate on the plugging temporary abandonment; and any o~her ~a~te of oil and g~ and to pr~m~te the r~cord. ~ manner in which plugging information obtained in the course of welI greatest ultimate recovery of o~laud g~ material shall be introduced and the type operat~ora ~Vaste ~ applied herein include~ hub i~ Co) Levee shall take such ~mples and not ]J~t~ to, the tne~tctent, e~ces~ve ¯ ofmater~su used shaIlhe subject to the approval of t~e Superintendent. ~7ith- make such tests and surveys as may be or impro~er use or dls~patlon of zesertr energy ~hich would reasonably roin I0 da~s aft~ plugg~, Lessee shall file required by the Superintendent to deterwith the Supexintendent ~