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Case 1:99-cv-00550-ECH

Document 309-40

Filed 06/30/2008

Page 1 of 4

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Pages 58d5-5896

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VOLUME 27 ~'/x'- |934. ~,<~"

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~:/-/NITED
i1,, i ii

NUMBER 120

Washlngfon, Thursday, June 21, 1962
,

Contents
THE PRESIDENT Executive Order
ExecuUve Orders and Proclamations; preparation, presentaUon, flung, and publication__/ 5847 NONCES: " Emergency ]oams= Deslgnation of areas: Arkansas ................. Kansas_ South Dakota ............. Extenslon of period; Texas .... 5883 5868 5883 5883 Federal Maritime Commission 5883 NO~ICES: ~/Iatson Navlgation Co. et at; filIng of freight tariff ....... 5886 Sea-Land Service, Inc,, et al.; agreements fded for approval__ 5886 5884 Uniform system of accounts for Classes A and B telephone companies; miscellaneous- amendments- ......................

EXECUTIVE AGENCIES
.Agricultural Marketing Service
RzrL~s Az~ REauz~Tiozcs: 3Battler% pears, plums, and Elberta peaches grown in California; grades and sizes ...... 5860

Atomic Energy Commission
1,7oTicEs~ Purdue University; extension of completion date ............ Walter Reed Army Insflbute of Research; order of extension of completion date ...........

Federal Power Commission
5884 NoTicEs: Hearings. etc.: Atlantic Seaboard Corp ....... Austral Oil Co. and Off Parttcipations, Inc ............ Caulkins Off Co. et el Florida Gas Transmission Co__ 5884 Hunt, ]3[. L., et aL ............ Monterey Gas Transnflssion Co. et al ................... 5886 5890 5890 5889 5892 5890 5887

Agricultural Research Service
~L'~TOTIC£S" Identification of carcasses of certain hum2~ely slaughtered ltvesl;ock.. ..................... R~s AND REGUlm~IONS: Overtime services relating to imports and exports; commuted travel time allowances ........ Tuberculosis In cattle; modified accredited areas ............. 5880

Civil Aeronautics Board
NOTICES: Air Freight Forwarders Association; order of tentative approval ......... West Coast Air Services, Ltd.; Transborder Canadian; cmalcellation of hearing and notice of prehearing conference .........

5849 5861

Federal Aviation Agency
PROPOSED I~ULE ~tKING: Federal airways, associated control areas, and reporting points; revocations (2 documents) .... RULES A~m REGUImTIONS: Airworthiness directive; Hu~=~hes Model 269A helicopters ....... Control area extension and Federal airway; alteration_ ....... " Control zones; alteration and designatlon ..................... Federal airway, associated control areas and reporting points, revoca~on; and alteration of

Federal Trade Commission
Ru~Es ~m RE~TIO~S: Prohibited trade practices: K11sin, Louis 1W_L__ 5863 Ramia, Joseph J., and United Forwarding Service ........ 5864

Agricultural Stabilization and Conservation Service
PROPOSED R~ I~G: M~ In 1Wortheastern ~V'~consin market~n__g area; recommended decision and oppor~nity to ~e wrltten exceptions on proposed amendments to tentative agreement and order ......... 5874 RDT~ES AND REGUIm.2XOI~S: Tobacco; burley, flue-cured, /h'ecured, dark air-cured, and Vir-

5876 5861 5862 5863

Food and Drug Administra|ion
PROPOSED RULE ~KING: Food additives; filing of petitions (3 documents) ............ 5875, 5876

control area extension_ ...... 5861 qUotas, 1982-63 .............. 5849 Federal airway and reporting Wheat marketing quotas, 1961 point; alteration- ............ 5862 and subsequent crop years; exJe~ advisory areas; alteration___ 5863 cess acreage utilization date___ 5860 Agriculture Department
See a~o. Agricultural Marketing Service; Agricultural Research Service; Agricultural Stabilization and Conservation servlce.

ginia sun-cured; m a r k e t i n g

Health, Education, and Welfare Department See Food and Drug Administration.

Federal Communications Commission

Housing and Home Finance Agency
NoTIcES:

R~LES AND I%EGULATI0ZCS: Frequency allocations and aviation services; mtsceIt~neous amendments .................. 5867

Acting Regional Administrator,
Region I, New York; designation ......................... (C'o~t~r~uec~ o~ ~e.~ pc~e) 5845 5879

HeinOnline -- 27 Fed. Reg. 5845 1962

Case 1:99-cv-00550-ECH

Document 309-40

Filed 06/30/2008

Page 2 of 4

Proposed Rule Making
12~ percent of the gross proceeds from 3. Paragraph (a) of § 183.5 is amended sales of oil produced by secondary re- to read as follows: covery processes, other t~an gas injec- § 183.~ Use of surface lands; settlement Bureau of Indian Affairs tion, after deducting the oil used by the of damages to lands and crops. lessee for development and operation [ 25 CFR Part 183 ] (a) Lessee shall have the right to use purposes on the lease, zm]ess the Osage Tribal Council, with the approval of the so much of the surface of the land within LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING Commissioner of Indian Affairs, ~hall the Osage Reservation as may be reasonelect to take the royalty in oil; payment able for operations, including the right Notice of Proposed Rule Mak|ng to be made at the time of Sale or removal to lay and maintain pipelines, telephone and other Ba,~ and, ~urpose. Notice is hereby of the oil. except where payments are and telegraph lines, pull rodsoperation made on division orders and settlemen~ appliances necessary for the given that pursuant to authority vested ingress and in the Secretary of the Interior by sec- shall be based on the actual selling of the wells, also the right ofto anypoint price, but at not less than the highest egress, and the right-of-way tion 3 of the Act of June 28, 1906 (34 posted market price in the i~id-Con- of operations. Lessee may use water Star. 539-543), it is proposed to amend from streams and natural water courses Part 183 as set forth below. The pur- tinent oil field on the day of sale or for lease operations as set out in § 183.5% removal pose of these amendments is to make Before commencing operations for the minor changes and to clarify some of the 2. Paragraph (a) of § 183.4 is amended drilling of any well the lessee shall pay language of Par~ 183. to read as follows: to the surface owner the sum of $200 It is the policy of the Department Of for each well located on culitvated land the Interlor whenever practicable, to § 183.4 Drilling obligations. (tilled or cultiva~d within the Immed~ afford the public an opportunity to par(a) Lessee shall drm at least one well lately preceding three years, and includticipate tn the rule making process. t~ the Mississippi Lime unless oil oz" gas ing hay-meadow land), $150 for open Accordingly, interested persons may is found in paying quantities at a lesser pasture land, and $100 for such location submlt such written data, views, or ar- depth, on the land covered by his lease, on brush or wooded lands, and other guments as they may desire to the Com- within 12 months from the date of ap- lands not suitable for cultivation. Upon missioner of :Indian Affairs, Washington proval of the lease, or the lease may be payment of such location site money, 25, D.C., within thir~ days of the date held for the full five-year pl~aal~j term lessee shall be entitled to possession. Loof publication of this noLice in the FED- without drilling, upon payment to the cation sites sl~all be held to the minimum Superintendent for the lessor of rental area essential for operations, and in ERAL RE@IsTEa. I. Paragraphs (a) and (b) of § 183.2 at the rate of one dollar per acre per no event shall exceed one and one-half annum, payable annually in advance, acres in area. Lessee shall also pay tank are amended to read as follows: beginning one year after the date of ap- site fees at the rate of $20" per tank of § 183.2 Royahy payments. proval of the lease. This lease shall ter(a) RoyaZty or~ ~'~ progueecl by ~r~- minate as to both parties unless such not exceeding 1,000 barrels capacity: ~ary or gas ~nieet~on methods. The advance rental shall be received at the Provf~¢~, however, That no tank site fee be paid for a set lessee shall pay or cause to be paid to Osage Agency or shall have been mailed shallwell locationtank temporarilypuron a site for the Superintendent, for the lessor as as indicated by postmark, on or before poses during the completion testing of the well. a royalty, the sum of 16~ percent of the the due date: Provi~eg, That the time Tank sites shall be held to the ~zinin~mn gross proceeds from sales after deducting within which a well shall be drilled shall area essential to e~cient operations, the ell used by the lessee for development not begin to run on any restricted home- and in no event shall exceed an area of and operation purposes on the lease, unstead selection until the consent of the 50 feet square per tank~ The sum to be less the Osage Tribal Council, with the Superintendent to drilling on such home- l~atd for an oil tank site of larger capacapproval of the Commissioner of Indian stead shall have been given, nor shall occupying a greater area shall be Affairs, shall elect to take the royalty in advance rental become due until the next ity and upon between the surface owner oil; payment shall be made at the time anniversary date of the lease following agreed lessee and on ~aflm'e to agree, and the of sale or removal of the oil, except where the date of such consent: Pray/clog ]ur- the same shall be fixed by arbiti'ation. payments are made on division orders, thor, That the Superintendent in his dis4. Paragraph (a) of § 183.24 is and settlement shall be based on the cretion may order the drilling of any actual selling price, but at not less than lease, if in his opinion the interests of amended to read as follows: the highest posted market price in the the Osage Tribe warrant: Pro~ec~ Jut- § 183.24 .Royalty on caslng-head or nat1VIid-Continent oil field on the day of thor, That whenever the Comnfissioner ural gasollne, bmane, propane~ or sale or removal: Prevfge~, That when of Indian Affairs shall consider the marother liquid hydrocarbon substances the quantity of oil taken from all the keting facilities inadequate to take care extracted £rom gas, drip gasoline, producing wells on any quarter-section of the production he may direct suspenor other naturaI condensate. " according to the public survey, or frac- sion of drilling operations on this lease. (a) A royalty of 16% percent of the tional quarter-section if the land cov- The completion of a well to the lW_issis- gross proceeds of sales shall be paid on ered by the lease does not include the , sippl Lime, or production of oil or gas in the value of one-third (or the lessee's full qua~ff~r-seetion, during any calendar month is sufficient to average one hun- paying quantities from a lesser depth portion if greater than one-third) of all than the l~ississfppi Lime, for such thne casing-head or natural gasoline, butane, tired or more batTelS per welI pet" day, the royalty on such oil shall l~e 20 as production shall continue, after the propane, or other liquid hydrocarbon lease has entered a rental status, shall substances extracted from the gas propercent. leasehold. The value of (b) RoyaZ~y o~z oil ~ro~uce~, by see- relieve the lessee from any farther pay- duced from the is an allowance for the o~zgary recovery 2Jrocesses other tha~ gas ment of rentals for the balance of the the remainder cost of manufacture, and no royalty fn~ectfon. When the estimated reserves primary term of the lease for which thereon is required. The royalty shaJl be rental has not been paid. Should such computed on the sale price received by of oil recoverable by p~mary and/or gas injection methods from a speeLtied for- production cease, rental shall com- the manufacturers of such products, or matlon or formations have been depleted mence on the next anniversary date of such higher price the lessee may receive, or partially depleted, the lessee and the the lease, Rental shall be paid on the the same to be reported under oath and Trtbal Council may agree upon a new basis of a full year, and no refund will remitted to the Superintendent not later royalty rate to be approved by the Super- be made of advance rental paid in cam- than the 25th of the succeeding month intendent, the stun to be not less than pliance with the regulations in this part. "for all such products sold during the 5871

DEPARTMENT OF THE INTERIOR

HeinOnline -- 27 Fed. Reg. 5871 1962

Case 1:99-cv-00550-ECH
5872 previous month. If the manufacturer of any product extracted from ca~ng-head gas produced from an Osage leasehold should sell hls product at a price beIo~r that obtained by other manufactitrers " selling such product in the open market during a particular month, the "Superintendent shall notify said manufacturer of such.discrepancy and require settlemerit for royalty upon the average price obtained by manufacturers selling such product In the open market during the " same period. The place of sale of liquid hydrocarbon exth-9~ted from gas, for royalty purposes, shall be at, the plant where manufacturech 5. The ca~tlon o£ § 183.39 and paragraph tb) thereof are amended to read as follows: § 183.39 Sale of oll leases andl;;as leases,

Document 309-40

Filed 06/30/2008

Page 3 of 4

PROPOSED "RULE MAKING

§ 183.40 Corporation and corporate ~nLessee(s) shall before commencing secformation. ondary recovery operations, and on or before Deeem~ber 31st of eachyear thereCa) If a successful bidder for a lease after, submit to the Superintendent an is a corporation, it shall file a statement acceptable plan of development and opshowing: eration for the unit area for the ensuing (i) The state of incorporation and year. Upon a finding by him that such that the corporation is authorized to do action would be in the best interest of business in the state where the land to the Osage Tribe, the Superintendent beIeased is situate;" may also approve an agreement between (2) That it has power to hold and the lessor and the lessee(s> rescinding operate mining leases; a unit (blanket Iease) and restoring to (3> That the officer executing the their original status the Form B leases lease is authorized to act on behalf of theretofore merged in the umt lease: the corporation in such matters. Provfded,, That if oil is being produced (b> Whenever deemed advisable in in paying quantities on a particular any case the Area Director or Superquarter-section tract on the date of apintendent, may require a corporation to provai of such agreement, the lessee shall file any additional information necessary be entitled to hold such tract under terms to carry out the purposes and intent of of the original Form B lease so long as the regulations in this part and such ino~1 is produced on said tract in paying formation shall be furnished Within a ctuantities. reasonable time. (c) Assfg~m~z~. Approved leases C0) The Superintendent, with the 7. Section "183.45 is amended to read or any interest therein may be assigned consent of the osage Tribal Council, as follows: with the approval of the Superintendent, may at such times and in such manner and not otherwise. Asslgnment~, when 183.45 Reporls aud time of royalty as shall be deemed appropriate, publish approved, shaR be subject to the terms payments. and distribute notices that oil leases and/ and conditions of the original leases, and or gas leases on specific tracts of unRoyalties on all .oil and gas, including the regulations nnde~ which such leases leased tribal lands, each of which shah ca~lg-head gas or on gasoline manufacwere approved~ In order for an assignbe a compact body. will be offered for tured therefrom, produced in any month, men~ to recelve favorable consideration. sale to the highest responsible bidder: shall be paid on or before the P-bth of the lessee shall assig~ either his wh~le Provfde,~, That, not Iess than 25,000 acres the month next succeeding by either interest in a legal subdhd_slon or an unof the unleased portion of the Osage purchaser or lessee. Failure to so remit divided interest in the whole lease. If mineral reserve shall be offered for lease wRI subject the lessee to fines as hereina lease ts divided by the assignment of during any one year. Successful bidders after indicated, and also subject divi~on an entire interest in any par~ of i~, each must deposit with the Superintendent order to cancellation. Lessees shall also part shall be considered a separate Iea~e on day of sale, a check, or bank dxaft on furnish monthly reports covering all under all the terms and eonditlons of a solvent bank tn an amount equal to operations whether there has been prothe original lease. The assignee shall 25 percent of the bonus as a guaranty of duction or not, indicating therein the furnish with his assignment a satisfacgood faith. The balance of the bonus, total amount of oil, gas, or gasoline sold tory bond as provided in §183.20(c). together with a $10 filing fee for each and not merely their working interest. Any attempt to assign an approved lease, shah be paid, and the lease in and also dates of discovery and beginning lease or any interest, therein without the completed form with ndcessary accomof utilization of gas from gas wells. The consent, and approval of the Superinpanying papers shall be filed with the lessee may include in one statement all tendent shall be absolutely void and Superintendent withfu 20 days after the leases upon which dry holes ]~ve been shall subject the original lease to canlease is forwarded by the 'Superintendent. drilled or the ~ have ceased tA> cellatlon in the diseretlon of the Superto the lessee for execution, unless such produce. Intendenb. period has been extended by the SuperE. Paragraphs (b) and Co) of § 183.4~ intendent for good and sufficient rea9. Section 183.49 ~s amended to read are amended to read as follows: son. If the successful bidder fails to as folIows: complete the lease or to pay the full con§ 183.46. A2proval of lease in~ruraents. § 183.49 Commencement Of operations. sidexation Within 20 days or an author"No ~ or development, operations fred extension thereof, or If the lease is (b) U~Iizatior~ of o~Zegses. Aaaconshall be permitted upon any tract of land disapproved thxough no fault of the sideration for luther deveIopmem~ by a until a lease covering such trac~ shall lessor or the Department of the Interior, ~econdary recovery process, two or more have been approved by the Superinthe amount deposited as a guaranty of oil leases may be unitized and merged tendent or such operations spee~cally good faith shall be forfeited for the use in a sh~Ie blanket Iea~e wi~h the apauthorized by him: ProHded, That the and benefit of the lessor. Any and all proval of the Superintendent The i~Superintendent may grant authority to bids shall be subject to acceptance by the strument of unitization (blanket lease) any par~, under such rules (consistent, Osage Tribal Council. The Superinshall include all the requirements and with the regulations in this part) that tendent may disapprove a lease made on pro~sions of sections numbered 1, 5, 6, he deems proper, to conduct geobhysical an accepted bid, upon evidence sa~is7, ~, 9, 1{~, 1I, 12, 13, I5, 16, t7, 18, 19 and and geological exploration work in any factory to him o£ collusion, fxaud o~ 20 of Osage oil lease Form B: PrOffered. l~ortion, or all of the Osage Reservation. other irregularity In connection with the Thai; the preamble'of Form B and the sale of the lease. At a public auction I0. Paragraph (b) of §183.51 is provisions of section numbered 2 in resale the Superintendent may zequ~e amended to read as follows: spool to re,alLy rates; section numbered any bidder to submit satisfactory evi3 in respect to payment of rental; section § 183~51 ~Yell location fees. dence of good faith, thai; ha has the numbered 4 in respec~ to pa~unent of well site and tank location fees; and section cash in hand or at, his command, an~ t~ ~b) ~rhere the surface owner is a renumbered L4 in respec~ to the surrender furnish whenever called upon by the stricted Indian, adult or minor, the well of the lease may be modified and/or Superintendent during the progress of Iocation fee shah be paid to the Superinsupplemented by the parties, with the the sale, authenticated statement of %endent of the Osage Agency for such approval of the Superintendent, to the solvent bank to the eEec~ the bidder hs~ Indian. All other surface owners, extent deemed ~pproprtate for the equithe means to purchase the Iease. whether Indians or non-indians shall tabIe and e~cient, conduct of unitiseii be paid or tendered such fees direct, and operations, and not, otherwise in con6. Sec~oz~ 183.4{~ is amended to read flfct with the regulations in this part. where such surface owners are not, reslas folIows:

HeinOnline -- 27 Fed. Reg. 5872 1962

Case 1:99-cv-00550-ECH
Thursday, June 21, 1962

Document 309-40
FEDERAL REGISTER

Filed 06/30/2008

Page 4 of 4
5873

dents of Osage County nor have a rep- each well, inclucli~; the weli to be f~ken chaser fail, neglect, or refuse to pay the resentative located therein, such pay- over, and in the event of a disagreement royalty when it becomes due. No oil ments shah be made or tendered by between the parties as to the charges shall be run to any purchaser or delivcheck, postage prepaid, to last known assessed against the well that is to be ered to the plpeKue or other carrier for address of said surface owner at least taken over, such charge shall be fixed shipment, or otherwise conveyed or re5 days before commencing drilling op- by the Superintendent. moved from the leased premises, until a erations on any well: Prov~deg, That (e) Custemary charge for drilling and division order is executed, filed, and apshould the lessee be unable to reach the reaming, except where reaming is done proved by the Superintendent, showin~ owner of the surface of the land for the for the sole benefit of party drilling we]]. that the lessee has a regularly approved purpose of tendering the location fee, H price charged for drilling is above the lease in effect, and the conditions under or if owner of the surface of the land average drilling price in the field, the which the oil may be run: (Provfded, upon being tendered the location fee price to be paid shall be determined by That the Superintendent may grant temby the.lessee, shall refuse to accept the the Superintendent. Provfd4g, That porary permission to run oil from a lease same, the lessee may tender the location where the well to be taken over is drilled pending the execution, filing, and apfee to the Superintendent of the Osage below the stratum in which the lessee proval by I~n of a division order.) Agency, and if the lessee and the Super- ta]dng over the well is interested, that is, lessees shall be required to pay for all intendent shah agree upon the amount the gas stratum in the case of a well oil or gas used off the leased prem~es of the location fee, the lessee shah de- taken over by a gas lessee, and the oll for operating purposes; affidavit shall posit such amount w;th the Superintend- sl~tum in a well taken over by the oil be made as to the production used for cnt for payment to the owner of the lessee, then the lessee doing such fur- such purposes and royalty paid in the surface of the land upon demand, and ther ~ shah sustain the cost of " usual manner. The lessee or his reprethe Superintendent shall thereupon ad- d~. and reaming where such drflling sentative Shall be present when oll is vise the owner of the surface of the land and reaming are done below such taken from the leased premises under any division order and will be responsible by mail at his last tmown address, that stratum. (f) All expenses of mudding, except for the correct measurement thereof and the location fee is being held for paymerit to him upon his writ~en request. where mudding is done for the sole bene- shall report all oil so run. ~t of the lessee drlning the well. (b) The lessee shall also authorize the (See.3, 35 Star. 643) (g) Settlement for casing or other pipeline company or the purchaser of I1. Section 183.62 Is changed to read pipe left in the well to be made at the oil to furnish the Superintendent with a as follows: prevailing market price for the charac- monthly statement, not later than the § 183.62 Permission to start operations. ter and kind of casing when placed in 20th day of the following calendar the welL month, of the gross ba.rrels run as a Written permL~zion must be secured (h) All expenses of placing and re- common-carrier shipment or purchased from the Superintendent before opera- moving all casing or other pipe used" in. from his lease or leases. tions are started on the leased premises. said well 15. Paragraph (b) of § 183.93 is Lessee shall submit application for such (D A reasonable charge to cover su- amended to read as follows: permission, on forms to be furnished by pervision and overhead expenses: Prothe Superintendent. in;tied, Where the parties cannot agree 183.9~, Forms. S S ¯ ¯ 12. Section 183.73 is changed to read upon the charge made under this paragraph, such charge shah be determined as fonows: (b) All sums received from sale of by the Superintendent. forms and fines shall be placed in TnU0al § 188.73 Determining cost of well (j) Any additional charges which ~unds. The term "co~ price of a well" as ap- cannot be mutually agreed upon shall 16. Section 183.94 is amended to read plied where one lessee takes over a well be submitted to and determined by the drilled by another, shah include all tea- Supe~dent. An approximate lis~ of as follows: sortable, usual, necessary and proper expenses mentioned in this section shall § 183.94 Amount of fee, expenditures includin~ the following be pre~ented to proposed purchasing A fee of 810 ~ be charged for each expenditures made by the lessee drilling lessee within 10 days after the complelease, each sublease, each drilling contion of the well the well. affecting oil and gas mining (a) All location, or other surface ¯ 13. Section 183.81 is amended to read tract each assignment of lease,leases, and such damages occasioned by the drilling of as follows: amount to be paid by the lessee, subsuch well. lessee or assignee upon notice of ap(b) All expenses of laying, taking up, § 183.81 ABandonment of we~s. of the contract, as repairing, operating and maintaining I~essee shall not abandon any well for proval February 14, 1920.prov/ded by the gas and water lines where such lines in- the purpose of drilling deeper for oil or act of cluding amount paid for water privilege gas unless the producing stratum is Jomr A. C~av~, Jr., or constructing dam, are used for the ex- properly protected and shall not abanAssfstan~ Eecretary of he lnterfor. clusive purpose of dr'dUng the particular don any well producing oil or gas except Jm~E 15, 1962. wall. wfth the approval of the Superintendent (c) Customary charge for furnishing or where it can be demonstrated that the [I~. Doc. 62--6047; Filed, June 20, 1962; 8:47 a~n.] water where purchased shall be the price further operation of such well is comprevailing in the particular locality: mereially unprofitable. When any well Proofer, Where the parties cannot agree is plugged and abandoned lessee shaH, Bureau of Land Management upon the charge made under this para- within ninety (90) days, clean up ghe graph such charge shall be determined premises around such well to the satis[ 43 CFR Paris 115, 259 ] by the Superintendent. faction of the Superintendent or his au(d) Amounts expended in spudding or thorized representative: Prov~ecZ, That REVESTED OREGON AND CALIFORdrilling a water well: Provi~e~, That the ninety (90) day period may be exNIA RAILROAD AND RECONVEYED where any or all of the facilities referred tended a reasonable time in the discreCOOS BAY" WAGON ROAD GRANT to in this paragraph and in paragraphs tion of the Superintendent. LANDS IN OREGON (b) and (c) of this eeetion are not em14. Section 183.88 is amended to read Disposal of Timber and M|nerai ployed exclusively in connection with the drilling of the well to be taken over, as follows: P, esources or are also used in connection-with the § 185.88 Division orders° Basis aug purpose. Notice is hereby drilling or operation of other wells by (a) The lessee may make an~nge- given that pursuant to the authority the lessee drilling the well to be taken ments with the purchasers of oil for the vested in the Secretary of the Interior over by the other lessee, then a fair pro- payment of the royalty, but such arby the Act of August 28. 1937 (50 Stak portion of the charges covered by this rangements, if made, shall not relieve 874) and the Act of July 31, 1947 (61 paragraph and paragraphs (b) and (c) the lessee from responsibility for the Star. 681) as amended, it is proposed to of this section shall be assessed against payment of the royalty, should such pur- amend 43 CFR 115.22 and 259.9 as set

HelnOnline -- 27 Fed. Reg. 5873 1962