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Case 1:99-cv-00550-ECH

Document 309-35

Filed 06/30/2008

Page 1 of 25

.t~.~\oNAL~,

F" " " EHE
i

° BEGI STEII
i Ill | I I

Washlngfon, Friday, May' Z l, 1956 TITI~E 3--THE PRESIDENT
EXECUTIVE ORDER 10667 Az~z~,r~ oF ExE~ Oao£R No. I~6~'9,= A~nzo~a ENz~r=~ z~ ~ READY 17~S~VE OF ~ AS~Z REs~v~_ ~ ~ CoRPs RES~VE, TO AU~ORZZ~ ~ Z~ ~ NaV~ Co~"z Gu~ 17~sL~vss By virtue of the authority vested in me by subsection (a) o£ section 262 of the" Armed Forces Reserve'Act of 1952, as added by section 2 (D of the Reserve Forces Act~ of 1955 (69 SLat. 600), it is ordered that ~xecufive Order No. 10629 of August 13, 1955, authorizing enlLsbmerits in the Ready Reserve of the Army Reserve and l~arine Corps Reserve, be, and it is hereby, am-ended to read a~ follo'w's: '~HEP~AS I have def~Lned that the enlisted s~ength of the Ready Reserve of the Army Reserve, ~Marine Corps Reserve, NavalReserve, and Coas~ Guard ReserVe cannot be mainbdned at the level necessai~ for the national defense: ¯ "NOW, THEP~ORE, by virtue of the authority vested in me'by subsection (a) of section 262 of the Armed ~orbes Reserve Act of ~1952, ~s added by section 2 (D of the Reserve Fo~ces Act of 1955 (69 S~at.-600), I hereby authorize the acceptance of enlistments in units of the Ready ResP_~ve of the Army Reserve, Marine Corps Reserve, Naval Reserve, and Coas~ Guard Reserve pursuant to the provisions of the said section 262 of the Armed Forces Reserve Act of 1952, as added as heretofore indicated, under such regulations as the Secretary of Defense shall prescribe."

TITLE 5--ADMINISTRATIVE PERSONNEL
Chapler [---Civil Service Commission P~r 4--P~o~mrz~o P~.~m'zc~s POLIrlCAL AG'/I'V'ZI~ Par~ 4 is redeslgnated a~ "Prohibited Practices;". Sections 4.101 througl~ 4.108 are designated Subpar~ A, '~rohibltlon Against Political Activity." SubpaE~ B Ls added as set out below.
SUBPART B---PROHIBITION AGAINST ]IOLDI~O STATE OR LOCAL OFFICE

CONTENTS
THE PRESIDENT Exocutlve Order ~e Amendment of :Executive" Order ¯ ]'o. 10629, authorizing ments in the Ready Reserve of the Army Reserve and Marine Corps Reserve, to authorize enlistment in the Naval and Coa.~ Guard Reserves~__ - 3141 EXECUTIVE AGENCIES Alien. Properly Ot~c~ Notices:

Sec. 4-201 Prohlb~Uon n~ainst holdlng State or z~m~v" Es ~arto~: ~esU~ local orate. order .... 3153 4.202 State and local positions ~hJch ~y Atomic Energy Commission be he~d by N~dcral ol~cer= and employees. Notices: 4.203 ~'ederal poslUons the Incumbents of l~asmchusetts Instttute of which nro permitted to hold State Technology; issuance of conand local omce~ struction permit ...... 3150 4~.0~ Exception-of re~dents o[ ce~taln municipalities. Civil "Aeronaulies Board Notices: A~'THOa~r: §§4~01 to 4~ Issued under Davis, Arthur VlnIng, and Cu~ 1%. S. 1953; ~ec. 2. 22 Star. 403, n~ amended; 5 let Corp.; hearing on acquisir.S.O. 631, 633, E. O. 10530, 19 P. If- 2709, CFR~ 195-~ SUpp. Statutory provts|onB tion of controL__~_ 3151 ~n~rpret~ or appllcd a~ cRcd to t~t. Reeve Alaska Alrmotive and Reeve A]eutiau Air~ay_s~Zn.c.; §4.201 Prohlbttlo~ again% ho~dlng postponement of prsh~-ing Sf~f~ or local o~ee. No person may acconference. .... 3151 cep~ or hold any office under a State or local government, including departments Civil Service Commission and agencies and political subdlvislons of Rudes and regulations: such government~ at the same thne Lhat Formal education requirements he holds any office in the ~ecutive for appointment to certain branch of the Federal government by apscientific, technical, and propointment, unless he is excepted by fes~onal positions; metal§ ,t.202, § 4.203, or § 4-~0~ and service in lurgist 314~ the State or local o~nce wlil not interfere P~oldblted practices; political with the regular and e~clent discharge activity .... _. 3141 of his Federal duties, of which the em-~ Commerce Depadment plcytng agency is the sole Judge, and he See Federal Maritime Board. obtains the approval, of his employing; agency in advance. Nothing in this subCustoms Bureau part shall be construed as permitting a Rude~ and =egutattons: Federal employee to engage in any partiCustoms districts ,and ports; san political activity prohibited by secageDey districts-- ..... - Dv~ D. E~s~rHow~ 3147 tion 9 of the Hatch PoHtleal ActlvitMs Federal Communications Com"l~ WHrrE~HOWBE, Act and Civil Service Rude IV. \ .M~z~l 9.1956. mlsslon §4,202 SLate an~ ~ocaZ ~osttio~ :Notices: [P. R. Dec. 56-d~89; :Filed, ~y 10, 1956; ~htcJ~ may be he.by Fe.dcraZ o~/cers and, Hearings, etc.: 9:30 a. m.] ~mpIoye~. Federal employees may hold ¯ Golden, B. T, - . 3151 20 P. P~ 5911; 3 CFI~, Ig55 Supp.o p. 81. (Conttnued on next pa~) News on the Air, lu~ .... 3151 3141

~

HeinOnline -- 21 Fed. Reg. 3141 1956

Case 1:99-cv-00550-ECH
Fr~fay, May 11, I956

Document 309-35
FEDERAL REGISTER

Filed 06/30/2008

Page 2 of 25

neeci~ary and appropria~ to ~Ty out The area shown for Customs Agency P~ 18~-Lmsma oP 1~c~n Lawns DIstrlct No, 15 is mended by inserting th~provisions 9f the Natural Gas Act. OEI~aHO~r_a, I"OR ~J~N~ The cbmmL~on, "~ting pursuant to a comma in lleu of the period after authority granted by sections 10 and 16 "33 (Montana end Idaho)" and adding Section 183.15 is amended to read as of the,Natural C-as Act (52 star. 826, "47 (Colorado, that part comprising the follows: State of Wyoming) J' 830; 15 U. S, C. 717i; 717o) orders: § Bo~. (A) Part "260-of the CommL~ion's The foregoing amendments shall be nlsh183.15 each (a) T.esseeshailfuro with mining lease a bond regu]ationp entitled "Statements and effective on and after July 1, 1956. (Form 5-I54b), and an assignee of a Reports (Schedules)" of Subctmpter G, Approved Forms, Natu_rs/ Gas Act (18 (t~. S~ 16I~ see. 024, 46 Star, "/59; ~ U. S. (~, lease shall furnish ~vith e~ch ~.~C1~ lOar~ 260) is mended by adding a 22, 19 U. S. C. 1624) merit a bond (Form 5--154m), with an acceptable company authorized to aci; as new § 260.5 to read as follows: sole surety; or with two or more persen~I Comm/~oner o~ Custom. § 200.5 Fo~ No. 301, S~f~en~ el ~reties and a deposit as collateral seApproved: ~y 4, 1~56. seres a~ revenues o! ~en,~t ~rocur|~ of Shy public-debt obltgation~ of ducers. (a) FPC t~orm No. 301, Inde-" the United States guaranteed as to prinDAv~ ~V. K~trvM,~, pendent'Producers Rep~r~ of NatnralActing Secretary o] fJ~e Tre~urg. clp~ and interest by the United States, Gas Transactions for the Year Ending equal to the fall amounf; 0£ such bonds, December 31, 1955/being a s~tement of [P. R. Doe, 66--~749: Filed, ~ny I0, 1950; or other collateral satisfactory to the 8:46 ,. m.] sales of natural gas maae during me secretary of the Interior, or show ownercalendar year 1955 under rate schedules ahlp Of u~encumbered zeg/estate of the filed with the Commission pursuant to value equal to twice the amoun~ of the TITLE 25--INDIANS - §§'154-92 and I54.94 of this chapter. bonds. ~e may file a bond on l=orm (b) Each independent producer as de- Chapfer l--Bureau of Indian AfEa~rs, 5-I54a without sureties and a deport as fined in § 154.91 of this chapter who had collatezul securlty of Government bonds Depadment of the Inlet|or a rate schedule on file with the Commisequal in value to the full amount of the men on December 31, 195.5 sh~l file with Sub~apler R~o=sos and 5=[e of I,~In~ralS, bo~d. Lease bonds except as provided the commission on or' before June 30; tn'~graph (c) of thls section shall be Rest~d~d |nd|~n Lands 1956 two copies of such FPC ]~orm No. in the following amounts: " ~ ~SOE~,LaS~OUS ~n~Dzaz~zs TO 30L ~. ~o~'le~ than 80 ac~e~ _____ $I.~00 ForB0ncrc~andle~ztban 120acresl-_ ~.500 03) The amendment te Par~ 260 herein prescribed 5e and it is hereby made The followLug amendments to Chnpt~ ~'o~ 120 acre~ and no~ more than 160" ac~e~__ effective upon .the issuance of this order. I of Title 25 of the Code of Federal Z~'tt- For each additional 40 acre~ or part 2, COO lation~ are hereby prescrlbed: (see.,16, 52 star. 830; 15 U. S. C. 717o) the.~-ot above 160 acre- , = e S00 PART 180---LEasn~o oF OSAOE RESE~VA~ION Issued: May 11,1056. Prodded. That a lessee may file a bond " LAWNS ~oa OZL ~o G~s L',~o (Form 5--154f), in the sum of $15,000 for By the Commi~ton~ Section 180.20 is nmendecl to read as all leases of n~inera~ up to I0~240 acres I.,.v.O~ M.. FuQuAY, follows: under the J~ctton of the o~cer in . Secretary. charge of the Five Civilized Tt-~es ¯ § 18020 Bor~7.~. (a) Lessees shaR [~'. ~ Dec. 56-~748; N~led,~May 10, i956; furnish with each ell lease and eech.gas Ageney~ 0£ thebondszeq~eduudex s:40 a.m-I lease, to be filed at the tlme the leese'~ (b) Y.ulieu of this ~ection, a lessee presented, a bond upon ~orm D, with a parngrnph (a) surety company duly authorized to exe- tony furnish a bond (I~onn 5-156) in the TITLE 19~CUSTOMS DUTIES cute bonds. Such bonds shall be in the sum of $'/5,000 for full nation-wide cov~tm of $1,000 for each quarterosecMon or erage with an acceptable company ChaFfer I--Bureau of Cusfoms, fractional quarter-section unit covered authorlzcd to act as sole surety to cover Depa.rtrnent of fhe Treasury by the lease: Provfded, l~noevcr, That the all o11 and gas ]eases and o11 and gas IT. D. s~os~] lessee may file one bond, Form (3, cover- prospecting permits wlthou~ geographic or acreage lhnttat]on to which the lessee PART 1--1CUSTOMS DZSTeIC~S AZ~ PORTS £ug all leases to ~lflch he or they are or or per~ttee is or may become a party. may become parties instead of a separate (c) ~he ~ight is specifically reserved CUSTOMS AGENC~ DISTRICTS ~ond in each case, such bond to be in the to increase the amoun~ of bonds and the Section 1.5, Customs Regulatlons, is penal sum of $15,000. collateral eecudty prescribed in 1~(b) In lieu of the bonds required un~anende~l as ~ollows: graph (a) of this section in any pa_-~IcuThe area. shown for Customs Agency der para~caph (a) o~ this section; a lesthe o~Iicer in charge D~t~rict No. 9 is alnended by inserting see may furnish a bond (Form 5-156) In far case whendo so. Thenation-wide deems ~tproper to bond after "4.7 (Colorado" a comma and the the sum of $75,000 for full nation-wide may be Incre~ed at ~ny time in the coverage with an acceptable company words "except the State of-Wyoming'. The headquarters shown for Customs authorized to act as sole surety to cover discretion of the Secretary of the Agency District No.-10 is amended to all o11 and gas leases without geographJo Interior. or acreage limitation to which the le.~ee (See. 2, 35 St~t. 319, zee. 18, 41 ~tat 42e, reed 'q_~xedo, Texas': zcc. I. 45 star. 405, e~c. 1, 4"/ Star. 'r~; 25 The-area strewn,for C~ms Agency is or may become ~ pa~ty. (c) The right is specifically reserved u, s. 0. 350) District No. ,10 is amended by inserting a period in lieu of th6 comma after "2~ to iuereese'the amount of bonds pre(E~Paso)" and deleting "26 (Arizona)." scribed in paragraph (a) of ~ section The headquarters shown for Customs in any partlcular'case when the SuperinMn~mo A~e1~cy Disi~ict No. 14 is amended to tendent deems it Proper to do so. ~'no Section 186.6 is nmended to read as nationwide bond may be increased a~ any r~ad "%os Angeles, Callfornia't The area shown for Custe~hs Agency t~me in the discretion of the Secretary of "follows: " District No.- 14 is amended by deleting the Interior. 186.6" .Bonds. (a) Lessee shall ~uz(d) Form H should be used in the the period a~the end thereof and addwith each lease a bond G~'orm preparation of a bond covering a lease 5-154b), and an assignee of a lease shall iu~", 26 (ArJz0na)." acquired through a~tgmnent where the fttrnlsh with each a.~ent a bond. assignee does not have a collective bond, (Form 5-151~m) ,_with an acceptable com= Fllecl as part of the orlginsl" document or the surety does not execute its con- pany authorized to act as sole surety, or -'~I'ne :fern prescribed by this order will be sent ~llrectly. by the-Federal Power Commls- sent to remain bound under the orlgln~l with two or more personal sureties and ston to the parttes affected thereby. bond given to secure the faithful per- "a deposit as collateral security of any Acting Chairman DIgby stated that ~he refinance Of the terms and conditions of publi¢-dch~ obligations of the United dissents ~or the ~eason that lt'~wo'uld Impose the lease. States guaranteed as to principal and tnan unnecessary hsrdshlp upon the i~Idepe~dtere~ by the United States, equal to the (s~. ~, ~ star. ~3) eat produc~s.

HeinOnline -- 21 Fed. Reg. 3147 1956

Case 1:99-cv-00550-ECH

Document 309-35

Filed 06/30/2008

Page 3 of 25

CUMULATIVE ~OCKET SUPPLEMENT TO THE , , .

CC)DE

OF FEDERAL REGULATIC)NS
Title 2S-Indians

For changes on and after January 1, 1,q57, see the daily issues of the Federal ReEister

¯ .ge m

o.o

r

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Page 4 of 25

Pad 180

Titlle 25~lndians

SUBCHAPTER RmLEASES AND SALE OF MINERALS, RESTRICTED INOIAN LANDS Parl 130~Lecsing of Osage Reservation Lands for Oil and Gas Mining
,8o.I Oh< 2,:; NiF.;G ".i A~E'4 180 2 1{~0.,{ 180A 180.5 180.6 Rc, y:lity F:c,:;:~'v:,... (:(:','(I'I'.!IIPI:[ rf's~r:"s rlT:ht to l:urt !l:tSO OIl Dr:lling obltgatl,~::s. I.'s~ ()! surlace hiildb: SetI:CR~tl:+. ::.f d.k!llltL'eS IC' h~.l'.ds and cro,.:!< Pr,A:ib:t:~m Of W~iSt('; ll; ~< ~X [C't~il'+!: l~.quors not permitted; boi~ks alld [LCC:~'d I: t S. In:pr,;veme::ts on the laz:d. Lards nl-:y be lo.:sed Sep;c'::t,r':y : :r Gas we::,s to be t~irzt~'d over ',t, ~a.~ ]P~Sf'e. Oil wells i,.: be :ur::eri (~'.~'r t:', c,11 lessee. Wells pradt:ci:-.<:, both ,,tI a::.q -,::::. Drttlmg thr:~t:~h <:;:b s:~nd. Dce.,'>eniL~: wells. Cas:::t:-:l<'.,d:.:<:> G:t~f:)roper,tth:.= Itir!),.,£v~. S.t;r:o)ld(-r ,." i,':~:-e Y~,rm (,i lmy:::(u:t. L(,hs(,~.<:tlbjt:('t " ~ ~ :i::C::l r('~:t;]:tt! .',:~. Peh::lty l,~r vl,/a:;,.,,_: <:; !:.::st, t, :I';: Bc,::dy. Pr<,-.si(,ns of ,+,>r:~.:.~ zu:~do a p,Lrt (>f ret, ul:); ItallS.

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!/~; 67 180 69 180.70 )80 7" I gel 7".' I~) 73

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180.7 180.8 180.9 !80.I0 180.Ii 180.!2 180.13 18014 1~f:'I. 3 180.1f; 18017 180.18 1E0.]9 II-;:; 20 180.21

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18022 150.2<
C¢>rt:,in i,.r,,.",yi..,n.:~:f f t::t.- I,~r ~.::d:I:.tr!a: t)tlri~, ~:(.~,

13TII.IZATI'-)N OF ('A%ING-IIFAD (;kq \VII~N :'~:j) I-'('>:: "file 2¢II4, NL't'A£ TlJ.qt: {.,I (i.-%'4~)L:N}: ll<,y:t'..t': ()n e:l~d::,:-i:~ad (~r ":at:,raI VU'{~:[III>, ))lltikllO, .))I'*;:):ll:('. ()r <): her ::(|tlid h}'ctr(ic:ir|3.,ii Stli)-t;,~li(-(';., ('xtr.:cti(l !r(:r:, go>, (9"1I) .'q;~-.~,(*liIit', (Jr ,Jther Iitt{ l|rili C:)I:(.~t l;:;l', t'. 18.975 C:i! tht-'-h*'P,d i:;l:: c(~ntl'aet~; :in(| (livi|~tll ,)rders: 1t3(1.'~6 E~:(:ltlVo date ,)i ('il:,lllg-|l(':~(l ,I);t.~; ~:~,II!.l'ilC { ~;. :[')~7 Clt::)!ll.~-|lv;tO ~:11; C, Jlltr:tct.~; YU|)Jl'('t t~) ro~{u)all(nl:; ()f Interl()r I_~,l):trt150.24 I;;() 2~! I((,y:tlty ,,n (:;tsllll.'.-h('a(l g;tsolhle II ;il I1 It f;tct'ctl'l't I I r(Jlll I.'lt sl h ~,:- l i¢'at[ 14as by oli l,::ssl'[.s. Deterllllnll;g g;ts:olllle content ()f eas:ll:,.-h('ad ttlus for royally t)url)o:;es. ~leil~lirlailit.nL (,[ IlaS. lteport,,; Ol ;,;lilt'y, ()[ ciiylllg-ht.il(| liitl.

At" :-il .,c,. 3 3

180 211 18(I.30 180,31

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I

Case 1:99-cv-00550-ECH

Document 309-35

Filed 06/30/2008

Page 5 of 25

Chapter I~Bureau of Indian Affairs

§ 180.~

rRICTED

180.60~t Utiit opt, rating area. 180.61 Judge whetlxcr orders complied with. REQUXREMENTS oF laZ.SSE~.'i 180.62 18063 189.64 1B0,fl5 180.66 180,67 180.6~, 180.69 180.70 180.7! l 8(|_'t2 I ~).73 !80 74 Ib9.75 18O 76 1 $h).77 ] ~0 7,", 180.7,9 180,80 18o.81 l B082 180 8:~ ; 80 E4 ?He.V,5 IgO.Sd Notice of location of pl',q.,srd well, Drilling records. Plata showing location of weH,,~. Rigs to be marked. Line drilling. Notice prior to removal td rusn,~ Two Mush pits required. %~rat er control. Ploductive formations t,, br i,:'.,tooted. Control de,:!ce~. Waste of gas to be prevrnted. Determining c¢~s~ el weli. Oii and gas to be separated. Us,, of gas for lifting o11. I-h'evel:t wastage oI oil and gay. Ap!:rova! of inspector for tlse o~ gas llt)r operations. Flambeau lights. Most approved methods to be followed in drilling and producing,, operations. Stlt,erilltell(lellt ~0 lJo llotil[ed O,v 111tended operations. Abandonment of wells. Well plugging. Variatio:x it, ph, ggil.g inetht:tds in certain eases. Phl~:2tlHz t.,) !)e approved I)y itr:[)( et,)r, D!slm.~aI ~:~ B. ~. and su.~t w:,.ter. A('cldelltS t~) E~ rep*~rted. Tankage for crudc,,,1.
L)I V~5I( Ill O" ~i: "l'h.

§ 1,110.1 De]lnitions. The following words or terms when used in the lease and regulations in this part shall have tim moaning shown in this section: ia ~ 8uperlntendeat. The Superintendent of the Osae, e Agency, Pawlmska. Oklal~oma. in charge of the Osage Av;'ney and Reservation, or any other person Wild may be m eharve of such agency nnd reservation, and it shall be lus duty to enforce compliance with the re.,zulations in this part. *b) Inspector. Any person appointed as In:specter of oil and gas wells, or who may be desi.~nated by the -Secretary of tl~e Interior or the Commissioner of Indian Affairs to supervise oil or gas oper~.tions on O~.;age lands under the direction of tt-~ Su0erintendent. tel Oil lessee. .Any person, firm, ox curporation to whom an oil mining lease is made under the: regtalations in this part. ~d) Gas lessee. Any person, firm, or corporation to ~:hom a gas lease is made under the regulations in this part.
[ 17 P, I~. 2602. Mar. 26. 1952', OIL MTN'I:NG LEASES 1802 Royalty p a y m c n t s--(a) Ro]]aDy on oil produced by primary or gas injectiou me!hods. The lessee shall

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t;O 90

U.>e el ti.qlb¢'r il'OIIi lt'.:tse(l latlds, Gas ;velis drilled by oil h':~:~t, es ,tl.d :ice vet>:,.

I d:.Xl-: ~,t?~, ~;." (~V.','D'F APp.!i)V 'tl. 1"| ! ]}~{}!~ AI,'I,,HI]t 0|" .~ev.

-:~;t'f&" e C. WI;te~tt )I tiff:l-

II.LAI:!NG~; ANt) aPI'I:AI.S
e t¢~ |~roV~.dL*.

DI*L!'3 }[Oall'iliV,.,~ it1|(1 aqq)¢'ai:. ALrrIIORITY: §.- 180.1 to 1;)0.1)~) ISSIIV(I tlllder sv,'. 3. 3~ Sial 54a. Interpret or al,plyser& 1, ?,455tat. 14"/8, 147% Othrrst~ttuh~ry lm~vtalkali:, Interpreted or Ilplllied tire cited to texL ill pltrellt Ile.~:e$. ,Sor~ct;: ~ ~ 1801 to 180.95 ¢on t;dnrd hi regIt|altair..: to g,~veru tile h:asitlt, or." l:u|d.'¢ tit the Ostt~,e Reservation. Okhthoma. f~r oll alld g:m alining purposes. July 12, 1932. except as otherwise noted.

;tlm.~ f.o stir?¢-dcral larn: F,L-roes ;o~.

pay or cause to be paid to the Superintendent: for the lessor as a royalty, the sum of 162~ percrnt of the gross proceeds from sales after deducting the oil used for fur! in operating the lease, unless tim Osage Tribal Cotinci!!. with '.he approval cf the Commissioner of Indian Affairs, .~hall elect to take the royalty in oil; paymeat to be 121a.~!e at time of sale or removal of the oil. except where payments are made on division orders; and settlement shall be based ell the actual selling price, but at not less than the highest posted market price 'n tl~e Mid-Cantle neat oil field on the, day of sale or removal: Prov~.ded. That when the r,aant.q.y of oil taken h'orn all the producing wells on any quarter-section accordit~ to the public survey, or fractional quarter-section if the land covered by the lease does not Include the full quartert;ection, during any calendar month, is sutIlcient to average one hundred or more barrels per well per day. the ro)alty on such oil shall be 20 percent. (b) Royalty on oil produced by the water .flood process. %Vllen the estimated re,':erves of oli recoverable by prlma~T and'or gas Injection methods Irom Page 207

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IIIII

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Page 6 of 25

§ 180.3

Title ~5~lndians tile o~r~ Lessee natural
t ions aS

a specified sand or sands have been depleted or partially depleted, the lessee and the Tribal Council may agree upon a new royalty rate to be approved by the Sup,,rintcndent. the sum to be not less than 12'? percent of the gross proceeds fn,m s,.les of off produced by the water flood process after deducting the oil used f.r Iuei ',n opera,ing the lease, unless the Os.i~e Tr:bal Ccuqcfl, with the approval of the C,',mmis.qe::cr of Indian Affairs. sl~:,.ll eh.ct 1~, t,ike the royalty '.'., ,~:!; paym~':~.t t,~ b. made at time cd .~;a!,?. or remo',:,i of the oil oxcept where pa:,merxts al~' In:ld, t,ll d,',[>l(q': o:'de:s, and ,.,crib,.. m, nt 5!:all Oe !.'a: (.d (,.n the tiP_Ill;t]. :t,ltin~ p:-:cv, but f:t ltCt b:.ss t!la:l t.ho lit .'t:,e:t i,:-t,'.! ma:ket pr!ce in the .~.~i,-t-Co,;t!n,',/ .):1 fl
the Superintendent for the lessor at the rate of $1 per acre per annulTl, or a proportmnate part thereof for each 3 months' perioci a lease is held and a well is not drilKd, such rental beginning twelve months from date of approval of Dane: Pror',ded, That the time within whi('h a well shall be drilled or rental pa:d in lieu of d,-illing shall not beain to ,-m: on any re<~trleted homest,cad ~eh, e.'..,'.i! t:ntil the eon~:.ent of the Supr, rin,:~!" tr '~ l',!, .,. to dla,dll.~ on s'dell homeslead P.t Mmli have been ,,liven: Pr,.)vided. That ~h,' S:~Im"ilv,,?,ld..'nt ill his di crt'titm may ci::~,( t It>. d!'~ilip.;-: o[ any undriiled 1,,a,~e, .f i:: i~i:~ cq:inio, n tile interc.sLs of the Osage ;r:be warrant. Should the h>ssee el~,ct to ,:: r(.:,d r i..~q iea~,, before th(, end of ally :'ch yearly period without driil:,rla a w{'ll t:. !'o:,U lie' ~}lall Da:." Ih/' rt'.ht,;~,{.e to pay .-.rich retfl~, '.t lt};lP. ','o d:t3":~ fr(~Ill the exDil;tl!~ll of th- :',vp.lty h: ,,:1. ih- ~: :- oe ' }.:d! f,:.,-/:ish !:~',. 5:t, :'a,'e L," t}te :,~y.~lt.v c.i f,~:" ::~t :~::v ,.'ca., P, Im!'k]d durra': whiuh suets, well ; : yit+;[ "-i'~ - .... ed shall be causr, for eanccllael (.xc,., diI:e 30 day... ':t>ri elf "h,, lease by tho Superintendent. ~. I ~::'h C:,Fcollciti~*ll ,':hall llot rcl, ase " 1P,0 :" C,.-,;.,.rrr~;:,.,~.~ rc.w.~,e.< riq'.,i'. £,~ "}.o ;, :=,.o a!:d hls .-arctics from tile ohpr~r" hit*' ,5l. A117," 'ff t~e t.xe,'v:.'e (!,,- ' .O.:~,t~ to pay such rciltal: FroFided, U ,."'ilq, :l'S i)f t!.~" 1.71;;,.'.. Li .qtat,.- G:,v~"u:-,~U~,,r, 'Ihat whon,~ver the Ccl,~lID.ism :~t .M:a!l }:~:;e ihe ¢Dtirm tt, p.i:-~:::tse :,.n,'r (,f I~:,d:a:] Affairs shall co:>;ider .i; Ihe hi.:iw:t p(~...'., d n~.<,: ket t):-ic',' eli t};,, ' ' P,i;i:',:+"i];' !;;(~ttlf-'- ]llii~l~'(]tli~.~O l() O.,y of sat',,' all o: L~tiy p,irt ;~f the' o:i pr,,- "'.];,' ;':17,> .d the production he m is" elid'w,'d under ::~Lv !ert:~(.. "i":e C..,mmi~- :, ¯ :'~ the .,.1:-:," -" 'n< ic~rl ef dri!liI'.," operD.tion:~ t.,,ti,.r r~l llld!:l!, Aff,~i's I~ltt.', itnpo::': (CI ,,::.'." l!'ftNc. r,"striet!o:,s as to tlmv or ttlnr.> JF~r dri"I~, i>:,,,': '.,) tip' exl;i',':tt{(,:l <.f :t t. ::ll I, it3 tO ~}-te l;l,')(itiCtlOll f"..: ,~f t~.o!IS :'L:,,( ' i .~['::. o t~-e r~ 1%~T¢~ "Frit)t;1 " "" . ( 0,,110;, I!'I':,V. . f:':,m a::y yell or ~clks whet: In his jtld~;kl"t t,h, ..... l" ' tff ....."l;,l :( ~ ..'t,.... tbc .~t,t.,,,v'I'~- ~ t.I~ei,.,~t..l. ment or tilt. jlldk'Incllt O~ Ills l'i prcacl;ta.... t. -tl.~'h ill'it(P! iq tart. .-ueh actiolq may be IleCcs.~ary i}r "t. ,~.lii }:("1 ~llt~',",'~t , f 1~I~' ()s,: ,' '!:'?~::'. preiie:" hJr t.he prt;t<,ct~on of tim natural ¯ I';tI'.l {tl'l exti,nsion tff the term ,:ff the r, s<,,l:'z:~...~ of the I, ased land and the in'.~ :,<,," f(:r a D,'rl,~d of l~Ot, to (,xc'eod .~;lx u,:'e,-,ts af tt~e O.,a,:e "lriue of Indian::. ;Ii '!~.lti: 5()I" the liU:l)~>e c0. ellabliiii: the al:(t In takino act:on, tile Commb:.slm~.er , ..,- U, "~'" ~ '~ wc.ll to thv Eli ~b;sit~pl I-P..;~v I'.ke if!to co.nMdcraLion., anlollu ~ :IW ill.!, ::~ oll or ~:ls is fOtlP, d i!: p~!yin:: (~ther thlliOs. ~f'dtyT',il Ia',VS. ~tat(' l~tv...~. ,tllailli lt~O~ aL a l¢'s,<:r.r depth. or riyulations by competent Federal or '"g I',' 2,;~,2 Mar :-~G. 1'.C~21 State aathorities or lawful a~-,reements amop.~ operators reuulatin~ either drill¯ !a{)-; [.'.~c o/ :,urIacc l~,.d.'; .,:,'#tt,'i:~t, o!" prochlction, or both. 'i, ',. ,,;t dfl),'.!it¢','.', tt~ l(.£?ttl, S CA~t(l , /',;j~. ,a' '.17 P I~ 26:i2 M:~r.'26. 1952i i,.-.::,'o :QI:~Ii |lii;'~.. the ri,:-ht to il::e sft 180 4 Drillinq obliqa~,ion,~. ,as I A'.¢,S.r'f'S shall drill at least one well to the M:sMsMppi line, unless oil or gas is found in commercial quantities at a lesser de~*.h, on the land embraced in their leaa~.~, within 12 months from date of approval of lea.~es, or the leases may be held for tlle full 5-year fixed term without drilling, upon payment of rentals to l'a.~e 208 ¯ F, tich of tilt* hlll'{-lce i~f the lalld :is Ill;;)" td' !i'.C('.YA!y I'O!" operations, inch:cling !h," ri.eht to lay and maintain pipe lines. telephone and telegraph lines, pull rods and other appliances necessary for the operation of the wells: also the right of iu,;ress and egress and the right of way to any point of operations under condil ioP. of least ill.jury and inconvenience to

menem{ any wel face ow located cultivat ceding meado~ tand. ar
or WOOl

suitable of such be enti! shall l: essenti~ shall e: area. tees at ,-xceedi :ided. shall b~
on a we

during sites sh ,:ssentk 110 ever square :in oil :~ccupy: a~reed and th tile saI ,hi a
~h{~ Sill'

the locl damag~ IIlellts for dai qmir h the oil arbitra able to /lothin~ constrE eontrm courts i tile aw~ (c) t copies : merit c Osage . restrict which such Ir intende mitted All sum

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...................................................................................... ;;[

Chapter I--Bureau of Indian Affairs lessor at the im, or a profor each 3 .ld and a well al beginning f approval of time within ted or rental L not begin to estead ~electhe Superinh homestead ovided. That i:~cretion may 1drilled lease, of the Osage le:isee elect to :~e, end of any trilling a well ntal of $1 pot t of lhe year is not drilled, ay such rentexpirat:on of ~ich such well for cancellaperin~ndent, 1 not rel(ase from the obal: Provided, ;he Commishall consider
l~it it¢'fltlP, tO t0

§ 180.9

n he may dinT. operations

lands; s,ltl,.'.?td ~'7"~j~5:. 'It'

¯ :ht to use so e land as may ~ns. including ;ain pipe lines, ines. pull rods essary for the ~o ttlo right of e right of way under condiconvenience to

the o~ner and occupant of the surface. t,essee may use water from streams and natural water cour~(.s for lease operations as set out in § 180.57.. Before commencing operations for the drilling of any well the lessee shall pay to the surface owner the sum of $200 for each well located on cultivated land (tilled or cultivated within the immediately preceding three years, and including haymeadow land), $150 for open pasture land, and $190 for such location on brush or wooded lands, and ot:her lands not suitable for cultivation. Upon payment of such location site money, lessee shall be entiOed to possession. Location sites shall be held to the minimum area essential for operations, and in no event shall exceed one and one-half acres in area. Lessee shall also pay tank site fees at the rate of $20 per tank of not exceeding 1,000 barrels capacity: Protided, however, That no tank site fee shall be paid for a tank temporarily set on a well location site for testin~ purposes during the completion of the well. Tank ~ites shall be held to the minimum area essential to efficient operations, and in no event shall exceed an area of 50 feet square per tank. The sum to be paid for an oil tank site of larger' capacity and occupying a greater area shall be as agreed upon between the surface owner and the los,see, and on failure to agree, the same shall be fixed lay arbitration. , b) All claims for damages for use of :he surface other than that included in the location and tank sites, all claims for damages to growing crops or improvements on the lands and all other claims for damages to the surface owners or their lessees arising from operations of the oil or gas lessees shall be settled by arbitration whenever the parties are unable to agree concerning the same. But nothing contained in this section shall be construed to deny to either party to the controversy the right to appeal to the courts in the event he is dissatisfied with tt]e award to or against him. (c) All agreements (or authenticated copies thereof) providing for the settlement of damages shall be filed in the Osage Agency, if the surface owner is a restricted Indian, and all such amounts which may be due and payable to any such Indian shall be paid to the superintendent and by him immediately remitted to the Indian entitled thereto. All sums due as royalty or damages shall
395024--57--15

be a lien on all equipment and unsold oil on leased premises.
[Regs. of July 12, 1932, as amended at 20 F. R. 10097, Dec. 30. 1955] CROSS; REFE~NCES: :For additional regulations pertaining to rJigitts-of-way, see Part

256 of this chapter. 180.6 Prohibition ol waste; intoxicating liquors not permitted; books and accounts. The lessee shall carry on operations in a workmanlike manner, commit no waste and suffer none to be committed upon the land, nor permit any nuisance to be maintained on the premises under his control, nor allow any intoxicating liquors to be introduced, brought upon. sold, or given away for any purposes on such premises; also keep an accurate account of all operations, receipt~, and disbursements, furnishing sworn reports of such when and as required by the regulations or by an authorized representative of the Secretary of the Interior. 180.7 Improvements on the land. All buildings and permanent improvements, including casings of all producing wells drilled 3 years or more prior to the expiration of the lease, shall remain a part of said land and become the property of the surface owner at expiration of the lease, excepting tools, tanks, boiler houses, pipelines, pumping and drilling outfits, derricks, engines, machinery, and the casings of all dry or nonpaying wells. The casings of wells drilled less than 3 years prior to and producing oil on tim expiration of the lease remain the :property of the oil lessee: Provided, That such casings shall not be removed from the wells but shall be purch,~ed from the lessee by the owner of the oil rights a~ such price as may be mutually agreed upon, and on failure to agree the price shall be fixed by arhitration. § 180.8 Lands may be leased separately /or gas. The lessee shall accept a lease with the understanding that the lands covered thereby may be leased to some other party who shall have the exclusive right to all[ gas except as otherwise provided. § 180.9 Gas wells to be turned over to gas lessee. If the oil lossee shall drill a gas well he shall, without removing from the well any of the casing or other equipment, immediately :shut the well in and notify the gas lessee and the superintendent. In tl~e event the gas lessee does Pa g e 209

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§ 180.10

Title 25~lndians of a fin( the less( hearing lease el which l Superinl [ 17 F. R. ', 180£ furnish , lease, to preterite surety c~ cute bee sum of $ fraet iota by the le~ tess(,(_, m: ing all 1( nlay bee( bond in ( pellal su: ~b~ In der para~ see may the sum coverage authorize all oil an or acreag is or may ,c) Th to increa scribed i, in any pa tendent ¢ nationwic time in tt the Interi (d.~ FOl pretm ratio acquired : assignee t5 or the su: sent to re', bond give fo:'menee the ieas,-. [2I F. R. 31 180.21 part o! r( the lease, papers, de F. G. and tile regula will be req conditions § 180.22 ing lease id

not within 30 days after receiving notice on his leased premises or for operating elect to take over such well and reim- other adjoining leases within the Osage burse the oil lessee the cost of drilling Reservation, shall belong to the gas the same, including all damages paid, in lessee, subject to the prescribed royalty addition to the cost in place of casin.,':, of 16~i~ percent. tubinu, and otlier equipment, t:he oil .~ 180.15 purposes. lessee shall immediately confine the gas The gas lesseeGas ]or operatin9 oil lessee :shall furnish the to the original stratum, and the d'isposi- sullicien~ gas lor drilling and operatix~g tion of such well shall be subject to the purposes at a rate to be agreed upon, or approval of tile superintendent. o:: Mi:u'e to a::ree the rate shall be fixed § 180.10 Oil wells to be turned orer to by arbitration: Prov',ded, That the oil oil le,~see. If the ::as lessee shall drill at: iessee ~l:all make neces:-ary eolnlectioll.~ oil well upon the leased lands, he shall becween the well and tile meter when° immediately, \v:thout removing from the ever possible. well any of the casin,,: or other equip- [ 17 F. R. 2602. Mar. 25. 1.q52] ment. notify tile oil lessee and the :mper180.16 Surrender o! lease. The oil mtendent. In the event the oil lessee !e~see may at any time. by paying to the does not within 30 days after receipt superintendent all amounts then due, inof notice elect to take over such well he cludinq rentals in lieu of development. shall immediately so notify the gas lessee. and the further sum of $1. surrender all and the disposition of such well shall be or any quarter--section or fractional part subject to the approval of the superinof quarter-section where tile lease does tendent. Should the oil lessee elect to not cover the full quarter-section, and take over the well, he ahall pay the gas have the lease cancelled as to the lands lessee the cost of drillin~ the same, ineluding all damages paid in addition to surrendered and be relieved from all further obhgations and liabilities Lhereunthe cost in place of casing and olher tier as to the part surrendered: t:9"orided, equipment. That if this lease has been recorded leg180.11 Wells producing both oil and see shall execute a release and record gas. If the oil lessee shall drill a well the same in tile proper office. which produces both oil and ~as in com.~ 180.17 Form el payment. All mercial quantities from the same sand amounts due and payable under a lease he shall immediately notify the gas lessee shall be paid to the Superintendent by and together they shall arrange for the check or bank ctraft on a solvent bank. separation and utilization of the oil and 117 F. R. 2602. Mar. 26, 1952] gas, and tile cost pertaining to said well. 180.18 Leases subject to current 180.12 Drillin9 throu.qh gas sand requlation.v. Leases shall be subject to Whenever oil and gas are found in sepcurrent regulations prescribed by tile arate sands, and the oil lessee desires to Secretary of the Interior, relative to such drill throu~:h the gas sand for the oil. leases, all of which are made a part of he may do so provided the method of prosuch leases: Provided, That, no regulatecting the gas sand shall be approved by tions made after the approval of ans" the mspector. lease shall operate to affect the term of § 180.13 Deepening wells. If at any lease, rate of royalty, rental o1" acreage, time any oil or gas well becomes un- unless agreed to by both parties. profitable and the oil or gas lessee desires § I80.19 Penalty/or violation o! lease to deepen the same, such action as may terms. Violation of any of the terms or be mutually agreed upon may be taken conditions of any lease or of the regulanot in conflict with the re,~,,ulations. tions ill this part shall subject the lease Upon failure to agree the disposition of to cancellation by the Superintendent, such well shall be subject to tile approval or the lessee to a fine of not exceeding of the supcrintendent. $500 per. day for each and every day the 180.14 Casing-head figs. All c',asin~-terms of the lease or of the regulations are violated, or the orders of the Superhead gas shall belong to the oil lessee and when used for the manufacture el gasolntendent in reference thereto are not line shall be metered, and be subject to a complied with, or to both such fine and royalty of 16-% percent based on the mar- cancellatmn in the discretion of the Suket value of the gasoline contents, and perintendent: Provided, That prior to all such gas not utilized by the oil lessee cancellation of a lease or the imposition Page 210

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Chapter I~Bureau ot Indian Affairs for operating hin the Osage ~ to the gas ,cribed royalty ting purposes. n the oil lessee and operating ;reed up0:l, or ~hall be fixed T1mt the oil 'y conncction~ meter wtlcnof a fine as prowded for in this section, the lessee shall be entitled to notice and hearing with respect to the terms of the lease or of the regulaticns violated, which hearing shall be held by the Superintendent.
[ 17 F. R. 2602, Mar. 26, 1952 ]

§ 180.24

ease. The oil paying to the s then due, indevelopment, smTender all ractional part :he lease does >section, and s to the lands 1 from all furities thereunred: Provided, recorded lec~e and record ?. m e n t. All under a lease ~intendent by solvent bank. to current be subject to ribed by the .qative to such ade a part of at no regula~roval of any ',t the term of al or acreage, ~rties. !ation o! lease the terms or of the regulaqect the lea.he ~perintendent, not exceeding every day the ae regulations of the Superercto are not such fine and ion of the suthat prior to ~he imposition

,~ 180.20 Bonds'. ca, I_.e~:~c,~'- .sh:dl furnish with each o.'l lease anti each gas lease, to be filed at the time the lea,~:e i~ preserted, a bond :b)on Farm D. witP. a surety company du!y autho:'ired to execute bonds. Such bonds si:all be in the sum of $1.000 for each quarter-section or fractional quarter-section unit covered by the lease: Prorided. however. That the lessee may tilt" one bond. Form G covering all !eases to which he or they are or may become parties instead of a separate bo~-~d in each eaye, such bond to be in the pt, tlal sum of $15,000. (b~ In lieu of the bonds required under para.~raph ta~ of this section; a lessee may furnish a bond tYorm 5-156J in the sum of $75,000 for full nation-wide coverage with an acceptable company authorized to act as sole surety to cover all oil and gas leases without geo~_,raphic or acreage limitation to which the le.~::ee is or may become a party. ~c~ The right is specifically reserved to increase the amount cf bonds l:rescribed in paragraph ~a, of tl~is section in any particular case when the ~uperintendent deems it proper to do so. The nationwide bond may be increased at any time in the discretion of the Secretary of the Interior. (d~ Form H should be used in the preparation of a bond covering a lease acquired through assignment where the assignee does not have a collective bord. or the stlrety does not execute its consent to remain bound under the orieina: bond given to secure the faithful performance cf tim terms and conditions of the ieas~..
121 1,'. It. 314'/, May 11, 1:~56t

The terms of the several gas mining leases in effect, covering practically the entire acreage of the Osage Reservation, vary somewhat as to development requirements, but provisions relative to use of surface, payment of damages by reasons o~ well locations, etc.. and duties of Iessce are practicaly identical with that of oil lessee. The regulations in this parr will govern operations under all gas lease~ in the Osage Reservation so far as applicable. 180.23 Contracts ]or the sale o! gas /or industrial pu.rposes. (a) All contracts for the sale of gas for industrial purposes and sworn statements showing the terms, conditions, and schedules of prices contained in contracts witl~ domest, ic consumers shall be filed with the Superintendent, and shall be subject to the approval of the Commissioner of Indian Affairs whenever, in his opinion. the interests of the Osage Tribe or the public require such action. (b) In the sale and disposition of gas, preference shall at all times be given to domestic consumers, unless provided otherwise in the lease, and all contracts for the industrial use of gas shall contain a clause to the effect that when it is shown to the satisfaction of the Commissione: t ~:t~ suclh gas is needed for domestic consumers within an area fixed by the Commissioner, such contract shall terminate upon tlm expiration of 30 days' notice from the Commissioner, and that the Commissioner shall have authority immediately to suspend the furnishing of gas to industrial consumers when he is of the opinion that such gas is needed for domestic consumers. All gas furnished to industrial and domestic consumers shall be metered and sold at meter rates: Provided, That gas furnished to an oil lessee may be sold as provided in the gas lessee's contract. cc~ All contracts with domestic consumers shall be subject to the inspection cf the Superintendent.

.~ 180.21 Prarision.~ o/ ]orms made a :17 F R. :2603. M'w 26. 1952l part a/ regulatious. "lhe pi'ovisions of UTILIZATION OF CASING-IIEAD GAS ~¢HEN the lease, assi~nmep.t, and supporting "USED FOIl THE MANUFACTURE OF GASOLINE papers, desi.'.;nated as Forms A, B. D, E, F, G, and H are hereby made a part of § 180.24 Royalty on casing-head or the regulations in this part. anti lessees natural gasoline, ,butane, propane, or will b~e required to adhere strictly to the other liquid hydrocarbon substances e~tracted ]rom gas, drip gasoline, or other conditions thereof. natural condensate,, (a) A royalty of GAS MINING LE.a, Si~S 16% percent of the gross proceeds of sales § 180.22 Certain provisions o1 o,l ;:tin- shall be paid on the value of one-third (or the lessee's portion if greater than ing lease identical with gas mininft lease. Pa?., 211

III

i

,,

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§ 180.25

Title 25~lndians used ir In cos, chase:one oil termin gasolin any p,q physic~ the pr( rating all gas, leases, royalty cent of tracted or by t when a and ap 180 of all poses c
Ullavoi(

one-third) of all casing-heRd or natural 180.26 E~ectire date o/casing-head gasoline, butane, propane, or other 9as contracts. Contracts for the sale of liquid hydrocarbon substances extracted casing-head gas entered into between from the gas produced from the lease- lessees and otimrs shall be 'fled with the hold. The value of the remainder is an superintendent, within 30 days after date allowance for the cost of manufacture, of execmion, and shall be effective only and no royalty thereon is required. The from date of approval by the superinroyalty shall be computed on the sale tendent. price received by the manufacturers of 180.27 Casing-head 9as contracts such products, or such higher price the subject lo reouiations o/ Interior Delessee may receive the same to be re- partment. All contracts for the sale of ported under oath and remitted to the casinu-head ~as shall be made subject Superintendent not later than the 25th to the rules and regulations of the Deof the succeeding month for all such partment now existing or hereafter to products sold during the previous month. If the manufacturer of any product ex- be promulgated, alld .~hall provide that 18{}.24 m re,-:ard to the basis of defertracted from casing-head gas produced mining the royalty, may be revised by the from an Osage leasehold should sell his product at an arbitrary price below that Secretary of tim Interior uDon notice to obtained by other manufacturers selling all parties concern(~l, and an. opportunity being raven them to be heard: Prowded. such product in the open market during That such revision shall not apply to a particular month, the Superintendent shall notify said manufactmer of such eont rt~ e ts at~Prov(d under the i'ei{ulal ions ill tills part I)rior to any auch revision discrepancy and require settlement for o: chan~,e which will in any way alter the royalty upon the average price obtained tt,I'tns o[ the cop, tract, rate of royalty, by manufacturers selling such product in method of computing royalty, or basis of the open market during the same peried. sucll coml)utation, vithout the w:'itten The place of sale of liquid hydrocarbons extracted from ~as shall be at the plant con~ent of the p:;rtie:~ there!o filed v,'itl~ the suv...rintend2nt Contracts her:~after where manufactured or when loaded executed slmll also provide that they may into tank cars at or near the plant. be cancellcd by the superin*,endent for Should any manufacturer sell such product by delivery to piDe]ines at distant violation of the terms thereof or the r,-~ulatio:~.s, afler 30 days" notice to the points he may be allowed the average I)'arties eoI2cet'ned and all opportunity loss by waste, evaporation or otherwise D) be ht'/ll'd 1:~9,5 i~eell affol'df, d l.h~nl, sllbsustained by other manufacturers in the Om~e. of such product from the plant ¯ ,,~.t to almea]t to the Secretary of the Interior v. itifin 30 d.%vs from notice of to tank cars as shown by sworn statements which shall be furnished when decision of the SUl~erintendent. required by the Superintendent. .~ 180.28 Royalty on casinrl-hcad e.las,b, The royalty on all drip ~aso!ine, (,line ~,;anu/actured /rom ,:a.~in#-hcad or other natural condensate recovered qas by od h'~sees. When oil lessees manfrom ~as produced from the leased lands ufacttlre casing-head .~a.,~oline from without res,~rt to mnnufecturing process easinv.-head !.:as produced from their sha!l be 1625 percent of tl~e gross pro- own lea.';es, payment for the royalty ineeed~ from s~les, except that such subterest of the lessor shall be at the l'ate stance if proc,~ssed in a ca~inu-head of !62:~ percent ~or lhe royalty specified ga Pa.~e 212

and all prefer unless, intende proved stalled such pl Superir volume ject to shall b~ pressur, inch,
pressur,

and the 60" F. be adjt standar and ten actually thorized ent. leo F._n 180.: head 9~ made tc and owl ga:~oline is sold, ; head ~n (b} the trotted head ga one oii l the prod purchas{ the pric~ blended sale. (d)

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Chapter I~Bureau of Indian Affairs o] casing-head for the sale of into between : filed with the lays after date : effective only : the superingas contracts ' Interior Defor the sale of made subject ms of the Der taereafter to 1 provide that ~asis of de~errevised by the upon notice to an opportunity u'd: Provided, not apply to :he regular iotas such revis}on 7 way alter the tte of royalty, .lty. or ba:~is of ~t /he written reto filed with :acts hereafter that they may rintendent for hereof or the " notice to the n opportunity cted them. sub~retary of the :rom notice of ident. sing-head .qas,t casin~7-hcad ,il lessees man,,a.~oline from :d from their the royalty inbe at the rate )yalty specified ed on 33~,~ percacted as pro:h shall be subd in § 180.27. gasoline con9r royalty purLent of all cascubic feet for determined by nt of gasoline utilized during ng all naphtha r blendin.~-' pur,.asing-head gas used in such plant, as shown by meters. In cases where one gasoline plant purchase.~ casing-head gas from more than one oil lessee and it is impossible to determine from the plant operations the gasoline content of casing-head gas from any particular lease, they may use any physical field test desired to determine the productivity for the purpose of prorating the 33!.!3 percent of the value of all gasoline extracted from the different leases, but in all cases the minimum royalty shall be 16z.-~ percent of 33~/~ percent of the gross amount of gasoline extracted whether paid by the oil lessee or by the operator of the gasoline plant when a division order has been executed and approved by the superintendent. § 180.30 Measurement o/ gas. Gas of all kinds (except gas used for purposes of production on the leasehold or unavoidably lost) is subject to royalty, and all gas shall be measured by meter (preferably of the orifice-meter type) unless otherwise agreed to by the Superintendent. All gas meters must be approved by the Superintendent and installed at the expense of the lessee at such places as may be agreed to by the Superintendent. For computing the volume of all gas produced, sold, or subject to royalty, the standard of pressure shall be 10 ounces above an atmospheric pressure of 14.4 pounds to the square inch, regardless of the atmospheric pressure at the point of measurement, and the standard of temperature shall be 60° F. All measurements of gas shall be adjusted by computation to these standards, regardless of the pressure and temperature at which the gas was actually measured, unless otherwise attthorized in writing by the Superintendent.

§ 180.35

The, statements shall be made not later than the 25th day of each month and shall cover the preceding month, and at the same time payment shall be made of royalty interest to the superintendent by the oil lessee, or by the purchaser where division orders, have been executed and approved by the superintendent. The books of both lessee and purchaser shall be open to inspection on order of the superintendent so far as to test the accuracy of the sworn statements referred to above, and to determine wh~ther the royalty interests are fully protected, § 180.32 Oil lessees may be allowed to manu/acture casing-head gasoline /ram casing-head gas. Oil lessees shall secure the consent of the superintendent to manufacture gasoline from casinghead gas produced on their approved leases. The productivity of the casinghead gas shall be determined as prescribed in § 180.29, and sworn statements, as indicated in ~ 180.31, accompanied by remittance of the royalty interest shall be mailed to the superintendent not later than the 25th day of each month for casing-head gas utilized for the manufacture of casing-head gasoline during the preceding month, the computation to be made on the basis indicated in § 180.24. ][~0 ~3 Le.~.~ec's npt rc!ieved by divi,~'ic,,, ~:'dc,:~ ]rcmz pa~in~l royalties i/ pure]I(]N{'," 1~ il.N t{) t)(1:;]. When division orders or c¢'ntrac:s are executed and aPp'.'~ved for the paymen~ of the royalty inters'-(, same shall not relieve the lessees from responsibility for payment sll'ou!d the purchaser fail, neglect, or refuse to pay the royalty when it becomes due. [20 F. R. 10097, Dec. 30, 1955l § 1.80.34 Residue gas to be delivered § 180.31 Reports o/ sales o/ casing- to gas lessee. Tlae residue or dry gas remaining after extracting the gasoline, head 9as. Sworn statements shall oe not used for development purposes on made to the superintendent by lessees, the leases where it was produced or adand owners or persons in charge of the joining leases owned by the same lessee gasoline plants to whom casing-head gas is sold, showing: ~a~ volume of casing- in O~'~age County, shall be delivered to the gas lessee as provided in § 180.72, and all head gas purchased from each lessee, (b) the total amount of gasoline ex- contracts for the ,,;ale of casing-head gas shall contain a pr:ovision to such effect, tracted in any plant and where casinghead gas is purchased from more than § 1.80.35 Casing-head gas sold to one oil lessee method used to determine plants outside o/Osage County. Where the productivity of the casing-head gas any casing-head .~zas is sold to gasoline purchased from the different lessees, (c) planlts located outside of Osage County, the price at which the merchantable or tests shall be made under Government blended gasoline is sold and dates of supervision to determine the gasoline sale, (d) the amount paid to each lessee. content, and when deemed advisable Page 213

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§ 180.36

Title 25--Indians C its : the duF of s witl she sto~ the~
SWO

tests shall be made of all casin~-head the Osage mineral reserve shall be offered for lease during any one year. Successgas used m any such plant in order to determix:e whether the physical field test ful Mdders mu.~t deposit with the Supermtendent on day of sa!e, a check, or bank of gas from Osaae County .Q,.ows as large a gasoline content as is extracted in acdraft on a solvent bank m the amount tual plant ol)eration.~, and aft..:r such equal to 25 percent of the bonus as a aualanty of ;;cod faith. The Superintests have be(.:: made the sPp<~nlendtendent may require any bidder .to subon" shall deternl:.r~e the l)roduc[ivity of mit satisfactory evidence of ~ood faith, the g'as from O.-a-e County. that he has Ibe cash it, hand or at his 180.36 B'grnc,s /,);" ~iI or f'(:., ~z,,'d cummand, an:t to fur!~isI] whenever /or o;,c;'atiT~g ir)~;p+~.,:'... \V':,.I e r:.;zl-c':dled upon by tile Superlntende::t durro:.'al:y oil (:r a> ~s ~]~t,d f ,," (4]ifAll!l:: :i~,. the prc:.re~.-., of the s,,lle, a',~thentiptlri3o>e-i by h'-.~eo, the £:IilclH:tc:ict(~!t init3" !'(Q~iil'O to b(' il:~.tAllect itll'._i u:q'(t ~.*| e/llL'h.nt bU!l'u: ,,1 P, 15"I)6' tc~ iM" :~i)i~:~,',t':!

she cap:
of ,

c]:::~c ~he' It;ix~. The b',.il:~nce of tim by him. i){,~n~:s, tot;ethez' with a S5.00 filin~z fee for 180.37 31cc,>:',~r,"m:":~ ,.,i c:c:. :,-"[ b:, <.act: h:tsc..~',~a',l :'e paid. and the lease r;il or (i:', /,~..,c,'-. All ~,t ~titized b:, ~;:l :n c~m]p'.t.h.d f,3lln 'Ailh ll(?ce:-;silry itccc~:nptlivHl,.: p,tp,.rs :hall be fih'd with of gas ].,ssees shall be l:lct~'ruq ",~it11 ihu exception of cu:,ilY!-Ii~ ::d ":::~ t ,~:II,l" : tile ~o~ll?(,rit~tenc ('nt within 20 days after from wells sn lo(';,t,::~ ip. tilt, .:qLRIOP. ~f t!;,' lease is for,varded, by ttxe Superintencient, to th 2 ]esst'e :for excetlt !on, the oil and :as iIaSl)e,.t~u that :i '.:,,uld 'tnlesq such I)or!od has been extended by be irnln'acticable to ::a/her and ilt[i:Zt the Superintendent for :.:ood and sulIisame for royidt;" l)li:'tlc>;(,f, al;d /~,- l)1~vided in .. 180.72. Gas n,;t Illt'D':t(! t)ut oient reasun 2f tl,.e Sl.lceessful bidder utilized Ior lease opl-riltimls MmlI be e.~- fails to complete the lea~<, or to pay the timated as to quantity ai,.d "uI3:~rl. t}:e,'eof full consideration within 20 days or an made incnthly on to:ms vhich wi'l be authorized extension thereof, or if the furnished by the stll)erll-~tendcril ~ii)o> >ase is disapproved through no fault, of the lessor or the Departme::t of the Inapplication..'.urh lt,po:'i to be l):t:iK'.:,'d te:ior, tiae amo'.mt deposited as a guarSO as to reach the .,Ul)e!!IKondu!K'~ c~i~ic(" anty of ;rood faith shall be forfeited for not later than the 25th dny of the ..ucthe u~e and benefit of the lessor. Any n:cmtil f(~! -V}llC]l tile r,'polt 1~ eeedin, and all bids "hall be :mbject to acceptmade. ante by the Osage Tribal Cotmeil. The ACH I~2 A (; E Superintendent may dis.approve a lease 180.28 LilhltcliiO~i. "I'hme !:; ll,) lllilmade en an accepted bid. upon evidence itation to the nHnlix-r o:~ acl'e, ally 1.esF(,:, satisfactory to him of collusi:n, fraud may acquire, by lens(: or assi:;nI.vlent, f:~I or other irz'c~ularity in connection with oil minln,z tltlI'llost?5 oll thP O;%t~e Ilidiall ti;e sale of tim lease. Resel'vation. (c} No lease, assignment thereof, or [Order 2423, 13 F. It. 2414. May 5. !~48] interest therein will be approved to any employee or employees of the GoverntIOW TO A(Ti.~UII.~E I.EANES c~F TItlB..\L I.~,NDS ment. and no sUC!I employee shall be § 1802!} Sales o/ oil leases a,ld (;as I-ermitted to acquire any intcre:~t in leases: lea.¢es to be sold at public auction. ¢a~ Written application for t:'acts to be le::~ms e:pvering Osage Tribal lands, by offered for lease may be filed with the owner:hip of stock in corporations havin;r lease:: or ill any other manner. Superintendent. I7:'" 1' 2ib3. Mar. 25. 19521 (b~ The Superintendent, with the consent of the Osage Tribal Council, may § !80.40 C/,,rp.oratmns and corporate at such times and in such manner as Showing. (a~ Upon bein~ notified of the shall be deemed appropriate, publish acceptance of it:s bid, a corporation shall and distribute notices that oil lea.~e~ file a certified copy of articles of incof and/or gas leases on specific tracts of poration, and evidence showing compliunleased tribal lands, each of which ,shall ance with local corporation laws if a be in a compact body, will be offered at foreign corporation: Provided, That If public auction to the highest respow:ible any such papers have already been filed a .~;tatement to that; effect may be subbidder: Provided, That not less than 25,000 acres of the unleased portion of mitted. Page 21,I

;';itt'd st:tt('nlen~ o1 a solw'nt bitllk to the t'fftct t)?e l):,(iCiEl" has the ]Wli.r~.n,3 to I:LII'-

the ury erty sam (: sha~ asse in il wha t4 is m (5
corn of il (c

be a~ shov exee ,17F be ai~ ~rteTl, tions tions ~ upe (b mit Supe to m: with
repl'e

be of
Osag~

tract have unde~ stead
(c~

lessee InsDe lottee Osage after t, he I: Inend;

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Chapter I~Bureau of Indian Affai,rs ;hall be offered ear. Successtth the Supercheck, or bank n the amount .e bonus as a The Superin}idder to subof good faitiL and or at his sh whenever atendent durfie authenti:t bank to the aeans to pklrlance of tim :) filing fee for :rod the lease
]ecessP.ry ac-

§ 180.43

be filed with 20 days after the Superin)r execution, extended by od and suffie.~sful bidder or to pay the 0 days or an .~of. or if the h no fault of ::t of the In}d as a guarforfeited for lessor. Any ct to accept:ouncil. The :~rove a lease pon evidence lusic:n, fraud mection with t thereof, or roved to any the Govern,yee shall be interest in )al lands, by ~rations hayrunner. ~d corporate otified of the ,oration shall ties of incor~'ing complim laws if a dcd. That if dy been filed may be sub-

(b) A corporation must also file with Jan.% legal or natural, may represent its first lease, and at such other times as their Indian wards, and where no one Is the Superintendent may direct, a list in authorized or where no person is deemed duplicate of all officers, directors, and by the Superintendent to be a proper of such stockholders, as; may be required party to speak for a minor or person of with their post-office addresses, and unsound mind or of feeble understandstrawing the number of shares of capital ing, the Principal Chief of the Osage stock held by each and whether held for Tribe shall represent him. themselves or in trust, together with a ,d~ Where the allottee does not apsworn statement of its proper officer, pear' before the Council, either in pershowing: son or by representative, when notified (1~ The total number of shares of the by the Superintendent, or the Council capital stock actually issued, the number fails to act in the matter within 10 days of shares actually sold and specifically after bein~ referred to it. the Superinthe amount of cash paid into the treastendent may authorize the lessee to ury on the stock sold, or, if paid in prop- p:oceed with operations in conformity erty. state kind, quantity, and value of with the provisions of his lease and the regulations in this part. If the Council same paid. (2} Of the stock sold, how much per by a'ppropriate resolution should recommend that a lessee be not permitted to share remains unpaid and subject to conduct drilling operations on a homeassessment. ~3) How much cash the company has stead selection the Superintendent shall submit the question to the Area in its treasury and elsewhere, and from Director. what sourc.~s it was received. [ 17 F t'~. 2604, Mar. 26. 1952] ,4) What property, exclusive of cash. § 180.42 Rental period a/ter consent is owned by tl,e company and its value. (5) What the total indebtedness of the o/Superintendent to begin operations on homesteads. Rental in lieu of developcompany is and specificially the nature ment shall not begin to run on any homeof its obligations. stead: selection until one year after the (c) Leases made by corporations shall consent of the Superintendent or Area be accompanied by an affidavit (Form E) Director to operations on such homeshowing the authority of it.s officers to stead shall have been given. execute leases, bonds and other papers. [ 17 F. Ft. 2604. Mt~r 26. 195°- [
i 17 F. R. 2603, Mar. 26. 1952 l

§ 180.41 How to acquire permission to begin operations on homestead allotments. (a) Lessees may conduct operations within or upon homestead selections with the written consent of the ~uperintendent and not otherwise. (b) If the allottee is unwilling to permit operations on his homestead, the Superintenden~ will direct the Inspector to make an examination ,of the premises with the allottee and the lessee, or his representative, and should the Inspector be of the opinion that the interests of the Osage Tribe require that the particular tract be developed he will endeavor to have the parties agree upon the terms under which operations on the homestead may be conducted. (e) In the event the mlottee and the lessee cannoL, with the assistance of t.he Inspector, agree on the matter, the allottee shall be permitted to go before toe Osage Tribal Council, and the Council. after hearing the allottee, the lessee, and the Inspector, shall make such recommendation as it deems proper. Guard-

180.43 Lessees" process a.aents. ,a} Each and every lessee and assignee shall. from the date of approval of lease or assi~nrnent, main'~ain an office at Pawhuska. Okla.. with an agent upon whom service of process may be held in confortuity with the laws of the State of Oklahoma. and who shall have authority to represent and speak for the lessee or assignLee in controversies affecting any individual member of tl]e Osage Tribe ~b~ Where several parties own a lease jointly, only one representative or agent need be designated whose duties shall be to act for all parties concerned. Designation of such repre.,.entative should be made by the parLy in charge of operations. ~c~ In the event of the incapacity or .~bsence from the county of such designated local or resiLden~ representative, the lessee shall appoint some person to serve in his stead, and in the absence of such representative or of notice of the appointment of a substitute any employee of the lessee upan the leased Page 215

!

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§ 180.44

Title 25--Indians and rided, T',hat the preamble of Form B and the provisions of see, tion numbered 2 m respec~L to royalty rates: section numbered 3 m respect t.o payment of rental; section numbered 4 in respect to payment of well site and tank location fees: and section numbered 14 m respect to the surrender of the lease, may be modified And or supplemented by the partie:% with ihe approval of tile Supe,"intendent, to the extent ,deemed appropriate for the equitable and efficmnt conduct of unitized operations, and not otherwise in conflict with the reaulations m th,'s part. kesseets~ sh.dl, before eommcncina water flood operation.s, and on or bef(,re December 31st of each vez: thereafter, submit ~o ~l:e S,,l],crintc~td(.llt all acceptable l)lan ,.ff devei~,l)nle:l: and operation for the uuit area fqr tit,'
e:lSl.lin~ year. Upon at lilldilP; D.v hlln

premises, c: tb,, contractor or other person m charv.e of drilling or :('::',t('d operations thereon, sball be considered the represen, ative of the lessee for the purpose of service of orders oi" notices as herein provided. And service upon any