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Case 1:99-cv-00550-ECH

Document 309-31

Filed 06/30/2008

Page 1 of 15

=.tx~\ONALx3~',

FNU. EGISTEII
uu i

Washington, Wednesday, March 26, 1952
i i ill

,o

TITLE 3--~-THE PRESIDENT

TITLE 6--AGRICULTURAL CREDIT

CONTENTS

"[HE ERESIDENT PROCLAMATION 2966 Chapter I--Farm Credit Administzalion, Department of Agriculture ,AZU=U~ ~Fo~c~s Dmc, 1952 " Prodamrdlon , I~"~ Armed Forces Day, 1952 258~ Sub~aplor F--~an~ for ¢=opc~lva= BY THE PlZF.,SI~E~'~ OF ~ ~ 5~KTF..S . EXECUTWE AGENCIES [FP.,~ Order 542] .A P~O C~TZOZ¢~ P~z ~O---Lo~ It~ar~ P~r~s ~m ASdculfure Department the armed forces of the s~ ~ee .pAuline. Industry Baumu; Umted S.tates serve this NaUon With INC~ IN ~ ~XZ; ~. PA~L ~I~Z,'E Commodity CRd/~ Corporaunselfish devo~on not on~ in t~e of tion; ~ Czedt~ Admhds~]FOR COOP~ war, but a~so intizne of pe~ce; a~d tion; Production and Ma~ketin~ Effective April I, 1952, the zat~ o£ ¯ WHEREAS our fighting forces, welded Admtnistr~o~ :[nt~est; ~ch mo~" be charged by tho into a unified team that; symbolizes o~ Animal Industry" Bureau st.zength as a united people, ~ve been St. Paul Bank for Cooperatives, as speciTitle 6, Code Propesad r~e makln~: waging the battle of freedom in Korea fied in § ~0.5 of Chapter Z, * Intezs~ate ~ti~n of and are guarding the vital interest~ of of Federal Regulations is hereby aulmals and poulh-;..~ 262~ changed to 2~A per centm~ par nnnu~ ]peace in other ~.nds across the sea; and WH~%EAS if; i4 :flVdng tlmt, we devote (See. 41, 48 Sta~ 2(M, £c¢. 14, 43 5t~t. 31% Meaf; ~ tbrn z~.~,'J,~uIRt~on.~. ~ 262~.. 36, 50 star. "/17, sec~. 3~, ~, 48 Star. '~62, Ru/es and xe~ulatlons: one day each ~ea~ to l~ying m~eeM1 Gcat~; rectr,~ttion o~ h:e~Is tribute to these defenders o£!our liberty: 264, se¢. 13, 48 Stnt 31% ~ 85, 50 ~Stat. '/~7, StaL 14. z~. ~, tec. and boot~ of z-eco~ oi; lrazeZ~OW, THEREZOR~ ~ ~X S. zae. 8, qS 31G, aec. 5o 5054, 48 SLut.U. S. O. .. 259I 1I, 49 Slat. star. "104; I2 bred, _~ntm~l~ TRy, President 0£ the Unlted States 1134¢, IlS4J, l141f. ~ O. 6~,Y~nr.27, I~33) of America, do hexeby Pro~m SaturCanal Zone L W. D~ac~, day, May 1'7, 1952, as ~-=zned Forces Day; [sr.s.]. Rules and :re~-~.l~t;~z~s: Go~¢rnor. and I dlrec~ the Secretary of Defense and Publtc -]ands, m~ta~ ancI naval the Seeretade~ of the Army, the Navy, Mm~c~ 2].., 1952. xe~erraUons; Cummd~z ~dl, and the-~dr Force to arrange for the mlltitary Res~-ratlon-__--~ 2622 [P. R. Doe. 52-~463; ~l]c~, ~.~. 25, 1952; tary observance of that clay anc~ to coopRevising bou.udar3"._~ 2622; 8:5t a. m.| erate with cD~ authorities in suitable Civil Aeronautics Adm|nistracommemorative ceremonies. lion I also invite the Governor~ of the States, Territories, and possessions of Rules and. zeo~flatIaus: Chapter IV--Pmdudion and Ma~cet~nhnum en zoute instrumenf~ the United States to arrange for celebrains Administraffon and Commodity alH~des; alf, eratg"rn= --~. 2591 tions designed to honor the member~ of Credit Corporation, Department of the armed forces on the designated day; Civil Aeronautics Board Agriculture and I reclUeS~ all of our citizens to disNotices: play the flag of the Unit~=d States on that Subchapter O--Lo~r~, Pu*o%~o;, end Other Island Air :Ferries, Inc., xenewal _ day ~ s token of our gratitude to the 2632' Obll~allonl case; hearlng men and women of the nn'l~tary services. F~'op~ed ~e ~h:~: P,~r 638.--N&vaz. JS'z'om~ IN~S ~HEREOF, I have here2629 un~o se~ my haud and caused the Seal susP~z--lssz au~ zz~v~ sror,~s 'ERC~ Ah" tz'n~c rules--.-Commerce Deparlment of the United States 0£ America to be ffO'PPORT LOMT ~PRO{~Z~ a~xed~ ~ee Cir.1 ~e~onau~s Admtntsia'aStatement with zespec~ to the Gum DONE af: the City of Wa.~Ington this tion; Intez~tfinml Trade., O~Naval Stores Price Suppor~ Loan ~o19th d~y of ~r~arch in the year of our £ce of; l~attonal P~ducf~ozz gram ~o~ the ealendar y~ 1952, fcrmuAuf, horIty; Naffonal Sh.~pin~ Lord nineteen hundred and lated by the Commodity, Credit Cor~om- Aut~orl~. [SmL] ~l~-t~vo, and of the Independtion and the Pzoduction and Marketing ence mf the United States 0£ Commodity Credit Co~ozaffon America the one hundred and seventy- Admlnlstration (hexeln~ter referred to Rules and z~ulaffons: as "CCC" and 'rPMA"), sixth. ~avaI st.ore~; 1952 gum. naval IZ~ssz S. ~ Sec. sto]:e3 price suppor[; loan pz-o638,301 Admlnish~tlon. gram _. 2587 By the President: 638.302 ~.lgIl~lo l~mdUcer, ~q0~ Eligible na~al ~. I)E~ AC~.~ O~, Customs Bureaa Secretar~ of 8taf, e. Notices: petzoleum oil foo~s; 10zospec~ive [F. R. Doc. 52-35'01; !~11ed, K~r. 24, I952~ = 17 P. R. 1403. 2630 (ConUnued on p, 2589) tart~ ~tlon ..... 4:45 p. ~l 258'/

HeinOnline -- 17 Fed, Reg. 2587 1952

Case 1:99-cv-00550-ECH

Document 309-31

Filed 06/30/2008

Page 2 of 15

26o2
came e~ectlve May I, 1951 (16 F. 1~o 1934). Notice and public procedure are not necessary prerequisites to the promulgation of this ordeb, and I so find, since the amendment is based upon the recommendation of the Board of Tea Experts; which is comprised.of experts in teas drawn from the Food and Drug Administration and the tea trade, so as to be represenf~tlve of the tea'trade as a whole. (Hcc. IO, 29" Stat~ 607, as amended; 21 U. S. C. 50, Interprets or applies sec. L. ~-9 Star. 604, ¯ as amended; 21 U. S. C. 41) ~ .. Dated: March 20, 1952, [SEAL] JOHN L. THUP~rON, " Acting ~min~trator."

RULES AND REGULATIONS

moral: Provi~eg, That when the quan- .paid in lieu of drilling shall not begin to ~ty of oil taken from all the producing run on any restricted homestead seleo.we.lis on any quarter.-section according. tion unit the consent of the Superlnto the public survey, or.fractional quar- -tendent tc~ drilling on Such homestead .ter-section if the Jand covered by the shah h~ve been given: Provldd~, That lease does not include the full quarter- .the Superintendent in his discretion may section, during any calendar month, direct the drilling of any undrllled lease, su~ctent to average, one hundred or ~f in his opinion the interests of the Osage more barrels per well per day, the royalty -Tribe warrant. Should the lessee elect to .on such oH shall be'20 percent. ¯ surrender his lease before the end of any (b) Roy~lO/ o~ oil ~roduee~ bg the such yearly period without drlMng a well ~ater f~6ocZ proems.- When the esti- thereon, he shah pay the renal of $1 per mated reserves of ell recoverable by pri- acre.for the fractional part of the year mary and/or gas .injection methods from the land is held and a well is not drilled, a specified sand or sands h~ve been de- and failure of th~ lessee to pay such rentpleted or partially depleted, .the lessee al within 25 days from the expiration of and the Tribal Council ,may agree upon any yearly period during which such well a new royalty rate to,be approved by the is not drilled shall be cause for cancellaSuperintendent, the sum to be not less tion of the lease by the Superintendent, than I2~ percent of the gross proceeds but such "cancellation shall not release "iF. R. Doc. 52-3435; .Flled, Mar. 25, 1952;" from sales of oil produced by the water the lessee and his sureties from the ob8:49 a. m.] flood process after deducting the oil used ggation to pay such rental: Provided, .for fuel in operating the lease, unless th'e lurther, That whenever the CommisOsage Tri~M Council, with the approval sioner of Indian Affairs shall consider TITLE 25--1NDIANS -of the Commissioner of Indian Affairs, the marketing facilities inadequate to Chapter l~Bur.eau "of Indian Affairs, shall elect to take the royalty in oil; pay- take care of the production he may diment to be made at time of ~ale or re- rect the suspension of drilling operations Department of the Interior moval of the oil, except where payments on any lease. PART 180---LEASING OP OSAGE RESERVATZO~ are made on-division orders, and ~e~le(b) Prior to the expiration of a term .ment shag'be based on the actual seMng of a lease, the Osage Trlbal Council may, ¯ T~NDS FOR OZL ZN~ GAs Mn~Nu . .price, but at hot less than the highest with.the approval of the Superintendent, MISCELLANEOUS A3~ENDMENTS posted market price,in the Mid-Conti- and a finding by him that such action is The regulatlons in this part. are nent oH field on the day of sale or re- in the best Interest of the Osage Tribe, amended, as fogo~vs: moval .grant an extension of the term of the I. Sections 180.1 to 180.4 are amended (c) ~o~aZty in ~n~... S]~ould the lease for a period of not, to exceed six to read as follows: lessor, with the approval of the Commonths for. the purpose of enablil~g the § 180.1 De~nifion$.. The fogowing mJssfgner of Indian Affairs, elect to take lesseerto drill a well to the Mississippi words or terms wh~n used in the l~¢se the royali~ in oil, the lessee shaR'furnishLine. tmless oil or gas is found in paying and regulations in this ~art shall have free storage for the royalty oil for not .quantities at a lesser depth, exceeding 30 day~. the meaning shasta in this-section: 2. Section 180.15 is amended to read (a) Superintendent The Superin§'180.3 Gover~rlzenf, reser'aes right "~0 as ~ollows: tendent of the Osage Agency, Pawhuska~ ~'urch~e off. Any. of the executive de§ I80.15 , Gas lo~" o~eraf~g ~ttr~oses. Oklahoma, in charge of the Osage " partments of the United States GovernAgency and Reservation, or.any~other ment shall have the bption to purchase The gas lessee shah furnish the oil lessee person who may be in charge of such at the h/ghest posted market price on the sufficient gas for drilling and operating rate agreed upon, or agency and reservation, and it shall be day of Sate all or any part of the oH pro- ptirposes at aagreeto berate shall be fixed the his duty to enforce compliance with the duced under any ]ease. The Commis- on failure to regulations in this par~. sioner of Indian Affairs may impose by arbitration: ProHde~, That the 0il (b) I~ector. Anyperson appointed restrictions ~s to time or times for drM- lessee shall make necessary connections as Inspector of oH and gas wells, or who ing" of wells and as to the production between the well and the meter whenmay be designated by the Secretary of from any well or welis,when in his Judg- ever possible. the Interior or the Cominissioner of InL ment or the judgm~ut of his representa3. Section 180;1~ is amended to read titan Affairs to supervise oil or gas opera- tive, such actor may be necessary or as ~ol~ows:" irons on Osage lands under the direction proper for the protection of the natural §1go.1~ Form M va~/racnt. All of the Superintendent. resources of the leased lend'and the in(c) Oil Zessee. Any.person,. ILrm, or terests of the Osage Tribe of ~dians, amounts due and payable under a lease corporation to whom an oH mining lease and in taking action, the Commissioner shall be paid td the Superintendent by Js made under the regulations in this may "take Int6 consideration, among "check or bank draft on a solvent bank. part. other tl~ugs, Federal laws, State laws, 4. Sections 180~19 and 180.20 are (d) Gas ~essee. Any person, firm, or or regulations by competent Federal or amended to read as follows: corporation to whom a gas lease is made State authorities or lawful agreements § 180.19 Pe~C~It,~/for ~to[atJon of leas8 under the regulations in this part. .among operators regulating either drill$~7~. Violation of any of theterms or tug or production, or both. § 180.2 Ro#aZty "~me~s--(a) conditions of any lease or of the'regulaRoyaZt# on ot~ ~rocZuce~ bg primary/or § 180.4 DriZHng obl~ga~o~. (a)" tions in this part shah subject the lease gas injectS.on ~ethod~. The lessee shah Lessees shall drill at least one well to theto cancellation by the Superinte~dente pay or cause to be paidto the Superin- Mississippi line, unless'oH or gas is found or the lessee to a fine of" not exceeding tendent° for the lessor as a royalty, the ,in cqmmerclal quantities at a lesser ~500 per day for each and every day the sum of 16~ percent of the gross proceeds depth, on the land embraced in their terms of the lease or of the regulations from sales after deducting the oH used leases; within 12 months from date of are violated, or the o~ders of the Superfor fuel in operating the lease, unlbss~the" approval of leases, or the leases may be tntendent in reference thereto are not Osage Tribal Council, with the approval held for tt~ full 5-year fixed term with- complied with, or to both such fine and of the Commissioner of.Indian Affairs, -out.drilling; upon payment of rentals to cancellation in the discretion of the SUshall elect to take the royalty in oH; paythe Superintendent for the ~essor at the perihtendent: Provlc~ecl, That prior to ment to be made at time of sale or. re- rate of:S1 per acre per annum, or a pro- caneegation of a lease or the imposition moval of theog; except where payments l~ertionate pard'thereof for each" 3 of a fine as provided for in rids seotlon, .are made on division orders; hnd s~ttle- months' period a lease is held and a well the lessee shall be entitled to notice and meat shall be based on the actual selling is "nOt drilled, .such rental beginning hearing with, respect to the terms of the price, but at not less than the highes~ twelve monthsfrom date of. approval of lease or of the regulations violated, posted marke~ price ih the Mid-Conti- ¯ lease: Prortde0L That the time within which hearing shall be held by the nent oil,field on the day of sale or re- ¯ which a well" shah be ~trilled or rental Superintendent.

\

HeinOnline -- 17 Fed. Reg. 2602 1952

Case 1:99-cv-00550-ECH
Wednesday, Marcl~ 26,1952

Document 309-31
FEDERAL REGISTER

Filed 06/30/2008

Page 3 of 15
2603

-§ 180.20 Bo~Is." (a) Lessees shall allowance for the cost of manufacture, dra£t on a solvent bank in the umouu~ furnish with each oH lease and each gas and no royalty thereon is required. The equal to 25 percent of the bonus as a lease, to be filed at the time the lease is royalty shall be computed oh the sale guaranty of good faith. The Superinpresented, a bond upon Form D, with a price received by the manufacturers o£ tendon|; may require any bidder to subsurety company, duly authorized to exsuch products,.or such higher price the mlt satisfactory evidence of good faith. ecute bonds. Such bonds shall be in the lessee may receive the same to be rethat ha has the cash in hand or at his of $1,000 for each quarter-section ported under oath and remit~d to the command, and to furnish whenever or fractional quarter-section unit cov- Superintendent not Inter than the 25th called upon by the Superintendent durered by the lease: Provi~,d, howler, of the succeeding month for all such ing the progress of the sale, authentiTba~ the lessee may file one bond, Form products sold during the previous ~onth. cated statement of a solvent bank to the G, covering all leases to which he or zf the manufacturer of any product ex- effect, the bidder has the means to purthey are or may become parties instead tracted from eash~-head gas produced chase the lease. The balance of the benu~, together with a $5.00 filing fee for of a separate bond in "each case, such from an Osage leasehold should sell his bond to be in the penal sum of $18,000. product at an arbitrary prh:e below that eac]~lease, shall be p~d, and the leas~_ (b) The right is spec[ficany reserved obtained by other manufacturers selling ¯ in ~omplated form with neces~xy accompanying papers shall be filed with to Increase the amount of any such bond such productJn the open market doring in any par~cular case when the Super- a particular month, the Superintendent the Superintenden|; within 20 day~ after shall notify ~d n~ufacturer of such the lease is forwarded, by the Superlntute~dent deems it~proper to do so. ¯ re) Form H should be used in the discrepancy and require settlement for tendent, oto the lessee for execution. 15reparation of a bond covering a lease royalty upon the average price obtained unless such period has been extended by acquired ~hrough assignment where the by manufacturers selling such product in the Superintendent for good and su~clent reason. If the succe~ful bidder ~elgnea does not have a collective bond, the open market during the same period. or the surety does not execute its con- The place of sale of liquid hydrocarbons fails to complete the le~e or to Pay the extracted from gas shall b~ at the plant full consideration within 20 days or au ~ent to remain bound under the' uriglnal bond given to secure the faithful per- where manufactured or when loaded authorized extension thereof, or if the lease is dl~pproved through no faulb 0£ " formance of the terms and conditions of into tank cars at or near the phmt. Should any manufacturer sell such prod- the lessor or the Department of the Inthe lease: -. , uct by delivery to pipelines at distant terior, the amount deposited as a guar5. Sections 1~80.23 ~nd .180.24 are points he may be allowed the average anty of good faith shall be forfeIt~d for amended to read as follows: loss by waste, evaporation or othenvise the use and benefit of the lessor. Auy ' " § 180.23 Con~ac~ for f.h~ safe o! ga~ sustained by other manufacturers in the and all bids shall be subjecb to accep~lot ~ustr~a! purposes. (a).All con- Osage, of such product from-the plant anee by the Osage Tribal Council. The tracts for the sale of gas for indnstriaI to tank ears as shown by sworn state- Superintendent may dLmpprove a lease l~urposes and sworn st~ttements showing ments wbieh shall be furnished when made on an accepted bid.upon evidence satisfactory to him of collusion, fraud the terms, conditions, ~nd schedules of required by the Superintendent. or other irregularity in connection with (b) The royalty on all drip gasoline, L~rices 6ontalned in contracts with door other natural condensate recovered the sale of the lease_ mestic consumers shall be filed with "the (c) No lease, assignment thereof, or Superintendent, and shall be subject to from.gas produced from the leased lands the approval of the Commissioner of without resort to manufacturing protein interest therein will be approved to any Ind~u Affairs whenever, in his opinion, shall be 16-~ percent of the gross pro- employee or employees of the Governthe interests of the Osage Tribe or the coeds from sales, except that m~ch sub- rkent, and no such employee shall be stance, if processed in a eash~g-head permitted to acquire az~y intez~s~ in public require such action. (b) In the sale and ~tion of gas, gasoline plant shall be treated for roy- ]ec.~es covering O~ge Tribal-lands, by prk~erence shall at all times be given to alty purposes as though It were gasoline. " ownership of stock in corporation~ havdomestic consumers, unless provided- - 6. Section 180.30 is amended to read ing le.~ses or in any other manner. othef'wise in the lease, and all contTracts as follows: § 180.40 Corpor~fons aug corporate for the Industrial ~Ise of gas shall con§ 180.80 ~Jfeasurtng ca~ng-heag Oas. showing. (a) UPOn b~ng notified of the taln a clause .to. the effect that when It .All easing-head gaS shall be metered and acceptance of its bid, a corporation ~hall is shown to the sat~faction of the Com- computed on a basis of I0 ounces above fl]e.a certified Copy Of a.t~cles of incormoner that such gas is needed for docompI[atmospheric pressure, the location and poration° and evidence showh~ laws if a mestic consumers within an area fixed by .type of meters to be approved by the ance with local corporafffon the Commi~oner, such contract shall Superlntendent or Inspector. All meters foreign corporation: l:'rovfc~ed, That if terminate upon the expiration of 30.days" any ~ch paper~ have already been filed notice from the Connnis~on, and that and charts shall be open to inspection a statement ~o that effect n£ay be.subat any time by the Inspectors of tha the Commissibner shall have authority' mired. ih~nediately tO suspend the furnishing Bureau of Indian Affairs, or ~uch other {b) A corporation mnst~also file with employee as the Superintendent may of gas to industrial co~umers when he RS flr~ lease, and at such ether times as is of the opinion that such gas is needed des~'n~te for such purpose. the Superintenden~ may direct, a If~ in for domestic consumers. All gas fur~. Sections 180.39 to 180.42 are amend- duplicate of all officers, directors, and ~ed to industrial and domestic con- ed to read a~ follows: of such stockholders, jm may be zequh'ed sumers shall be metered and sold at with their post-offlce addresses, and § 180.39 meter rafts: Prot~e~, That ga~ fur-. ~e~e~: leasesSaZe~ o] oR Ieases ang ~as to b~solg a~ ~ubllo uuctfon.~howing the number of shares of capital ziished to an oil.lessee hmy be sold as (a) Written appllcatlon for tracts to be ~oc~ held by each and whether held for provided in the gas lessees contract. offered for lease may be filed with the themselves or in trust, together with a ¯ (c) All contracts with domestic con~wom statemen~ of its proper officer, sumers shall be subject to the inspection Superintendent. (b) The Superintendent, with the con- showing: of the Super~tendent. sent of the Osage Tribal Council, may (1) The total number of shares of. the § 180.24 ~oya/ty o~ c~ing-he~ or at such times and in such, manner as capital stock actu~ issued, the number ~r~ giz~o|i~e,-bu~e, propaBe, or shall be deemed appropriate, publish of shares actually sold and spectffcaI]y o~l~er Z~.~tgroe~rbon substances e~- and di~trlbute, notices that ell lenses the nmOUnt of cash paid into the ~eastraetecZ ~ro~ gas,.drip g~ollne, or o~er end/or gas leases on specific tracts of ury on the" ~ock sold, or, I£ Faid in prdp~rat co~Z~ate. (a) A royalty of unloosed triballands, e~ch of whlch r~dl erty, state klnd, quantity, and value of 16% :percent ofthe gross proceeds of sales be in a compact body, will be offered at shall be.paid on the value of one-,third public auction to the h~h~t responsible mine paid. (2) Of the stock sold, how much "per (or the'levee's portion if greater than bidder: Prov/~, That not less than one-third) of all ~-head or natural 25,000 ~eres of the unloosed portion 5~ share remains unpaid and subJee~ to ass~ent. gasoline, butane," propane, or other the Osage mineralreserve shall be offered (3) HOW much ca~ Lhe company has liquid hydrocarbon substances extracted for lease during any one year. Succe.~from the gas produced from the lease- ful bldders must deposit with the Super, in i~s treasury and elsewhere, and from hold. The value of the remainder is an intendant on day of sale, a check, or bank whab sources it was received. ~o. 60.--.--.~ .

HeinOnline -- 17 Fed. Reg. 2603 195~

Case 1:99-cv-00550-ECH
2G04

Document 309-31

Filed 06/30/2008

Page 4 of 15

RULES AND REGULATIONS

(4) ~nat~proper~y, exclusive of cash, 'dons in this part, ~onds and other 9. Section 180.49 is amended to read is owned by the company and Its value. instruments required for leases or a~- as follows: (5) W~nat the totalindebtedness of the ~tgnments thereof;, and the acceptance § 180.49 Commencemenf o! operation, company is and specific2ally the nature of the voluntary surrender of leases¯ -(b) Unft~tlo~ oI oll leases.. As a No operations shall beapermitted upon of its obligations.. . .. any tract of land until lease covering (c) Leases made by. corporations shall consideration for their further develop- such tract shall have been approved by be accompanied by-an affidavit (Form E) ment by the water flood process, two or the Superintendent or such operations shuwing the'authority of its omcers to more oil .leases may be unitized and specifically authorized by him. execuLe leases, bonds and other papers. merged in a single blanket lease with the 10. Section 180.59 is amended to read approval of the Superintendent. Tl~e§180.41 How to aequfre ~er~issiOW f, o .instrtunentofuni~zation(blanketlease) hs ~o.~ows: begfr~ operation- o~ home~tea~ alZot- shall inclhde all the requirements and §.180.59 Duties o] Inspectors. It shall meats. (a) Dessees may conduct operations within, or upon .homestead se!ec- provisions'of sections numbered 1, 5, 6, ¯ be the duty of th~ Inspe~tor~ tions, with the written' consent of the :207' 8,orS,osage10, ll,~i112,1ease13, 15~Form16, 1%B, 18,ProHdeg:19, and'. (a) ~o visit from time to time leaSed lands where oil and gas mining operaSuperintendent and not otherwise. That the pre~imble .of Form B and" the tions are being conducted, and to inspect (b) If the allottee is unwilling to ~er- provisions of "section ~iun~bered 2 in re- . and supervise such operations with a mlt operations on his homestead, the'" spect to rdyalty rates; section numbered S~l~erintendent will direqt the ~nspector 3in respect to payment of xental; sect view'to preventing waste of oil and gas, t~ make an examination of the premmes- tiofl ntlmbered, 4 In respedt to payment damage to oil, gas, or ~ater bearing forwith the allottee and the lessee, or his of well site and tank location fees; and mations, or injury to 15rope~y or life, in representative, and should the Inspector section nfimbared I4/in respect to the ' accordance with the l~rovisionS of the '. be of the oplnton.that the interests of the surrender of the lease, may be modified regulations in this part. to the Superin(b) To make reports Osage Tribe requlrd that the particular and/or supplemented by the partie~, tendent as to the general conditions of 'tract be cleveloped he .will bndeavor to with the approval of" the Superintend.- have the parties" agree upon the terms den~, to the extent deemed appropriate the lqases, property, and the manner in under which' operatibns o~ the home= for the equitable and e~clefit conduct of which operations ,are being conducted and his orders complied with, stead may be conducted. unitized, operations, and not otherwise (c) To con~flt and advise .with ¯ (c) "In the event the' allottee and/the in conflict with the regulations in this Superintendent" as to the conditionsthe of Iesse~'cannot, with the assistance of the part. Lessee(s) shall, before commencZnspector, agree on the matter, the a~. ing water flood operations, and on ,or the leased lands, and to submit informa"rich and recommendations from time to lottee shah be permitted to go before the .before December 31st of each year thereOsage Tribal council, and the council, after, submit to the Superintendent an time for safeguarding and protecting the after hearing the allottee, thO lessee, and acceptable plan of development and op- property of the l&sor and securing comthe Inspector, shall make such recom- eratlon for-the unit area for the ensuing pIlanoe with the provisions of the regulations in" this part. mencfi~tioR as It d~ems proper. Guard- year. (d) .To give such orders or notl6e~ as ians, legal or natural, may represent (c) Assignments. Approved "leases may be necessary to secure compliance their Indian wards, and wherd no dne is with the regulations and to issue all authorlzed or where no persbn is deemed or any interest therein may be-assi~ed with the approval of the Superintendent, by the Superintendent-to be ~ proper' and "not otherwise.. Assignments, when- necessary instructions or ordersto. party to speak for a minor or.person 6f so approved, shall b~ subjec~ to the terms lessees to stop or modify such methods unsound rmnd or of feeble understand- and conditions of the original leases, or practices as he may c.onslder contrary ing, the Principal Chief of the Osage and the regulations under which ~ch to the provlsions of such regulationS. o(e) -To modify or prohibit the use or Tribe shah represent him. (d) Where the allottee does n.o~" ap- leases' were ap~oved, ~ne assignee "- continuance of any operation or method shall furnish with his assignment a sar~ which, in his opinion, is causing or is pear before the Council, either in per- i~facto~y bond as provided in § 180.20 son or by representative, when notified (c). Any attempt to assign an approved. likely to cause any .surface or underby the Superintendent, or the Council withou~ the ground waste of oil or gas, or injury to fails to act.in the matter within I0 days lease or.any interest therein the superin- any oil, gas, water, coal, or other mineral consen~ 4rod approval of after being referred to it, the Superinfqrmationo or which is dangerous to lifo tendent may authorize the lessee" to tendent shalIbe absolutely.void .and shall or property, or in. violation of the prosubject the original lease to cancellation Visions of the regulations in this par~ proceed with operations' in conformity in the discretion of the Superintendent. (f) prescribe, subject wi~h the provisions of his lease and %he ¯ proval To the Superintendent,to the apof the manregqlations in this part. If the'CouncR § 180.4"7 ~'iZ~g. ol assignment, and, drff/fr~ contract. (a) ~stgnments of ner and form in which all records or reby appropriate resolution should re,mports called ~or by the regulations in this mend that a lessee be n-or permitted.to any lease .or any interest therein by drillconduct drillirig operations on a home- ing-contract or otherwise shall be filed ~part shall be made hy th~ le.~ee. stead selection, the Superintendent shall with the Superintendent within 30 clays "(g) q~o I~rohibit the drilling oz any weh submit the question to the Area "from. the date of such assignmen~by the -[nte any producing sand when-in his assignor, except in instances where the opinion and with the approval of the Director. necessary papers cannot be executed Superintendent the marketing facilities § 180.42 l~en~a!"~er~o~" after co~se~ Wfthin such' t~e, in which event, ho~- are inadequate, or Insu~ctent provision of ~u~erbztcndent ~o be#i~z operatfo~ or~ ever, formal -no,ace sh~l be filed within has been made for controlling the flow ho~e~tea~. 1~ental in lieu of develop- the 30 days s~ipulated and where neces-. of ell or ga~ reasonab~ to be expected meat shall not begin to run.on any home, therefrom until such time as suitable ¯ stead selection until one year after the sary the Sup e[lf~tendent may grant 15 . ~ovislon can be made¯ consent of tl~e 'Superintendent or Area days additional
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a well which is causing, or i,s likely to to operate engines or pumps, $10 per dny decL~ous or orde= issued under authorcause, damage to an oil, gas, or water for th~ first vblation and $20 a day for try of §§ 180.54, 180.59, and 180.91, by -bearing fo~Uon, or to coal measures each violation thereafter. filing such appeal ~ the Superintend(g) For failure to comply with ant within 30 days after service of the or other-mineral deposits, or which Is dangerous _to life or property, be cor- § 18028, which prohlbRs the burning of decision or order. The appeal shah inrected as he may prescribe or approve. gas in flambeau lights, $50 per day. corporate or be accompanied by such (1) To approve the type or size of (h) For failure to notify Superinten- written showing and argumen~ on the separators used to separate the oil, gas, dent and secure authorlty before redrillfacts and law as the ap~t Inay deem .or water coming from'a well. ing, deepening, plugging or abandoning adequate to Ju~y 1"eVel-~al or modifiwell. $200, as required by §§ 180.80 cation of the order. All statements 0£ 11. Section 180.64 is amen(~ed to read any 180.90. and facts must be made under oqth. The as follows: (i) For failure to construct sumpnupertntendent shall trausmlt the ap§ 180.64 P/ats showing /ocaffor~ o/ holes, or bur~ holes, to Properly earo peal and accompanying papers with a wells. Lessee shall furnish as required, for and dispose of B. S. and ~alt water full. report and recommendations, ¯ t plat, in manner and form as prescribed as provided In §'180.65, $10 a day for the through o~c~ channels, to the Comby the Superintendent, showing all wells, first violation.~nd in event of the failure nds~oner of Ind~ A/~h's¯ active or abandoned, on the leased lands, properly to construct or repair 6ump(c) An appeal from any decision of and other related information. Blank holes, or burning holes~ within 5 days the Commissioner of Indian Affairs may plats will be furnished upon application. after notifleatio~ by Superintendent or be taken to the Secretary of the Interior o~ the 12. Sech~on 180.67 is amended to read his autiiorlzed representative, $25 to $50 within 30 days after serviceappeal Coma day. missioners declslon. The shall as follows: / (J) Pot failure to file plugging reports be accompanied by such written showing § 180.6/ No,tee prior tO remova~ of as required by § 180.84 and for failure to and nrgument on the facts and law as e~ny. Lessee shall obtain person file reports, and reml~royalties required appellant ]may deem adequate to Justify from the Superintendent before remov- by § 180.45, $5 a day for the flrs~ viola- reversal or modification of the decision. ing any ea~ng from any well tion and $10 a day for each violation Any statement of facts not submitted to the CommLssioner must be made under13. Section 180.84 is amended to read thereafter¯ All moneys received from fines col- oath¯ as follows: (d) Compliance with any decision or lected under this section shall be de§ 1"80.84 PZugging to be approved~ bZl posited as provided in § 180J)3. order issued by or under authority of the IP~'Peetor¯ (a) The manner in which Superintendent shall not be suspended I6. Section 180.93 Ls-amended to read mud-laden fluid, cement or plugs shatl by reason of an appeal havlng been taken as follows: be introduced into any well being unless such suspension is authorized in plugged add the type of plugs so used §180.93 For't~. ta)Leases, and writing by the Connnts~oner of Indian shall be subject to ~he approval 6f the other palier~ must be upon forms pre- Affah's, and thtm only on a determinaI~pcctor, and the lessee shall Witht~ scribed by the Secre~y of the Znterlor, tion that such suspension ~ not be "I0 days file with the Superintendent a and,the Superintendent will furnish detrimental to the lessor or upon subcomplete repor~ of the plugging of such prospective leasees with such forms for mission and acceptance of a bond deemed well preparation of orlginal leases without adequate to indemnify the lessor from (b) In the event the lessee or operator charge, but shall make a charge of 50 loss or damage. shall fail to plug properly any dry or cents per set, for forms used In preparln~ (~c. 3. 38, Sta~ 543. Interpret o~ aPPW secs. abandoned well in accordance with "the assignments. 1, g. #,5 star. 1478,14~9) regulations in this par~ the SuperintendForm A--Gas mining lense. Oscar L. C~AP~a~, ant may, after 5 days' notice to the parForm B--Oil mining lea~e. ¯. Secretary o! t~,e l~ter'~or. ties in interest, plug such well at the ex:Form D--Bon~L~ pense of the lessee or his surety. Form E--Authority of officers to execute MARCH 20, 1952. 14. Section 180.89 is amended to'read papers. IP. 1~ ~. 62-3383: 1:1led. Mar. 25. Z952; Form ~--Ar~gnment as ~ollows: 8:53 a. m4 Form C~--Coilectlvo bond. § 180.89 Use ol ~fmber [ror~ leaseg -. ~orm H--Assignment bond. ~. Lessee ~ill not be permitted to (b) All sums received from sale of TITLE 31--MONEY AND use any timber from Osage ]ands except forms and flues shall be placed In.a under written agreement with the owner. special ~und, and may be expended unFINANCE: TREASURY 15. Section 188.91 is amended to-read der the dlreotlon of the Comml~oner Chaplet If--Fiscal Sen'ice~ Dep.aflof Indian Affairs for the expenses neces. as foliows: ¯ men/of the Treasury sary to carry out the regulations In this § 180.91 Amoun~ of penaZHes. Fined part. Sub~hapler A--~ozeag oE A¢o~mls may be imposed by the Superlntendent without right of appeal for violations of 17. Section 180.95 is ndded to read as PArT 22@--F~L Psoc~ A~ o~ certain sections of the regulations in fo]3ows: Susn~ Co~am~ this part, as follows: § 180.95 Hearings ang appea/~. (a)" 5II~CEILAL'EOUS ASI~'~D~IL~T5 Fines for noncompllance "wlth terms person, firm or corporation egof lease or regulations. Z~CK 20, 1952¯ by any decision or order Issued (a) For failure to file preliminary re- grievedunder authority of the Super224. Subetmpter A, Chapter ]Z, by or port required by § 180.62, $5 a day for intendent pursuant to the regulations in Title 31 of the Code of FedemI I~gulathe fir~ violation and $10 a day for each this part, may file ~vlth the Superintend- tions of the United States of Americ~ ¯ violation there~ter.(appeaz~ formerly as Depsrhnent C~r
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,., E.ITIo. CODE OF FE D E R, ,L REGULATIONS

1952 CUMULATIVE POCKET SUPPLEMENT

~o~ U~E ou~,.o ~C~, ~ ~,~
see the daily issues of the

For clhanges subsequent to December 31, 1952

FEDERAL REGISTER

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§ 148,20

Title 25--Indians rectly or by substitution, by the per acre annual rate. Against the amount~ due annually by the individual landowners whose lands are served by private ditches, under this notice there shall be allowed any credits due under section 6 of the act of ,June 28, 1946. Credits due on behalf of any land shall be reflected in any statement submitted to the landowners. § 148.21 Time o/ p a y m e n t. The amount of each annual installment, payable under the private landowner contracts, determined as herein provided, shall be paid by the landowners to the U:dted States, on or before November 15 of each year commencing with the calendar year 1951. § 148.22 Penalty. To all assessments not paid on the due date there shall be added a penalty of one-half of one per cent per month or fraction thereof, from the due date so long as the delinquency continues. § 148.23 Refusal o/ water delivery. The right is reserved to :refuse the delivery of water to any landowner in the event of default in the payment of assessments, including penalties on account of delinquencies.

SUBPART B---CHARGES ASSESSED AGAINST NON-INDIAN LANDS NOT INCLUDED IN AN IRRIGATION DISTRICT § 148.20 Private contract lands/ assessments. In addition to 4,751.5 acres of non-Indian land included within the two irrigation Districts dealt with in Subpart A, there are 3,Z37.6 acres of land, more or less. in non-Indian ownership under private ditches, covered by repayment contracts executed pursuant to the act of June 28, 1946 ~60 Stat. 333338), obligating such owners to pay their proper share of such construction costs. The total per acre charge against all such lands is $26.38. This amounts to an annual per acre rate of $0.6595. For the purposes of this notice the annual per acre rate is hereby fixed at $0.66. This annual rate of assessment will continue for a 40-year period within which the total amount of construction cost of $210,726 is to be repaid without interest. The amount of each annual installment chargeable against the lands covered by each of the several contracts with individual landowners whose lands are served under private ditches, shall be determined by multiplying the total acreage, under each contract entitled to Willow Creek storage rights; either di-

Sec.

180.48 Appr 180.47 Pilln Col 180.49 Corn: vt~
POWERs

180.59 Dutl
R~

180.64 Plat~ {R 180.67 Noth [R 180.84 Plug tol 180.89 Use
PENALTIES

180.91 Amo' 180.93 Foru
lq

180.95 Hear Pc~cket Supp Mar. 26, 195.' § L2.1 words or te and regulal the meanin (a) Supe tendent of 1 Oklahoma. Agency ant person who agency and his duty to regulations (b) Inb'~ as Inspectol may be des the Interior dian Affairs tions on Os~ of the ~upe (c) Oil h corporation is made un par~ (d) Gas 1 corporation under the re o § 180.2 R Royalty on

SUBCHAPTER R--LEASES AND SALES OF MINERALS, RESTRICTED INDIAN LANDS Part 180---Leasing of Osage Reservation Lands for Oil and Gas Mining
See. ~'rILT.ZATION OF C&SrNG-I-~EAD GAS W][-I'EI~ I~SED FOR TI-IE MAN'UFACTURle OF GASOMNE

180.1 180.2 180.3 180.4 180.15 180.17 180.19 180.20 180.28

Sec. 180.24 Royalty on casing-lhead or natural gasoline, butane, propane, or other liquid hydrocarbon substances extracted from gas, drip gasoline, or Definitions. [Revised] other natural condensate. I Rew- MINING 0 vised ] 180.30 Measuring caslng-head gas. [ReRoyalty payments. [Revised ] vised ] Government reserves right to purchase oil. [Revised ] How TO ACQU~v. LEASE80l~ T~maL LA~ Drilling obligations. [Revised] 180.39 Sales of oil ]eases and gas leases; Gas for operating purposes, [Releases to be sold at publlc auction. vised} [ Revised ] Form of payment. [Revised] 180.40 Corl~rations and corporate showPenalty for violation of lease terms. lng. lRev~ed] [ Revlsed ] 180.41 How to acquire permission to begin Bonds. [Revised] operations on homestead allotments. [Revised l GAS MINING LEASw~ 180.42 Rental period after consent of Contracts for the sale of gas for Superintendent 'to begin opera* industrial purposes. [Revised] tions on homesteads. [Revised]

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Chapter I.--Bureau of Indian Affcnirs ~, by the per acre the amount~ due idual landowners ¯ veal by private ice there shall be under section 6 946. Credits due shall be refl~ctcd itted to the landa y m e n t. The real installment, l-irate landowner as herein pror.he landowm.rs to ¯ before No~-ember ~encing with the 'o all assessments tte there shall be e-half of one per lion thereof, from s the delinquency : water delivery. to refuse the delandowner in the e payment of aspenalties on acASS,IGN'MENTS

§ 180.3

Sec. 180.46 Approval of lease instruments. [Revised | 180.47 Filing of assigrlments and drilling contracts. [Revised]

RESTRICTED

EAD G$~ WHeN 105~D R~ OF GASOLINE

rig-head or natural ae, propane, or other ~bon substances ex;as, drip gasoline, or L condensate. [Reag-head gas. [ReOF TRIBAL LAND6

~es and gas leases; bld at public auction. ~d corporate showII permission to begin n homestead allotafter consent of at to begin operamteads. [Revlsedl

gas in]ection methods. The lessee shall pay or cause to be paid to the Superintendent, for the lessor as a royalty, the sum of 16~3 percent of the gross proceeds from sales after deducting the oil used for fuel in operating the lease, unless the OPERATXONS Osage Tribal Council, with the approval 180.49 Commencement of operation. [Reof the Commissioner of Indian Affairs. vised I shall elect to take the royalty in oil; paYment to be made at time of sale or repowzRs A~D DUTIES OF XNSPZCrORS moval of the oil,. except where payments 180.59 Duties of inspectors. [ Revlsedl are made on division orders; and settleI~NNTS OF LESSEES ment shall be based on the actual selling price, but at not less than the highest 180.64 Plats showing location of wells. posted market price in the Mid-Conti[ Revised I 180.67 Notice prior to removal of casing. nent oil field on the day of sale or removal: Provided, That when the quan[ Revised ] 180.84 Plugging to be ;approved by inspectity of oil taken from all the producing tor. !Revlsed] wells on any quarter-section according 180.89 Use of timber from leased lands. to the public survey, or fractional quar[ Revised ] ter-section if the land covered by the I~ENAL'FIES FOR VIOLATION OF REGULATIONS lease does not Jinclude the full quartersection, during any calendar month, is [Revised] 180.91 Amount of penalties. sufficient to average one hundred or FORMs more barrels per well per day, the royalty 180.93 Forms. [Revised) on such oil shall be 20 percent. ~INc.s ANY APPr~Ls (b) Royalty on oil produced by the 180.95 Hearings and appeals. [Added] water flood process. When the estimated reserves of oil recoverable by priSOURCE: §§ J80.1 to 180.95, set forth in this Pocket Supplement, appear at 17 F. R. 2602, mary and/or gas injection methods from Mar. 26, 1952. a specified sand[ or sands have been de§ 1L2.1 Definitions, The followingpleted or partially depleted, t~e lessee Council words or terms when used in the lease and the Tribalrate to be may agree upon a new royalty approved by the and regulations in this part shall have Superintendent,, the sum to be not less the meaning shown in this section: than 12!.~ percent of the gross proceeds (a) Superintendent. The Superinfrom sales of oil produced by the water tendent of the Osage Agency, Pawhuska. flood process after deducting the oil used Oklahoma. in charge of the Osage for fuel in operating the lease, unless the Agency and Reservation, or any other Osage Tribal Council, with the approval person who may be in charge of such of the Commissioner of Indian Affairs, agency and reservation, and it shall be shall elect to take the royalty in oil; payhis duty to enforce compliance with the ment to be macie at time of sale or reregulations in this part. moval of the oil. except where payments ¢b) Inspector. Any person appointed are made on division orders, and settleas Inspector of oil ~ndl gas wells, or who ment shall be based on the actual selling may be designated by the Secretary of price, but at not less than the highest the Interior or the Commissioner of In- posted market :price in the Mid-Contidian Affairs to supervise oil or gas operanent oil field on the day of sale or retions on Osage lands under the direction moval. of the ~uperintendent. ~c) Royalty i~ kind. Should the (c) Oil lessee. Any person, firm, or lessor, with the approval of the Comcorporation to whom an oil mining lease missioner of Indian Affairs, elect to take is made under t~e regulations in this the royalty in oil, the lessee shall furnish par.~ free storage for the royalty oil for not ¢d) Gas lessee. Any person, firm. or exceeding 30 days. corporation to whom a gas lease is made fi 180.3 Government reserves right to under the regulations in this part. purchase oil. Any of the executive deOIL MINING LEASES partments of the United States Government shall have the option to purchase § 180.2 Royalty p a y m e n t s~(a) Royalty on oil produced by primary or at the highest posted mm ket price on the

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§ 180.4

Title 25---Indians take care of the production he may direct the suspension of drilling operation.~ on any lease. 'b) Prior to the expiration of a term of a lease, the Osage Tribal Council may. with the approval of the Superintendent. and a Iinding by him that .,uch action is in the best interest of the Osage Tribe, grant an extension of the term of the lea.
day of sale all or any part of the oil produced under ally lease. The Commissioner of Indian Affairs may impose restrictions as to time or timts for drilling of wells and as to the :production from any well or wells when in his judgment or the judgment of his r'epresentatire. such action may be necessary or proper for the protection of the. natural resources of the leased land and the interests of the Osage Tribe of Indians. and in takin.u act,on, the Commissioner may take into consideration, among other things, FedLral laws, State laws. or regulations by competent Federal or Suite authorities or lawful agreements among operators regulating either drilling or production, or both. § 180.4 Drillinf! obligations. (a) Lessees shall drill at least one well to the Mississippi line, unless oil or gas is found in commercial quantities at a lesser depth, on the land embraced in their leases, within 12 months from date of approval of leases, or the leases may be held for the full 5-year fixed term without drilling, upon payment of rentals to the Superintendent for the lessor at the rate of $1 per acre per ammm, or a proportionate part thereof for each 3 months' period a lease is held and a well is not drilled, such rental beginning twelve months from date of approval of lease: Provided, That the time within which a well shall be drilled or rental paid in lieu of drilling shall not begin to run on any restricted homestead selection until the consent of the Superintendent to drilling on such hcmestead shall have been given: Provided, That the Superintendent in his discretion may direct the drilling of any undrilled lease, if in his opinion the interests of the Osage Tribe warrant. Should the lessee elect to surrender his lease before the end of any such yearly period without drilling a well thereon, he shall pay the rental of $1 per acre for the fractional part of the year the land is held and a well is not drilled, and failure of the lessee to pay such rental within 25 days from the expiration of any yearly period during which such well is not drilled shall be cause for cancellation of the lease by the Superintendent. but such cancellation shall not release the lessee and his sureties from the obligation to pay such rental: Provided. 1urther, That whenever the Commissioner of Indian Affairs shall consider the marketing facilitle~ inadequate to

/or trac purY. the pric{ mesI SuI)( tile !ndi: the publ (b prefq dom, othe for i tain is sh miss mest the term notk the imm of g: is of :[or q nish~ sum( mete nisht provi tc sIlm( of tl UTII.I USI §1 natu: otho tract

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Chapter I~Bureau of Indian AfFairs ~luction he may diof drilling operations expiration of a term . Tribal Council may. the Superintendent. n that .,uclt action is of the Osage Tribe. of the term of the af not to excee,'l six poke of elmbling the II t~ the Mississippi ts is found in paymr depth. operating purposes. iurnish the oil lessee -illing and operating o be agreed upon. or he rate shall be fixed )z:.ided, That the oil eeessary connections nd the meter when/ payment. All ayable under a lease e Superintendent by t on a solvent bank. /or violation o/ lease ¯ any of the terms or ase or of the regularoll subject the lea:~e the Superintendent. ine of not exceeding .'h and every day the ar of the regulations orders of the Super:nee thereto are no~ o both such fine ~.nd discretion of the ~u~ided. That prior to aze or the imposi:icr, d for in this section, ~ntitled to notice and :t to the terms of the regulations violated, all be held by the ,a, Lessees shall dl lease and each gas ttle time the lease is apon Form D, with a tly authorized to exbonds shall be in the each quarter-section ~er-section unit coy: Provided, however, y file one bond. Form ~zes to which he or .,come parties instead of a separate bond in each case, such bond to be in the penal sum of $15,000. ~b) The rigtlt is specifically reserved to increase the amount of any such bond in any particular case when the Superintendent deems it proper to do so. (c) 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 bond, or the surety does not execute its consent to remain bound under the original bond ~ivcn to secure the faithfu" performance of the terms and conditions of the lease.
GAS M:ININ'G LEASES

§ 180.30

§ 180.23 Contracts/or the sale o] gas /or industrial purposes. (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 with domestic 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. prefere~ce 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 Commissioner that such gas is needed for domestic consumers within an area fixed by the Commissioner. such contract shall terminate upon the expiration of 30 d:..vs' 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. (e) All contracts with domestic consumers shall be subject to the inspection of the Superintendent.
UTILIZATION OF CASING-HEAI GAS WHEN, USED FOR THE MANUFACTURE OF GASOLINE

§ 180.24 Royalty on easing.head or natural gasoline, butane, propane, or other liquid hydrocarbon substances extracted lrom gas, drip gasoline, or other

natural condensate. (a) A royalty of 16~ percent olfthe gross proceeds of sales shall be paid on the value of one-third (or the lessee's portion if greater than one-third) of all casing-head or natural gasoline, butane, propane, or other liquid hydrocarbon substances extracted from the gas produced from the leasehold. The value of the remainder is an allowance for the cost of manufacture, and no royalty thereon is required. The royalty shall be computed on the sale price received by the manufacturers of such products,, or such higher price the lessee may receive the same to be reported under oath and remitted to the Superintcndent not later than the 25th of the succeeding month for all such products sold during the previous month. If the manufacturer of any product extracted from casing-head gas produced from an Osage leasehold should sell his product at an arbitrary price below that obtained by other manufacturers selling such product in the open market during a particular month, the Superintendent shall notify said manufacturer of such discrepancy and require settlement for royalty upon tlhe average price obtained by manufacturers selling such product in the open market during the same period. The place of sale of liquid hydrocarbons extracted from gas shall be at the plant where manufactured or when loaded into tank ears at or near the plant. Should any manufacturer sell such product by delivery to pipelines at distant points he may' be allowed the average loss by waste, evaporation or otherwise sustained by other manufacturers in the Osage, of such product from the plant to tank ears as shown by sworn statenqtents which shall be furnished when required by the Superintendent. ~b) The royalty on all drip gasoline, or other natural condensate recovered from gas produced from the leased lands without resort to manufacturing process shall be 16~:'~ percent of the gross proceeds from sales, except that such substance, if processed in a casing-head gasoline plant shall be treated for royalty purposes as though it were gasoline. § 180.30 Measuring casing-head gas. All casing-head: gas shall be metered and computed on a basis of 10 ounces above atmospheric pressure, the location and type of meters to be approved by the Superintendent or Inspector. All meters and elmrts shall be open to inspection at any time by the Inspectors of the Page 53

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§ 180.39

Title 25~lndians (c~ No lease, assi~llment th,.reof, or interest therein will be appro,ed to any employee or employees of the Governmcnt, and no .~uch employee shall be per:nilted to acquire 'lily intcre~t in !e:~es coverin~ Osa!~'e Tribal lands, by
OWIH.'I'>}llp (.If stock ill eol'poratiolls having.' l(,a~e< or ill ally other mallnf'r.

Bureau of Indian Affairs. or ~uch other employee a~ the Superilltelldellt nl.ly desi~nate for such purpose.
}lOW TO ACQUIRE LEASES OF TI;IBAL lANDS § 11"I0 29 SC~/C,¢ t>/ oil /ca.~c.'~ opld t;a,s

Sul
to I

leases: h'ase,~ to bc s¢>ld at pllblic auction. ,a, Written application fo:" tr;tcls Io be olIered for lease may be fih,d with the Stlt)eritltetldent. , b, "['he Supt,lilltollCiellt. \vil h the coilSelll of tile O~a,'e Tribal (?~:llllcil. in.ly
~tl. SllC[1 liln,,s Slid ill Nllt:!l lll:illllur ;t>4

wit tel: be Os;
t l~t

shall be doomed ul)prolp.'iale, publi.ql and disIriSule notices l|l,i[ oiI ie:tst_~ i\I!(t or ~z~ls leases (311 SD(:cific tracts of unleased tribal land<, cuch of which .q]all ;i >~,:t!O!IlO!lt t') that effect lllay be subbe ill a COllll)ac[ tJO'!y, wiil be offered at m~! I ed. Imb]ic auction to the hi~h~.~t re~p¢,n~ible ,b, A corporat/~,:l ml~t also file with bidder: Pr,.)ride:f. That llOl ie~s lh:m it~ ft"st lcu.e, atilt at :~uch other times as 25.000 acr(.~ of tile unleased p,)rtion of the Os.,ge mineral reserve Ml:dl b,, ~)ffercd lhe Superintendent may direct, a li~t in duplicate of all officers, directors, and for ',etl.~e durip,~ filly one .','(-~il'. ~;U(.'CeSSof :~uch 5;tockholder... ',as may be required ful bidders mu~t depo>it with the Stlperx~ith their po:t-offiee addresses, and i~tend,-nt on d-~y of sale. a check. (-,r bank showin~ the number of shares of capital draft o~] a .;-event bank irl It[(:' ~tlnOllllt eq!llll to 25 1)el'c(.nt (>f the t)¢~Illls as a sl(~ck held by each and whether held for t.'uarallty c~f ..':ood faith. The Superin- themselves or ill tru::,t, together with a sworn statement of its proper officer, tendent may rcq~.lil'e ally bidde!" to submit satisfactory evidence of ~:ood f.dlh. :-lit)wing : ,1, The total number of shares of the that he has the cash in hand or at hi: command, and to furlli:~h v, honever capital stock actually issued, tile number of .qlares actually sold and .~pdeifieally called upon by the Superin'tendent durin: the l?ro~rre~s of tile sale. :/uthenti- the amount of cash paid into the treasury on the stock sold, or, if paid in propcated statement of a solvent bnnk 1o the (: rty. state kilid, quantity, and value of effect the bidder has the means to pursame paid. chase the lease The- balance of the bonus, tooether with a $5.00 filth;,, fee for (2, Of the stock sold, how much per each lense, shall be paid, and the lease share reInains unpaid and subject to in completed form with ~ecessary aca/;se~smenL companyin~ papers shall be filed with ,3} How much cash the company has the Superintendent within 29 days after in ~ts treasury and elsewhere, and from the lease is forwarded, by the Superinwhat sources it was ',received. tendent, to the lessee for execution. ,4~ What property, exclusive of cash. unless such period has been extended by is owned by the company and its value. the Superintendent for ~ood and suffi,5) What the total indebtedness of the cient reason. If the succe.~sful biddt,r compamy is and speciflcially the nature fails to complete the lease or to pay the of its obligations. full consideration within 20 days or an authorized extension thereof, or if the ,c~ [.eases made by corporations sllall h:ase is disapproved throu~:h no fault of be accompanied by an affidavit ~Form E> the lessor or the Department of the lllshowing the authority of its officers to terior, tile amount deposited as a guarexecute leases, bonds and other papers. anty of p, ood faith shall be forfeited for § 180..41 tlow to acquire permission to the use and benefit of the lessor. Any bcoiu operations on honlestead allotand :dl bids shall be subject to accept7nents. Ca) Lessees may conduct operaance by the Osage Tribal (:ouncil. The tions within or upon homestead selecSuperintendent may disapprove a lease made on "m accepted bid, upon evidence lions with the written consent of the satisfacto,'y to him of coliu"ion, fraud Superintendent and not otherwise. or other irregularity m connection with ,b) If the allottee is unwilling to permit operations on his homestead, the the sale of the lease. I'a L' e 5.!

180.40 Corpora/ions a?td corporate Mt¢m,'na. (a) UDon bein,.., notified of lhe acceptance of its bid, at corporation shall file a c;",titied copy of articles of inc(n'p(,r;tti()n, "lnd evidence .~howing come!i= ap.cc v;i!h local corporation laws if n f(:,.'~,i:'.!~ corl)oration: Provided. That if :,.~}," ~,.Ich I):,.per~ h:t:'e aL,'eady been filed

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Case 1:99-cv-00550-ECH .........

V

Document 309-31

Filed 06/30/2008

Page 12 of 15

Chapter I~Bureau of Indian AfFairs dCnment thoreof, or 1 be appro: ed to any yees of the Govern]~ employee shall be Lire any intere.~t in age Tribal lands, by m corpor