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

Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 1 of 10

27
and not used for operations under the terms of Paragraph 12 of the oil lease, shall be delivered to gas lessee at points where the gasoline is extracted at as high a pressure as the efficient operation of. such plant will permit, and where same is delivered at a pre-~sure not above .fifty pounds the oil lessee shall receive-one cent per thousand cubic feet and an additional one-half cent increase for each additional 50 pounds pressure not exceeding three cents per thousand cubic feet. Settlement for .same to be made on or before the twentieth day of each month for all gas delivered during the preceding month and to be computed on the usual basis of ten ounces above atmospheric pressure, provided that royalty on such gas shall be computed the same as though it were gas produced and utilized by the gas lessees under .the terms of their leases from their wells proper, and provided further that the right~ herein conferred are optional and in no event-shall the gas lessees be obligated to utilize, or pay the oil lessee, or pay royalty to the Tribe, if not utilized, for any such gas as is described; and if the gas lessee does not accept such gas and utilize the same after tender thereof by the oil lessee, then such gas may be otherwise disposed of by the oil lessee upon the same basis of royalty as fixed in case of utilization by the gas lessee,

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~::~!~-i~i~i!~ii!:.~:~.ii:i be permitted to utilize and sell the same-to adjoining lessees for i operating purposes until such time only as the gas lessee-is in a ~ ::~.~i~:~:~:::~:~:~::~; :.:!~. ?i:::-: ~:-~:-~:v~v: !: ~=::'::..-,..: position to and does utilize such gas. Water shall .not be introduced into any well where such introduction will operate to kill or restrict ~ the open flow of gas therein. ~-:~=:i~.~::;~::i':~.~.~.:,:...: The term "cost price of a well," as applied where one lessee takes over a well drilled by another, shall include all reasonable, : :.-~- --~-.v-~. ..... ~ usual, necessary and proper expenditures including the following ..... : ~:' ; ....~" ~:~:::~i~=~::.~.ii=~:: ~ .......... expenditures made by the lessee drilling the well. ~i (a) All location, right of way, or other surface damages oc: !!:!!i::~;!!:::::~: :.-. casioned by the drilling of such well. (b) All expenses of laying, taking up, repairing, operating and i, ~-~:-:~!~.~?:. :! :; maintaining gas and .water lines where such lines ~ncluding amount .i !~~i!!!i i!i. :i i

In case of combination wells where the gas lessee has no market for and does not utilize such gas for any purpose, the oil lessee shall

subdivision,purposepaid for water privilege or constructing dam, are used for the exclusivesubdivisionsProvided,Wheresh i~I~'I) :iil: I(:/:: : :
connection with the drilling of the welt to be taken over, or are also

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used in connection with the drilling or operation of other wells by the lessee drilling the well to be taken over by the other lessee,
then £ fair proportion of the charges covered by the said subdivisions of this paragraph shall be assessed against, each well, including

the well to be taken over, and in the event of a disagreement between the parties as to the charges assessed against the well that is to be taken over, such charge shall be fixed by the Superintendent. (e) . All-expenses of hauling and erecting standard rig, with an additional charge for use of said rig which shall be twenty cents

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 2 of 10

27 and not used for operations under the terms of Paragraph 12 of the oil lease, shall be delivered to gas lessee at points where the gasoline is extracted at as high a pressure as the efficient operation of, such plant will permit, and where same is delivered at a pre,sure not above fifty pounds the oil lessee shall receive-one cent per thousand cubic feet and an additional one-half cent increase for each additional 50 pounds pressure not exceeding three cents per thousand cubic feet. Settlement for .same to be made on or before the twentieth day of each month for all gas delivered during the preceding month and to-be computed on the usual basis of ten ounces above atmospheric pressure, provided that royalty¯ on such gas shall be computed the same as though it were gas produced and utilized by the gas lessees under .the terms of their leases from their wells proper, and provided further that the right~ herein conferred are optional and in no event shall the gas lessees be obligated to utilize, or pay the oil lessee, or pay royalty to the Tribe, if not utilized, for any such gas as is described; and if the gas lessee does not accept such gas and utilize the same after tender thereof by the oil Iessee, then such gas may be otherwise disposed of by the oil lessee upon the same basis of royalty as fixed in ease of utilization by the gas lessee. In case of combination wells where the gas lessee has no market for and does not utilize such gas for any purpose, the oil lessee shall be permitted to utilize and sell the same-to adjoining lessees for operating purposes until such time only as the gas lessee-is in a position to and does utilize such gas. Water shall not be introduced into any well where such introduction will operate to kill or restrict the open flow of gas therein. The term "cost price of a well," as applied where one lessee takes over a well drilled by another, shall include all reasonable, usual, necessary and proper expenditures including the following expenditures made by the lessee drilling the well. (a) All location, right of way, or other surface damages occasioned by the drilling of such well. (b) All expenses of laying, taking up, repairing, operating and maintaining gas and .water lines where such lines including amount paid for water privilege or constructing dam, are used for the exclusive purpose of drilling the particular well. (c) Customary charge for furnishing water where purchased shall be the price prevailing in the particular locality: Provided, Where the parties cann6t agree upon the charge made under this subdivision, such charge shall be determined by the Superintendent. (d) Amounts expended in spudding or drilling a water well: Provided, That where any or all of the facilities referred to in subdivisions "b", "c" and '" d", are not employed exclusively in eonnection with the drilling of the well to be taken over, or are also used¯in connection with the drilling or operation of other wells by the lessee drilling the well to be taken over by the other lessee, then d fair proportion of the charges covered by the said subdivisions of this paragraph shall be assessed against, each well, including the well to be taken over, and in the event of a disagreement between the parties as to the charges assessed against the well that is to be taken over, such charge shall be fixed by the Superintendent. (e) All expenses of hauling and erecting standard rig, with an additional charge for use of said rig which shall be twenty cents

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 3 of 10

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per,oot e,,s oot e c diog 2,200 m andshall be at a k ~ for rigs for wells exceeding a depth of 2,200 feet price
agreed.upon, or on failure to agree, to be determined by the Super- ~ . - '~ l' intendent. (f) All amounts paid for drilling., and reaming, except where reaunng ~s done for the sole benefit of party dnlhng the well. If : :~ price charged for drilling is above the average drilling price in the ,~ field, the price to be paid shall be determined by the Superintendent: ~ I Provided, That where the well to be taken over is drilled below the stratum in which the lessee taking over the well is interested, that is, ! - ~ the gas stratum in the case of a well taken over by a gas lessee, and ~~ the oil stratum in a well taken over by the oil lessee, then the lessee . |: I doing suck further drilling shah sustain the cost of drilling and reaming where such drilling and reaming is done below such stratum. . ,.~ (g) All expenses of mudding, except where mudding is done for ~_ the sole benefit of the lessee drilling the well. . , -~"-~--] (h) Settlement for casing or other pipe left in th~ well to be :~____J ¯made .at the prevailing.market price for the character and kind of . ~ casing when placed in the well. " ,~_ (i) All expenses of placing and removing all casing or other . pipe used in .drilling said well. ". ~_____] (j) " A sum of not exceeding $100 to cover supervision and over~-head expenses ~. (k) Any additional charges which cannot be mutually agreed ¯ upon shall be submitted to and determined by the Superintendent. = An approximate list of expenses hereinbefore mentioned shall be . presented to proposed purchasing lessee within ten days after .the completion of the well. . 65. Lessee shall separate the oil from the gas when both are produced in commercial quantities from the same formation, or under such conditions as might result in waste of oil or gas in corn: mercia| quantities. 66. Lessee shall not use natural gas from a dist{nct or separate stratum for the purpose of flowing or lifting the oil. 67. Lessee shall prevent oil or gas, or both, from. escaping from .:.:=:~.:.:-?::'~ " ¯ any well into the open. air, and not permit any oil or gas well to go ¯ wild or to burn-wastefully. " , .~ [E | 68. Lessee shall not use natural gas in place of steam to operate ~~ engines or pumps under direct pressure,, except~ with thespecial "~- " permission of the inspector. . , 69.. Lessee shall, not use "natural gas in flambeau lights, save as ¯ [~ ~] .. - ~r.~ authorized or approved by the inspector. 70. Lessee shall use every possible precaution, in accordance. ..=.~ with the most approved methods, t6 stop'and prevent the waste of. : oil and gas, or both, in all drilling and producing operations and .. ,[~ from connecting lines, andhe shall ffot wastefully utilize ,oil orgas. ¯ :~ 71. Lessee shall notify the superintendent a reasonable t'wne in :: ~ 1~ advance of starting work of intenti6n to redrill, deepen, plug, or abandon awell; and. whenever the superintendent or inspector has i| given notice that extra precautions are necessary in the plugging of wells in a particular territory lessee shall give at least three days' .]~ advance. notice of such intended plugging: "~ 72. Lessee shall not abando~ any welt for the purpose of drilling ~ .~ ~~ deeper for oil or gas unless the producing .stratum is properly pro-. ¯ -~ ¯ ' ~ . _ .~

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 4 of 10

28 per foot for wells not exceeding 2,200 feet in depth and the charge for rigs for wells exceeding a depth of 2,200 feet shall be at a price . agreed .upon, or on failure to agree, to be determined by the Superintendent. (f) All amounts paid for drilling: and reaming, except where reaming is done for the sole benefit of party drilling the well. If .... price charged for drilling is above the average drilling price in the field, the price to be paid shall be determined by the Superintendent:. Provided, That where the well to be taken over is drilled below the stratum in which the lessee taking over the well isinterested, that is,' " :: the gas stratum in the ca~ of a well taken over by a gas lessee, and the oil stratum in a well taken over by the oil lessee, then the lessee doing such further drilling shall sustain the cost of drilling 'and reaming and reaming is done below such stratum. ¯ _~__where such mudding, except where mudding is done for ¯. ~ drilling (g) All expenses of the sole benefit of the lessee drilling the well. . ' "1--~ (h) Settlement for casing or other pipe left in thet well to be " " ¯made at the prevailing market price for the character and kind of . ~ casing when placed in the well. . i :~i~ (i) All expenses of placing and removing-all casing or other' ~:~" pipe used in drilling said well. "~ (j) " A sum of not exceeding $100 to cover supervision and over= ~" head expenses -~ F. (k) Any additional charges which cannot be mutually agreed i [ upon shall be submitted to and determined by the Superintendent. ¯ ~,..,.~ An approximate list of expenses hereinbefore mentioned shall be .~presented to proposed purchasing lessee within ten days after .the " completion of the well. :" ¯ " " 'Ji~ ~65. Lessee shall separate the oil from the gas when both are . produced in commercial quantities from the same formation, or W~under such conditions as might result in waste of oil or gas in com:. " :.'~_ mercial quantities, i ~""-l 66. Lessee shall not use naturalgas from a distinct or separate . [] | stratum for the purpose of flowing or lifting the oil. 67. Lessee shall prevent oil or gas, or both, from. escaping from -~ any well into the open.¯ air, and not permit any oil or gas well to go ' []=-----] wild or to burn ~vastefully. . . . 68. Lessee shall not use natural gas in place of steam to operate .'~.:~" . engines or pumps under direct pressure,, except with the special .~ ~ permission of the inspector. . 69.. Lessee shall, not use "natural gas in flambeau lights, save as. " ~_ J authorized or approved by the inspector. 70. Lessee shall use every possible precaution, in accordance.. " with the most apthroved methods, t6 stop'and ¯prevent the waste of. - !~'~'-I oil and gas, or both, in all drilling and producing operations and ", Mi from connecting lines, andhe shall n'ot wastefully utilize ,oil orgas... :~~ 71. Lessee shall notify the superintendent a reasonable ti.me in = ~:~ ' advance of starting work of intentibn to redrill, deepen, plug, or abandon a well; and whenever the superintendent or inspector has [i ~i given notice that extra precautions are necessary in the plugging of wells in a particular territory lessee shall give at least tb2ee days' .~ ¯advance¯notice of such intended plugging: ."¢ ' " 72: Lessee shall not abandon any well for the purpose of drilling ~~ . deeper for oil or gas unless the producing stratum is prop~ly pro~

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 5 of 10

tected, and shall not abandon any well producing oil or gas except with the approval of the superintendent or where it can be demonstruted that the further operation of ~ch well is commercially unprofitable. 73. Lessee shall plug and fill all dry or abandoned wells on the leased lands in the manner required, and where any such well penetrates an oil or gas bearing formation it shall be thoroughly cleaned to the bottom of the hole before being plugged or filled, and shall then be filled with mud-laden fluid of a consistency approved by the inspector, from the bottom to the top thereof, before any casing is removed from the well, or, in lieu of the use of such mud fluid, each oil and gas bearing formation shall be adequately protected by cement or approved plugs or by both such plugs and cement, and the well filled in above and below such cement or plugs with material approved by the inspector. Where both fresh water and salt water are encountered in any dry or abandoned well which is not being filled with mud-laden fluid as hereinbefore provided, the fresh water shall be efficiently protected against contamination by Cement or approved plugs, or by both such cement and plugs, to be placed at such points in the well as the inspector shall approve for the protection of the fresh water. ~4. - If such abandoned or dry well be in a coal bed or other mineral vein deposit, or be in such condition as to warrant taking extraordinary precautions, the inspector may require such variations in the above prescribed methods of plugging and filling as may be necessary, in his judgment to protect such seam or deposit against infiltration of gas or water and to protect all other strata encountered in the well. 95. The manner in which such mud-laden fluid, cement, or plugs shall be introduced into any well being plugged and the tjrpe of plugs so used shall be subject-to the approval of the inspector. In the event the lessee or operator shall fail to plug properly any. dry or abandoned well in accordance with these regulations the superintendent may, after five days' notice to the parties in interest plug such well at the expense of the lessee or his surety. 76. All B-S and salt water from tanks or wells shall be drawn off into proper receptacles to hold and retain same without permitting it to run over the surface of the land or into the creeks and ravines and where earthen tanks or sump-holes are used, they shall not be located in any draw or ravine, but must be located in places and be so constructed that water from.¯ rains will not flow into them and w~h out the B-S or destroy the dams, and in cases Where the B-S is not run through some'treating process,-same shall when in sufficient quantities be burned at least once every week¯ and at more frequent :intervals when possible. Where it is impossible to burn the B-S~ or where it is necessary to-pump salt water in such quantities as would damgge the surface of the leased land Or adjoining property, or pollute any fresh water, the lessee shall notify the "Superintendent, who shall give instructions in'each instance as to the disposition of such B-S or salt water. Such instructions shall :be issued in writing-and a copy thereof shall be immediately-delivered to the oil or gas lessee. 77. Lessee Shall make a full and complete report to the super-

w

Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 6 of 10
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29 tected, and shall not abandon any well producing oil or gas except with the approval of the superintendent or where it can be demonstrated that the further operation of such well is commercially unprofitable. 73. Lessee shall plug and fill all dry or abandoned wells on the leased lands in the manner required, and where any such well penetrates an oil or gas bearing formation it shall be thoroughly cleaned to the bottom of the hole before being plugged or filled, and shall then be filled with mud-laden fluid of a consistency approved by the inspector, from the bottom to the top thereof, before any casing is removed from the well, or, in lieu of the use of such mud fluid, each oil and gas bearing formation shall be adequately protected by cement or approved plugs or by both such plugs and cement, and the well filled in above and below such cement or plugs with material ¯ approved by the inspector. Where both fresh water and salt water are encountered in any dry or abandoned well which is not being filled with mud-laden fluid as hereinbefore provided, the fresh water shall be efficiently protected against contamination by dement or approved plugs, or by both such cement and plugs, to be placed at such points in the well as the inspector shall approve .for the protection of the fresh water. 74. If such abandoned or dry well be in a coal bed or other mineral vein deposit, or be in such condition as to warrant taking extra: ordinary precautions, the inspector may require such variations in the above prescribed methods of plugging and filling as may be necessary in his judgment to protect such seam or deposit against infiltration of gas or water and to protect all other strata encountered in the well. 75. The manner in which such mud-laden fluid, cement, or plugs shall be introduced into any well being plugged and the type of plugs so used shall be subject to the approval of the inspector. In the event the lessee or operator shall fail to plug properly any dry or abandoned well in accordance with these regulations the superintendent may, after five days' notice to the parties in interest plug such well at the expense of the lessee Or his surety. 76. All B-S and salt water from tanks or wells shall be drawn off into proper.receptacles to hold and retain same without permitting it to run over the surface of the land or into the creeks and ravines and where earthen tanks or sump-holes are used, they shall not be locate~, in any draw or ravine, but must be located in places andbe so constructed that water from~ rains will not flow into them and wash out the B-S or destroy the dams, and in cases Where the B-S is not run through some'treating process, same shall when in sufficient quantities be burned at least once every week and at more frequent intervals when possible. Where it is impossible to burn the B-S~ or where it is necessary to-pump salt water in such quantities as would damage the surface of the leased land ~)r adjoining property, or pollute any fresh water, the lessee shall notify the Superintendent, who shall give instructions in"each instance as to the disposition of such B-S or salt water. Such instructions shall :be issued in writing-and a copy thereof shall be immediately-delivered to the oil or gas lessee. 77. Lessee Shall make a full and complete report to the super-

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 7 of 10

3O intendent of all accidents or fires occurring on the leased premises. 78. Lessee shall provide approved tankage of suitable shape. for accurate measurement, into which all production of crude oil shall be run from the wells, and shall furnish the superintendent copies of accurate tank tables and all run tickets, as and when requested. 79. The superintendent may make arrangements with the purchasers of oil for the payment of the royalty, but such arrangements, if made, shall not relieve the lessee from responsibility for : the payment of the royalty, should such purchaser fail, neglect, refuse to pay the royalty when it becomes due; Provided, no oil shall be run to any purchaser or delivered to the pipe line or other carrier for shipment, or otherwise conveyed or removed the leased premises, until a division order is executed, filed, approved by the superintendent, showing that the lessee has regularly approved lease in effect, and the conditions under whic]~[the oil may be run. Lessees shall be required to pay for all oil gas used off the leased premises for operating purposes; shall be made as to the production used for such purposes and paid in the usual manner. The lessee or his representative shall be present when oil is taken from the leased premises under any division ; order and will be responsible for the correct measurement thereof" and shall report all oil so run. The lessee shall also authorize the pipe-linecompany or the purchaser of oil to furnish the superintendent with a monthly statement, not later than the tenth day of the following calendar month, of the gross barrels run as common-carrier shipment or purchased from his lease or leases. 80. Lessee will not be permitted to use any timber from any Osage lands except under written agreement with the owner, and in all cases where lands are restricted such agreement shall be subject to the approval of the superintendent or inspector. Lessee shall, when requested by the superintendent, furnish a statement under oath as to whether the rig timbers were purchased on the leased tract, and if so, state the name of the person from whom purchased, and give such other information regarding the procurement of timber as the superintendent may desire 81. ¯ When an oil lessee in drilling a well encounters gas in excess of one million cubic feet per 24 hours, or the gas lessee in drilling a well encounters oil, he shall immediately suspend drilling, and notify the oil or gas lessee, as the case may be, and the Superintendent, in order that such lessee and the inspector may be present while the sand is being drilled through, such further drilling, however, shall not be resumed, until authorized by the inspector, except as otherwise permitted .in advance in writing by the inspector. 82. The use of and damages to surface of lands shall he settled as provided in the lease. 83. Failure to comply with any provision of the lease or of these regulations shall subject the lease to cancellation by the Secretary of the Interior or the lessee to a fine of notrnore than $500 per day for each and every day the terms of the lease or of the regulations are violated, or the orders of the Superintendent pertaining thereto are not complied with, or to both such fine and cancellation, in the discretion of the Secretary of the Interior: Provided, That the

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 8 of 10

30 intendent of all accidents or fires occurring on the leased premises. 78. Lessee shall provide approved tar~kage of suitable shape- :. for accurate measurement, into which all production of crude oil .. shall be run from the wells, and shall furnish the superintendent copies of accurate tank tables and all run tickets, as and when requested. : 79. The superintendent may make arrangements with the pur- {iil ::i chasers of oil for the payment of the royalty, but such arrangements, if made, shall not relieve the lessee from responsibility for -L!:;!i;: the payment of the royalty, should such purchaser fail, neglect, refuse to pay the royalty when it becomes due; Provided, no oil shall be run to any purchaser or delivered to the pipe line or other carrier for shipment, or otherwise conveyed or removed from the leased premises, until a division order is executed, filed, approved by the superintendent, showing that the lessee has regularly approved lease in effect, and the conditions under which the oil may be run. Lessees shall be required to pay for all oil gas used off the leased premises for operating purposes; shall be made as to the production used for such purposes and paid in the usual manner. The lessee or his representative shall be~i present when oil is taken from the leased premises under any division order and will be responsible for the correct measurement thereof' and shall report all oil so run. The lessee shall also authorize the pipe-line company or the purchaser of oil to furnish the superintendent with a monthly statement, not later, than the tenth day of the following calendar : ...., month, of the gross barrels run as common-carrier shipment or purchased from his lease or leases. 80. Lessee will not be permitted to use any timber from any Osage lands except under written agreement with the owner, and in all cases where lands are restricted such agreement shall be subject . ~: to the approval of the superintendent or inspector. Lessee shall, when requested by the superintendent, furnish a statement under oath as to whether the rig timbers were purchased on the leased ¯ ~., tract, and if so, state the name of the person from whom purchased, and give such other information regarding the procurement of timber as the superintendent may desire 81. When an oil lessee in drilling a well encounters gas in excess ¯ :~ of one million cubic feet per 24 hours, or the gas lessee in drilling a well encounters oil, he shall immediately suspend drilling, and notify the oil or gas lessee, as the case may be, and the Superintendent, in order that such lessee and the inspector may be present while the sand is being drilled through, such further drilling, however, shall not be resumed, until authorized by the inspector, except as otherwise permitted .in advance in writing by the inspector. 82. The use of and damages to surface of lands shall be settled as provided in the lease. 83. Failure to comply" with any provision of the lease or of these regulations shall subject the lease to cancellation by the Secretary of the Interior or the lessee to a fine of not more than $500 per day for each and every day the terms of the lease or of the regulations are violated, or the ordem of the Superintendent pertai~fing thereto are not complied with, or to both such fine and cancellation, in the discretion of the Secretary of the Interior: Provided, That the

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Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 9 of 10

31 lessee shall be entitled to notice and hearing with respect to the terms of the lease or of the regulations violated, which hearing shall be held by the Superintendent, whose finding shall be conclusive unless an appeal be taken to the Secretary of the Interior within 30 days after notice of the Superintendent's decision, and the decision of the Secretary of the Ii~terior upon appeal shall be conclusive: Provided further, That fines will be imposed by the Superintendent right of appeal for violation of certain paragraphs of the as followS: Fines for Non-Compliance with Terms of Lease or Regulations. A--For failure to file preliminary report required by paragraph ;5.00 a day for first violation and $10.00 a day for each violation failure to file completion report, as required by paragraph $5.00 a day for first violation, and $10.00 a day for each violation )e..: :,. ,11 ;
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C--For failure to mark rigs or wells, as required by paragraph 57, $50 for each well. D--For failure to construct slush pits, as required by paragraph 60, $10.00 for each day after drilling is commenced on any we'd. E--For failure to comply with paragraph 63, regarding gate valve and other approved controlling device, $100.00. F--F0r failure to comply with paragraph 68, in regard to using gas in place of steam to operate engines or pumps, $10.00 per day for first violation and $20.00 a day for each violation'thereafter. G---For failure to comply with paragraph 69 which prohibits the burning of gas in flambeau lights, $50 per day. H--For failure to notif:~ superintendent and secure authority before redrilling, deepening, plugging or abandoning any well, $200, as required by Paragraphs 71 and 81. I--For failure to construct sump-holes, or burning holes, to properly care for and dispose of B-S and salt water as provided in paragraph 76, $10.00 a day for the first violation, and in event of failure to properly construct or repair sump holes, or burning holes, within five days after notification by Superi~, tendent or his authorized representative, $25 to $50 a day. J For failure to file reports and remit royalties required by Paragraph 27~, $5.00 a day for first violation and $10.00 a day for each violation thereafter. All moneys received from fines under Section 83, ¯shall be expended when authorized as provided in Section 85. 84. These regulations shall become effective and in full force from and after the date of approval, and shall be subject to change or alteration at any time by the Secretary of the Interior: Provided, That no regulations made after the approval of any lease shall operate to affect the term of lease, rate of royalty, rental, or acreage, unless agreed to by both part:.q~ to the lease. 85. Applications, leases, anct ¯other papers must be upon forms ~Pvirescribedprospective lessees with such forms the superintendent 11 furnish by the Secretary of the Interior, and for preparation of

Case 1:99-cv-00550-ECH

Document 309-21

Filed 06/30/2008

Page 10 of 10

_. - ._ -


32 to properly construct or repair sump holes, or burning holes, within five days after notification by Superintendent or his authorized representative,-$25 to $50 a day. J~For failure to file reports and remit royalties required by Paragraph 27, $5.00 a day for first violation and $10.00 a day for each violation thereafter. All mo--neys received from fines under Section 83, shali be expended when authorized as provided in Section 85. 84. These regulations shah become effective and in full force from and after the date of approval, and shall be subject to change or alteration at any time by the Secretary of the Interior: Provided, That no regulations made after the approval of any lease shall operate to affect the term of ]ease, rate of royalty, rental, or acreage, unless agreed to by both parties to the lease. 85. Applications, leases, and other papers must be upon forms prescribed by the Secretary of the Interior, and the superintendent will furnish prospective lessees with such forms for preparation of original leases without charge, but shall make a charge of 50 cents per set for forms used in preparing assignments. Form A Application for oil or gas lease, including financial showing. Form B--Oil lease. Form I)--Bond. Form G~Collecfive bond. Form H~Assignment bond. Form E---Authority of officers to execute papers. Form F-L-Assignment. All sums received from sale of forms and fines shall be placed in a special fun:l, to be expended under the direction of the Commissioner of Indian Affairs for the expenses necessary to carry out these regulations. '86. A fee of $5.00 will be charged for each lease, each sublease, each drilling contract affecting oil and gas mining leases, and each assignment of lease, such amount to be paid by the lessee, subless~ or assignee upon notice of approval of the contract, as provided ]~y the Act of February 14, 1920 (41 Stat. L., 408,415). Department of the I~erior Office of Indian Af~rs, July 9, 1932: tSr The foregoing regulations and forms are respectfully submitted to the Secretary of the Interior with the recommendation that they" be approve~l. (Signed) B. S. CaARBER, Acting Commission of Indian Affairs. APPROVED: July 12, 1932. (Signed) JOS. M. DIXON, First Assistant Secretary.-

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