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

Case 1:99-cv-00550-ECH

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REGULATIONS TO GOVERN TIlE LEASING¯ OF LANDS IN THE OSAGE RESERVATION, OKLA., FOR OIL AND GAS MINING PURPOSES... Approved, March 7, 1923
Section 3 of the Act of Congress approved June 28, t906 (34Stat. L., 539-543), pro~_vides : That the oil, gas,~ or other minerals covered by the lands for the selection anddivision ofwhich provision is herein made are hereby reserved to the Osage.Tribe for a period of twenty-five years from and -after the eighth day of April, nineteen htmdred and six; and leases for alI oil, gas, and other- minerals, covered by selection and division of land herein provided for, may be made by the Osage Trib~ of Indians through its tribal .council, and with the approval of the Secretary of the Interior, and under such rules and regulations as he may prescribe; Provided, That the royalties to be paid to the Osage Tribe under any-mineral teasd so made shall be determined by the President of the-United States; And provided further, That no mining of or prospecting for any of said mineral or minerals shall be permitted on the homestead selections herein provided for Without the written consent of the Secretary of the Interior: Provided, however, That nothing hereiR contained shall be construed as affecting any valid existing lease or contract. Sections 1 and 2 of the act approved March 3', 1921 (41 Stat. L:, 1249), provide :
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That all~ that partof the .Act of June 28, 1906 (Thirty-fourth Statutes at Large, pag~ 539), entitled "'An Act; for the divisiorL of the lands and funds of the Osage Indians in Oklahoma, and for other purposes," which reserves to the Osage Tx:ibe the oil, gas, coal, On otheff minerals covered by ,the lands for the selection and division of which.provision is made in that Act is hereby amended so. that the oil, gas, coal, or Other, minerals covered by. said lands are reserved to the Osage Tribe for the period ending April, 7, 1946: Provided, That all valid existing oil and 'ga~ leases on the 7th da35 of"April, I931, are hereby renewed upon the same terms and extended, subject to. all other ~conditions .and provisions thereof, until the 8th das/ of April, 1946, and as long thereafter as oil or~ gas is found ir~ paying quantities, and the Secretary of the Interior and the Osage Council are hereby authorized and directed to offer for louise for oil and gas purposes all of the remain/ing " portion of the unleased Osage¯ land prior to April 8, 1931, offering the same annually at the rate of not less than one-tenth of the unle~sed area. ~-i | Sec. 2. That the bona fide owner or lessee of the surface of the land shall be compensated,. under rules and regulations prescribed, by the Secretary .~____1 =~" of the Interior in connection with oil and gas mining operations, tor any 1~ damage that shall accrue after the passage of this Act as a result of the use i~1 of such land for oil and gas mining purposes or outofdanrages td the land or crops thereon occasioned thereby, but nothing herein contained shall be [ construed to deny to the surface owner or lesse~ the right to appeal to the ,~ ~. courts without¯ the consent of the. Secretary of the Interior, irt the event he ¯ " is dissatisfied with the. amount of damages awarded him.. . |,ii-;~. , "20 carry these provisions of law intoeffect; the follov¢" ihe settle~. _!l:i~i:~":and regulations ~re prescribed td govern the leasing oftace owner is. ..... ~. .... " ..... " ~e and payable

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Case 1:99-cv-00550-ECH

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DEFINITIONS. tions shall have the meaning now desig-nated, viz: : SUPERINTENDENT: The Superintendent of the Osage Agency, Pawhuska, Okla., in` charge of the Osage Agency and Reservation, or any other person who may be in charge of such agency and reservation, and it shall be his duty to enforce compliance with these regulations. I~ISPECTOR: Any person al~pointed as inspector of oil and gas wells, or wha may be designated/by the Secretary of the Interior or the Cornmissioner of Indian Affairs to supervise oil or gas operations on Osage lands ¯under the direction of the superintendent. - OIL LESSEE : Any person, firm, or corporation to whom an oil mining lease is made under these regulations. GAS LESSEE- Any person, firm, or corporation to whom a gas lease is made under these regulations. " (Form B) ;

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OIL MINING LEASE OSAGE RESERVATION, OKLAHOMA. This lease, made and entered into in triplicate, on this ........day of , A. D., 19 ........ , by and between the Osage Tribe of Indians in Oklahoma by ......................................, Principal Chief, under authority of the Resolution of the Osage Tribal Council dated June 17, 1915, party o'f the first part, designated as lessor, and ............................. of .............................., party of tho second part, designated, as lessee, under and in pursuance of section 3, of the Act approved June 28, 1906. (34 Star. L., 539-543), and the Act approved March 3, 1921 (41 Stat. 1249). Witmesseth: 1. The lessor, in consideration of one dollar, the receipt whereof is acknowledged, and Of ~he royalties, covenants, stipulations, and conditions herein contained, and hereby agreed to be paid, observed, and performed by the lessee, does hereby demise, grant, lease, and let unto the lessee, for five years from the date of approval hereof, and as long thereafter as oil is found in paying quantities, all the oil ~leposits in or under lands described as follows: to-wit :~ Tr ........................................ See .................T ......................... N., R ................ E., of the Indian Meridian, and containing ................acres, more or less, with the exclusive right to extract, l~ipe, store, and remove oil. The Act of ¯Congress "That all that part of the Act of June 28, 1906 (34 Stat. L. 539), entitled . An Act for. the division of the lands and funds of the Osage rndians in Oklahoma, and for other purposes, which reserves to the Osage Tribe the oil, gas, coal, or other minerals covered by the lands for the selection and' division of which provision is made in that Act is hereby amended so that the oil, gas, coal, or other minerals covered by said lands are reserved to the Osage Tribe for the period ending April 7, 1946; Provided, That all valid existing oil and gas leases on the 7th day of April, 1931, are hereby renewed upon the same terms and extended, subiect to all other conditions and provisions thereof, until the 8th day of April, 1946, and as long thereafter as oil Or gas is founc~ in paying quantities." of the Osage Pndian or cause Pawhuska, Oklahoma, for the lessor as 2. Thelessee agrees to pay Agency, at to be paid to the Superintendent royalty, the sum of 16 2-3 per cent of the gross proceeds from sales after deducting the oil used for fuel in operating the lease, unless the Osage " ~uncil, with the approval of the Secretary of the Interior, shall elect '. royalty in oil; payment to be made at time of sale or r~moval ~cept where payments are made On division orders, and settlebased on the actual selling price, but at not less than the market price in the-Mid-Continent oil field on the day of '

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sale Or removal: Provided, That when the quantity of oil taken from all the producing wells on any quarter-section according to the public survey, or fractional part of a quarter-section if the land covered by this Iease does not include the full quarter-section, during any calender month, is sufficient to average one hundred or more barrels per well per day, the royalty on such oil shall be 20 per cent. Should the lessor, with the approval of the Secretary of the Interior; elect to take the royalty in oil, the lessee shall furnish free storage for the royalty oil for not exceeding 30 days. _. Any of the Executive Departments of the United States Government shall have the option to purchase at the highes~ posted market price on the day of sale all or any part of the oil produced under this lease. 3. Lessees shall drill at least one weI1 to the Mississippi lime, unless oil or gas is found in commercia~ quantities at a lesser depth, or~ the land embraced in this lease within twelve months fron~ date of approval of lease, b~less it shall in which event the Secretary or other well equipment cannot obtained, be demonstrated that casing of the Interior in his discretion may extend the time on payment of an annual rental of one dollar per acre for each. year's delay from date of apl~roval 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~~n until the consent of the Secretary of the Interior to drilling on such homestead shall have been given. Should the lessee elect to surrender this Iease before the end of any such yearly.period without drilling a well thereon, he shall pay the rental of one dollar per acre for the fractional part of a year the land is held and a weI1 is not drilled, and failure of the lessee to pay such rental within twenty-five days from the expiration of any yearly period during which such well is not drilled shall be cause for cancellation of this lease by the Secretary of the Interior, but such cancellation shall not re; lease the lessee and his sureties from the obligation to pay such rekital; Provided, further, That whenever the Secretary of the Interior shall consider the marketing facilities inadequate to take care of the production he may direct the suspensionof drilling operations on this lease.. 4. Lessee shall have the right to use so much of the surface of the land and such water on the premises as may b~ necessary for operations, including the right to lay and maintain pipe lines, telephone and teIegraph lines~ pull rods, and other appli~aces necessary for the operation of the wells; also the rightl of ingress and egress and the rights of way to any point of operations under condition of least injury and inconvenience to the owner and occupant of the surface. Before commencing operations the lessee shall pay,, to. thct surface owner the sum of :one~ hundred dollars for ,each well located On cultivated land or land suitable for cultivation and thirty-five dollars for each location on land not suscep¢ible to cultivation. Upon payment of such location-site money lessee shall be entitled to possession.- Location sites shall not exceed one and one-half .acres in area. Lessee shall also pay ten dollars for each site outside of the well location used: for oil tank of not exceeding 1,600 barrel~ capacity, allowing 50 feet square foi" each tanksite. The sum to be paid for an oil tanksite of larger capacity and occupying a~ greater are& shal~ be as agreed upon between the surface owner and the lessee, and on failure to agree the same shaI1 be fixed by arbitration. During operations the lessee shall pay all damages for the use of the surface, other than that included in the location and tanksites, all damages to any growing crops or any~ improvements on the 'lands and all other damages as may be occasioned by reason of operations. Such damages shall be apportioned among tho parties interested in the surface, whether as owner~ lessee, or otherwise, as the parties may mutually agree or as their interests may appear. If the parties are unable to agree concerning damages, the same shall be determined by arbitration, but nothing herein contained shall be construed to deny to the surface owner or lessee the right to appeal to the courts ycithout the consent of the Secretary of the Interior, in the event he is dissatisfied with the amount of damages awarded him. All agreements (or authenticated copies thereof) providing for the settlement of damages shall be filed in the Osage Agency, if the surface owner is. a restricted rndian, and all such amounts which may be due and payabIe ,

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to any such Indian shall be paid to the Superintendent and by him immediateIy remitted to the Indian entitled thereto. All sums due as royalty or damages shall be a lien on all equipment and unsold oil on leased premises.. 5. The lessee shall carry on operations in a workmanlike manner, commit no waste and suffer none to be committed upon the land, nor permit any nuisance to be maintained on the premises under his control, nor allow an~' intoxicating liquors.to be introduced, brought upon,: sold, or given away for~ any purposes on such premises: also keep¯ an accurate account of all operations, receipts, and disbursements, furnishing sworn ~e~orts of such when and as required by the regulations or by an authorized re_~resentative of the Secretary of the Interior. All buildings .and permanent improvements, including casings of all producing wells drilled three years or more prior to the expiration of the lease, shall remain a part of said land and¯become the property of the surface owner at expiration of the lease, excepting tools, tanks, boiler houses, pipelines, pumping and drilling outfits, derricks, engines, machinery, and the casings of all~ dry or nonpaying wells. The casings of,, wells dl'illed less than three years prior to and producing oil on the expiration of the lease remain the property of the oil lessee: Provided, That such casings shall not be removed from the wells but sh.all be purchased f¢om the lessee by the owner of, the oil rights at sucI~ price as ~may be mutuall~, agreed upon, and on failure to agree the price shall be fixed by arbitration. 6. The lessee accepts this lease with the understanding that the lands covered thereby may be leased to some other party who shall have the excIusive right to all gas except as herein provided. 7~ If the oil lessee shall drill a gas well he shall-, without removing from the well any of the casing or other equipment, immediately shut the well in and notify the gas lessee and the Superintendent. In the event the gas lessee does not within thirty days after receiving notice elect to take over such well and reimburse the oil lessee the cost of drilling the same, in, eluding all damages paid, in addition to .the cost in place of casing, tubing, and other equipment, the oil lessee shall immediately confine the gas to the original stratt~m, and the disposition of such well shall be subject to the approvaI of the Superintendent. 8. If the gas lessee shall drill an oil welt upon the lands described¯ herein, he shall immediately, without removing from the well any of the casing or other equipment~ notify the oil lessee and the Superintendent. In the event the oil lessee does not within thirty days after receipt of notice elect to take over such well he shall immediately so notify the gas lessee, and the disposition .of Such well shall be subject to the approval of the Superintendent. Should the oil lessee elect, to take over the well, he shall pay the gas lessee the cost of drilling the same, including all damages paid in addition to the cost in place of casing and. other equipment. " 9. If the oil lessee shall drill awelI which produces Both oil and gas in commercial quantities from the same sand he shall immediately notify the gas lessee and together they shall arrange for the separation and utilization of the oil and gas, and the cost pertaining to sa~ well: 10. Whenever oil and gas are found in separate sands, and the oil lessee desires to drill through the gas sand for the oil,.he may do so provided the method of protecting the gas sand shall be approved by the Inspector. 11. If at any time any "oil or gas well becomes unprofitable and the oil or gas lessee desires to deepen the same, such action as may be mutually agreed upon may be taken not in conflict with the regulations. Upon failure to agree the .disposition of such well shall be subject to the approval of the Superintendent. 12. All, casing-head gas shall belong to the oil lessee and when used for the manufacture of gasoline shall be metered and be subject to a royalty of 16 2-3 per cent based~ on. the market value of th~ gasoline contents, and all such gas not utilized by the oil lessee on his leased premises or for operating other adjoining leases- within the Osage Reservation, shall belong to the gas lessee, subiect to the prescribed royalty of 16 2-3 per cent. 13; T, he gas lessee shall'furnish the oil lessee, free of royalty, sufficient gas for drilling andoperating purposes at a rate to be agreed, upon, or on failure to agree the rateshall be fixed by arbitration: Provided, That the

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oil lessee shalr make necessary connections between the well and the meter whenever possible. 14. The oil lessee may at .any time, by paying to the Superintendent all amounts then due, including rentals in lieu of d.evelopment as provided in paragraph numbered three hereof, and the further sum of one dollar, surrender all or any quarter-section or fractional part of quarter section where the lease does not cover the full quarter-section, and have the lease can: celled as to the lands surrendered and be relieved-from all further obligations and liabilities thereunder as to the part surrendered: Provided, That if this lease has been recorded lessee shall execute a release and record the same in the proper 9ffiee. 15. All amounts due and Imyable under this lease shall be paid to the Superintendent in St. Louis or Kansas City exchange, except that where such exchange can not be procured, post office or express money orders wilt be accepted. 16. This lease is Subject to the regulations now or hereafter prescribed by the Secretary of the Interior, relative to such leases, all of which are made a part of this lease: Provided, That no regulations made after the approval of this lease shall' operate to affect the term of lease, rate'of royalty, rental or acreage, unless agreed tO by both parties. 17. Violation of any of the terms or conditions of this lease or of the regulations pertaining thereto, shall subject the lease to cancellation by the Secretary of the Interior, or the lessee to a fine of not exceeding five hundred dollars per day for each and every clay the terms of the lease or of the regulations are violated, or t.he orders of the Superintendent in reference thereto are not complied with, or to both suoh fine and cancellation in the discretion of the Secretary of the Interior: Provided, That the 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 Sup.erintendent whose findings shall be conclusive unless an appeal be taken to the Secretary of the l'nterio~ within 30 days a;fter noticeof the Superintendent's decision, and the decision of the Secretary of the Interior upon appeal shall be conelusive, 18. Before this lease shall be in force and effect the lessee shall furnish a bond with responsible surety to the satisfaction of the Seoretary of the Interior, conditioned for the verformance of this lease, which bond shall be deposited .and-"remain on file'in the Indian Office. 19. Assignment of this lease or any interest therein may be made with the approval of the Secretary of the Interior and not otherwise.. 20. Each and every clause and covenant of this indenture shall extend ¯ to the heirs, executors, adrriinistratot's, successors, and lawful assigns of the parties hereto. In.wltness whereof, the said parties have hereunto subscribed their names arid affixed their seals on the day and year first above mentioned. Two witnesses to execution by lessor: (SEAL) Principal Chief. Post Office, Pawhuska, Oklahoma. ...~ .................................................................. Attest. ................................................ Post Office, Pawhuska, Oklahoma. Secretary. Two witnesses to execution by lessee:

Post Office .................................... . ............ . ............................~ .............. (SEAL) Post O ffice...%._. ....................................... Attest ........................................... ~<.',':2'-:: ::" :': ;'2!: ... "i'.:~ :~:,:
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ACKNOWLEDGMENT OF PRINCIPAL CHIEF. STATE OF OKLAHOMA, COUNTY OF OSAGE, ss: Before me, a Notary Public, on this ...... May of .............................. 19 ........ , personally appeared ............................. , to me known to:be the .............................. Principal Chief of the Osage Tribe, and the identical person who executed the within and foregoing lease, and acknowledged to me that he executed the same as his voluntary act and deed. on behalf o~ the Osage Tribe and in accordance with the authority given him by the Osage Tribal Council.

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ACKNOWLEDGMENT OF INDIVIDUAL. STATE OF. ........................................... ~, COUNTY OF ...... : ........................... , ss: Before me, a Notary Public, in and for said County and State, on this ....... day of ............................. , 19 ........ , personally appeared ......................... ~ ...... , to me known to be the identical person ........................ who executed the within and foregoing lease, and acknowledged to me that_ ....... 2 ..................... executed the same as ....................... fre~ and voluntary act and deed for th~ uses and purposes therein set forth.

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My commission expires ........ . ........... ..............................

ACKNOWLEDGMENT OF coRPORATrON. STATE OF:. .......................................... , cOUNTY OF ....................................... ss: On t.his ........ day of .............................. .A.D., 19 ........before me, a ................... within and for the State and County aforesaid, personally appeared .................... and ................... , to me personally known, who being by me duly sworn, did ¯ each say that .................................................mthe president and.....~. ................. ¯ _ ...................is the .......................-~ ....................... secretary of ............................, a corporation, and that the seal affixed to th~ foregoing and annexed instrument is the corporate seat of said corporation, and that said instrument was signed anc~ sealed in; behalf o~ said .corporation by authority of its hoard of directors; and sai2 .......................and. ...........: .......... duly acknowledged that they each had in their said official capacities executed the foregoing instrument as the act and deed of the said company for the~ consideration and purposes therein mentioned and set forth. Witness my hand and official seal this ........day of ................................ , 19 ........

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My commission expires. ........................................ DEPARTMENT OF THE INTERIOR, UNITED STATES INDIAN SERVICE. Osage Agency, Pawhuska, Okla., ............ . ............................ The within lease is forwarded t0 the Commissioner of Indian Affairs with recommendation that it he ................................................. See my report of even date. Superintendent.

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OFFICE OF INDIAN AFFAIRS. Washington, D. C.,-- ......~ ............. , 19 ....... Respectfully submitted to the Secretary of the fnterior with recommendationthat it be .................................................. Commissioner. Washington, D. C., ...................., 19 ...... The within Ieas~e is .................................................................... Secretary of the Interior. DESCRIPTION OF BOND ' Surety " ¯ Agent .................................... Address Date ....................................................... Amount $ ................................. 1. Prospective lessees shall file an application for approval of lease (F~orm A), giving the information called for therein and e~cecute same before an officerqualified to take Oath. (FORM A) APPLrCATION FOR APPROVAL OF .......................... EASE, L Osage Reservation TO THE SECRETARY OF THE INTERIOR: designated as the applicant, hereby applies to have approved the accompanying lease embracing .................................. acres of Osage lands, and agrees that this application shall be considered a part' of the lease so described. Theapplicant solemnly swears that th~ lease, for which approval is requested, is taken in good faith and in the interest and for the exclusive benefit of the applicant, and not for speculation or transfer, or as agent for, or in the interest or for the benefit of, any other person, corporation or association; that no other person, corporation, or association has any interest, present or prospective, directly or indirectly, therein, and that there is no understanding or agreement, express or implied, by which th~ land leased or any interest in or under the lease by working or di'illing contract or otherwise, is to be used, sublet, assigned or transferred without the consent of the Secretary of the Interior first obtained, but that it is taken for the purpose of operation and development under the direction, supervision and control of the applicant, except as herein stated. rn addition to the leases in the name of the applicant for which approval is requested, the affiant solemnly swears that the applicant is not interested, either directly or indirectly, in .......................~_..mining leases of lands in the Osage Reservation, except with the f011owing-named persons, corporations) or associations, and that the aggregate of all those interests, together with the.leases held by the applicant alone is not more than ............. acres: Name of Person, Corporation or Association Post-Office Address With Whom Applicant is Interested

The applicant hereby states that his general business experience for the past five years has been as follows: The applicant's financial condition at this time is: ..................................... .. = It is further stated that the applicant's resources are as follows: and that he has available at least $ ........... : .........for the development of land .-

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Where the applicant is a corporation, ig hereby shows that at this time it has $ ....................... . ...... paid up eapitaI and $ ............... in its treasury available for oil and gas operations. 1. It is hereby agreed that on the issue, transfer or cancellation of stock of corporations, or changes in officers, prompt reports will be made thereof as required by the regulations. The books and accounts of the applicant, covering the business to be carried on under-this lease, if approved, will be kept at .......... ..................... in the custody of ...................... ~ ......................... REFERENCES: 2.
................................................................. P. O ..................................................

.............................................................. P. O .................................." ................ Executed, this ................ day of ....................... , 19 ....... , at ......... : ............................ Before me, a notary public in and for the County of .......................................... State of ............................................. _.., personally appeared ................................... ~ho, being first duly sworm a~cording to law, depose and say that the foregoing application was signed by proper authority and in good faith for the purpose therein stated, and that the statements made therein are true as ............... verily believe. Notary Public. My commission expires .............................................. 1. Corporations shall furnish with their first application the additional financial showing required by the regulations. 2. Bank references are preferred. 2. Oil lessees shall furnish with each oil lease, to be filed at the time the lease is presented, a bond upon Form D, with two or more sureties, or with a surety company duly authorized to execute bonds. Such. bonds shall be in the sum of $1,000 for each quartersection or fractional quarter-section unit covered by the lease:. Provided, however, That the lessee shall be allowed to ~ile one bond, Form G, covering alI leases to which he or they are or may become parties instead of a separate bond in each case, such bond to be in thepenal sum of $15,000. Gas lessees are required to furnish with each gas lease a bond o£ the same character in the sum of $5,000 when the gas lease covers 25,000 acres or less, and such additional amount for larger areas as may be required by the Secretary of the Interior. ft~h~ right is specifically reserved to increase the amount of any such bond above the sum named, ir~ any particular case where the Secretary of the Interior deems it proper to do so. .~ (FORM D) (To accompany Mining leases of Osage lands.) BOND. KNOW ALL MF_.N BY THESE PRESENTS: That .................... oL ................. o ................... , as principal ..........., and ........................................................:.- ....... f ................... , ......z ...................... as surety .............. , are held and firmly bound unto thg United States¯ of America in the sum of ............. ~ .................. Dollars, lawful money of the United States, for the payment of which, well and truly to be made, we bind ourselves, and each of-us, our heirs, success.ors, executors, administrators or assigns, jointly and severally, firmly by these presents. Sealed with our seals, and dated.this .......day of ......... .,_.., 19 ........ The condition¯ of this obligation is such that whereas the above bounden ............................. as principal ...... :., entered into ........ certain indenture of lease, dated ................. :.....; ........ with .the Osage Tribe of Indians for the lease of a

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traCt of land described as follows: and located in Osage County, Oklahoma, for ................ purposes for the period oL ....... years from the date of approval hereof, and as long thereafter as oil is found in paying quantities, provided that the term of this lease shall not extend beyond the date the title to the minerals remains in the Osage Tribe
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shall faithfully carry out and observe all the obligations assumed in said indenture of lease by ................................................................................................. and shall observe all the laws of the United States, and reguIations made, or which shall be made thereunder, for the government of trade and intercourse with Indian tribes, and all the rules and regulations that have been, or may be, lawfully prescribed by the Secretary of the Interior relative to leases executed by the Osage Tribe in Oklahoma, then this obligation shall be null and void; otherwise to remain in full force and effect. "Signed and sealed in the presence of WITNESSES: 1
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I. Two witnesses to all signatures. DEPARTMENT OF THE INTERIOR. Washington, D. C., ......... - ................... , 19 ........ Assistant Secretary. Form G OSAGE MININ~ LEASES BOND

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KNOW ALL MEN BY THESE PRESENTS, That .............................
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as principal ........, and .....................~ ................................................ . ¯ ¯ - ..................... of ................ : ........................................... : .......................... , as surer_ .................... are held and~ firmly bound unto the United States of America in the sum of fifteen thousand ($15,000) dollars, lawful money of the United¯ States, for the payment of which, well and truly to be made, we bind ourselves and each of us, our heirs, successors, executors, administrators, or assigns, jointly and several/y, firmly by these presents. Sealed wit.h out seals, and dated this .................... day of ..............". ........ 19 ........ The condition of this obligation is such that whereas the "above bounden ................................... ~ .............,~..= ..............................: ................................... .................................................... as principal ......ha- ...... heretofore or may hereafter enter into oil mining leases with the Osage Tribe in Oklahoma, of various date~ and periods off duration, covering the lands described in such leases, which leases have been or may herea.fter be approved by the Secretary of the Interior, and the identification of which herein is expressly waived by both principal and suret .............hereto. ' ~-Now, if the above-bounden ............. ~ ..........:..-~ ..........................................~ ....... shall faithfully carry out and observe all the obligations assumed in said indenture of lease to which ...................... : ...... is now or may hereafter become a party, and shall observe all the law~ of the United States and regulations made or which shall be made thereunder for the government of trade and

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intercourse with Indian Tribes, and all regulations that have been or shall hereafter be lawfully prescribed by the Secretary of. the Interior relative to oil and gas mining leases exeuted by the Osage Tribe of rndians and the development thereof, and shall in all particulars comply with the provision of said leases and such regulations, then this obligation shall be null and void ; otherwise to remain in full forc~ and effect. Signed and sealed in the presence of~ WITNESS: I
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APPROVED.

DEPARTMENT OF'THE INTERIOR, Washington, D. C., ................. 19 ...... Assistant Secretary of the Interior.

Form F OSAGE MINING LEASES (Must be executed in triplicate) ASSIGNMENT OF .............................................. LEASE WHEREAS, The Secretary of the Interior has heretofore approved. ....... mining lease, dated ............. ................. , 19..../..., entered intoby and between Osage tribe of Indians, lessor, covering the following described land in the Osage Reservation, State of Oklahoma:
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Now, therefore, for and in consideration of ($ .................... ) dollars, the receipt of which is hereby acknowledged~ the said ......... L .........................

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.................. : .................................... . ................................ the lessee in the above described lease~ hereby bargains, sells, transfers, assigns and conveys ........ ...................................... right, title and interest of the lessee in and to said lease, subject to the apl~roval of the Secretary of the Interior, to .......................

In Witness whereof the said lessee has hereunto set ............. _.hand and seal this ................................. day of. ..................................... , 19.:._..;..

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ACKNOWLEDGMENT OF INDIVIDUAL. STATE OF. ................... .2 ................... , COUNTY OF ......... ; ......................... , ss. Be it remembered that on this day came before me, the undersigned ........ ..................................................... within and for the State and County aforesaid, duly commissioned and acting as such ........................ ................ ....... , to me personally well known, and stated that ...................... - ............... executed the foregoing and annexed instrument for the consideration and purposes therein mentioned and set forth; and I do hereby so certify. Witness my hand and seal on this ........................ day of. .................... , 19 ......
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My commission expires ...................................

ACKNOWLEDGMENT OF CORPORATION. STATE OF ................................... , COUNTY OK .................................. , ss. On this ............ . ...............day of ........................... , A. D., ...... , before me, a,. ..................~ .........................within and for the State and County aforesaid, personally appeared ................................................................ and. ................ .............................................................. to me personally known who, being by me duly sworn, did each say that ............................ : .............................. is the .................................... president and .......................... is the secretary of ...... a corporation, and that the seal affixed t~ the foregoing and annexed instrument is the corporate seal of said corporation, and th.at said instrument was signec~ and sealed in behalf of said corporation by authority of its board of directors; and said ............-_....._.2 ........................................................... and ............................................... duly acknowledged that they each had in.their said official capacities executed the foregoing instrument as the act and deed of the said company for the consideration and purposes therein mentioned and set forth. I do hereby so certify. Witness my hand and seal on this ..................... day oL ........................ , 19 ....... My commission expires..2 ....................................................... ACCEPTANCE BY ASSIGNEE. The assignee in the above and foregoing assignment, made subject to the approval of the Secretary of the Interior, hereby accepts such assignment and agrees to fulfill all the obligations, conditions, and stipulations in said described indenture of lease, when assigned, and the rules and reguIatons o~ the' Secretary of the Interior, so far as applicable thereto~ and to furnish

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f ....

proper bond guaranteeing a faithful compliance With said lease and this agreement. In Witness whereof, the said assignee has hereunto set .................... hand and seal this ................................... day of. ................................. , 19 ........
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CONSENT OF SURETY. The ...................................... __ ............., of ......................................................... surety for ............................................. ..........~- ........ : .........................on the bond accompanying the lease above described, hereby consents to the assignment and transfer of said lea.se as above made ............................................................
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Dated at .....................................~ .......this .............. :.day of. ................... , 19 ...... "
............................................................. 2 ..................

approved : .............. ....

Washingt.on, D. C., ...................... : ......., 19 ........

"NOTE :~If bond accompanying the original lease is to remain in full force and effect, it must be specifically so stated in the consent of the surety company. 3. The following form to be used in preparation¯ of bond covering.lease acquired through assignment where assignee does not have a coIlective bond, or surety does not execute consent for original. bond to remain in force and effect: Form H BOND (To Accompany Assignment of Mining Lea~es of Osage Lands.) Know all men by these presents, That ................................................................... of ................................................................................................... as principal, and
.................................................... ~..2 .......... of ........................................ , as surer. ......

are held and firmly bound unto the United States of America in the sum of .................................................................................. =t....dollars, lawful money of the United States, for the payment of which, xC[~ll and truly to be made, we bind ourseives and each of us, our heirs, successors, executors, or administrators, jointly aoA severally, firmly by these presents? Sealed with our seals and dated this ................. day of ........................... 19 ........ The condition of this obligation is such that whereas .................................... .................................. as lessee, entered into a certain indenture of lease, dated ............................................................................... , with .................... the....: ............... Osage Tribe of Indians ............................ , lessor, for the lease of a tract of land described as follows:

for oil mining purposes for the period of ........................ years from the date of approval hereofl and as long thereafter as oil is found in paying" quantities, provi~ied that the term of the lease shall not extend beyond the date the title to the minerals remains in the Osage Tribe. Whereas, thereafter the said ........................ : ............................ ........................ right, title, and interest in and to the above-described lease to the abovebounden ......................... : .................................................................................. :.k...

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and subject to all the conditions and provisions in said lease contained. Now, if the above-bounden ............................................................................. shall faithfully carry out and observe all the obligations assumed in said indenture and assignment of lease by ................ the assignee ............................. and shall observe all the laws of the United States, and regulations made, or which shall¯ be made thereunder, for the. government of trade and intercourse with Indian tribes, and all the rules and regulations that have been, or may be, lawfully prescribed by the Secretary of the Interior, relative to such leases or assignments covering such leases, then this obligation shall be null and void; otherwise to remain irt full force and effect. Signed-and sealed in the presence of Witnesses (two to all signatures):

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DEPARTMENT OF THE INTERIOR, Washington, D~ C., Approved :

Assistant Secretary. " Form E OSAGE MINING LEASES. Evidence of Authority of Officers to Execute Papers (To be sworn t~ by Secretary or President of a corporation and sealed with its seal.) I solemnly swear that ........................................................................................ and : ............... .-. ......................................................: .......were on the .......................... day of ................................................., 19 ........ , the duly erected, qualified artd acting president and secretary, respectively, of ................................................. ~- ............ a corporation organized under the laws of ............................................................ on which day they executed ........................... mining lease for and in behalf of said corporation as lessee, covering certain lands of the .Osage Tribe; that they were fully empowered to excute said lease and all papers in conne6tion therewith, and that their action in executing the same binds the said corporation to full performance of all Obligations thereunder. (Title) This ............ ~- .......... - ........... day of ............. " ........... ~ ............ 19 ......... (CORPORATE SEAL) Subscribed and sworn to before me this ................ ..day of ........ ~ ...................... 19 ........ (Signed) ....................................................... (Title) (Seal) ¯i~:-i-~
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4. The provisions of the foregoing lease and a~ignment of lease and supporting papers, designated as Form B, Form A, Form D, Form G, Form F, Form H, and Form E, respectively, are hereby made a part of these regulations, and lessees will be required to adhere strictly to the conditions thereof.
GAS MINING LEASE

The terms of the several gas mining leases in effect, covering practically the entire acreage of the Osage Reservation, vary somewhat as to development requirements, but provisions relative to use of surface, payment o damages by reasons of well locations, etc., and duties of lessee are practica!ly identical with that of oil lessee as outlined in the lease form printed above. However, these " regulations will govern operations under M1 gas leases in the Osage Reservation so far as applicable. 5. All contracts for the sale of gas for industrial purposes and sworn statements showing terms, conditions, and schedule of prices contained in contracts with domestic consumers shall be filed with the Superintendent, and shall be subject to the approval of theSecretary of the Interior whenever, in his opinion, the interests of the Osage Indians or the public require such action. The Superintendent shall, within 60 days after the papers shall ha~e been filed in his Office, forward to the Secretary through the Commissioner of Indian Affairs, any contracts and sworn statements which he may believe should, be investigated, arm all other contracts and sworn statements shall be kept in his office. In the sale and disposition of gas, preference shall at all times be given to domestic consumers, unless provided otherwise in the lease, 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 Secretary of the Interior that such gas is needed by domestic consumers within an area fixed by the Secretary of the Interior, such contract shall terminate upon the expiration of 30 days' notice from the .Secretary of the Interior, and that the Superintendent shall have authority to immediately suspend the furnishing o: gas to industrial consumers when he is of the opinion that sach 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. All contracts with domestic consumers shall be subject to the inspection of the Superintendent. MANUFACTURE OF GASOLINE 6. The basis for determining royalty on casinghead gas in the Osage Reservation, Oklahoma, used by oil lessees for the manufacture of gasoline or sold by oil lessees to casinghead gasoline plants shall be 16 2-3% of 33 1-3% of the gross proceeds of the sale of the gasoline extracted, to be computed on the sale price actually received by the casinghead, gas manufacturers or others disposing of such product for raw casmghead gasoline, the same to be reported. under oath and remittance made to the Superintendent Of the Osage Agency not later than the 25th of the succeeding month for all such gasoline disposed of during the previous month, the other
UTILIZATION OF CASINGHEAD GAS WHEN USED FOR THE

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66 2-3% on which no royalty is paid being allowed for plant operations. Provided, that should it appear at any time that any manufacturers of such product Who for their own convenience or their affiliated organizations or interests, sell raw casinghead gasoline manufactured from gas taken from the Osage Indian lands at an arbitrary price during any particular month, which does not approximate the average price obtained by manufacturers selling raw casinghead gasoline in the open market during such month, the Superintendent of Osage Agency shall notify said manufacturers of such discrepancies and require settlement upon the average price obtained by manufacturers selling in the open market during such month, instead of any arbitrary price¯ upon which payment may be tendered for royalty payments. Provided, further, that the place of sale of such product shall be understood to he at the plant where manufactured when So disposed of, or when loaded into tank cars at or near the plant. Should any company or manufacturer sell or otherwise dispose of such product by delivery to pipe lines at distant points, they shall be allowed the average los~ by waste, evaporation ¯ or otherwise sustained by other manufacturers in the Osage, of such product from the plant to tank carsas shown by sworn statements which shall be furnished when required by the Superintendent of Osage Agency. 7. Contracts and division orders shall be entered into between a lessee and any other person or corporation for the sale of casinghead gas, which shall provide for a minimum royalty interest for the lessor of 16 2-3 per cent of 33 1-3 per cent of the value of the gasoline extracted, unless it is sold on a higher.basis, in which.event it shall be computed on such basis. 8. Contracts for the sale of casing-head gas entered into between lessees and others shall be filed with the Superintendent within 30 days after date of execution, and shall be effective only from date of approval by the Superintendent. 9. All contracts for the sale of casing-head gas shall be made sfibject to the rules and regulations of this Department now existing or hereafter to be promulgated, and shall provide that Paragraph 6 in regard to the basis of determining the royalty, may be revised by the Secretary of the Interior upon notice to all parties concerned, and an opportunity being given them to be heard: Provided, That such revision shall not apply to contracts approved under these regulations prior to any such revision or change which will in any way alter the terms of the contract, rate of royalty, method of computing royalty, or basis of such computation, without the written consent of the parties thereto filed with the Superint@ndent. Contracts hereafter executed shall also provide that they may be cancelled by the Superintendent for violation of the terms thereof or the regulations, after 30 days' notice to the parties concerned and an opportunity to be-heard has been afforded them, subject to appeal to the Secretary of the Interior within 30 days from notice of decision of the Superintendent. 10: When oil lessees manufacture casing-head gasoline from casing-head gas produced from their own leases, payment for the royalty interest of the lessor shall be at the rate of 16 2-3 per cent (or the royalty specified in the lease) to be. computed on 33 1-3 per

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.16' ! cent of the gasoline extraCtedas provided-in paragraph .6, and which shall be subject to change as provided in paragraph 9. 11. The gasoline content of.all easing-head gas per 1000 cubic feet for royalty purposes shall be determined by dividing the total amount of gasoline extracted, marketed, or utilized during-any month, after deducting all naphtha or other products used for blending purposes, by the amount of easing-head gas used in such plant, as shown by meters. In cases where one gasoline plant purchases casing-head gas from more than one oil lessee and it is impossible to determine from the plant operations the gasoline content of easing-head gas from any particular lease, they may use any physical field-test desired .to determine the productivity for the purpose of prorating the 88 1-3 per cent of the value of all gasoline extracted from the different lb, ases, but in all eases the minimum royalty shall be 16 2-3 per cent of 83 1-3 per cent of the gross amount.of gasoline extracted whether paid by the oil lessee or by the operator of the gasoline plant when a division order has been executed and approved by the Superintendent. 12. 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, and where proportional meters are-used, they shall be equipped with volumetric recording gauges. All meters and charts shall be open to inspection at any time by the inspectors in the Indian Service, or whoever the Superintendent may designate for such purpose. 13. Sworn statements shall be made to the Superintendent by lessees, and owners or persons in charge of the gasoline plants to ,whom casing-head gas is sold, showing: (1) volume of casing-head gas purchased from each lessee,. (2) the total amount of gasoline extracted in any plant and where casing-head gas is purchased from more than one oil lessee method used¯ to determine the productivity of the casing-head gas purchased from the different lessees, (3) the price at which the merchantable or blended gasoline is sold and dates of sale (4) the amount paid to each lessee. The statements shall be made not later than the 25th day of each month and shall cover the preceding month, and at the same time payment shall be made Of royalty interest to the Superintendent by the oil lessee, or by the purchaser where division orders have been. executed and approved by the Superintendent. The books of both .lessee .and purchaser shall be open to inspection on order of the Superintendent so far as to test the accuracy of the sworn statements referred to above, and to determine whether the royalty interests are fully protected. 14. Oil lessees shall secure the consent of the Superintendent to manufacture gasoline from casing-head gas produced on- their approved leases. The productivity of the casing-head gas shall be determined as prescribed in paragraph 11, and sworn statements, as indicated in paragraph 13, accompanied by remittance of the royalty interest shall be mailed to the Superintendent not later than the 25th day of each month foreasing-head gas utilized-fgr the manufacture of casing-head gasoline during the preceding month,, the computation to be made on the basis indicated in paragraph 6: 15. When division orders or contracts are executed and approved . for the payment of the royalty interest, same shall not relieve the ¯
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17 lessees from responsibility for payment should the purchaser fail, neglect, or refuse to pay the royalty when it becomes due. 16. The residue or dry gas remaining after extracting the gasoline, not used for development purposes on the leases where it was produced or adjoining leases owned by the same lessee in Osage County, shall be delivered to the gas lessee as provided in paragraph 64 of the rules and regulations governing .leases in Osage Couiaty, and all contracts for the sale of casing-head gas shall contain a provision to such effect. ¯ 17. Where any casing-head gas is sold to gasohne plants located outside of Osage County tests shall be made under Government supervision to determine the gasoline content, and when deemed advisable tests shall be made of all casing-head gas used in any such plant in order to determine whether the physical field test of gas from Osage County shows as large a gasoline content as is " extracted in actual plant operations, and after such tests have been made the Superintendent shall determine the productivity of the 'gas from Osage County. 18. Where non royalty oil or gas is used for operating purposes by lessee, the Superintdndent may require to be installed and used an efficient burner of a type to be approved by him. 19.. All gas utilized by o~l or gas lessees shall be metered with the exception of casinghead gas coming from wells so located in the opinion of the 0il and Gas Inspector that it would be impracticable to gather and-utilize same for royalty purposes, and as provided in Paragraph 64 of these regulations. Gas not metered but utilized for lease operations shall be estimated as to quantity and report thereof made monthly on forms which lwill be furnished by the Superintendent upon appIication, such report to be prepared so as to reach the Superintendent's office not later than the 25th day of the succeeding month for which the report is made. ACR~GP, 20. There is no limitation to the number of acres any lessee may acquire, by lease or assignment, for oil mining purposes on the West Side of the Osage Indian Reservation. On the East Side, no person, firm, partnership, joint stock association, or corporation will be permitted to acquire or hold any interest in Osage lands for oilmining purposes by lease, assignment, drilling contract, or otherwise in excess of 20,000 acres. Any lessee may acquire, in addition to any acreage theretofore obtained, 2400 acres by assignment, without regard to the stRte of development of the property assigned, the same to be counted as part of the 20,000~acre limit. Such lessee may also acquire by assignment in cases where wells on any quartersection are eapable of averaging not more than three barrels per -day. without other limit than the 20,000 acres.
HOW TO ACQUIRE LEASES OF TRIBAL LANDS

¯ 21. Should may parties desire to have any particular tract of lahd offered for lease, request should be filed with theSuperintendent who .will consider same when preparing schedule of land to be offered and subn~itted to the Commissioner of Indian Affairs. ~The Commissioner of Indian Affairs shall cause to be published, in such manner as shall be deemed appropriate, notices that specific

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18 tracts of Osage lands will be offered at public auction for lease to the h~ghest bidder, in accordance with such terms and conditions as may be approved by the Secretary of the Interior and indicated in the advertisement. 22. Upon being notified of the acceptance of its bid, a corporation shall file a certified copy of articles of incorporation, and evidence showing compliance with local corporation laws if a foreign corporation: Provided, That if any such papers have already been filed a statement to that effect may be submitted. A Corporation must also file with its first lease, and at such other times as the Secretary of the Interior may direct, a list in duplicate of all officers, directors, and of such stockholders, as may be required with their post-office addresses, and showing the number of shares of capital stock held by each and whether held for themselves or in trust, together with a sworn statement of its proper officer, showing: (a) The total number of shares of the capital stock actually issued, the number of shares actually sold¯ and specifically the amount of cash paid into the treasury on the stock sold, or, if paid in property, state kind~ quantity, and value of same paid. (b) Of the stock sold, how much per share remains unpaid ancl subject to assessment. (c) How much cash the company has in its treasury and elsewhere, and from what sources it was received. (d) What propergy, exclusive of cash, is owned by the company, and its value. (e) What the total indebtedness of the company is and specifically the nature of its obligations. Leases made by corporations shall be accompanied by an affidavit (Form E) showing the authority of its officers to execute leases, bonds, and other papers. 23. Lessees and those acting under them shall not conduct operations within or upon any hom~teaJ select ip_a _wi'thout the writte_n consent of the Secretary o~th-e Interi0r_ .......... If-the allottee is unwilling to permit operations on his homestead, the superintendent will direct the inspector to make an examination of the premises with the allottee and the lessee, or his representative,. and should the inspector be of the opinion that the interests of the Osage Tribe require that the particuIar tract be developed he will endeavor to have the parties agree upon the terms under which operations on the homestead may be conducted. In the event the allottee and the lessee can not, with the assistance of the inspector, agree on the matter, the allottee shall be permitted to go before the Osage tribal council, and the council, after ¯hearing the allottee, the lessee, and the inspector, shall make such recommendation as it deems proper. Guardians, legal or natural, may represent their Indian wards, and where no one is authorized or where no person is deemed by the superintendent to be a proper party to speak for a minor or person of unsound mind or of feeble understanding, the principal chief of the Osage Tribe shall represent them. Where any interested party does not appear before the Council, either in person or by representative, when notified by the Superintendent, or the Council fails to act in -~he matter within ten days after being referred