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Case 1:99-cv-00550-ECH

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Filed 06/30/2008

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-~,EGULATIONS TO GOVERN¯ THE LEASING OF LANDS IN THE

:OSAGE RESERVATION, OKLA.; FOR MINING rURrOSES (EXCERT OIL AND GAS, MINING).

Section 3 of the act of .C0ngxess, approved June 28, 1906 (34 Star. 15., 539, 543), provides:
¯ That the oil, gas, c~oal, or other minerals covered by the lands for the selectlor~ and division of which pro~-iMon is herein made, are hereby-resela-ed to the Osage ~ribe /or a period of twealty-five ~-~-trs ~rom and after ~he eighth day of &pHI, nlfieteen lmndred and six-; and lea.~es for all oil, .~a.% ~md other miners]s, covered by selection and- division of land herein provided f~r. may be made by the O~ge Tribe of Indians through its tribal council and'with the approval- of the .SecretalT of the Interior,- and under such rules and re.gulations as he may prescx~be: Provided, That the royalties to be Paid to the Osage ~['rihe under any mineral lea~., so made shall be determined by the Pr~ident of the United States: .4hal. provfd.ed Dtfther, Tlmt .no-mining of or prospect=ing for any of said mineral or minerals Shall be permitted oh the homestead selections her.ein provided for without the written consent of the Secretary of the Interior : Prov~ged, however, That nothing herein contained shall be construed as affecting any valid existing lease or contraet~ -

1. The t~rm "Officer in charge" shall refer to the superintendent of the Osage Indian Agency and School or other representative of ¯ the Governmealt who may, for the time, be in charge of the Osage Agency and School,or any person who may b~ detaited by the Secretary of the Interior or the Commissioner of Indian Affairs to tako charge of'leasing or rushing operations under these regulations: 2. Any person, tlrm~ or corporation desiring to lease any particuldr tract of landfor mining purposes (other than oil and gas) shall file with the otiic~ iachaxge an application giving a description of same; 21.t" such tim& as the Secretary of the Interior may direct and as soon as practicable thereafter, the officer in charge shall offer such lands as may be desired to be leased "at public auction, ib the highest responsible bidder after advertising same in such manner as he may deem ~ppropriat~. Bids will be rece2ved for a.bonus in addition to stipulated royalties, and the right is reserved by the Secretary of the Interior to "reject any and all bids. The successful bidder must deposit with the officer in charge on the day of the sale a certV fled check on a solvent b~nk in an amount equal to 95 .per. cent of the bonus bid as a guara.nty of good f~ith. Successful bidders shall execute leases and file same, with necessary accompanyipg p~psrs, with th~ officer in charge as soon as practicabl~ and within 30 days ~om notice of az~ptan6e of bid. Failure on the part of ~riy
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2 bidder to comply with this requirement will operate as a forfeiture of the amount theretofore paid and subject the lease, if thereafter submitted, to disapproval. After execution of the lease of the suecessful bidder by the principal chief of the Osage Tribe, with the ap: proval of the council, the officer in charge shall forward the. papers to the Commissioner of Indian Affiairs for the Consideration of the Secretary of the Interior. In event any bid is rejected the amount deposited on day of sale shall be returned. If lease is approved, balance due shall be paid before delivery of lease. 3. A corporation shall .file with its first :lease a certified copy of articles Of incorporation, and, if a foreign corporation, evidence showing compliance with local corporation laws in duplicate; a list of all stockholders, with their post-office addresses, and show'nag the number of shares of capital stock held by each; 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 the .amount of cash paid into the treasury out of the stock sold,, or, if paid in property, kind, quantity, and value of the same. (b) Of the stock sold, how much per share remains unpaid and subject to assessment. ¯ (v) How much cash the company has in its treasury and elsewhere,and :from what source it was received. (d) What property, exclusive of cash, is owned by the company, and its value. (e) What the total indebtedness of the company is, and the nature of its obligations. (f) Names of officers and directors. 4. Lessee shall furnish with each lease at the time it is filed With the officer in charge an acceptable bond, which shall be in amount as follows: For less than 80 acres, $1,000; for 80 acres and less than 120 acres, $1,500; for 120 acres and not more than 160 acres, $9,000i Provided, howe~er~ That the lessee shall be allowed to file 1 b6nd, Form S, covering al~ leases to which he or they are or may become parties instead of a separate bond in each case, such bond-to be in the penal sum of $15,000. The right is reserved to change the amount of the bond in any particular cas~, or to require a new bond in the discretion of the Secretary of the Interior. 5. The officer in charge may, at any. time, either before or after aproyal of a-lease, call for any additional information necessary to carry, out the purpose and intent of these regulations, and such information shall be furnished within the time specified in the request therefor. .6. 8hotfld a lessee fail to furnish, Within the time specified after his bid is accepted, the papers necessary to put his lease and bond

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in proper form for consideration, the officer in charge shall recommend that the sale be disapproved and money paid forfeited to the Osage Tribe. 7. No mining or work of any nature will be permitted upon any tract of land until a lease covering such tract shall have been approved by the Secretary of the Interior and delivered to the lessee. All leases shall be made for such period as the title to the minerals remain in the Osage Tribe, which time will expire April :8, 1931, unless otherwise provided by Congress, and shall be subject to cancellation or termination as hereinafter specified. Leasesmad~ by corporations shall be accompanied by an affidavit by the secretary or president of the company showing the authority of its officers to execute leases, bonds, and other papers.¯ No lease Shall be: made covering more than 160 acres. 8. No person, firm, or corporation¯ shall hold under lease at any onetime without special permission from the Secretary of the Interior in excess of the following areas: (~) For deposits of the nature of lodes, or veins containing ores of ¯ g01d, silver, copper, or other useful metals, 640 acres. (b) For beds of placer gold, gypstun, asphaltum, phosphate, iron ores, and other useful minerals, other than coal, lead, and zinc, 960
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(c) For coal, 4,800 acres. ¯ (a~) For lead andzinc, 1,280 acres. 9. Lessees shall pay, in addition to other consideirations, annual advance rentals as follows: 15 cents per acre for the first year; 30 cents per-acre for the second year; 50 cents per acre for the third year; and $i per acre per annum for the fourth and each succeed'ing year during the llfe of any lease: Prov~e.d., .That all such paymeiats of advance rentals shall be credits on royalties on production during the year for which payment of advance rental is made. The payment of annual advance rental .shall not release the lessee from the obligation to conduct mining operations, as required by the terms of the lease .... 10. Royalties will be required as follows, subject to the approval of the President, in accordance with the act of June 28, 1906, supra: (¢) For gold, silver, or copper lessee shall pay quarterly a royalty of 10 per cent, to be computed on the gross value of the ores as shown by reduction returns after deducting freight and treatment charges. Duplicate reduction returns shall be ¯filed by the lessee with the officer in charge within -20 days after the reduction of the ores. (~) For coal the lessee shall pay a royalty of 10 cents per ton of 2,000 pounds on mine run or coal as ~aken from themines, including what is commonly Called "slack."
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(c) For asphaltum and allied substances, the lessee shall pay quarterly a royalty of 10 cents per ton of 2,000 pounds on crude material, and 60 cents per ton on refined substances. (d) For substances other than gold, silver, copper, lead, zinc, ! coal, and asphaltum the lessee shall pay quarterly a royalty of 10 / per cent of the value at the nearest shipping point of all ores, [ ':J metals, or minerals marketed. (e) The royalties to be paid for lead and zinc shall be computed for each mineral at the same rate that the amount of the concentrates of such mineral bearsto the total amount of dirt or rock actually mined, except as hereinafter stipulated. The royalty. So determined shall be increased by adding 1 per cent for each increase of $10 in the selling price per ton thereof over and above the following, which shall be the agreed base or standard :
For zinc .................................................. $50 For lead ............................................ 65 = = ....

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but in no case shall the rate of royalty be less than 5 per cent or more tha~/ 20 per cent. The percent'age of recovery shall be computed as nearly as practicable upon the ore included in each sale, but where it is impracticable, so to do the officer in charge and the lessee shall agree upon some other method of computation which will produce substantially the same result: Provided, That in case of their disagreement the Commissioner of Indian Affairs shall prescribe a rule of computation to be followed in such cases. NoTs.~The royalty would always be determined under this rule by ascertaining the percentage of recovery were it not for two things: (1) the flat rates which are fixed as the minimum- and the ma~mum rates of royalty and (2) variations in the selling price of the ores. Concrete examples coming under the rule are set forth in the following table:
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Where.the base or standard is $5~per ton.) Sell~ng price. Per ton. S4~ ~9 5O 6O 7O

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A similar table might be constructed for royalties on lead, but in so doing it would be necessary to bear in mind that the base or or standard selling price for the lead is to be $65 instead of ¯$50.

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11..4.11 rentals, royalties, damages, or other amounts which may become due undex ]eases approved in accordance with these regulations shall be paid to the disbursing agent at Pawhuska, Okla. The remittances shall be in St. Louis exchange, except that where such exchanges can not be procured post-office or express money orders will be accepted. All royalties or other payments or claims of the Osage Tribe arisingunder such leases shall be a lien upon the mining plant, machinery, and all minerals mined on the property leased or in which the lessee still retains any right, claim, or interest. 12. Royalties on all mineralsproduced in any quarter (January:March, April-June, July-September, October-December) sl~all be paid on or before the 25th day of the month-next succeeding, and the remittance shall be accompanied by sworn reports covering all operations, whether there has been production or not. Annual advance rentals shall be paid within 10 days after the beginning of the lease year. 13. Lessees shall exercise diligence in-the conduct of prospecting and mining operations, and on all leases of class A (sec. 8) shall expend annually in development work a sum which with tl~e annual rental shall make an amount of not less than $5 per acre. On all leases of classes B and C there shall be expended annually in development work ~ sum which inclusive of the annual rental shMt m~i~e an amount of not less than $1 for each acre or fraction thereof included in the lease. The lands covered by each lease of cla~s D shall be prospected for lead and zinc ores by drilling within one year test holes aggregating 2,000 feet unless a sufficient ore body is discovered to justify the sinking of a shaft to the ore body and the erecting of a millwhen such tract may be released from further prospecting by the written consent of the superintendent: Provided, That within 90 days after an ore body of sufficient quantity is discovered, as ¯shown by the 1.ogs or records of the drill holes, to justify the expenditure, the sinking ofa shaft, to the ore body and the erection of a mill shall be commenced and continued to oompletion without cessation of work thereon, barring unavoidable accidents or causes beyond the control of the lessee. Lessee shall keep upon the leased premises accurate records of the drilting~ redrilting.~ or deepening of all holes showing th~ formations; and upon the completion of such holes, copies of such records shall be transmitted to the superintendent by the lessee after'the first completion and of any further drilling thereafter, and a failure to so furnish report within the time prescribed shall be considered a violation of the-regulations. Lessee shall, before commencing opel;a¢ions, file with the superintendent a plat and preliminary statement of how flue openings are to be made and the property developed.

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14. Lessees may use so much of the surface of the le~sed land as shall be reasonably necessary for the prospecting and mining operations and buildings required by the lease, and shall also have the right of way over and across, such land to any point of prospecting or mining operations~ but such use of the surface shall be permissible only under condition of least injury and inconvenience to the allottee or owner of the land. Lessees before commencing and during such operations shall pay all reasonable damages for the use of-the surface land and to any growing crops thereon, or to improvements on said land, or any damage that during the life of the lease may be oceasioned in any manner whatsoever by the use of the surface, to the~ allottee or his successor in interest or assignee, er to a lessee of .the surface of said land or to an oil and gas lessee, damages to be apportioned among the parties interested in the surface, whether as owner, lessee~ or other.wise~ as the parties in interest may mutuall~ agree or as their interests may appear. If the parties are unable to agree concerning damages the same shall be d.etermined by arbitration. All agreements (or authenticated copies thereof) ~providing for the settlement of damages.shall be filed in the Osage agency if the surface owner is a restricted Indian, and all such amounts which I may be due and payable to any such Indian shall be paid to the superintendent and by him immediately remitted to the Indian entitled thereto. All sums due as royalty or damages ¯shall be a lien on all equipment on leased premises. 15. Lessees and those acting under them shall not conduct prospecting or mining operations within or upon any homestead selection without the written consent of the Secretary o~ the Interior. 16.¯ Any person, other than a lessee or an allottee or the heirs of a deceased allottee, claimi'ng an interest in ar~y leased tract or in .damages thereto must furnish to.the officer in charge a statement in writing showing his interest, and failure to fmmish such statement shall constitut~ a waiver of notice-and estop said person from claiming any part of such damages after the same. shall ha~e been disbursed. 17. Lessees will notbe permitted to use any ~imb~r .from any Osage lands not relieved of restrictions upon alienation, except under writtenI agreement with the owner approved by the officer ~n charge. 18. Approved leases or any in~res.t therein may bo transferred or assigned, with the consent and approval of the Secretary of the Interior and not otherwise. Transfers or assignmauts, when so approved~ shall be subject to the t~rms and conditions of the original leases and regulations under which such lea~ .were approvedas well as to such additional requirements as the Secretary of.the Interior may prescribe. The transferee or assignee shall furnish with his transfer or assignment a satisfactory bond as hereinbefore pre-

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scribed in connection with leases. Any attempt to transfer or assign an approved lease or any interest therein without the consent and approval of the Secretary of the Interior shall be absolutely void and shall subject the original lease to cancellation in the discretion of the secretary. 19. When a leadee makes application for the cancellation of a lease in whole or in part, all royalties or rentals due up to and including the date of the application for cancellation must be paid, and thatpart of the lease delivered to the lessee shall be surrendered before such appplication will be considered. In the event a lease is surrendered for cancellation, in whole or in part, after a new lease year has been entered upon, the lessee and his surety shall be liable for the advance rentals requi.red to be paid under the lease for that year, and no part of such rentals which may have been paid shall be refunded: 20. Lessees andassignees must submit to the officer in charge on January 1 of each year, and at such other times as may be required by the Secretary of the Interior, a statement containing the information called for in paragraphs A and 1~ of section 3 of thes~ regulations and also showing any changes in officers or changes in-or additions to stockholders..At any time individual stockholders may be required to show to the satisfaction Of the Secretary of the Interior in what companies or with What persons or firms they are interested in mining leases on the Osage Reservation and whether they bold such stock or interest for themselves or in trust. 21. Lessees shall allow the agents and representatives of the les:~or, orany au~orized repre~ntative of the Interior Department, to enter, -from time to time, upon and into all parts of the leased premiseS for the purpose of inspection, and their books and records showing manner of operations" and persons interested shall be open at all times for the examination of such officers of the department as shall be instructed by the Secretary of the Interior to make such examinations. 22. Wherever notice is provided for in these¯ regulations it shall besuffi¢idnt ifnotice has been mailed ~ the last known place of address of the party, and time shall begin to run with the day next ensuing after the mailing or from the date of delivery of Personal notice; but where the party is outside the State of Oklahoma the officer in charge may, in his discretion, increase the time allowed. "23. Lessees are required, when so requested, to file a plat of their leases'showing exact locations Of all mines, proposed locations, power houses, etc. 9A. Applications, leases, and other papers must be upon forms prepared by the department, and the Superintendent of the Osage Indian

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School, Pawhuska, Okla., will furnish prospective lessees with such forms at a cost of $1 per set. Copies of such forms are printed herewith. Form M. Application for mining lease, including financial showing. Form N. Lease (except lead and zinc). Form O. Bond. Form P. Authority of officers to execute papers. Form Q. Assignment. Form R. Lease for lead and zinc. Form S. Collective bond. 25. On the failure of any lessee or assignee to comply with any regulation or any obligation in the lease or assignment~ the Secretary of the Interior may cancel and annul such lease without resorting to the courts and without any further proceeding: P~ozqded,.That the party or.parties charged with such violation shall be fil~t given not less than 30 days' notice to show cause why such lease should not be canceled and annulled or other order made with reference thereto. 26. Violation of any of the terms or conditions of any lease or of the regulations pe.rtaining thereto shall subject the lease to cancel]ation by the Secretary of the Interior, or the lessee to a fine of npt exceeding $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 in reference thereto are not complied with, or to both .such fine and cancellation in the discretion of the Secretary of the Interior: Pro~qdedi That the lessee shall be entitled to notice and hearing with r~pect 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 t!~e Interior within 30 days after notice" of the superintendent's decision, and the decision of the Sedretary of the Interior upon appeal shall be conclusive. These regulations are subject to Change or alteration at any time by the Secretary of the Interior. 27. In event of disagreement between two or nmre mineral lessees regarding sites for the location of wells, mines~ buildings~ plaats~ etc., the same shall be determined by the superintendent a.~ter inve~tigation and after due consideration of prior right of any lessee by reason of date of approval, of lease. 28. All prospecting or mining operations or the abandonment of a well or mine shall be subject to the approval of the superintendent, and any disagreement between lessees of mineral leases regardi~ operations likely to result in injury to either lessee shall be determined by the superintendent, whose decision shall be final~ unless an

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9 appeal is filed with the. Secretary of the Interior within 30 days a~ter notice .of such decision. 29. Before actual drilling or development operations are commenced on leased lands, the lessee or assignee shall appoint a local or resident representative within the State, on ¯whom the superintendent or other authorized representative of the department may serve notice or otherwise communicate with in securing compliance with these regulations and .shall notify the superintendent of th'e" name and post-office address of the representative so appointed. DZeARV~Z~T OF vn~ I~r~oa,
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OFFI~ oF INDIAN A_FFAIJRS,

Nove~uber 1, 1919. The foregoing regulations-are respe.ctfully Submitted to the Secre£ary of the Interior with: the recommendation that they be approved. ................................................... CATo SELLS,. ........... . ................... Oo~miss~ner of l~z~ A ff a~rg. -.-:Apprbved: " " ................ ....... F..-K. LAmm, ~eere~a~ry.
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ArPZZCATm~ FO~ -- MI~G I~ASZ, OSAO~ Rzs~vx~oN.
To the SF.Or~ETA~Y OF THz Im~IO~, ". Washi~gton, D. C<, , designated as applicant, " , of. :, ¯ The undersigned, hereby' applies to ha~zd approved the accompanying lease for -- mining purposes on Osage Indian lands described as .................. ~- .... 2:-2 .... .......... __~_ ..... : ........... = ............................ : ............ The applicant agrees to be bound-b~ the.conditiohs'andrequirem~uts se.t forth in the regulations prescribed for thb.leasing-of said lan.ds, and that on failure of the applicant so-to . !-.

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that the aggregate of all these Interests, together with the le~ses held by the applicant alone, and that applied for herein, will not exceed ~ acres. Name. Post-omce address.
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The applicant hereby states that his .general business experience for the past five years has been as follows ............................................... Where the applicant, or any omcer ofthe company applying, has had actua~ experience In operating mineral.leases, or has producing mining properties, such facts should be briefly detailed.

¯ The applicant's financial condition at this time is. ¯ The applicant's resource& .are as follows ....

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and-he has available at least $-------- for the development of the land for which this application is made. The applicant, a corporation, hereby shows that at this time it has $~ paid-up capital and $.--------- In its treasury available for mining operations.~ It is hereby agreed that on the issue, transfer, or cnncellation o~ stock of corporation, 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 the lease, if approved, will be kept at ~ in the custody of References : s ,P.O. .,P. 0.,P.O. Executed this ~ day of ~, 192-, at ~ ~. .. . ."

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Before me, a notary public in and for the county of ------, State of -------,. personally apl~ared , who, being first duly sworn according to law, deposes and says "that the foregoing application ~vas signed by proper authority In good faith for the purposes therein stated, and that the statements made therein are true, as he verily believes. ., igot~rll Pub~_~

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My commission expires ., ~. I Corporation shall furnish with their first application the additional financial showing required by the regulations. ¯ Bank references are preferred.
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(Form N.) -- MININO LEASE, OSAGZ RESF~VATION, OKLA. [For minerals except oil, gas, lead, and zinc.] This" indenture of lease made and entered- Into, in quadruplicate, on this day of ~; A. D. 192, by and between the Osage Tribe of Indians, by , its princlpal chief, under authority conferred by the Osage tribal council, .of .the State of Oklahoma, party of the first part, hereinafter designated as lessor, and ~ -, of ., party of the second part, herelnaf~er designated as lesee- under and in pursuance of the provi; sions of section 3 of the act of Congress approved June 28, 1906 (34 Stat~, 539, 543), Witnesseth : - .I. The lessor for and in consideration of the royalties, covenants, stipulations, and conditions hereinafter contained, and hereby agreed to be paid, ob~ served, and performed by the lessee---, does hereby demise, grant, lease, and let ¯unto the lessee-, for the term ending April 8~ 1931, or as long thereafter as the title to the minerals remains in the Osage tribe, all the deposits of " in or under the following tracts of land, lying and being within the Osage ]Reservation, Osage County, State. of Oklahoma, described as of the Indian meridian, and containing in theaggregate ~ acres more or less, with the exclusive right to prospect for, extract, mine, store, and remove and.-to occupy and use so much. only of the surface of said land as may be .~ea~nably necessary to carry-on the work of prospecting for, extracting, m.i.n.lng, storing, .and removing such mineral, also the right to obtain from wells or other sources- on said land, by means of- pipe lines or otherwise, a sufficient supply of water to. carry on said operations. . 2.. The" lessee- hereby-a~rce- to pay or cause to be paid to the superintendent o£ the Osage Indian. School at Pawhuska, 0kla., for the lessor, as royalty ~. (Seg. regulatlons.) ¯ . . . ~. 3. The lessee- shall, pay to the .officer in charge, as advance annual rental ¯ on this .lease, !$ cents, per. acre in advance for the first year; 30 cents per acre .in ad~vance for the second year; 50 cents per acre in advance for the third Year; and $1 per.acre, per annum,.in advance for the fourth and eacli succeedLug ~year..thereafter, it being understood and agreed that the said sums of money.so paid during any year-in which royalties on production are payable, shall be..a, credit on the stipulatec~ .royaltlesdue from the lessee- of such royalties on productl.on exceed the advance annual rental for that year~ .4~-The. lessee- covenant-, and agreed- to exercise diligence in the conduct of prospecting and mining operations, and to open mines and operate the same .in a:workmanllke manner, and to the fullest po.ssible extent on the leas~l premises or upon.the mines that may be..there)n, and ~o ~ufler .no waste to .be committed thereon ; ..to leave in the mines proper pillars, columns or such other permanent supports to prevent .the caving or subsidence of the surface.. In addition to the payment of advance royalties as herein specified, the lessee as a furtherConsideration shall on deposits of. the nature of lodes or veins containing ores Of gold~ silver, copper-or other, useful metals (except lead and zinc), expend annually in developing¯ work, a sum which with the annual advance royalty, .shall amount to. not less than$5 per acre in conducting mlning operations, and .on beds of placer gold, gypsum, aSl~halttun, phosphate, iron" ores, coal ~)r' other,,useflll .m.i~.erals (except !cad. or zinc), a sum which inclusive of the advance, and roy~ty.shall amount to not less than $I. an acre .or fraction there.of covered by this lease: .Pr~4ed-Th.at" whene, ver the. Secretary. shall con:

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slcler the marketing facilities Inadequate or the economic .conditions unsatls* factory, he may authorize the suspension of operations for such-time as he may deem advisable, but such action will not release the lessee from. the payment of the advanced annual royalty. 5. The lessee- may use so much of the surface of the land as may be reasonably necessary for prospecting and mining operations required by this lease; and shall also have the right of way over and across such land to any point of prospecting or mining operations, but such use of the surface shalI be per-. missibIe only under the conditions of least injury and inconvenience to the allottee and owner of the land. Lessee- before commencing and during such operations shall pay all reasonable damages for the use ot such sur£ace of the land and to any growing crops thereon or (o any improvements-on such land or any damages that during the life of this lease shah be occasioned in any manner whatsoever to the allottee or his successor in interest or assignee or to the lessee- of the surface, of the land by the use of the surface, such damages to be apportioned among the parties interested in the surface, whether as owners, lessees,, or otherwise, as such par6es may mutually agree or as their interests may apppear: Prov/~ed, That when the damages can not he' agreed upon between the parties in interest, the amount0f.such damages shall be determined in accordance with the reguhttions approved by the Secretary of .the Interior. ¯ " - " 6. The lessee- shall carry on development and operations in a workmanlike manner, commit no waste on the said land, suffer none to be committed, upon the portion in ~ occupancy or use; take good care of the-same and promptly surrender and return the premises upon the termination o£ this lease to whomsoever shall be. lawfully entitled thereto, in as good condition as received, excepting for the ordinary wear and tear and unavoidable accidents in their proper use ; shall not remove therefrom any b.uildings or permanent improvements erected thereon during the sald term by the said lessee-, but . said buildings and improvements shall remain a part of said |and and become the property of the owner of the surface of the land, excepting the tools, boilers, boiler-houses, pumping and drilling outfits, engines, and mining machinery, which shah remain the property of the lessee-, and may be removed at any time prior to 60 days after thetermination of the lease by forfeiture or other¯wise, provided the payments agreed upon by thls lease and the regulations applicable thereto have been made tothe lessor, but not otherwise ; shah not permit any nuisance to be maintained on the premises under lessee-control, nor allow any intoxicsting liquors to be sold or given away for any purposes on such premises ; and shall not use such Premises -for any other purpose than those authorized inthis lease. 7. The lessee- shah keelJ an accurate account of aH mining operations showing the sales, prices, dates, purchasers, and the whole amount of mli~erals mined 'or removed, and the gross receipts derived therefrom, and shah make sworn reports thereof as required by the regulations, and all sums due as royalty, advance rental, surface damages, shall be a lien on all. implements, tools, movable machinery, and all other personal chattels u~sed in operation upon said property, and upon aH of the unsold minerals obtained from the land. herein leased, as security for payment Of said sums. 8. Tl~e lessee- may at any time, by paying to the Ii~dian superintendent all amounts"then due as provided herein, ' and the further sum of.$1, surrender all or any part of th~ land covered by this lease and have the lease cancelled as to the land surrendered and be relieved from all further obligations and liabilities thereunder as to the part surrendered: Provldbd, That in the event thelease is

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surrendered for cancellation in whole or in part after a new lease year has been entered upon, the lessee- and the surety shall be held liable for the advance rentals required to be paid for that year, and no part'0f-sudi rentals "" whichmay have been paid shall be refunded. 9. This lease shall be subject to the regulations 0f the Secretary of the In: teriori now or hereafter fn ¯force, relati.ve to such leaseS, all of which regulations are made apkrt and" condition of this lease: Pr-ov~/~e~, That n6 regulations made after the ~pproval of this lease, ai£-ecting either the paymentsor damages thereufidef shall operate to affect the terms and eon~litions of this lease. "" 10. Upon the violation of any of the terms and conditions of this lease, the Secretary of the Interior shall have the right at any time after 30 days' notice " to the lessee, specifying the terms or conditions violated, to declare this lease null and void° -, 11. Before this lease shall be in force and effect the lessee- shall furnish a bond with responsible surety to the satisfacti6n oI the Secretary 6f the Interior; "~onditloned for the performance of this lease, whieli l~ond shall be deposited aud remain on file In tl~e Indian.Otliee. " : / : ' " ' " - ...... :" ': 12.Assignment of this lease or any interest ther~n'may, be made with th~ " approval Of the Secret~ry of the Interior and not- bth~WlS~ . .... ¯ 18. Each and every clause and covenant of this indenture shall extend to f~e. heirs~, execut0rs, administrators,, successors~ an. 0:: lawful ~assigns' of the parties ':~ ....... :" h6reto. -" " .In witness whereo~, the ga£d parties have~eteiiiif6 Sub~rrlbed: their .name~ and afSxed their seals on the day and year first abov,e mentioned" -TWo witnesses to "e~ecution of lessor : - ..... " :"" P.O.

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8~ 0~. ~, ~. v~cz o~ ~, ss: , on-this ~ day of , 192,, personally -Before .me, appeared , to me known to be the ~ principal chief of the Osage¯ Na-tio~. and the identical person who executed the wlthLu and foregoing lease, and acknowledge to me that he executed the-same as his voluntary, net and deed.-on--behalf, of the Osage Nation and in accorclance with the authority glvefi hem' by tl~. Qsag~.national council. .A'- " .... .~" :: , ...... ' -.; .... , "" ¯ -(0~'~ ti~e.i

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ACKNOWLEDGMENT OF INDITIDU~kLo STATZ OF --, Cou~'rr OF --, SS: Before me, a notary public, in and for said county and State, on: this -day of--., 192--, personally appeared ,'to me known to. be the identical, person- who executed the within and foregoing lease, and ac, knowledged to me that -- executed the same as -- free an&voluntary act and deed for the. uses and purposes therein set forth.

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My commission expires-----~- ,

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ACIrrNOWLEDGEA~ENT OF CORPORATION.

STATE OF.--, COUNTY OF:--, $8: -

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- Dn this .----r--- day of --,-A. D., 192--, before me, a ~ Within and for the -- and .--r----- aforesaid, personally appeared and -, to me,personally .known, who.being by me duly, sworn, did :each say" that ks the ~ president~ and ~ is the secretary of ., a corporation, .and that-the seal affixed to. the foregoing and annexed ~ustrument is the corporate seal of .sald corporation, and that said instrument was signed and sealed i,~ behalf.of said corporation by authority of its board ~f directors ;. and. snld ~ ~ and duly acknowled~cl that they each hadln their oIfidal .capacities executed the foregoing Instr,-: merit as the act and deed of the sald company for the consideration an~l:l~r-. poses therein mentioned and set forth. Witness my hand and official .seal "this ~ day of...------~_.. ,192-7-. "-----My commission expires
DEPARTMENT O~ THE I~TZ~IO~,. U~TED. STATES INDIAN SERVICe. ,,

Osage Agent, Pawhustza, Olda., . ..--,7-.~. ::lg. ~--~. The within lease is forwarded to the Commissioner of Indian Aft_airs with recommendation that it be ---------. See my report'of even dttte. " \

...... : ....

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'" " WaMt¢~ffton, D. O., ~-, I~2---. Respectfully submitte'~:to.the Secretary of the -Interior with recommentl~tflon that it be
. ¯... ,. WASHINGTON, D. C., '~, ~.~o :, ";

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Filed for-record this ~ day of ~-, 192---, at ~ o'clock, ~ By

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(Form 0.)

Bo~.
he [To accompany leases for mtniDg purposes, Osage Reser~ati0n, Okla.] KNow ~ ~zN BY TH~S~ Pm~S~NTS : That ~ . as principal, and of as suret--, are held and firmly bound unto the United. States of America in the sum of $--------, lawful money of the U~Ited ¯ States, for the. payment of which, well an.d truly to be made, we bind ourselves, and each 'of us,. our heirs, successors, .executors, administrators, or ~ssignsl jointly and severally, firmly b.y these presents. Sealed with our seals and dated this ~ day.of -----, 192--. The condition of this obligation iS such that whereas the above-bounden , as principal, entered into a certain indenture of lease, dated ~-, with the Osage Tribe of-Indians, for the lease of a tract of land . " .z .

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¯ Two witnesses to each signature. DEPARTMENT OF THE INTEEIOR, Wash~ng$on,, D. ~., ~, 195~. ApprOved.

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Assistant secretary.

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(Form F.)
EVIDENCE SHOWII~G AUTHORITY OF OFFICERS TO EXECUTE LEASES, BONDS, AND ACCOMPANYING PAPERS, OSAGE RESERVATION, OKLA.

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Whereat§ is the duly elected, qualified, and acting ~ presi:defit of ~, a cerpora~tion duly organized and existing under the laws of ~, and is the duly elected, qualified, and acting secretary 'of . Whereas ' said corporation, and Whereas t~oth of said persons were ~ president and secretary, respectively, on the ~ day of ~, 192---, at which time they executed an oil and gas mlntng lease with the Osage Tribe of Indians covering certain lands in the Osage Reservation, Okla. " 1~ow,.therefore, I, the undersigned.~ of said corporation, do solemnly swear that the mining lease mentioned, above was duly and regularly entered into by the officers of said corporation .named, by and. under the authority of the board of directors of said corporation, and in accordance with the by-laws thereof; and further that said officers were .duly authorized- and empowered on behalf of the ~orporatlon named to execute any and all bonds, applications, or other papers required in connection with said mining lease. I. further certify that the action of sald officers in executing the papers men-~ioned~on behalf of said Cdrporatlon, binds, said corporation to a full and complete performance of any and all obligations contained therein. Dated at ~ thlsday of ~, 192---. [COm~OIU, TZ SZ~] Subscribed and sworn to beford me this day of--------,192~.

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Notary Publw. My commission expires NOTZ.--To be executed by secretary or president--secretary in all cas~ where possible--and in every case to have corporate seal affixed. (Form Q.) [Must be executed in quadrupllcate.] ASSIGN]~ENT OF ~ MINING LEASE, OSAGE RESERVATIO~N, O]E~./k~ Whereas the Secretary of the Interior has heretofore approved a mining lease, dated ~, 192~, entered into by and between the Osage Tribe of Indians, lessor, and , less.ee,_ cpve'r~ing the following described land in the Osage Reservation, Okla ............................ -. . . o
¯ ¯ .. ¯

Now, therefore, for. and. In consideration-of the sum of m dollars ($------), the receipt of which is hereby acknowledged~ the said ¯ t ¯ , the lessee- in the above-describedlease, hereby bargains, sells(. transfers, assigns, and conveys ~ right, title, and interest of the lessee- in and to said lease, subject..to the approval of the S.:ecretary of the Intat~ior, to In witness whereof, the said lessee- has .hereunto set " " hadd:.and seal this " day of ~; 192--. '" STA~O~-- ~, ..... :': " COUNTX .o.F. _ _ ~ ss: .Be it remembered that on this day came before me, .the undersigned within and for the State and county aforesaid ~., duly cornACK~O~WLEDGE[ER'T OF INDIVIDUAL.

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Missioned 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 as such ~ on this ~ day of ~, 192~, My commission expires
AC~NOWLEDGMENT OF CORPOEATI01~.

STA'~ OF -----'------, COUNT~ OF ~, 88: within On this ~ day of, ~, k. D. 192~, before me, a and and for the ~ and ~ aforesaid, personally appeared ¯ to me personally kndwn, who, being by me duly. sw0rn, did each say that is the ~ president, and is the secretary of a corporation, and that the seal affixed to the foregoing and annexedinstrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf-of said corporation by authority of its board of directors : and said and duly acknowledged, that ttmy each had in their said official capacity executed the foregoing instrument as the act and deed of the said company for the consideration and purposes therein mentioned and set forth. ~Vitness my hand and official seal this ~ day of ~-, 192--. My commission expires
ACCEPTANCE BY ASSIONE~.

The assignee in the abo~e and foregoing assignment, made subject to the approval of the Secretary of the Interior, hereby accepts such assignment and agr.ees to fulfill all the obligations, conditions, and stipulations in said described indenture of lease, when assigned, and the rules and regulations of the Secretary of the Interior, so far as applicable thereto, and to furnish proper bond guaranteeing a faithful compliance with said lease and this agreement. In witness whereof the said assignee has hereunto set ~ l~and and seal this ~ day of . .--~---, 192--.

CONSENT OF S~-RETY.

, surety for The ~-, of on the bond accompanying the lease above-described, hereby consents to the assignment and transfer of said lease as above mad~ Dated at ., this day of ~., 192--.
DEPARTMENT OF THE INTERIOR,

. ~ ~y:; .-'~L~ ~~

Washington, D. C., ~pproved : . .. .

, 195--.

Assistant ~evr~tary.

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.1%T~.:-~=I~ boud accompanying the original lease is to remain in full force and effect, i~ .m.~ist be SlmCtflcaliy so stated in the consent of the surety company.¯ The s u.rety company need only be executed on the origina~ copy .~.~;~: ..~: ...
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(Form I%) LEAD ANn Znmc MXN*NG LEASE, OSAGE RESEBVATION, OKI~. This indenture of lease made and entered into, in quadruplicate, on this day of --, A. D. 192--, by and between the Osage Tribe of Indians, by , its principal chief, under authority conferred by the Osage tribal council, of the State of Oklahoma, party of the first part, hereinafter designated as lessor, and , of -, party of the second part, hereinafter designated as lessee-, under and in pursuance of the provisions of section 3 of the act of Congress approved June 28, 1906 (34 Stat., 539, 543), witncsseth: 1: The lessor for and in consideration of the royalties, covenant% stipulations, and conditions hereinafter contained, andhereby agreed to be paid, observed and performed by the lessee-, does hereby demise, grant, lease, and let unto the lessee--, for the term ending April 8, 1931, or as long thereafter as the title to the mineral remains in the Osage Tribe all the deposits of ~ in or -under the following tracts Of land, lying and being within the Osage Reservation, Osage County, State of Oklahoma, described as : of the Indian meridian,-and containing in the agg~:eg~ate ~ acres, more or less, with the exclusive right to prospect for, extract, mine, store, and remove --, and to occupy and use" so much only of the surface of said land as may be reasonably necessary to carry on the work of prospecting for, extracting, mining, storing, and removing such mineral, also the right tO obtain from wells or other sources on said land, by means of pipe lines or otherwise, a sufficient supply of water to carry on said operations. "" 2. The lessee- hereby agree- that the royalties to be paid under this lease to the officer in charge for the Osage Tribe, shall be computed for each mineral at. the same rate that the amount of concentrates of such mineral bears to the total amount of dirt-or rock actually mined, except as ¯hereinafter stipulat:ed. The royalty So determined on each mineral shall be increased by adding 2 per cent for each increase of $10 in the selling price per ton thereof over and above the following, which shall be the agTeed base or standard: For zinc .............. ______.___ ......................... $50 For lead .................................................. 65 but inn~ case shall the rate of royalty to the lessor or owner of the land he less than 5 per cent or more than 20 per cent on any mineral. The percentage of recovery shall be computed as nearly as prae.ticable upon the ore included in each sale, but where it is impracticable to- do so, the officer in charge and. the lessee shall agree upon some other method of computation which will produce Substantially the same result: Provided, That in case of their disagreemeat the Commissioner of Indian Affairs shall prescribe a rule of computation to be followed in. each case. 3. The lessee- shall pay to the officer in charge, as advance annual rental on this lease, 15 cents per acre in advance for the first year; 30 cents per acre in advance for the second year; 50 cents per acre in advance, for the third year ; and $1 per acre, per annum, in advance for the fourth and each succeeding year. t-hereafter, it being understood and agreed that the said sums of money so paid during any year in which royalties on production are payable, shall be a credit on the stipulated royalties.due from the lessee- if such royalties on production exceed the. advance annual rental for that year. 4. The lessee- covenant- and agree- to exercise diligence in the conduct of prospecting and mining operations, and to open mines and operate the same in a workmanlike, manner, and to the fullest possible extent on the leased

1

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19
premises; to permit no waste upon said premises or upon the mines that may be thereon,, and to suffer no waste to be committed thereon; to leave in the mines proper pitlars, columns or such other permanent supports to prevent the caving or subsidence.of, the surface. In addition to the payment of advance royalties as herein specified, the lessee- as a further consideration, shall prospect the premises for lead and zinc ores by drilling within one year test holes aggregating 2,000 feet unless a sufficient ore body is d~scovered to justify the sinking of a shaft to the ore body and the erecting of a mill when such tract may be released from further prospecting by the written consent of the -superintendent: Prov/ge.d, That within 90 days after an ore body of sufficient quantity is discovered, as shown by the logs or records of the drill holes, .to justify th~ ex-penditure, the sinking of a shaft to the ore body, and the erection of a mill shall be commenced and. continued to completion without ees~ation of ¯work thereon barring unavoidable accidents or causes beyond the control of the lessee--. Provided, That whenever the Secretary of the Interior shall consider the marketing facilities inadequate or the economic conditions unsatisfactory he may authorize the suspension of operations for such Hme as he may deem advisable, but such action will not release the lessee from the payment of the advance annual royalty. 5. The lessee- may use so much Of the surface of the land as may be reasonably necessary for prospecting and mining operations required by this lease, and-shall also have the right of way over and across suchland to any point of prospecting or mining operations, but such use of the surface shall be permissible only under the conditions of least injury and inconvenience to the allottee and owner of the land. Lessee- before commending and during such operations shall pay all reasonable damages for the use of such surface of the land and to any ~owing crops thereon or to any improvements on such land or any damages that, during the life of this lease, shall be occasioned in any manner whatsoever to the allottee or his successor in interest or assignee ol: to the lessee-of the surface of the land by the use of the surface, such damages to be. apportioned among the parties interested in the surface, whether as owners, lessees, or otherwise, as such parties may mutually agree or as their interests may appear : ProvC4eg, That when the damages can not be agreed upon between the parties in interest, amount of such damage shall be determined in accordance with the regulations approved by the Secretary of the Interior. 6. The lessee- shall carry on development, and operations in a workmanlike manner, commit no waste on the said land, suffer none to be committed upon the portion in -- occupancy or use, take-good care of the same, and promptly surrender and return the premises upon the termination of this. lease to whomsoever shall be lawfully entitled thereto in as good condition as received, exceptIng for the ordinary wear and tear and unavoidable accidents in. their proper us]~; shall not remove therefrom any buildings or permanent improvements erected thereon during the said term by the said lessee-, but said btdldings and improvements shall ~emain a part of said land and become the property of the owner of the surface of the land, excepttn~ the tools, boilers, boiler houses, pumping and drilling outfits, engines, and mining machinery, which shall remain the property of the lessee-, and may be removed at any time-prior to 60 days after the termination of the lease by forfeiture or otherwise, provided the pay: ments agreed upon by this lease and the regulations applicable thereto have been made to the lessor~ but not otherwise; shall not permit any nuisance to be maintainec!: .0.n.the..premises under lessee- control nor allow any intoxicating liquors to be s o.l~ ..o,r ,~ve.n away for any purpose on such premises; and shall not use such premis~.£or~.any:.other purpose than those authoriv.~d in this lease.
"..

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7. The lessee-- shall keep an accurate account of aIl.'minlrlg~op~rations, showing the sales, prices, dates~ purchasers, and the whole amount of minerals mined or removed, and the gross receipts derived therefrom, and shall, make sworn reports thereof as required by th regulations, and all sums due as royalty, advance rental,~ surface damages, shall be a lien on all implements, tools, movable machinery, and all other personal chattels used in operation upon said property, and upon all of file unsold minerals obtained from the land herein leased, as security for payment of said sums. 8. The lessee- may at any time, by paying to the Indian Superintendent a|l amounts then due as provided herein, and the further sum of one dollar, surrender all or any part of the land covered by this lease and have the lease canceled as to the land surrendered, .and be relieved from all further obligations and liabilities thereunder as to the part surrendered : Provided, That in the event the lease is surrendered for cancellation in whole or i.n part after a new . lease year has been entered upon, the lessee- and the surety shall be held liable for the advance rentals required to be paid for that year, and no part of such rentals which may have been paid shall be refunded. 9. This lease shall be subject to the regulations of the Secretary of the Interior, now or hereafter in force, relative to such leases, all of which regulations are made a part and condition of this lease: Prov/ded, That no regulations made after the appro.val of this lease, affecting either the payments or damages thereunder shall operate to af£ect the terms and conditions of this lease. 10. Upon the violation of an~ of the terms and conditions c~f this lease, the Secretary of the In~teridr shall have the right at any time after 30 days' notice tO the lessee- specifying the terms or conditions violated, to declare this lease null and void. 11. Before this lease shall be in force and effect the lessee- shall furnish a bond with resl)pnsible surety t() the satisfaction of the Secretary of the Interior, conditioned for the performance of this lease, which bond shall be deposited and remain, on file in the Indian Office, 12. Assignment of this lease or any interest therein may be made with the approval of the Secretar:z of the Interior and not otherwis~ 13. Each and every clause and covenant of this indenture shall extend to the heirs, executors, administrators, successors, and lawful assigns of the parties hereto. In witness whereof, the said, parties have hereunto subscribed their names and alf, xed their seal~ on the day and year first abo,ce mentioned. Two witnesses to execution by lessor-P. 0.
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Csza.~] Attest: ~

P.O. Two witnesses to execution by lessee--

'P. O.
P.O. ¯ Attest :

, [sz~r~]
--.

~CI~"NOWLEI~MENT OF PRINCIPAL CHIEF, STATE OF --', COUNTY OF ~ #8:

Before me, , on .this ------- day of ~, 192--, personally appeared , to me known to be the principal chief of the 0sage Nation and the identical person who executed the within and foregoing ]ease, and

¯ .-:-'.'&::r. ....

............ iii~*-..

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21
acknowledged to me that he executed the stone as his voluntary act and deed on behalf of the Osage Nation and in accordance with the authority given him by the Osage tribal council.
%

(01~c~al t~tIe. )
e ACkNOWLEDGmENT OF INDIVIDUAL. ¯ STATE OF --,COUNTY OF--, 88:

Before me, a notary public in and for said county and State, on this -day of ---, 192---, personally appeared , to me known to be the identical person-- who executed the within and foregoing lease, and acknowledged to me that -- executed the same as -- free and voluntary act and deed for the uses and purposes therein set forth. Notary Pttbtic. My commission expires ,.
OF CORPORATION.

A.CI"{NOWLEI)G]PIENT STATE OF ~', COUNTY OF--, 88:

On this- day of --, A. D. 192--, before me, a -- within and for the -- and--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, an~ that the seal affixed to the foregoing and annexed instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority-of its board of directors ; and said and duly acknowledge that they each had in their- 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 nay hand and official seal this -- day of ~, 192--. l~y commission expires
I)EPA.RT:MENT OF THE INTERIOR,

UNrrED STATES INmAN SZRWCE, Osage ~ ge.r.tcrg, Pawhusk~t, Okla., ----r-. , I9~---. ¯ . The within lease is forwarded to the Commissioner of Indian Affairs with recommendation that it be . See my report.of even date. (One, at tctl..)
OFFICE oF INDIAN AFFAIRS:

Washington, D. C., --., 19S--. Respectfully submitted to the Secretary of the Interior with recommendation that it be -Oomm~sskmer.
WASHINGTON, D. C., ~; 195---.

The xvithin lease is --

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(Form S.) BOND. Know all men by these presents, That , of , as principal--, and as surety--, 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 and each of our heirs, successors, executors, administrators, or assigns Jointly and severally, firmly by these presents. Sealed with our seals, and dated this -- day of--, 192-. The condition of this obligation is such that whereas the above-bounden as principal--, ha-- heretofore or may hereafter enter into .... mining leases other than oil and gas with the Osage Tribe in Oklahoma of various dates and periods of duration, covering the lands described in such leases, which lenses have been or may hereafter be approved by the Secretary of the Interior, and the identification of which herein is expressly waived by both file principal-- and suret-- hereto. Now if the above-bounden shall faithfully carry.out and observe all the obligations assumed in said indentures of lease to which ~ is now or may hereafter become a party, 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 regulations that have been or shall hereafter be lawfully prescribed by the Secretary of the Interior relative to mining leases other than oil and gas executed by the Osage Tribe of Indians 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 force and effect. Signed and sealed in the presence of-P.O.

L.

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as to
P, O, P°O.

[SZAL]

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as to [sz~]

P.O.

P.O.

as to

[ SEAL. ]

P°Oo

P.O.

as to

[SZAL.]

P. O: DEPARTMENT OF THE IN~_$Io~ Washington, D. C., --, 192--. Approved:
t

Assistant Secretary of the Interior.

WASHINGTON : GOVERNMmNr£ PRINTING OFFICE : 1920

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