Show LAND OFFICE MAKES NEW prospecting RULING the following instruction on prospecting permits and non mineral entries have been sent out from washington by commissioner clay tallman of the general land office instructions have been requested from several local land offices as to the proper procedure to take in connection with applications or selections filed for lands embraced in applications for prospecting permits or leases or which may be subject to preference rights under the leasing act of february 25 1920 A prospecting permit is granted in contemplation temp lation of a future lease for a part or all of the same land in case of discovery thence as to subsequent non mineral entries with a reservation of the oil and gas to the united states the lands embraced in a prospecting permit should be treated the same as if embraced in an oil or gas lease with a reservation to the united states or of america of the right to lease sell or otherwise dispose of the surface lands embraced within such lease under existing law or laws hereafter enacted in so far as said surface is not necessary for the use of the lessee in extracting or removing the deposits therein pursuant to section 29 of the leasing act As the placing of such a reservation in a lease is made discretionary with the secretary it necessarily follows that any disposition of the surface of lands embraced in permits or leases is by act left entirely discretionary with the land department to be determined on the facts of each particular case the so called relief sections of the act 18 19 and 22 recognize equitable rights in the owners and occupants of claims initiated under the general mining laws and accord to them a preference right which may be exercised by applying within the time and in the manner prescribed by sections for oil and gas leases or permits those prior rights of claims if asserted within the time accorded the clai claimants marits by the statute are superior both in time and right to non mineral applications or selections having their inception subsequent to the leasing act it is apparent also that the allowance of non mineral appropriations of the surface of vacant lands in producing structures will interfere with the leasing of such lands by competitive bidding under section 17 of the leasing act outside producing structures you are therefore directed 1 in all cases of applications to make non mineral entries or selections of lands outside of areas which have been designated by the department as within the geologic structures or producing oil or gas fields and which lands are also embraced in applications for prospecting permits or in permits granted such non mineral applications should be received noted on your records suspended and transmitted to the commissioner of the general land office for instructions if in any case such entry or selection shall be allowed by you on instructions from the commissioner the same will be with a reservation of the oil or gas to the united states and subject to the rights of the party or lessee as the case may be to use so much of the surface land as is necessary in extracting and removing the mineral deposits without cg compensation to the non mineral for such use in accord with section 29 of the leasing act in producing structures 2 you will reject all applications t to 0 enter file upon or sel selection edtion under the land laws lands which have been or shall be designated by the department as within the known geologic structures of producing oil or gas fields pending consideration by the department of the agricultural character and value of such lands and a determination as to whether the surface of the land is of agricultural character and value and may be disposed of without detriment to the public interest 3 all homestead entries or other filings or selections allowed prior to receipt of these instructions and subsequent to february 24 1920 which are found to be in conflict with preference rights timely assorted I 1 under the remedial provisions of the act of february 24 1920 shall be suspended pending consideration of the application for permit or lease and the parties in interest so advised if the permit or lease be allowed or granted such homestead entry or other allowed non min eral application or selection will be cancelled it if the lands are within designated geologic structure of producing oil or gas fields if outside of such designations the agricultural entries applications or selections will be allowed to stand or will be canceled in the discretion of the dep department A rt as provided in section 1 hereof liability for damages 4 your attention is drawn to the distinction which exists under the law with respect to the rights of permit tees and lessees lessels of mineral deposits in cases where the non mineral entry or selection is allowed subsequent to the application for permit or lease or subsequent to febra february a ry 25 1920 in conflict with rights recognized b by sec s ee tion 18 19 and 22 of the leasing act and those cases where the non Ini mineral geral entry filing or selection with a reservation of the mineral either at time of entry or later und erthe act of july 17 1914 36 stat or december 29 1916 36 stat precedes the permit lease or mineral right for in the latter case the non mineral claimant is entitled to be reimbursed for all damages to crops and improvements by reason of the operations of the or lessee as provided in those acts while in the former the respective rights of the mineral and surface claimants are gover governed governer nef by section 29 of the leasing act |