Show new oil 01 1 land lease regulations secretary of the interior payne has just promulgated operating regulations to govern the production of oil and gas under the terms of the new leasing act of february 25 1920 the regulations in full follow the following terms used in these regulations I 1 ions shall have the meaning here given namely supervisor the agent appointed by and acting for the secretary of the interior to supervise all operations for the discovery or production of oil and gas under these regulations deputy supervisor any person appointed by the secretary of the interior to supervise under the direction of the supervisor operations forthe for the discovery or production of oil and gas under these regulations lessee any person firm corporation or municipality to whom a permit or lease 0 for the discovery or production of oil and gas is issued under the act of february 25 1920 leased lands leased premises or leased tract any lands or deposits occupied under permit or lease granted in accordance with the ahe act of february 25 1920 for the discovery or production of oil or gas powers and duties it shall be the duty of the supervisor and his deputies 1 to visit from time to time leased lands where operations tor for the discovery or production of oil and gas are conducted to inspect and supervise such operations with a view to preventing waste of oil and gas damage to formations or deposits containing oil gas or water or to coal measures or either mineral deposits injury to life or property or economic waste and to issue in accordance with the provisions of the lease and these regulations such necessary instructions to lessees lessels as will effectively prevent waste or damage to deposits containing oil gas water or other minerals or injury to life or property 2 to make reports to the secretary of the interior as to the general condition of the leased property and the manner in which operations are being conducted and his orders are being complied with and to submit from time to time information and recommendations tor for safeguarding safe guarding and protecting the property and the underlying mineral bearing formations 3 to prescribe subject to the approval of the secretary of the interior the manner and form in which all records of operations reports and notices shall be made tests to detect waste 4 to require that tests shall be made to detect waste of oil or gas or the presence of oil gas or water in a welland to prescribe or approve the methods of making j C such tests 5 to require the correction in a awner to be prescribed or approved by him to the t of any condition existing subsequent completion of a well which is causing or is likely to cause damage to any ally corida io coal tion bearing oil gas or water batez or to to life or property arp measures is dangerous or wasteful of oil or gas 6 the lessee shall conform to the terms i to Q the alv of the lease and regulations and ana abd written instructions of the su supervisor supervise pervis or shall use all reasonable precautions 1 ineth me corrance cor dance with the most approved to to prevent waste of oil or gas dams damage of 01 oil 1 s bearing formations or deposits dt water or to coal measures or other eral deposits injury to life or property prope economic waste 1 in I 7 the lessee shall designate for J 0 a local or resident representative of per each gro group ap permit or lease or from mits or leases he holds and I 1 give resident resi deot oh local postoffice post office address of su gorce isor or supera sup representative on whom the the deother of authorized representative dofice apartment part ment of the interior nay may c 0 01 otherwise or with whom he may cate in securing compliance with these regulations ions representative of lessee the resident representative of the lessee of lands not yet drilled shall be designated before drilling or other operations are begun gun the resident representative of the lessee of lands on which such operations were begun prior to the approval of these regulations ions shall be designated within thirty days after their approval if said designated local or resident representative shall at any time be incapacitated for duty or absent from his residence as given in the address furnished the lessee shall designate in writing some person to serve in his stead and in the absence of such representative and of written notice of the appointment of a substitute any employee of the lessee who is on the leased premises or the contractor or other person in charge of the drilling shall be considered the representative of the lessee for the service of orders or notices as herein provided and service upon any such employee contractor or other person shall be deemed service upon the lessee 8 the lessee shall not begin to drill deepen plug or abandon any well or alter the casing in it without first notifying the supervisor or his deputy of his plan or intention keeping of records 9 the lessee shall keep on the leased premises or at his headquarters in the field accurate records of the drilling drilling re deepening plugging or abandoning of all yells wells and of all alterations of casing the records to show all the formations drilled through and their content of oil gas or bater ter if any and the kinds length and ies of casings used in drilling the wells and copies of such records shall be trans cited bitted to the supervisor by the lessee with n fifteen days after the first completion of any well or after the completion of any further operations on it the lessee shall also a so submit to the supervisor such other reports ports and records of operations as may be required squi red in the manner and form prescribed by the supervisor 10 the lessee shall permanently mark all al rigs or wells in a conspicuous place walh ill his name and the number or besig nation lon of the well and shall take all necessary indans ans or precautions to preserve these markings 11 ll it if the lessee shall fall fail to plug prop erly y any dry or abandoned well the super isor sor atter after the giving thirty days notice to at the tle parties e in interest may plug pg such well expense of the lessee or his surety 12 2 the 13 lessee shall recover all oil in a 8 abi or emulsion and put it into market condition it if it can be recovered at a profit ao 10 i if the formation on of B S or emul be 8 not lot preventable and the oil cannot recovered covered by the usual modes of treat ment the cost of putting the oil into marketable condition by any unusual mode of treatment shall first be deducted from the amount received for it before royalty is computed 13 the lessee shall make a full report to the supervisor of all accidents or fires on the leased premises 14 the lessee shall provide tanks suitable for containing and accurately measuring the crude oil produced from the wells and shall furnish to the supervisor accurate copies of all tank tables and all run tickets as and when requested the lessee shall not except during an emergency permit oil to be stored or retained in earthen reservoirs or in any other receptacle in which there may be undue waste of oil by seepage or evaporation if the lessor elects to take its royalty in oil it shall give the lessee ninety days notice thereof in advance the lessee shall furnish storage for such royalty oil free of charge for thirty days after the end of the calendar month in which such oil is produced the oil to be stored on the leased premises or at such place as the lessor and the lessee may mutually agree upon natural gas measurement 15 all gas subject to royalty shall be measured by meters approved by the supervisor and installed at the expense of the lessee at such places as may be determined by the supervisor or his deputy the standard of pressure in all measurements of gas sold or subject to royalty shall be ten ounces above atmospheric pressure and the standard of temperature shall be 60 degrees fahrenheit and all measurements of gas shall be reduced by computation to these standards no matter what may have been the pressure and temperature at which the gas was actually measured 16 for computing the royalties provided for in the lease the value of all casing head gas produced shall be assumed to be one third of the value of the marketable casing head gasoline extracted from such gas but if the lessee receives a higher price for casing head gasoline manufactured from such gas the royalties shall be computed on that price 17 for computing royalties the gasoline content of all casing head gas produced at any plant during any month shall be determined by dividing the total quantity of casing head gasoline produced during that month after deducting all naptha or other materials used tor for blending products by the quantity of casing head gas used in the plant during the month as shown by meters if the gasoline plant on the leased premises obtains casing head gas both from those premises and from other sources or it if casing he head ad gas is sold or transported from the leased premises to plants plant gnot not on the leased premises the gasoline content of the gas shall be determined by hold tests made under the supervision of the supervisor or his deputy and if they are deemed necessary or desirable tests shall be made of all casing head gas used in any such plant in order to determine whether the field tests of the gas produced from the leased premises shows as great a gasoline content as is shown by the casing head gasoline marketed in the actual operation of the plant and after such tests have been made the supervisor or his deputy shall determine the gasoline content of the gas produced from the leased premises enforcement of orders IS 18 if the lessee fails to comply with these regulations or any part thereof or with the order or orders of the supervisor or his deputy the supervisor or his deputy shall have authority to require him to suspend the operation or practice that conflicts with the regulations or orders or the use of any device that the supervisor or his deputy may consider wasteful or improper this order of suspension shall remain in force until the lessee complies with the regulations ions or orders that have been violated or until such order of suspension has been revoked by the secretary of the interior provided that when the continuance of such operation or practice or the use of the device considered wasteful or improper does not threaten immediate serious and irreparable damage to oil or gas or other valuable mineral deposits the supervisor shall temporarily pora rily waive compliance with such order of suspension pending an appeal to and a review by the secretary of the interior of such order upon the lessees lessels les sees lodging with the supervisor a surety bond or depositing in escrow cash or united states liberty bonds in a fixed sum the forfeiture of the amount of the bond or deposit to be conditioned upon compliance with the order or orders of the supervisor if such order or orders are not revoked by the secretary of the interior such appeal must be made within ten days from the issuance of the order and the secretary of the interior shall pass upon the appeal as soon thereafter as possible and shall return the bonds or the sum deposited or make such disposition of it as the law regulations and facts may warrant 19 the lessee must immediately obey all orders of the supervisor or his deputy except as hereinbefore provided but any order shall be subject to review by the secretary of the interior upon appeal filed by the lessee within thirty days after it has been served the administration of these regulations shall be under the direction of the bureau of mines |