Show I Land Commissioner Suspects I Discovery Facts Are Held in Secret for Excessive Profit Official Proposes to Probe Conditions in Fields Operated d Under Le Leases ses Granted by oy Commonwealth Common Common- V wealth to See That Every Provision of Permits Is Observed to the Letter I 4 f f T LACK ACK LISTED drillers w Who ho come to Utah to drill oil wells andI and B BLACK I c then when the golden brown sea of petroleum is reached undertake undertake under- under I J take to mud up the well lose their tools and do the many things that are arc done to prevent the find from becoming known thus retardIng re retarding retarding re- re the development of or the oil Industry of the state are to be bo stopped The state by Its Hs land commissioner from whom the oil lands are leased leas is to take a hand and the terms of the lease will be carried out or the permit will be canceled and what work has been done on the property will revert re to the state This action has been determined upon and experts are areto areto areto to visit the several oil fields In the state where It Is known that oil ha has been struck and the facts will bo be i imade I made known to the public I In all aU of the oil fields of the country it is known that large oil interests when development shows that there is petroleum in certain sections invade I the field erect derricks and spud In wells The intention is not to bring the he wells In at that time in the event that the brown fluid is found but to toso toso toso so manipulate the drilling that when oil is struck something will take place to prevent the disclosure of or the find and the well will be capped Later on when the excitement or boom is over agents of or the companies visit the field and take in the l property which has not been developed at nominal figures and further development Is left until I it suits the convenience of or the purchaser purchaser purchaser pur pur- chaser who in the end represents some of the great oil interests In the country TO MAKE PROBE s It t is bell believed ved that oil n has J been dJs ds- covered fn in the fiel fields s around HuntingtOn Huntington Hunting- Hunting tOn ton to in Emery county the land Jand commissioner commissioner com com- missioner says The state labors un- un unI un-n der I r the belief that the tM loss of tools and the alleged fishing for them Is simply a blind It proposes to ascertain ascertain ascer ascer- tain whether or not it Is being fooled All leases made by the state of Utah I of its oil lands ane explicit and plain There can be no misunderstanding as asto asto asto to the terms of the lease One clause provides as follows It Is mutually understood and agreed that the suspension of prospecting prospect prospect- ing drilling boring or mining operations operations operations opera opera- by the lessee for a longer period than two months without the consent of the lessor shall be cause of ot forfeiture forfeiture for for- and the lessor may declare a aj forfeiture thereon and enter and take possession of the premises provided j that if the lessee shall be unable to continue prospecting drilling boring or r mining operations for any cause not due to the fault or negligence of the lessee the lessee leslee shall be entitled to a suspension of operations until discontinuance of such cause of suspension suspension sus sus- pension but no suspension of payments hereunder shall be granted g I GUARD PROVIDED It Is furtner provided that it Is understood understood understood un un- un- un and agreed by and between I the parties hereto that the lessor its officers and agents shall shan have the right at all times to go in and upon the 1 I leased lands and premises during the term of said lea lease e to inspect the work I done and the progress thereof on said lands and the products obtained there there- from and to post any notices on the I said land that it may deem fit and proper and the lessee shall shan also permit permit permit per per- mit any authorized representative of ot the lessor to examine all books and records pertaining to operations under this lease and to make copies of and extracts from the same if desired I All of the leases provide that the lessee is to pay pay paya a rental of 50 cents per acre per annum for or the land Jand and andI j to pay the lessor a royalty of 12 per percent I I cent on all petroleum oil gas naptha I asphaltum or kindred substances deI derived derived de de- de- de I rived from the lands leased or the value lof of the discovery and production althe alI al at t j I the market price at the option of or the lessor I MUST DO WORK I The less lessee agrees to commence commence actual ac actual actual ac- ac prospecting pr or mining operations upon the land included In to the lease within one year ear from the date of the I lease Jease- and thereafter to diligently Prospect for develop and mine the petroleum oil gas naptha asphaltum or Kindred substances In or upon said premises and to properly and d efficiently effi elfi- O- O case every well wen on the leased I premises s with good and proper casing when essential to the future prot protection of the well and at nt all times to efficiently efficiently effi effi- I I plug plus and keep such well or wells protected In proper manner and to I I pump and work an any well or wells which shall prove to yield oil on In payIng payIng paying pay- pay Ing quantities faithfully and with good land and sufficient machinery and appliances anc ances s so long as the said well or wells I I continue continuo to yield oil In remunerative quantities or until the termination ot of otI this lease without expense to the tho I lessor Jessor and to submit annually at tho the expiration of each year ear a report under oath as ns to the tho amount and character of the prospecting and mining operations operations operations opera opera- i performed FOR MEASUREMENT I i In addition the 1 lessee agrees to install in stall appliances for accurately m measuring surIng sur- sur Ing the quantity of petroleum oil gas I naphtha asphaltum or kindred sub- sub stances atam atances el extracted used sold or shipped I i hereunder from Crom said premises and to I keep an accurate record thereof and j to furnish the lessor with a sworn I 1 I Continued on page 3 STATE TO FORCE I OIL DEVELOPMENT Discovery Facts Must Not Be Concealed Continued from page 1 1 statement thereof not later than the day of each calendar month next succeeding the production of said pe petroleum petroleum petroleum pe- pe oil gas naphtha asphaltum or kindred substances The lessee further further further fur fur- ther agrees to properly offset any producing well drilling within feet I of the boundaries of this property by I I commencing drilling operations not later than sixty days after discovery of commercial production In said w well wU on adjacent land and agrees to dill to-dill- diligently diligently dili dili- I gently prosecute drilling of such offset well to completion PROMPT PAYMENT It Is expressly understood and agreed that the lease Is conditioned upon the payment of the rent annually In advance on the second day of January January January Janu Janu- ary of each j year ear except the first years year's rental which Is payable upon the execution execution execution exe exe- cution of this lease and upon the I compliance with all other conditions provisions and covenants set forth and that upon failure to pay said rent or ore royalties loyalties or upon failure to comply II I with any of ot the conditions provisions or covenants of this lease the lessor may at its option after aCter thirty days' days I notice by mall mail cancel the I lease And It Is further understood and agreed that upon failure or refusal of I Ithe the lesee to accept the readjustment I of terms and conditions demanded by bythe bythe I the lessor at the end of any twenty twenty- year period such failure or refusal shall shall work a forfeiture of the lease and the Isamo i same samo shall be canceled and the lessee upon notice of cancellation or I I j ture shall shaH forthwith remove such surface surface sur sur- sur-I sur face faco Improvements or property of the I lessee which can be removed without Injury to the workings necessary the I j future operation of the property for i i any purpose both surface and underground underground under- under i i ground from the premises except thee the I casings of wells which may have been l II j I I driven and producing oil which shall i inot I 1 I not be removed and surrender possession possession posses- posses j I sion slon of the leased premises to the lei lea leai i I sor including all underground workings workings work work- in ings s in such order and condition work work-I as to I permit of the continued operation of the ling mg drilling boring or I mining operations or other workings I performed on said premises It will be seen een from the above that thai the state has practically all the necessary necessary necessary sary rights protected to see that If there is a discovery of oil on the lands leased development of the find must be carried out The state land commissioner believes that oil oU has been found and he proposes proposes proposes pro pro- poses to see that this find Is made known to the world and with that Ob Object object object ob- ob In Inlew view lew a thorough Investigation is to be made by oil oU experts who desire to see the field In and around Huntington Hunting- Hunting ton de developed eloped as are other fields In the state I There is but little question that oil has been discovered In the vicinity of Huntington said a state official to today today today to- to I day and all effort has been made to keep this discovery away from the people people people peo peo- If possible Utah welcomes capital capitalI I to the state and will aid It In every way I possible but in so doing It will not be bea a party to anything that will holdback holdback hold holdback back development We believe that I there Is oil In the Huntington section of Emery county We Ve likewise believe that the drill has penetrated this oil and we are determined that the state shall know it HAVE GREAT FAITH Utah people have long pinned their faith to the oil Industry and that faith we feel Is sure to materialize In realization tion In fact we believe that It has materialized materialized materialized ma ma- and we do not intend that It shall be choked off Experienced drillers know very well when the oil sea has been penetrated d and this does not necessarily mean that a gusher i must be brought In to demonstrate this I In many instances the tho wildcatters i are the ones who make the greatest I finds but here are those who have I put their money Into rigs and drills and the necessary machinery to seek seel I for the brown fluid and who are I continuing to develop their fields If i there is an attempt upon the part of some of tho the larger lessees to conceal I the tho real facts from the people I am glad that the state Is going to make the Investigation that will prove the truth or falsity of the statement I It was was stated at the capitol today that the experts who are to make the Investigation for the state are arenow arenow arenow now on the ground and have been for tor a week or more and that others are on tho the way There is to be no holding back of development It I Is stated I |