Show GOVERNMENT GO HOLDS OIL AND GAS LAND TITLE UNDER BILL T TITLE ITLE to all oil and gas gas bearing lands withdrawn from entry by I A presidential order in the future will vill vest in the tile United States I government and no land upon which oil has been discovered shall pass from the government to the discoverer under the provisions of the leasing bill which has passed both houses of congress and andis is now in conference on minor details including the royalty and interlocking directorate clauses This was received this I morning by George F. F McGonagle state engineer from Senator Reed Smoot with a copy of the leasing bill Un Under der the provisions of ot the bill a prospector for tor oil and gas may be granted an exclusive prospecting permit permit permit per per- mit to prospect on 2560 acres of land for a period of or two years provided tho the deposits belong to the United States Staten and are not In any known geological I structure of ot a producing oil or gas field The prospector must begin drilling drill ing operations within six months from tho the date of or the permit and within a year after the date of ot the permit must drill one or more wells for oil or gas gasto gasto I to a depth of or BOO feet unless valuable oil or gas deposits shall have been discovered sooner Within two years I of the date of the permit the prospector must nUit for or oll-or gas to to- gate G depth I th of not Jess than 2000 feet teet unless valuable deposits of oil or gas shall have been discovered sooner Upon establishing to the satisfaction of the secretary of the Interior that valuable ore or gas deposits have been discovered the prospector will be en entitled entitled entitled en- en titled to lease one-fourth one of tho the land embraced in the prospecting permit LEASES 20 YEARS Such leases will be for a term of ot twenty years upon a royalty of or 5 per percent percent percent cent on the production and the annual payment of or 1 Jl per acre per year In advance the rental paid for any anyone one I year to be credited against the royalties royalties royalties royal royal- ties as they accrue for tor that year with the right of or renewal The permit holder hold hold- er also shall be entitled to a preference right to a lease for the remainder of or orthe the land within his prospecting permIt permit permit per per- mit at a loyalty of or not less than han 12 per cent in amount or value of or the pro pro- The royalty will be bo determined determined deter deter- mined by competitive bidding Until the permit holder shall apply I for lease to the quarter one-quarter of or the perI permit permit per per- mit area he will be required to pay I the government 20 per cent of or the gross value of or all oil or gas secured by him from the lands embraced within his permit pet The renewal of or the year 20 leases shall be bo for successive periods of or often often orten ten years BIDDING POSSIBLE deposits of oil or gas situated within the known geological structure of or a producing oil or gas gasfield gasfield gasfield field and the lands containIng containing containing contain contain- ing the same not subject to preferential lease may be bo leased by competitive competitive competitive tive bidding The tracts shall shaU not ex exceed exceed ex- ex coed acres and shall shaU not exceed in length lenth th two and one half times their width The lessee must pay tho the bonus that may be accepted and a royalty of or not less than 12 per cent of production tion the amount to bo be o fixed by the lease Oil shale lands may be lea leased d in areas not exceeding no acres with an annual rental of or BO 60 cents per acre and payment of such royalties to be specified in the lease VALID CLAIMS EXEMPT The Tho law will not be retroactive e and will not apply to valid claims already existent maintained In compliance with the tho laws under which the claim initiated which claims may be perfected perfected perfected per per- under such laws Including Cia dis covery ry Coal ma may be leased in tracts of forty fotI tot for ty tv acres each or multiples thereof but butI butin I I in no case so exceeding 2560 acres The Tho I leases may be awarded by competitive bidding The rules that govern Jovern are I similar to the rules with regard to the I leasing of or oil lands Provision Is also made for tor the leasin leasing leasing leas leas- in ing of or sodium and phosphate lands |