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Show Ickes Issues Rules RulesOn RulesOn RulesOn On Oil Permit Permits PermitsSecretary PermitSecretary Secretarjof Secretary Secretarj- Secretarj - of the Interior Harold HaroldL L Ickes has announced tha that t oil oiland oiland and gas prospecting prospcctmg permits are areeligible areeligible eUglble eligible for e extension .tenslon tenslon > . to Dec 31 31,1939 311939 , 1939 . , undei undei * the pro piovnons plO\1C'lons plO 1C'lons 1Clons \ rvrons ' of uf the theact theact act of August 26 1937 ( Public No No388) No388 388) 388 ) , only if ( (1) 1 ( ) they are outstand outstand- outstandlIlg outstanding outstanding - ing lIlg on Dec 31 . , 1937 . , and if (2) 2 (2)they (2)they 2they ( ) ' they properly fall , on Dec 31 , . , 1q 1Q'7 1Q7 1 17within ' 7 7within , I \Vlthm Vlthm within \ one of the following cIa classes classesa cses ; : ( a ) Permitshich Permits \ which \\hich hich ha\o ha o h'I\c h'I hI c hate : ' . \ \ been beencommitted beencommitted I Icommitted committed in whole or in 111 part to toa toa toa a cooperative cooperat1\e cooperat1 e cooperatne \ or unit umt plan of ofdeelopment ofdevelopment ofdevelopment de\elopment de elopment development \ and operation that on onDec onDec onDec Dec 31 , 1937 , , has been approved approvedor or prescribed by the secretaly secretary of ofthe ofthe ofthe the interior mterior , , or is in process of re- re revISlon revision re revision - - vision vISlon or reconsideration pursuant pursuantto to : prior pnor reviewIthout review revie\\ revie \ \ , , without reJection rejectionin , , 111 in the department of tlie the interior mteror mterior ! : ; ; ( b ) Permits " , which hlCh , , together with withone withone withone one 01 or more other permits , , ha\e ha e hate haebeen hatebeen havebeen \ been committed m whole or in part partto partto partto to a coperathe coperative or unit plan of ofdeve10pment ofdevelopment ofdevelopment deve10pment development and operation operatlon for th the thewhole thewhole ( ' whole of any single smgle oil 011 or gas pool poolor poolor poolor or field ( or reasonably compact compactarea compactarea compactarea area ) that was filed before Jan 1 1,1937 11937 , 1937 , and rejected pursuant to in- in instructlOns instructions in instructions - structions structlOns of said sald secretary , ( c ) Permits under which wluch approv approv- approved approved approved - - ed drilling \ was as actively actlvely in progress progressat at some time within the calendar calendaryear calendaryear calendaryear year 1937 ; : ( d Q ) Permits under which at least leastone leastone leastone one well shall have been drilled dnlIed leastI to toa toa toa a depth of not less than two t0 t\\ t \ 0 thous thous- thousand thousand thousand - - I and feet subsequent to Aug 21 21,1935 211935 , 1935 ; ; ( e ) Permits which whlch have been beenIssued beenissued beenissued Issued subsequent to Aug 21 , , 1935 1935and , , and for which w1uch timely comphance compliance comphancehas compliancehas compliancehas has been made with Wllh the dnlUng drilling dnlUngreqwrements drillingrequirements drillingrequirements reqwrements requirements of section 13 of the theact theact theact act of Feb 25 , . 1920 , , to the extent extentreqmred extentrequired extentrequired reqmred required by Dec 31 , , 1937 , , or , , in m the theabsense theabsense theabsense absense of such timely drilling drllhng , , for forwhich forwhich forwhich which an acceptable cooperative or orumt orunit orunit umt unit plan of de\ de development dee10pment \ e10pment and oper oper- operabon oper- oper operation operation - - ation abon has been filed on or before beforesaid beforesaid beforesaid said datePermits datePermits date datePermits Permits still stUl outstanding outstandmg on Dee Dec Dec31 31 , 1937hieh 1937 , \ which \\hieh hieh do not fall Vwithm within Vwithmone withinone withinone one or more of classes ( a ) to ( e eWTll ) , , mll will not be considered eligible el1glble for forfurther forfurther forfurther further extension extenslOn and \ will III cease and andterminate andterminate andterminate terminate automatically without withoutnotIce withoutnotice withoutnotice notIce of cancellation on the final finaldate finaldate finaldate date of their current term PermIts PermItswhose Permitswhose Permitswhose whose initial mltal [ 2-year 2 year - term expireden expiredon expired on or prior prI01 prroz : , to Aug 21 , 1937 , or orwhose orwhose orwhose whose extended . Jterm .lerm lerm Term expired or orw1ll orwill orwill w1ll will expire pnoi prlOl prior to Dec 31 , , 1937 1937are , , are eligible elilpble for e\tension e tension e\t.enslOn et.enslOn t.enslOn tenslOn extension \ ' . to Dec Pee 31 31,1937 311937 , , 1937 . , , if application for e extension .tenslOn tenslOn > . has hasor hasor hasor or will wll1 be filed before final date of oftheIr oftheir oftheir theIr current term and if eqwtIes equities eqwtIeswarranting equitieswarranting equitieswarranting warranting extension exist in con- con conformity conformity con conformity - formity with 'uth uth ' the e existing .1stlng 1stlng > . depart depart- departmental departmental departmental - mental practIceith practice , with \ith ith \ respect to toextensIOn toextension toextension extensIOn ; ( Permits \ which hieh \ were ere is- is issued issued is issued - sued subsequent to Aug 21 , , 1935 1935and , , and andhose \ whose \\hose hose initial two-year two year ho-year ho - terms termsexpire termsexpire termsexpire expire prior pnor to Dec Dee 31 , 1937 , are areextended areextended areextended extended to that date by the act actof actof actof of Aug 26 1937 , to enable com- com compliance compliance com compliance - plianceuth pliance with \uth uth w \ ith the conditions speci speci- specified specified specified - fied in clause ( e ) of the act of Aug Aug26 26 , 1937Secretary 1937 1937Secretary 1937Secretarv Secretary Secretarv Ickes explained that the thecurrent thecurrent thecurrent current term of a permit must be beconsIdered beconsidered beconsidered consIdered as expiring expumg on . (1) 1 ( l ) ) The last date of the llutIal initial llutIalterm initialterm mitialterm term for which the permit was wasissued \ wasissued as asIssued Issued where no extension extenslOn has hds been beengranted beengranted beengranted granted by act of Congress or b by bythe bythe } ' the Secretary Secretarv of the Interior . , , or (2) 2 ( ) The last date of the final ex- ex e'c- e'c ec extension e'ctension ex extension ' - - tension when one or more exten e\ten- e ten e.ten- e.ten etenSIOns e.tensions extensions ' \ . - sions have been or ' " will ill have been beengranted beengranted beengranted granted by the secretary , , or (3) 3 ( ) Dec Dee 31 , , 19371tll 1937 , , \ vuth \\1tll 1tll with respect to toaU toall toall aU all permits perm1ts extended by the act of ofAug ofAug ofAug Aug 21 , , 1935 (49 49 (4.9 4.9 ( . Stat 674) 674 ) , , or by bysubsectIon bysubsection bysub-section bysub section sub-sectIon sub sectIon - ( e ) of the act of Aug Aug1937 1937 , , which1111 which \1111 1111 v ' \ ill not qualify Quahfy for ex- ex extension ex extension - tension to Dec 31 . , 1939 , or (4) 4 ( ) Dec Dee 31 1939ith 1939 , ' \ with \\ith ith respect to toall toall toall all permits , which .hieh hieh . . will v.1ll v1ll qualify for foreytension forextension foreytension eytension extension to that date under the theact theact theact act of Aue Aug 26 , 1937The 1937The 1937 1937The The secretary stated that a con- con considerable con considerable - siderable slderable number of permits perm1ts which whichv whichvere v " , ere not extended to Dec Dee 31 , 1937 1937by , , by the act of August 21 . , 1935 , or by bydepartmental bydepartmental bydepartmental departmental ordei ordel order , and whose whoseinitial wl1o v/hoseinitial v hoseinitial / c < ; cmitial mitial initial or extended term had ex- ex exPi expired ex expired - Pi pired ! on or _ pn prior r to Aug 21 , 1937 \ . time or application to cxcange excange the thepernut thepermit thepermit pernut permit for a lease having been filed filedprlOr filedprior filedprior prlOr prior to their respective expiration expirationdates expirationdates expirationdates dates , , have alreidy alre'ldy alreldy alre'rdy alrerdy ' ' been termmated terminated termmatedand terminatedand terminatedand and canceled automatically termmatedI by the theact theact theact I act of Aug 26 , , 1937Right 1937Right 1937 1937Right Right to a lease on rllSCO\ rllSCO rllSCOen discovery discoverymade discoverymade \ en enmade made v/ithin v ithin withIn / the CUl cuircnt current rent term enI of ofa ofa ofa I a pprmit permit remains rcmams unimpaired urnmpaued , , and andthe andthe andthe the act docs does not disturb d1sturb the author author- authorI authorIty authority authority - I ity of the department to cancel any anypermit anypermit anypermit permit for proper cause within withm the thepenod theperiod theperiod penod period covered by its CUl cuircnfc current rent term termThe termThe termThe The act also does not affect the thedepartment thedepartment thedepartments department s authority to issue a alease alease alease lease under the act of Aug 21 21,1935 211935 , 1935 , if exchange eAchange for a permit in ingood ingood ingood good standing on application appl1cation of ofthe ofthe ofthe the permittee filed prior to the expiration ex- ex expIration ex expiration - piration of the current termThe termThe term termThe The act of Aug 26 , 1937 , is itself itselfnobce itselfnotice itselfnotice nobce notice to all aU permltteees permitteees of Its pro- pro prolSlOns provisions pro-\isions pro isions - \lSlOns lSlOns visions \ , , and formal notices to the thepermittees thepermittees thepermittees permittees , whether of extensions extensionsglanted extensionsgranted extensionsgi glanted granted anted by the act or of termina termina- terminations terminations terminations - - tions proislOns of the permits under Its pro- pro provisions pro provisions - \ visions \islOns islOns are not necessary . . However Howeverany , , any interested interesCed party who makes in- in inqUlry inquiry in inquiry - qUlry111 quiry qUlry will \\111 111 \ be advised as to tc the thestatus thestatus thestatus status of the permit under the new newlaw newlaw newlaw newlawSecretary law lawSecretary Secretary Ickes indicated mdicated that the thenew thenew thenew new legislation is applicable to tonearly tonearly tonearly nearly 8000 permits issued on ap- ap applications applications ap applications - plications filed prior to Aug 21 21,1935 211935 , , 1935 The act of that date subsltuted subsituted subsuted I I I I a leasing system with a mimmum minimum mimmumroyalty minimumroyalty minimumroyalty royalty of 12 % per cent for the per- per permit permit per permit - mit system and minimum royalty of of5 5 per pcr cent provided for tor in the leas- leas leas - ing leasing act of 1920 About 6000 of at these thesepermits thesepermits thesepermits permits are past the 2-year 2 year - period periodof periodof periodof of their initial term but have re- re reI remamed remained re remained - - I mained mamed themfor outstanding ' , , some of them themI themfor themfor I for 10 to 15 years , , under extensIon extensIonI extensIonprovlGions extensionprovisions extensionprovisions I provlGions provisions of various vanous acts of con- con congress congress con congress - gress The current term of the themajority themajority ! majority of these permits will ex- ex exDee expire ex expire - - ' pire Dec Dee 31 . , , 1937 From ITom 1500 to to2000 12000 2000 of ot the outstanding permits af- af affected affected af affected - f aff fected by the new act aic ale are now 111 in 111their intheir intheir their initial term |