Show Five Companies Bid For Indian Indian Oil Land Leases Bids Range From I To 2111 an Acre With Bulk Bulls of an Acre Five major oil companies companies- I Carter California Texas and Pacific Western sub Western sub mitred bids for oU oil and gas G 2 rights on the acres of al- al allotted allotted sl In In- In Indian and tribally owned dian dlan lands which have been be n of ot for lease leue a second time tim by bythe bythe the Ute Tribal Council These bids bide were opened at Fort Duchesne Du Du- Duchesne chesne by Superintendent For For- Forrest Forrest rest R Stone last Thursday after alter afternoon noon Al companies bid the standard yearly Jearly rental of an acre for fot forthe forthe the year 10 lease period period How How- However However Hoever ever the bonus offers offers ranged A from a low of to a high of 2111 an acre with the bulk of the leases going to an acre A total of units were of of- of offered offered for lease These units vari- vari varied vari varl ed in size from 38 to acres each Carter Oil Company and Oil and Gas Co submitted sub Joint high bids for ap ap- ap approximately proximately 90 per r cent of the rands lands ands offered Their bonus bids on various units ranged from to 1125 an acre bulk of their bids at an acre California Company bid the highest bonus when it offered 2111 an acre for acres This company also bid an acre for 1141 acres a Texas Company offered 10 an acre bonus for 80 acres an acre for acres 5 an acre acre for acres and an at an acre for 80 acres 0 esp The Pacific Western Oil Com Com- Company pany any bid 11 an acre bonus for 80 acres Members of the Tribal Council indicated that they would accept the bids offered However Be be- be because because cause of Carter tice of bidding on an all or ing Jt basis on on single tracts m- m ma m a i ig- ig units there it a Of the tom p b test the awarding awarding of the d 1 t the grounds that the inv bid to-bid did not provide for nothing offers This is the second time that have been offered for oil lease On the earlier of of- offering fering Carter submit submit- submitted submitted Of-I Of ted a joint high bid for the full tract offering an acre plus a bonus of an acre This bid was rejected by the Tribal Council because the bonus of- of of offered 1 was too low and the land landi i was for leasing 1 Although the Indians will re re- receive re- re receive between and 60 60 00 l more in bonuses as the re- re result re- re suit sult of again offering these lands for lease several observers doubt that the deal is as i advantageous advantageous to them as was the form form- former former er bid for the reason that the successful bidders were required by the earlier lease provisions to drill a foot test well within one year from the date of the lease The new contract does not include this specification specification tion and therefore the success success- successful successful ful bidders are under no obliga obligation gation ga on to actually drill for oil within a specified period of time These observers point out that that the cost of drilling I a deep test f well lIc averages g gI and that the Indians were assured of this expenditure by the former con con- contract tract The lands involved are with- with within fin in the Uintah-Ouray Uintah Uintah-Oura Uintah Indian Re- Re Reh Rei Reservation i in townships 1 and 2 south h ranges n s 1 wa and 2 east Uin- Uin tah Special Meridian These lands hinds adjoin on the southwest the Carter Oil Company's Ys unit I block on which the Company Com pan drilled its Knudson No 1 well 6 2 1 miles west of Vernal which well has been abandoned |