Chapter 249. To authorize the Secretary of the Interior to issue to certain persons and certain corporations permits to explore, or leases of, certain lands that lie south of the medial line of the main channel of Red River, in Oklahoma, and for other purposes
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CHAP. 249.— An Act To authorize the Secretary of the Interior to issue to certain persons and certain corporations permits to explore, or leases of, certain lands that lie south of the medial line of the main channel of Red River, in Oklahoma, and for other purposes. March 4, 1923.[[S. 4197](/us/bill/67/s/4197).][[Public, No. 500](/us/67/pl/500).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Oklahoma.Adjustment of claims for oil and gas deposits on public lands in, south of the Red River.
That the Secretary of the Interior is hereby authorized to adjust and determine the equitable claims of citizens of the United States, and domestic corporations to lands and oil and gas deposits belonging to the United States and situated south of the medial line of the main channel of Red River, Oklahoma, which lands were claimed and possessed in good faith by such citizens or corporations, or their predecessors in interest, prior to February 25, 1920, and upon which lands expenditures were made in good faith and with reasonable Permits or leases to issue.diligence in an effort to discover or develop oil or gas, by issuance of permits or leases to those found equitably entitled thereto.
Sec. 2. Applications for permits and leases. That applications for permits and leases under this Act shall be made to the Secretary of the Interior, and shall be made within and not after sixty days from and after the date that this Effect of assignments.Act becomes a law. Leases and permits under this Act may be granted to the assignees or successors in interest of the original locators or the original claimants in all cases where the original locators or original claimants have assigned or transferred their rights, but when leases or permits are granted to the assignees or successors in interest of the original locators or original claimants the said leases and permits shall be subject to all contracts, not contrary to law or public policy, between the original locators or original claimants and their successors in interest.
Conflicting claims.In case of conflicting claimants for permits or leases under this Act, the Secretary of the Interior is authorized to grant permits or leases to one or more of them as shall be deemed just. Sec. 3. Areas limited. That not more than one hundred and sixty acres shall be granted by leases or permits to any one person or corporation, except in those cases where two or more locations or claims have been assigned to one person or corporation, and in such cases not more than six hundred and forty acres shall be granted by leases or permits to any one person or corporation.
Sec. 4. Royalty required.On prior production. That each lessee shall be required to pay as royalty to the United States an amount equal to the value at the time of production of 12½ per centum of all oil and gas produced by him prior to the issuance of the lease, except oil or gas used on the property After issue of lease.for production purposes or unavoidably lost; and shall be required to pay to the United States a royalty of not less than 12½ per centum of all oil and gas produced by him after the issuance of the lease, except oil and gas used on the property for production pur-1449poses or unavoidably lost.
Of the proceeds of the oil and gas thatProceeds of lands in custody of Supreme Court.Distribution of have been produced or that may hereafter be produced by the receiver of said property, appointed by the Supreme Court of the United States, 12½ per centum as royalty shall be paid to the United States, and the residue after deducting and paying the expenses of the litigation incurred by the United States and the expenses of the receivership shall be paid to the person or corporation to whom may be granted a lease of the land on which said oil and gas were produced: *Provided*, That the Secretary of the*Provisos*.Collections from persons not awarded permits or leases.
Interior is authorized and directed to take such legal steps as may be necessary and proper to collect from any person or persons who shall not be awarded a permit or lease under this Act an amount equal to the value of all oil and gas produced by him or them from any of said lands prior to the inclusion of said property in the receivership, except oil or gas used on the property tor production purposes or unavoidably lost and except other reasonable and proper allowances for the expenses of production:Distribution of. *Provided further*, That of the amount so collected, 12½ per centum shall be reserved to the United States as royalty and the balance after deducting the expense of collection shall be paid over to the person or persons awarded permits or leases under this Act, as their interests may appear.
Sec. 5. That except as otherwise provided herein the applicableApplication of general leasing law.Vol. 41, pp. 441–445, 450, 451. provisions of the Act of Congress approved February 25, 1920, entitled “An Act to permit the mining of coal, phosphate, oil, oil shale, gas, and sodium on the public domain,” shall apply to the leases and permits granted hereunder, including the provisions of sections 35 and 36 of said Act relating to the disposition of royalties: *Provided*, That after the adjudication and disposition of all*Provisos*.Disposal of unappropriated, etc., lands. applications under this Act any lands and deposits remaining unappropriated and undisposed of shall, after date fixed by order of the Secretary of the Interior, be disposed of in accordance with the provisions of said Act of February 25, 1920: *Provided further*,Operation of existing wells pending disposition of applications.
That upon the approval of this Act the Secretary of the Interior is authorized to take over and operate existing wells on any of such lands pending the final disposition of applications for leases and permits, and to utilize and expend in connection with such administration and operation so much as may be necessary of moneys heretofore impounded from past production or hereafter produced, and upon final disposition of applications for and the issuance of leases and permits, after deducting the expenses of administration and operation and payment to the United States of the royalty herein provided, to pay the balance remaining to the person or company entitled thereto: *And provided further*, That out of the 10Portion of receipts to pay administration, etc., expenses. per centum of money hereafter received from royalties and rentals under the provisions of this Act and paid into the Treasury of the United States and credited to miscellaneous receipts, as provided by section 35 of the said Act of February 25, 1920, the Secretary ofVol. 41, p. 450. the Interior is authorized to use and expend such portion as may be required to pay the expense of administration and supervision over leases and permits and the products thereof.
Sec. 6. That nothing in this Act shall be construed to interferePossession of lands by Supreme Court receivers not Interfered with. with the possession by the Supreme Court of the United States, through its receiver or receivers, of any part of the lands described in section 1 of this Act, nor to authorize the Secretary of the Interior to dispose of any of said lands or oil or gas deposits involved in litigation now pending in the Supreme Court of the United States, until the final disposition of said proceeding.
The author-1450Operation of wells, not effective until lands discharged from, receiver.ity herein granted to the Secretary of the Interior, to take over and operate oil wells on said lands, shall not become effective until the said lands shall be, by the Supreme Court of the United Settlement of receiver’s accounts.States, discharged from its possession. And nothing in this Act shall be construed to interfere with the jurisdiction, power, and authority of the Supreme Court of the United States to adjudicate claims against its said receiver, to direct the payment of such claims against the said receiver as may be allowed by the said court, to settle the said receiver’s accounts, and to continue the receivership until, in due and orderly course, the same may be Payment to Secretary of Interior of funds remaining, on termination of receivership.brought to an end.
The Supreme Court of the United States is hereby authorized, upon the termination of the said receivership, which the Attorney General is hereby directed to apply for and secure at the earliest practicable date, to direct its receiver to pay to the Secretary of the Interior all funds derived from oil and gas produced from lands of the United States that may at that time remain in the hands of the said receiver; and when said funds shall be paid to the Secretary of the Interior the same shall be administered as in this Act provided.
Sec. 7. Rules, etc., to be prescribed. That the Secretary of the Interior is authorized to prescribe the necessary and proper rules and regulations and to do any and all things necessary to carry out and accomplish the purposes of this Act. Approved, March 4, 1923.