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United States. Office of Indian Affairs / Annual report of the Commissioner of Indian Affairs, for the year 1905, Part I
([1905])

Report of the Indian inspector for Indian territory,   pp. 705-792 PDF (36.9 MB)


Page 716

16  REPORTS OF THE DEPARTMENT OF THE INTERIOR. 
The original regulations did not specify the time within which 
drilling must be commenced under leases, but only provided that 
lessees use due diligence in carrying on operations. 
Many complaints were made by allottees of the failure of lessees 
to commence operations, and therefore, on March 20,1905, the Depart- 
ment modified the regulations so as to require at least one well to be 
drilled on each lease within one year from the date of approval of 
the bond and in cases where leases and bonds had previously been 
approved, within one year from March 20, 1905, all leases containing 
the stipulation that they are subject to any regulations that may be 
hereafter prescribed by the Secretary of the Interior governing such 
matters. 
The regulations which heretofore provided that the lessee furnish 
satisfactory proof that he has $5,000 on hand for the purpose of 
operating each lease has been modified, the lessees now being required 
to furnish satisfactory showing as to their financial ability and that 
the lease has been secured in good faith and for the purpose of bona 
fide operations and not for speculation or resale. 
The royalty on gas wells was also fixed by the Department during 
the fiscal year 1905, as follows:One hundred and fifty dollars on 
each well where the gas is utilized and $50 per annum where the gas 
is not used. The lessees are also required, where a well is abandoned, 
to securely cap or plug the same. Numerous other minor changes 
were made during the fiscal year. 
The United States Indian agent reports that there were filed in 
his office during the fiscal year 1905, 4,099 oil and gas leases, 269 
being in the Creek and 3,830 in the Cherokee Nation, of which there 
were forwarded for approval 1,379 leases; that the number of leases 
and bonds approved were 513; that 503 additional leases were 
approved, but bonds covering same not yet acted upon; that there 
were 21 leases disapproved-and 342 pending before the Department; 
also that there 6re on file in his office not yet forwarded 2,720 leases,
the delay in forwarding being caused by the leases not being in 
proper form as required. 
Allottees are also permitted under regulations of the Department 
to make application to develop their own allotments for mineral 
purposes. 
Sixty-six leases for minerals other than oil and gas were also filed 
during the year, most of which were for coal. 
Every effort is being made to pass upon the large number of leases 
now on file in the Indian agent's office at the earliest date possible. 
TOWN SITES. 
SURVEYS. 
As stated in my report for the fiscal year ended June 30, 1904, the 
surveys of all town sites were practically completed during such fiscal 
year with the exception of the town of Sulphur, Chickasaw Nation. 
One surveying party was retained until November 25, 1904, to com- 
plete the survey of this town and certain other minor matters, when 
Mr. John F. Fisher, the surveyor, resigned. Mr. John G. Joyce, 
acting supervising engineer, remained in the service in connection 
with necessary town-site work until March 2, 1905, when he also 
resigned. 
716 


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