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Show I 22 COMMISSIONER OF INDIAN AFFAIRS. I total revenue derived from oil and gas leases by restricted Indians is classified as follows: Bonuses ........................$.68.9,1.26..4.1 ............... Casinghead gas collections ._._._....------.10-8,-42-3.1-3 -.--..-... Royalties on ~roductio-n -.--.-----.---.---2,2-47-,7-38-.78- --..-...... Advance royalties and rentals_ _.._.._..--.-8-52.,. 3-31-.0-0 -------------- ~ ~~ Total ................................3.,8.9.7,.61.9..3.2. .......... A total of 333 wells were drilled on departmental leases, 210 of which produced oil, 38 produced gas, and 85 mere dry holes. The initial production of the oil wells ran from 20 to 4,000 barrels daily and the approximate initial production of the gas wells was from 1,000,000 to 20,000,000 cubic feet per day. The gross oil production for the gear was 8,181,971.56 barrels. On June 12, ,l922, the Solicitor for the Interior Department rendered an opinlon to the effect that extensions of oil and gas leases on lands of minor and incompetent members of the Five Civilized Tribes,.which extensions were made in accordance with rules and regulations prescribed by the Secretary of the Interior, are valid, although not advertised in conformity with rules laid down by the Supreme Court of the State of Oklahoma, his opinion being based on the provisions of the act of May 27,1908 (35 Stat. L., 312). On Jul 30, 1921, the regulations governing the utilization of casinghea J gas produced from oil wells were amended so as to adopt the actual selling price of gasoline as the basis on which to compute the royalty due the Indians. I OIL AND GAS OUTSIDE THE FIVE CIVILIZED TRIBES. At the close of the fiscal year 1921 the market price of oil had * fallen to $1 a barrel, the lowest quotation since August 26, 1916. Improved conditions are indicated by the later a$vance to $2 a barrel and the fancy prices paid by large oil companies for good acreage when available. The question of what constitutes the highest posted market price of crude oil in the mid-continent field has been the subject of contro-versy for a number of years and op February 16, 1922. the depart-ment reacher1 the following conclusions: 1. The term " mid-continent oil field " shall be construed to mean the territory embraced in that field at the time the lease form and regulations mere adopted, namely, the States of Oklahoma and Kansas, and not the present mid-continent oil field which takes in producing territory in Texas, Arkansas, a?d Louisiaiip. 2. The term "Ingest posted murket prlce m the mld-continent oil field " shall be construed as the h i~h e spt rice posted by a purchasing company taking a substantial portion of the, oil in the territory it is serving in Oklahoma or Kansas a s~d i s t l n q l s h~frdo m the,company taking its oil mainly from co,mpanles with whlch it is affiliated and from leases producing a certain grade of oil or which purchases only a small portion of the oil in the territory it is serving. The abrogation on July 20, 1921, of the 9,600-acre rule as applied to Indian reservations in Ol~lahoma. exclusive of the Five Civilized Tribes, Osage Nation, and 1Cion.a Reservation. enabled all lessees |
