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Show I COMMISSIONER OF INDIAN AFFAIRS. 17 the authority theretofore ranted the superintendent to execute oil and gas mining leases on keir lands, and the leasing of such lands I has been suspended pending authorization by the Indians in council assembled. Three oil and gas leases, covering 14,363.87 acres of land in the Blackfeet Reservation, Mont.. were approved. Oil has not been dis-covered on the reservation, hut as the leases provide for immediate drilling ouerations the value of the lands for oil and eas puruoses I will he-deiermined. One hundred and sixty-six oil and gas leases, covering 13,803.43 acres of land in the Kiowa Reservation in Oklahoma, were sold. The amounts realized from bonus and.advance royalties were $135,216.12 and $2,058.77 respectively. The average bonus per acre was $9.80. On ~o v emi e r1 8,. 1920, the 4,800 acrea e limitation as applied to the Indian reservations in the State of 8 klahoma, exclusive of the Five Civilized Tribes, Osage Nation, and Kiowa Reservation, was modified so as to permit a lessee to thereafter ac uire oil and gas leases on a total of 9,600 acres of restricted land. gT he modification of this rule enabled all those holding the maximum acreaK e to. obtain additional leases, resulting in increased income to the ndians de-rived from pa ments of bonus and royalties. The depression in the oil industry, f90110wing the drop in price of crude oil, commencing about January 1,1921, and the consequent curtailment of new opera-tions, reduced the income from this source to an appreciable extent. Oil development on the ceded portion of the Shoshone Indian Reservation in Wyoming has not heretofore progressed satisfactorily, due to lack of transportation facilities and ipe lines and litigation instituted by F. Chatterton and associates of%iverton, Wyo., against various lessees of departmental oil and gas leases. A compromise set-tlement was made whereby Mr. Chatterton and associates dismissed the suits and waived all ri hts in and to the lands embraced in sald suits, in consideration of waich a lease was executed in favor of Mr. Chatterton covering 2,400 acres of land within the ceded portion of the reservation which lease, in addition to the usual rents and royal-ties, provided dor the payment of $72,000 bonus and extens~ved rill-ing operations. Due to the settlement of this troublesome litigation which has been holding back development in this field and the fact that large capital has become interested in the lands, conditions I should materially improve during the coming year. OIL AND GAS DEVELOPMENT, OSAGE RESERVATION. Development of the oil and gas resources in the Osage Indian , Reservation, Okla., during the fiscal year 1921 has been rapidl not- withstanding a scarcity of materials necessary to carry on dnlling operations and other unfavorable conditions affecting the oil indus-try. It is estimated that during the calendar year 1920 Osa e County produced more oil than an other county in the United 8ta tes. I n the early part of the calengar year 1921 the discovery was made of what is known as the Burhank pool on the west side of the reserva-tion, where very little development work had heretofore been done. This new field alreadv has more than 35 oil wells vroducin~o il in A - lar e quantities. $wo sales of oil leases were held during the fiscal year-one on October 12, 1920, and the other on June 14, 1921. Approximately |
