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McClintic, Hon. James V., Representative in Congress from the State
of Oklahoma_.

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Roote, Col. Jesse B., Butte, Mont., appearing in behalf of Burke Divide
Oil Co. and others_

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OIL AND GAS LANDS, RED RIVER, OKLA.

COMMITTEE ON THE PUBLIC LANDS,
HOUSE OF REPRESENTATIVES,
Friday, January 12, 1923.

The committee this day met, Hon. Nicholas J. Sinnott (chairman) presiding.

The CHAIRMAN. Gentlemen, the committee will come to order. This meeting was called this morning for hearings on the Red River oil controversy. I may say that there were four bills introduced in the House covering this controversy-H. R. 11659, by Mr. Oldfield. Mr. Oldfield notified me the other day that he did not care to push his bill. The second bill is H. R. 11928, introduced by Mr. Newton of Missouri, and I understand Mr. Newton is not pressing that bill. When I asked for a report on Mr. Newton's bill I received a letter from the Secretary of the Interior suggesting a substitute bill, which I introduced. That bill is H. R. 12233. Afterward Mr. Sanders, of Indiana, introduced H. R. 13475, and I assume that the two bills before the committee for consideration are the bills introduced by myself, at the request of the Secretary of the Interior, and the bill introduced by Mr. Sanders. However, I have no pride of authorship as to the bill which I introduced. I introduced it for the purpose of getting the matter before the committee, and inasmuch as different parties take a different attitude regarding these two bills, it seemed to me that these two bills should be kept before the committee. Without objection copies of these two bills bill be inserted in the record. (Said bills follow :)

"[H. R. 12233, Sixty-seventh Congress, second session.]

"A BILL To authorize the Secretary of the Interior to grant permits or leases to certain persons and corporations for lands and oil and gas deposits south of the medial line of the main channel of Red River, Oklahoma.

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Interior is hereby authorized to consider and adjust the equitable claims of any citizens or corporations of the United States to lands and oil and gas deposits situated south of the medial line of the main channel of Red River, Oklahoma, claimed or initiated prior to February 25, 1920, and upon or for which expenditures were made in good faith for the discovery or development of oil or gas, by issuance of permits or leases to those found equitably entitled.

"SEC. 2. That permits or leases under this act shall be made as nearly as practicable in twenty-acre units, and no person or corporation shall be entitled to a permit or lease for lands exceeding in the aggregate one hundred and sixty acres, including, so far as possible, with due regard for the rights and equities

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of others, the lands upon which wells or other improvements have been made by

the applicant.

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"SEC. 3. That each permittee or lessee shall be required to pay to the United States an amount equal to the value at the time of production of one-eighth of all the oil or gas already produced, except ol or gas used for production purposes on the claim or unavoidably lost, and after the date of this act shall be required to pay to the United States a royalty of not less than 12 per centum of all the oil or gas produced, except oil or gas used for production upon the claim or unavoidably lost.

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"SEC. 4. That except as provided herein the applicable 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 permits and leases granted hereunder, including the provisions of sections 35 and 36 of said act relating to the disposition of royalties received hereunder: Provided, That after the adjudication, adjustment, and disposition of all pending claims under this act, any lands or 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, 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 adjustment and disposition of claims thereto, 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 adjustment of pending claims and the issuance of permits or leases therefor, after deducting the expenses of administration and operation and payment of the royalty herein provided to the United States, to pay the balance remaining to the party or parties entitled thereto : And provided further, That out of the 10 per centum of money hereafter received from royalties and rentals under the provisions of this act to be paid into the Treasury of the United States and credited to miscellaneous receipts the Secretary of the Interior is authorized to use and expend such portion as may be required to pay the expense of administration and supervision over such permits and leases and the products thereof.

"SEC. 5. 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."

"[H. R. 13475, Sixty-seventh Congress, fourth session.]

"A BILL 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. "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Interior is hereby authorized to adjust and determine the equitable claims of citizens and domestic corporations to lands and oil and gas deposits 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 October 1, 1919, and upon which lands expenditures were made in good faith in an effort to discover or develop oil or gas. And the Secretary of the Interior is further authorized to issue to those persons or corporations that may be found equitably entitled thereto permits to explore, or leases of, said lands so claimed by them.

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