HEARINGS BEFORE CORPORATION COMMISSION-HOW CONDUCTED. Sec. 6. That any person, firm or corporation, or the Attorney General, on behalf of the state may institute proceedings before the Corporation Commission, or apply for a hearing before said commission, upon any question relating to the enforcement of this Act; and jurisdiction is hereby conferred upon said commission to hear and determine the same, said commission shall set a time and place when such hearing shall be had and give reasonable notice thereof to all persons or classes interested therein by publication in some newspaper or newspapers having general circulation in the state, and shall in addition thereto cause notice to be served in writing upon any person, firm or corporation, complained against in the manner now provided by law for serving summons in civil actions. In the exercise and enforcement of such jurisdiction said commission is authorized to summon witnesses, make ancillary orders, and use such means and final process including inspection and punishment as for contempt, analogous to proceedings under its control over public service corporations as now provided by law. APPEALS TO SUPREME COURT. Sec. 7. That appellate jurisdiction is hereby conferred upon the Supreme Court of this state to review the orders of said commission made under this Act. Such appeal may be taken by any person, firm or corporation, shown by the record to be interested therein, in the same manner and time as appeals are allowed by law from other orders of the Corporation Commission. Said orders so appealed from, may be superseded by the commission or by the Supreme Court upon such terms and conditions as may be just and equitable. POWER OF CORPORATION COMMISSION-RULES AND REGULATIONS. Sec. 8. That the Corporation Commission shall have authority to make regulations for the prevention of waste of natural gas, and for the protection of all natural gas, fresh water, and oil bearing strata encountered in any well drilled for oil or natural gas, and to make such other rules and regulations, and to employ or appoint such agents, with the consent of the Governor, as may be necessary to enforce this Act. ACCEPTANCE BY PIPE LINES. Sec. 9. Before any person, firm or corporation shall have, possess, enjoy or exercise the right of eminent domain, right of way, right to locate, maintain, construct or operate pipe lines, fixtures, or equipments belonging thereto or used in connection therewith, for the carrying or transportation of natural gas, whether for hire or otherwise, or shall have the right to engage in the business of purchasing, piping, or transporting natural gas, as a public service, or otherwise, such person, firm or corporation, shall file in the office of the Corporation Commission a proper and explicit authorized acceptance of the provisions of this act. DUTIES OF MINE INSPECTOR UNCHANGED. Sec. 10. That nothing contained in this Act shall be construed to interfere with any duties now imposed by law upon the Chief Mine Inspector of the state or his deputies. VALIDITY OF SEVERAL SECTIONS OF ACT INDEPENDENT. Sec. 11. That the invalidity of any section, subdivision, clause, or sentence of this Act shall not in any manner affect the validity of the remaining portion thereof. PENALTIES FOR VIOLATION. Sec. 12. That in addition to any penalty that may be imposed by the Corporation Commission for contempt, any person, firm or corporation, or any officer, agent or employee thereof, directly or indirectly violating the provisions of this Act, shall be guilty of a misdemeanor, and upon conviction thereof, in a court of contempt (competent) jurisdiction, shall be punished by a fine in any sum not to exceed five thousand dollars ($5,000.00) or by imprisonment in the county jail not to exceed thirty (30) days, or by both such fine and imprisonment. EMERGENCY. Sec. 13. For the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this Act shall take effect and be in force from and after its passage and approval. Being a proposed new section to Article VI of the constitution, providing certain powers and duties of the Commissioners of the Land Office. Be it resolved by the Senate and House of Representatives of the Fourth Legislature in Extraordinary Session Assembled: That the Secretary of State is hereby instructed to prepare and submit to the people of this state for ratification or rejection at the special election to be held August 5, 1913, the following proposed amendment to the Constitution, same to be a new section to article VI, to be numbered section 32-b, and to read as follows: "Section 32-b. Until otherwise provided by law (a) river beds owned by the State may be leased for oil and gas by the Commissioners of the Land Office, only after advertisement of the date, place and terms of such leasing for twenty days in three daily newspapers of general circulation throughout the state, one of which is published in Oklahoma City, Muskogee or Tulsa. Such leases shall be made for royalty of not less than one-eighth of all the oil and gas produced thereon, and in addition thereto for the maximum bonus that may be obtained from any bidder. Not more than one mile of any such river bed in any 66 proven " field shall be leased in any one contract, and not more than five miles of such river bed in any part thereof. Each lease contract shall stipulate that the same shall become null and void at the expiration of one year from the date thereof, except the lessee, his heirs, successors or assigns drill a well on the land included in said lease contract within said year. "(b) Where any person, firm, association or corporation now has an oil or gas well upon any of the property of the State embraced within the beds, banks or islands of its navigable streams, such rights as may have been acquired in such well or wells shall be preserved to the owners thereof, but the Commissioners of the Land Office shall proceed to ascertain the ownership of any such oil or gas wells and the rights of the proprietors therein, and shall collect royalties on all oil or gas produced on said lands not heretofore paid the state, and may permit owners or proprietors of such wells to continue to operate the same upon such reasonable royalties as are customary in the locality; provided, that such rate of royalty shall not be less than the rate stated in the contract, or lease under which such well or wells have been drilled; provided, further, that where any person, company, or corporation has drilled a well without a valid lease the land where said well is located shall be leased as if no well or wells had been drilled. If any owner or proprietor shall refuse to pay the royalties payable upon the production of any such well, then the Commissioners of the Land Office shall take control of the same, sell the production and pay the money so secured into the State Treasury. "(c) No lease of river beds owned by the state shall be made for sand or gravel, but all persons, firms, or corporations shipping sand or gravel from such river beds shall pay to the Commissioners of the Land Office, monthly, a royalty of two and one-half cents per cubic yard for the same; provided, that no royalty shall be charged or collected from anyone hauling sand or gravel from such river beds with a wagon and team. "(d) All sums collected under the provisions of this act as royalty, bonus or rental shall be turned into the State Treasury to the credit of the common school fund of the state. "(e) Whenever the United States has heretofore made and established a survey on either side of a navigable stream, for the purpose of fixing the boundary lines of the land abutting upon the banks of such stream, the meander boundary lines of such survey along the borders of such stream shall be taken and accepted as the high water mark at all such points, and where such surveys are made upon opposite sides of such stream, all the territory or area between such meander lines shall belong to the beds of such streams. "(f) The provisions of this act shall not be constr.d in any manner to prejudice, impair, alter, or affect the vested rights of any Indian tribe, allottee of such tribe, or other person in and to the beds of the rivers or streams within. the state that may have accrued or become vested under any law of this state, or under any act of Congress or treaties or agreements made by the United States with any such Indian tribe." Passed the Senate the 8th day of May, 1913. Passed the House of Representatives the 28th day of June, 1913. 24918-21-15 MARCH 28, 1919. LAWS 1919, P. 293. CHAPTER 206. AN ACT authorizing the Commissioners of the Land Office to lease for oil and gas purposes all lands between mean high water mark in all streams or rivers of two chains or over and defining riparian rights: All such streams are declared the property of the State of Oklahoma, and declaring an emergency. Be it enacted, etc.: LEASING AUTHORIZED. Sec. 1. The Commissioners of the Land Office are hereby authorized to lease for oil and gas purposes all lands between mean high water mark in all streams or rivers of two chains or over; all such streams are declared the property of the State of Oklahoma. MODE OF LEASING. Sec. 2. Said lands are to be leased under the same provisions as the school and other lands of the State of Oklahoma. EMERGENCY. Sec. 3. It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this Act shall take effect and be in full force from and after its passage and approval. Approved March 28, 1919. LEASING SCHOOL AND PUBLIC LANDS. LAWS 1917, P. 462. CHAPTER 253. MARCH 30, 1917. AN ACT regulating the leasing of school and other public lands owned by the State for oil and gas purposes, and declaring an emergency. Be it enacted, etc.: COMMISSIONERS OF THE LAND OFFICE-LEASES. Sec. 1. The Commissioners of the Land Office are authorized to lease for oil and gas purposes any of the school or other lands owned by the State of Oklahoma, which such commissioners may deem valuable for oil and gas, for the term of five years and as long thereafter as oil or gas may be produced therefrom in paying quantities, upon such terms and conditions and in such quantities as the commissioners shall by rules and regulations prescribe. Each such lease shall provide for the delivery to the State of a royalty of not less than oneeighth part of the oil or gas produced from the leased premises or in lieu thereof the payment to the State of the market value of said royalty interest, as the commissioners may elect. Such leasing shall be made by public competition after not less than thirty days' notice by publication in two newspapers authorized by law to publish legal notices, one of which newspapers shall be published at the State Capitol, and the other in the county where the land is situated, such leasing shall be let by sealed bids and each lease awarded to the highest responsible bidder. Such oil and gas leases may be assigned only with the consent and approval of the Commissioners of the Land Office. Provided, that the commissioners have the right to reject any and all bids. EMPOWERED TO SEGREGATE. Sec. 2. The commissioners are empowered to segregate any of the school or public lands for mineral purposes which the commissioners may, by order entered of record, determine to be valuable for oil, gas or mineral purposes, and each agricultural, grazing or other lease of the surface rights or interest in any land so segregated shall reserve to the State its lessees or grantees, the right to explore, drill and operate for oil or gas on such lands as well as the right to enter upon the said lands and enjoy the mining rights so reserved. TERM OF LEASE. Sec. 3. All oil and gas leases executed by the Commissioners of the Land Office shall be for a term of five years and as long thereafter as oil or gas may be produced in paying quantities; provided, upon the forfeiture, or cancellation or surrender, or expiration of lease by reason of its termination on account of the five years limit, provided for in the " Enabling Act," or any other cause, the school land commissioners shall provide for the leasing of such land in the same way and in the same manner that the School Land Commissioners lease land which has never been leased: Provided, on such leases which are surrendered or which may expire or which have expired, the lessees or assigns shall have the value of the physical properties on such lease, which value shall be determined by a board of appraisers especially appointed, by the School Land Commissioners for the appraising of physical property of leases: Provided, no physical property valuation shall be attached or considered in the making of a lease on a tract consisting of more than 640 acres. If no well shall be completed upon any leased premises within one year from the date of the lease, the lessee shall pay to the State of Oklahoma an annual rental in advance of such sum per acre as the commissioners shall prescribe in the lease, which payment shall operate to defer the completion of a well during the year for which such rental payment is made. PROVISIONS OF LEASE. Sec. 4. All leases for oil and gas shall contain a provision to drill one well on each leased tract within one year from the date of such lease or on failure to complete such well to pay an annual rental per acre as hereinbefore provided. All such ieases shall further provide that the lessee shall drill a sufficient number of wells upon the leased lands to offset all producing wells upon any adjoining or contiguous lands, and a further provision that the failure of the lessee to diligently and in good faith operate the leased premises for oil and gas to as full an extent as other lands are operated in the general oil and gas field where such leased lands is located shall forfeit all rights of the lessee under such lease. Each lessee shall execute a bond to the State of Oklahoma with sureties to the approval of the commissioners and in such sum as the commissioners shall prescribe, conditioned for the faithful performance of the provisions of the lease and for the payment of all recoverable damages, which such lessee may cause to the property, crops or rights of the surface lessee. Each lease shall further provide that in the event the State shall at any time operate a refinery for the refining of crude petroleum or the extraction of any of its products or by-products the State shall have the preference right to purchase and take the production or output of any such oil or gas well at the prevailing market price thereof, upon the commissioners serving written notice upon the owners of any well, of the purpose and readiness of the State to take such production. |