RULES GOVERNING LEASES.

Sec. 5. The Commissioners of the Land Office may adopt and promulgate appropriate rules and regulations for carrying into effect the provisions of this act, but no restrictions or prohibitions against any bidder or prospective bidder shall be made other than as provided in this act.

LESSEE LIABLE-SURFACE-OWNERS.

Sec. 6. The lessee, under any oil or gas lease executed by the Commissioners of the Land Office shall be liable to the surface owner or lessee for all injury, damage or loss occurring to the surface interest, interest in such lands or to any building, crops or improvements, or other property, located upon or used in connection with said land.

FUNDS-BONUSES-ROYALTIES.

Sec. 7. All funds arising from bonuses, royalties or rentals for oil and gas leases, shall be carried into and credited to the permanent funds for the use and purpose designated in the grant of such lands by Congress to the State of Oklahoma and all such funds shall be kept, handled and used in like manner as other moneys belonging to said permanent funds.

ACTS IN CONFLICT REPEALED.

Sec. 8. All acts or parts of acts inconsistent herewith, are hereby repealed.

EMERGENCY.

Sec. 9. 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.

Approved this 30th day of March, 1917.

LEASING STATE LANDS.

LAWS 1917, P. 407.

CHAPTER 223.

MARCH 23, 1917.

AN ACT to authorize the State Board of public affairs to lease the penitentiary lands at McAlester, or other State lands on which penal or eleemosynary institutions are located, for drilling for oil and gas.

Be it enacted, etc.:

BOARD OF AFFAIRS-TO LEASE.

Sec. 1. The State Board of Public Affairs is hereby authorized to lease for drilling and development of oil or gas, or both, any of the lands belonging to the State, on which are located penal or eleemosynary institutions, or are connected with or a part of the lands of such institutions. Such leasing to be made by public competition after not less than thirty days advertisement, as now provided by law for the leasing of other State or school lands for oil and gas purposes, and in such manner as said board may by rule prescribe. All such leasing must be on sealed bids and awarded to the highest responsiblę

bidder, and for such period as said board of public affairs may determine, provided said board may reject any and all bids. The oil and gas interest in such land hereby authorized to be leased, is to the extent and in the manner that a private owner of lands in fee, may in his own right, execute such lease or grant, and provided further, that such lease before becoming effective or having validity, shall be approved by the Governor of the State.

EMERGENCY.

Sec. 2. 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.

RESOLUTION giving permission to Commissioners of Land Office to execute supplementary contracts in connection with certain oil and gas leases.

WHEREAS, On the 29th day of August, 1916, the Commissioners of the Land Office of the State of Oklahoma executed an oil and gas mining lease to J. S. Harris on segregated land in township five (5) north, and township six (6) north, range five (5) east of the Cimarron Meridian, and township five (5) north and township six (6) north of range six (6) east of the Cimarron Meridian, Cimarron County, State of Oklahoma; also on the 31st day of July, 1916, the Commissioner of the Land Office of the State of Oklahoma, executed an oil and gas mining lease to Arthur O'Dell on segregated lands in townships four (4), five (5) and six (6) north of range one (1), east of the Cimarron Meridian, Cimarron County, State of Oklahoma; and

Whereas, The State still owns approximately one hundred thousand (100,000) acres of land segregated for oil and gas, lying directly between the two tracts above mentioned, and on the same structure, and is yet unleased; and

Whereas, On account of the lack of transportation facilities reaching this land, development of same is necessarily expensive and difficult as well as slow; and

Whereas, Said J. S. Harris and Arthur O'Dell, through their assignees and associates, have expended a great deal of money, an amount approximating one hundred and twenty thousand ($120,000) dollars, in drilling for oil and gas on their said tract; and

Whereas, It is of greatest importance to the State of Oklahoma that these tracts be fully tested for gas and oil to the end that they may be further developed; Now, therefore

Be it resolved by the senate and house of representatives of the State of Oklahoma:

CONTRACTS AUTHORIZED.

That the Commissioners of the Land Office shall be, and they are hereby authorized to execute supplemental contracts to lessees on all lease contracts embracing more than thirty thousand (30,000) acres in one body without sub

mitting same to bids for the renewal of said leases, providing that if oil and gas, or either of them, are being produced on said tracts of land in paying quantities at the expiration of said leases, that then, and in that event, said leases shall be extended for so long a period of time as gas and oil, or either of them, shall be produced on said tracts of land in paying quantities: Provided, however, that drilling operations shall be commenced within six months from the date of passage of this resolution, and shall be prosecuted with diligence.

Adopted by the Senate, February 24, 1919.

Adopted by the House of Representatives March 8, 1919.

Approved March 15, 1919.

LEASING-COUNTIES AND TOWNSHIPS.

LAWS 1919, P. 253.

CHAPTER 179.

MARCH 28, 1919.

AN ACT providing method for county, town, or township to grant lease to any person, association or corporation, land owned for the purpose of making permanent improvements thereon, or oil and gas development, and repealing all laws in conflict herewith.

Be it enacted, etc.:

LEASING AUTHORIZED.

Sec. 1. Any county, town or township that now owns or may hereafter acquire any land, other than town or city lots, under the control of a Board of County Commissioners, Board of Town Trustees, or Board of Township Trustees, is hereby authorized and empowered to enter into a valid contract to lease such lands to any person, association or corporation for a term of years not to exceed ten years, for the purpose of constructing permanent improvements thereon, or oil and gas development; this law does not apply to agricultural purposes.

PETITION AND ELECTION.

Sec. 2. Upon petition of twenty-five (25%) per cent of the legal voters of any county, town or township, a special election shall be called and held in accordance with the election laws of the State and the proposition, to grant a lease as provided in Section One, shall be set out fully and at said election if a majority of the votes cast is in favor of the proposition, then such Beard of County Commissioners, Board of Town Trustees, or Board of Township Trustees shall execute a lease to the land so owned, which shall be binding upon the Board and its successors in office.

REPEAL. OF CONFLICTING LAWS.

Sec. 3. All Acts and parts of Acts in conflict herewith are hereby repealed. Approved March 28, 1919.

OIL.

DEALERS IN OIL-REGULATIONS-CONDITIONS FOR OPERATIONS- CORPORATION COMMISSION.

AN ACT to regulate all corporations, associations, and persons engaged, in this state, in the business of carrying crude petroleum, or its products, through pipe lines; to regulate operators of oil wells and refineries of crude petroleum and its products, regulating the purchasing of mineral oil by pipe lines, providing punishments for violations thereof, and declaring an emergency.

Be it enacted, etc.:

Sec. 1. Every corporation, joint stock company, limited co-partnership, partnership or other person, now or hereafter exercising or claiming the right to carry or transport crude oil or petroleum, or any of the products thereof, by or through pipe lines or line, for hire, compensation or otherwise, or now or hereafter exercising or claiming the right to engage in the business of producing crude oil or petroleum, or of refining it, or manufacturing any of the products thereof, or of storing crude oil or petroleum now or hereafter produced by it, or any other person or persons, or now or hereafter engaging in the business of buying, selling or dealing in crude oil or petroleum, within the limits of this state, shall not have or possess the right to conduct or engage in said business or operations, in whole or in part, as above described, or have or possess the right to locate, maintain, or operate the necessary pipe lines, fixtures and equipment thereunto belonging, or used in connection therewith, concerning the said business of carrying or transporting crude oil or petroleum as aforesaid, on, over, along, across, through, in or under any present or future highway, or part thereof, within this state, or have or possess the right of eminent domain, or any other right or rights, concerning said business or operations, in whole or in part, except as authorized by and subject to the provisions of this act, except, further, and only such right or rights as may already exist which are valid, vested, and incapable of revocation by any law of this state or of the United States. The word Petroleum as used herein means all crude oil and its manufactured products, not including natural gas.

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Sec. 2. For the purpose of acquiring necessary right-of-way, every such person is hereby granted the right of condemnation by eminent domain, and the use of the highways in this state, for the purpose of transporting petroleum by pipe lines, and the location, laying, construction, maintaining and operation thereof.

Corporations of other states and territories, or of the United States, otherwise admissible to do business in this state, may get the benefit of this act upon compliance with the laws and constitution of this state, including the provisions of section 31, of article 9, of the constitution, but until such compliance shall have no rights in, on, or under the highways.

The word "Person," as used in this act, means any natural person, partnership, or association of persons, or any corporation organized under the laws of the State of Oklahoma.

Sec. 3. Every corporation, joint-stock company, limited co-partnership, partnership or other person, now or hereafter claiming or exercising the right to carry or transport crude oil or petroleum or any of the products thereof, by pipe line or pipe lines, for hire, compensation, or otherwise, within the limits of this state, as allowed by, and upon compliance with the requirements of this act, as owner, lessee, licensee, or by virtue of any other right or claim, which is now engaged or hereafter shall engage in the business of purchasing crude oil or petroleum therein, shall be a common purchaser thereof, and shall purchase all the petroleum in the vicinity of, or which may be reasonably reached by its pipe lines, or gathering branches, without discrimination in favor of one producer or one person as against another, and shall fully perform all the duties of a common purchaser; but if it shall be unable to perform the same, or be legally excused from purchasing and transporting all of the petroleum produced, then it shall purchase and transport petroleum from each person and producer ratably, in proportion to the average daily production, and such common purchasers are hereby expressly prohibited from discrimination in price or amount for like grades of oil, or facilities as between producers or persons; and in the event it is likewise a producer, it is hereby prohibited from discriminating in favor of its own production, or storage, or production or storage in which it may be interested directly or indirectly in whole or in part, and its own production and storage shall be treated as that of any other person or producer.

All persons, firms, associations, and corporations are exempted from the provisions of this act, where the nature and extent of their business is such that the public needs no use in the same, and the conduct of the same is not a matter of public consequence, and for this purpose the district courts of the state and the Corporation Commission are hereby vested with jurisdiction to determine such exemptions in any action or proceeding properly before them, as provided in this act.

Sec. 4. Every corporation, joint-stock company, limited copartnership, partnership or other person, now or hereafter engaged in the business of carrying or transporting crude oil or petroleum, or any of the products thereof, for hire or compensation or otherwise, by pipe line or pipe lines, within this state, and by virtue of and in conformity to, any valid law incapable of revocation by any law of this state or of the United States, or by virtue of and in conformity to the provisions of this act, shall be a common carrier thereof as at common law, and no such common carrier shall allow or be guilty of any unjust or unlawful discrimination, directly or indirectly, in favor of the carriage, transportation, storage or delivery of any crude, stock or storage oil, or any products thereof, in its possession or control, or in which it may be interested, directly or indirectly.

Sec. 5. It shall be unlawful for any corporation, joint stock company, limited copartnership, partnership or other person, now or hereafter engaged in the business of carrying or transporting crude oil or petroleum, or any of the products thereof, for hire or compensation or otherwise, within the limits of this act, and not becoming a common purchaser as defined by and accepting the provisions of this act, to own or operate, directly or indirectly any oil well or wells, oil leases, or oil holdings or interests in this state, after six months next after the approval of this act, and each and every of said