CODES AND STATUTES OF WASHINGTON (REM. & BAL), 1910.

CRIMES AGAINST PROPERTY.

TITLE XIV, CHAPTER IX.

Sec. 2656. Injuring Public Utilities.

Every person who shall willfully or maliciously remove, damage or destroy:

erected for the purpose of supplying buildings therewith, or any appurtenance of appendage thereto.

* * *

Shall be guilty of a misdemeanor. (Laws 1909, p. 1016, Sec. 404.)

AN ACT relating to the organization, management, control, and regulation of corporations for the purpose of constructing, maintaining and operating pipe lines and appurtenances for the conveyance and transportation of oils and natural gases and conferring the power of eminent domain.

Be it enacted, etc.:

Sec. 1. Two or more persons may organize a corporation having for its prinipal purpose the construction, maintenance and operation of pipe lines and appurtenances for the conveyance and transportation of oils and natural gases. Such corporation shall be organized in the manner provided by law for the organization of ordinary trade or business corporations and shall have power to acquire, hold, use and transfer all such real and personal property as may be

reasonably necessary for conducting its business, and to construct, maintain and operate pipe lines and appurtenances for the conveyance and transportation of oils and natural gases.

Sec. 2. Such corporations are hereby declared to be common carriers and subject to control and regulation by the public service commission of this state in the same manner and to the same extent as other public service corporations. The power of eminent domain is hereby conferred upon such corporations and they shall have the right to condemn and appropriate lands and property and interests therein for their use under the same procedure as is provided for the condemnation and appropriation of private property by railway companies but no private property shall be taken or damaged until the compensation to be made therefor shall have been ascertained and paid as provided in the case of condemnation and appropriation by railway companies. Any property or interest therein acquired by any corporation under the provisions of this act by the exercise of the right of eminent domain shall be used exclusively for the purposes for which it was acquired.

STATE LANDS.

OIL AND GAS-LEASE-SALE.

CODES AND STATUTES OF WASHINGTON (REMINGTON & BALLINGER), 1910. CHAPTER XV.

Sec. 6791. Commissioner Empowered to Lease.

The commissioner of public lands of the state of Washington is hereby authorized to execute leases and contracts for the mining and extraction of petroleum and natural gas from any land belonging to the state or from any lands in which the state may hereafter acquire title, subject to the conditions hereinafter provided. (Laws 1901, p. 218, Sec. 1.)

Sec. 6792. Who may Apply.

Any citizen of the United States finding petroleum or natural gas upon any lands belonging to the state of Washington may apply to the commissioner of public lands for a lease of any amount of such land not to exceed one section. (Laws 1901, p. 218, Sec. 2.)

Sec. 6793. Manner of Application.

Application shall be made in like manner as the application is made for the leasing of agricultural lands. (Laws 1901, p. 218, Sec. 3.)

NOTE: Section 6794 was amended by the Act of March 18, 1919, (Laws 1919, p. 434), and the amended section reads as follows:

Sec. 6794. Terms of Lease-Royalty-Limitation of Time.

No lease shall be made by the state for any sum less than twenty-five dollars ($25.00) per quarter section of land for each year during the term of said lease, and in addition thereto the said lease shall provide that the state shall be entitled to receive a sum not less than ten per cent of the gross value of all petroleum and natural gas extracted therefrom during the term of the said lease, payable semi-annually during said term. The term "gross value" shall be interpreted to mean the value of the oil or gas at the well when produced, without deduction for expenses of production. The term of said lease to be any term not to exceed five years. (Laws 1915, p. 405, Sec. 9 as amended by Sec. 1, Laws 1919, p. 434.)

Sec. 6795. Reports and Accounting of Lessee.

Persons leasing lands under the provisions of this chapter shall mine, take out, keep, maintain, ship and sell all petroleum and natural gas mined upon or taken from the lands so leased, separate and distinct from all like products taken from other lands, and shall submit to the commissioner of public lands, at stated periods to be fixed by said commissioner, a statement showing the total product taken from said leased lands, the total shipments of such products, and an account showing the sales of all such products. The commissioner shall make all necessary rules and regulations necessary to carry out the provisions of this chapter, and to protect the interests of the state. The books and accounts of every person leasing lands under the provisions of this chapter shali be open to inspection by the state land commissioner, or such persons as he may designate at all times, and the property leased, together with all buildings, machinery, storage tanks and appliances of every kind and nature whatsoever, shall be subject to inspection and examination by the land commissioner. reports required under this chapter shall be made under oath, upon forms prescribed by the commissioner. Failure on the part of any lessee hereunder to comply with the terms and conditions of this chapter, or of his lease, shall forthwith work a forfeiture of the lease. No such forfeiture may be waived. The commissioner of public lands shall incorporate in every such lease such other provisions and conditions not inconsistent with the provisions and conditions contained in this chapter as may in his judgment be advantageous to the state. (Laws 1901, p. 219, Sec. 5.)

Sec. 6796. Preference Right of Agricultural Lessee.

The

Any person now holding leases for agricultural purposes shall have a first right to lease the lands held by them as lessees of the state of Washington, and upon notice to them by the commissioner of public lands they shall within thirty days thereafter exercise their right to lease said lands under the provisions of this chapter, and upon their failure so to do their right to lease such land for mining for petroleum and natural gas shall be at an end, and the said land shall be deemed to be open and unoccupied public lands for the purpose of this chapter only, and the same shall be subject to lease for mining for petroleum and natural gas as if the same were fully owned and in the possession of the state. Any person so holding the lands of the state for agricultural purposes who shall within sixty days from the adoption of this chapter fail to apply to the state land commissioner for such lands shall forfeit all preference to them granted under the terms of this chapter. (Laws 1901, p. 219, Sec. 6.)

NOTE: Section 6797 was amended by the Act of March 18, 1919, (Laws 1919, p. 434), and the amended section reads as follows:

Sec. 6797. Work Under Lease Necessary to Validity.

All leases under the terms of this chapter shall be deemed to be void and of no effect unless the lessee or his assigns shall commence the work of drilling or boring for petroleum oil and gas within such period as may be designated by the commissioner of public lands, not exceeding two years from and after the date of the execution of such lease: Provided, That such work shall proceed continuously and at no time cease for a greater period than ninety (90) days: And provided further, That whenever oil and natural gas be discovered by such work in paying quantities then no further work need be done under the terms of such lease than to mine, secure and store the same, but failure to operate after discovery of oil or natural gas in paying quantities for any period of ninety consecutive days shall work a forfeiture of the lease. (Laws 1901, p. 220, Sec. 7, as amended by Laws 1919, p. 434, Sec. 2.)

Sec. 6798. Damages to Agricultural Lessee.

If land is leased by the state upon which an existing lease for agricultural purposes is held by some person other than the lessee under the terms of this chapter, that the lessee hereunder shall pay to such persons so holding said land under lease for agricultural purposes reasonable compensation for any and all damage sustained by him to growing crops or for the use of said premises during the development of the said petroleum and natural gas lands by mining and boring and holding possession thereof. (Laws 1901, p. 220, Sec. 8.)

NOTE: Section 6798a was added to the Code by the Act of March 18, 1919, and the new section reads as follows:

Sec. 6798a. If, at the expiration of any such lease for the mining and extraction of petroleum or natural gas, or any renewal thereof, the lessee desires to re-lease the lands covered thereby, he may make application to the commissioner of public lands for a re-lease. Such application shall be made within thirty days after the expiration of the lease, and shall be in writing and under oath, setting forth the character and value of all improvements existing on the land, the name and postoffice address of the owner thereof, the purpose for which he desires to re-lease the land, the amount considered by such lessee as the reasonable annual rental value thereof, and such other information as the commissioner of public lands may require, and shall be accompanied with a deposit of ten dollars ($10.00), which deposit, if the land be not leased, through the failure or refusal of the applicant to accept a lease at the rate fixed by the commissioner of public lands, shall be forfeited to the state and by the commissioner paid to the state treasurer and credited to the general fund of the state. The commissioner of public lands may, upon the filing of such application, cause the lands to be inspected by a state land inspector; and if he deems it for the best interests of the state to re-lease said lands, he shall fix the rental value thereof and, upon receipt of the first year's rental, together with the fees required by law, the commissioner of public lands shall issue to the applicant a renewal lease for any period not exceeding five years. The commissioner of public lands shall notify the applicant by mail, of the rental value fixed, and if, within thirty days after the date of such notice, the applicant fails or refuses to pay to the commissioner of public lands the first year's rental, together with the statutory fee for issuing a lease, the application shall be rejected and the applicant thereunder permitted to remove such improvements from the land as may be removed without injury thereto, within ninety days from such rejection; the commissioner of public lands may cause the improvements existing upon the land to be appraised, in the same manner as in the case of the sale of land, offer the land for lease at public auction to the highest bidder, as provided for original leases, and if the successful bidder be not the owner of the improvements, he shall deposit with the officer making the sale the appraised value of the improvements. The amount so deposited as the appraised value of improvements, together with the first year's rental and the fees required by law, shall be transmitted to the commissioner of public lands, and upon confirmation of the lease by the commissioner of public lands, the amount so deposited in payment for the improvements shall be disposed of by the commissioner of public lands in the same manner as in the case of the sale of the land: Provided, That no bid shall be received for less than the minimum price fixed by the commissioner of public lands.

Sec. 4. The provisions of this act shall be and are hereby made applicable to all leases heretofore executed by the State of Washington and which are not in default. (This is the original unamended section 4 of the Act of 1901, p. 218.)

LAWS 1915, P. 405.

CHAPTER 147.

MARCH 18, 1915.

AN ACT relating to the selection, survey, management, sale, reclamation, lease and disposition of state, granted, school, tide, shore and other lands and harbor areas, and amending sections * 6675 * * of Remington &

Ballinger's Annotated Codes and Statutes of Washington.

Sec. 3. That section 6675 of Remington & Ballinger's Annotated Codes and Statutes of Washington be amended to read as follows:

Sec. 6675. All State lands shall be sold on the following terms: One-tenth to be paid on the date of sale and one-tenth to be paid one year from the date of issuance of the contract of sale and one-tenth annually thereafter until the full purchase price has been paid. * * * Provided, further, That each and every contract for the sale of any state lands, or deeds or patents to such state lands except deeds or patents issued pursuant to contracts heretofore made shall contain the following saving clause: "The party of the first part hereby expressly saves, excepts and reserves out of the grant hereby made, unto itself, its successors, and assigns forever, all oils, gases, coal, ores, minerals and fossils of every name, kind or description, and which may be in or upon said lands above described, or any party thereof, and the right to explore the same for such oil, gases, coal, ores, minerals, and fossils; and it also hereby expressly saves and reserves out of the grant hereby made, unto itself, its successors and assigns forever, the right to enter by itself, its agents, attorneys and servants upon said lands or any part or parts thereof, at any and all times, for the purpose of opening, developing and working mines thereon, and taking out and removing therefrom all such oils, gases, coal, ores, minerals and fossils, and to that end it further expressly reserves out of the grant hereby made, unto itself, its successors and assigns forever, the right by its or their agents, servants and attorneys at any and all times to erect, construct, maintain and use all such buildings, machinery, roads and railroads, sink such shafts, remove such soil, and to remain on said lands or any part thereof for the business of mining and to occupy as much of said lands as may be necessary or convenient for the successful prosecution of such mining business hereby expressly reserving to itself, its successors and assigns, as aforesaid, generally, all rights and powers in, to, and over said land, whether herein expressed or not, reasonably necessary or convenient to render beneficial and efficient the complete enjoyment of the property and rights hereby expressly reserved."