Petroleum Laws of All America

METHODS OF COMPUTING VALUE of CASING-HEAD GAS.

16. For computing the royalties provided for in the lease the value of all casing-head gas produced shall be assumed to be one-third of the value of the marketable casing-head gasoline extracted from such gas, but if the lessee receives a higher price for casing-head gas than the equivalent of one-third of the value of the casing-head gasoline manufactured from such gas the royalties shall be computed on that price. (Amended. See p. 39.)

17. For computing royalties the gasoline content of all casing-head gas produced at any plant during any month shall be determined by dividing the total quantity of marketable casing-head gasoline produced during that month (after deducting all naptha or other materials used for blending products) by the quantity of casing-head gas used in the plant during the month, as shown by meters. If the gasoline plant on the leased premises obtains casing-head gas both from those premises and from other sources, or if casing-head gas is sold or transported from the leased premises to plants not on the leased premises, the gasoline content of the gas shall be determined by field tests made under the supervision of the supervisor or his deputy, and, if they are deemed necessary or desirable, tests shall be made of all casing-head gas used in any such plant in order to determine whether the field tests of the gas produced from the leased premises shows as great a gasoline content as is shown by the casing-head gasoline marketed in the actual operations of the plant; and after such tests have been made the supervisor or his deputy shall determine the gasoline content of the gas produced from the leased premises.

ENFORCEMENT OF ORDERS.

18. If the lessee fails to comply with these regulations or any part thereof or with the order or orders of the supervisor or his deputy, the supervisor or his deputy shall have authority to require him to suspend the operation or practice that conflicts with the regulations or orders or the use of any device that the supervisor or his deputy may consider wasteful or improper. This order of suspension shall remain in force until the lessee complies with the regulations or orders that have been violated or until such order of suspension has been revoked by the Secretary of the Interior, provided, that when the continuance of such operation or practice, or of the use of the device considered wasteful or improper, does not threaten immediate, serious, and irreparable damage to oil or gas or other valuable mineral deposits, the supervisor shall temporarily waive compliance with such order of suspension pending an appeal to and a review by the Secretary of the Interior of such order, upon the lessee's lodging with the supervisor a surety bond or depositing in escrow cash or United States Liberty bonds in a fixed sum, the forfeiture of the amount of the bond or deposit to be conditioned upon compliance with the order or orders of the supervisor if such order or orders are not revoked by the Secretary of the Interior. Such appeal must be made within ten days from the issuance of the order, and the Secretary of the Interior shall pass upon the appeal as soon thereafter as possible and shall return the bonds or the sum deposited, or make such disposition of it as the law, regulations, and facts may warrant.

APPEAL TO THE SECRETARY.

19. The lessee must immediately obey all orders of the supervisor or his deputy except as hereinbefore provided, but any order shall be subject to

review by the Secretary of the Interior upon appeal filed by the lessee within thirty days after it has been served.

The administration of these regulations shall be under the direction of the Bureau of Mines.

The operating regulations governing the production of oil and gas are amended by adding after section 16 thereof the following:

SEC. 16(a). In view of the extra cost of transportation and operation of casing-head gasoline plants in Wyoming and Montana, due to climatic conditions and other natural factors; for computing the royalties provided for in the lease, the value of all casing-head gas produced from leases in said States shall be assumed to be one-fifth of the value of the marketable casing-head gasoline extracted from such gas, but if the lessee receives a higher price for casing-head gas than the equivalent of one-fifth of the value of the casing-head gasoline manufactured from such gas, the royalties shall be computed on that price. This basis of computation shall continue until January 1, 1923, after which date the one-third rate, as written in section 16 of the operating regulations, shall automatically become effective unless the Secretary of the Interior shall at that time see fit to extend or modify this regulation.

AN ACT to provide for the assessment, valuation and equalization of values

of real and personal property for taxation, and for this purpose to create

a State board of equalization, to prescribe the powers and duties of said

board, to create a board of equalization for each county, and to prescribe

the powers and duties of said boards, to provide for the collection of taxes,

the sale of property for taxes, the redemption from such sales, to further

provide for the general revenues, abolish the State tax commission, and to

transfer all its powers, authority and Jurisdiction, and all proceedings

pending for assessment and collection of taxes, and to repeal all laws in

conflict with this act.

Page.

SEC. 122. Each such statement shall show the following items and particulars

as the same stood on the next preceding first day of October, together with any

other facts or information that may be called for by said board of equaliza-

tion. * * *

11. Every * * pipe line company, shall show in each statement made

by it the following particulars, which are in addition to the foregoing require-

ments, to-wit: (a) The total length of all the lines of said company, whether

within or outside of this State, and (b) the total length of so much of said lines

as are within this State, and (c) the length of its lines in each of the counties

and cities or towns of this State into or through which its lines extend. *

* * *

SEC. 128. Where the person, association, company or corporation operates
pipe line, the lines of which extend beyond the State, there shall
also be deducted from the true cash value of the entire property, tangible and
intangible, ascertained as above provided, the market or true value, ascertained
from the information furnished by said statements, if the value thereof be
given in said statements, of all real and personal property of said person, asso-
ciation, company or corporation not specifically used in its business, and the
remainder shall be treated as the true cash value of all its property, tangible
and intangible, actually used in this business. The State board of equaliza-
tion shall then ascertain and fix the value of the total property, tangible and
intangible, in this State by taking such proportion of the cash value of the
entire property, tangible and intangible, of such persons, association, company
or corporation which is specifically used in its business, ascertained as pro-
vided by this act, as its total lines within this State bears to the total lines
both inside and outside of this State, or as its total receipts from within this
State, bears to its total receipts from both within and without this State.
From the entire value of the property within this State, tangible and intangible
when ascertained as above provided, there shall be deducted the total va'

of the entire real and personal property of said person, association, company or corporation in this State, and sixty per cent of the residue and remainder of the value shall be by said State board of equalization fixed and determined as the true value for taxation of the franchise or intangible property of such person, association, company, or corporation so operating said * made subject to taxation by the provisions of this act.

pipe line

SEC. 129. The State board of equalization shall apportion the value of such franchises or intangible property thus ascertained as in this act provided, among and between the counties and cities or towns in which such persons, association, company, or corporation does business, in proportion to the amount of business done in and receipts derived from each locality, except that in a case of a * * * pipe line, the apportionment to each county and to each city or town shall be in proportion to the line mileage of car mileage therein.