PREFERENCE RIGHTS TO SOLDIERS

Joint resolution giving to discharged soldiers, sailors, and marines a preferred right of homestead entry. (Joint resolution, February 14, 1920, Public Res. No. 29, ch. 76, 41 Stat. 434)

[Sec. 1. World War veterans given preferred right of 60 days under homestead and desert-land laws.]-That hereafter, for the period of two years following the passage of this act, on the opening of public or Indian lands to entry, or the restoration to entry of public lands theretofore withdrawn from entry, such opening or restorat on shall in the order therefor, provide for a period of not less than sixty days before the general opening of such lands to disposal in which officers, soldiers, sailors, or marines who have served in the Army or Navy of the United States in the war with Germany and been honorably separated or discharged therefrom or placed in the Regular Army or Naval Reserve shall have a preferred right of entry under the homestead or desert-land laws, if qualified thereunder, except as against prior existing valid settlement rights and as against preference rights conferred by existing laws or equitable claims subject to allowance and confirmation: Provided, That the rights and benefits conferred by this act shall not extend to any person who, having been drafted for service under the provisions of the selective service act. shall have refused to render such service or to wear the uniform of such service of the United States. (41 Stat. 434.)

Sec. 2. [Powers of Secretary.]-That the Secretary of the Interior is hereby authorized to make any and all regulations necessary to carry into full force and effect the provisions hereof. (41 Stat. 435.)

NOTES

Amendment. This resolution amended by resolution of January 21, 1922 (42 Stat. 358); further amended by public resolution No. 79, December 28, 1922 (42 Stat. 1067), extending its provisions to those citizens of the United States who served with the allied armies during the World War, and who were honorably discharged upon the resumption of citizenship in the United States, provided the service with the allied armies was similar to service with the Army of the United States for which recognition is granted by said resolution No. 29, as amended. (See 49 L. D. 430. See also 49 L. D. 123.)

See notes under resolution of January 21, 1922.

Effect of amendment on orders of restoration prior to January 21, 1922.Lands that had become subject to general disposition prior to January 21, 1922, will not be affected by the amendment, but where lands have been restored heretofore and the period of 63 days' preference right provided by Circular 678 (47 L. D. 346), had not expired January 21, the preference right for the officers, soldiers, sailors, and marines will be held to extend for the period of 91 days from the beginning of the period. (49 L. D. 1.)

Regulations.-Proof of military service required. General Land Office regulations of March 31, 1920 (47 L. D. 346), C. L. No. 936, October 2, 1920; and instructions of November 18, 1921 (48 L. D. 302), C. L. No. 1064, December 19, 1921.

Regulations at 47 L. D. 346 amended by instructions of General Land Office dated January 24, 1922; C. L. No. 1099, March 29, 1922. See also circular letters Nos. 871 and 874.

OIL LEASING ACT

[Extract from] An act to promote the mining of coal, phosphate, oil, oil shale, gas, and sodium on the public domain. (Act February 25, 1920, ch. 85, 41 Stat. 437)

For instructions relating to coal-prospecting permit under section 2 of this act see 49 L. D. 646. See also C. L. 1244, July 26, 1923.

Sec. 13. [Prospecting permits-Shall not be within known producing fields-Notice of application for unsurveyed lands-Corner marks on reserved tracts Drilling periods, etc., in Alaska.]-That the Secretary of the Interior is hereby authorized, under such necessary and proper rules and regulations as he may prescribe, to grant to any applicant qualified under this act a prospecting permit, which shall give the exclusive right, for a period not exceeding two years, to prospect for oil or gas upon not to exceed two thousand five hundred and sixty acres of land wherein such deposits belong to the United States and are not within any known geological structure of a producing oil or gas field upon condition that the permittee shall begin drilling operations within six months from the date of the permit, and shall, within one year from and after the date of permit, drill one or more wells for oil or gas to a depth of not less than five hundred feet each, unless valuable deposits of oil or gas shall be sooner discovered; and shall, within two years from date of the permit, drill for oil or gas to an aggregate depth of not less than two thousand feet, unless valuable deposits of oil or gas shall be sooner discovered. The Secretary of the Interior may, if he shall find that the permittee has been unable, with the exercise of diligence to test the land in the time granted by the permit, extend any such permit for such time, not exceeding two years, and upon such conditions as he shall prescribe. Whether the lands sought in any such application and permit are surveyed or unsurveyed the applicant shall, prior to filing his application for permit, locate such lands in a reasonably compact form and according to the legal subdivisions of the publicland surveys if the land be surveyed; and in an approximately square or rectangular tract if the land be an unsurveyed tract, the length of which shall not exceed two and one-half times its width, and if he shall cause to be erected upon the land for which a permit is sought a monument not less than four feet high, at some conspicuous place thereon, and shall post a notice in writing on or near said monument, stating that an application for permit will be made within thirty days after date of posting said notice, the name of the applicant, the date of the notice, and such a general description of the land to be covered by such permit by reference to courses and distances from such monument and such other natural objects and permanent monuments as will reasonably identify the land, stating

the amount thereof in acres, he shall during the period of thirty days following such marking and posting, be entitled to a preference right over others to a permit for the land so identified. The applicant shall, within ninety days after receiving a permit, mark each of the corners of the tract described in the permit upon the ground with substantial monuments, so that the boundaries can be readily traced on the ground, and shall post in a conspicuous place upon the lands a notice that such permit has been granted and a description of the lands covered thereby: Provided, That in the Territory of Alaska prospecting permits not more than five in number may be granted to any qualified applicant for periods not exceeding four years, actual drilling operations shall begin within two years from date of permit, and oil and gas wells shall be drilled to a depth of not less than five hundred feet, unless valuable deposits of oil or gas shall be sooner discovered, within three years from date of the permit and to an aggregate depth of not less than two thousand feet, unless valuable deposits of oil or gas shall be sooner discovered, within four years from date of permit: Provided further, That in said Territory the applicant shall have a preference right over others to a permit for land identified by temporary monuments and notice posted on or near the same for six months following such marking and posting, and upon receiving a permit he shall mark the corners of the tract described in the permit upon the ground with substantial monuments within one year after receiving such permit. (41 Stat. 441.)

NOTES

Prospecting permits.-The Secretary of the Interior has discretionary authority under section 13 of this act to deny an application for an oil and gas prospecting permit embracing lands within a reclamation withdrawal, which, though owned by the United States, have been dedicated to purposes authorized by law, if the permit may not be granted except at the risk of serious impairment or perhaps complete loss of their use for the purpose to which dedicated. (Martin Wolfe, 49 L. D. 625; C. L. 1258, September 20, 1923.)

The word "authorized" as used in section 13 of this act is to be construed as clothing the Secretary of the Interior with discretionary authority in the granting of oil and gas permits under that section. (Idem.)

An oil and gas prospecting permit will be denied under section 13 of the act of February 25, 1920, for lands dedicated to some special public purpose, such as a bird reservation, if drilling operations will jeopardize or impair the use of the land for the special purpose to which it was dedicated. (J. D. Mell et al., 50 L. D. 308; C. L. 1258, September 20, 1923; C. L. 1259, September 24, 1923.) Lands acquired by purchase or condemnation pursuant to section 7 of the reclamation act, when no longer needed for reclamation purposes, can be disposed of only at public auction, and the proceeds derived therefrom must be placed in the reclamation fund to the credit of the particular project; such lands and the oil and gas deposits therein are not subject to prospecting or lease under the act of February 25, 1920. (Idem.)

Improvements.-Public lands withdrawn for a reservoir site, which can not be restored to the public domain without damage to the project, or which have, because of improvements placed thereon, become lands that may be sold only for the benefit of the reclamation fund, are not subject to the operation of the leasing act of February 25, 1920. (Idem.)

Public lands withdrawn for a reservoir site, or other similar purpose, which contain deposits of oil or gas, may be restored and leased pursuant to the act of February 25, 1920, where their restoration can be effected without damage to the project, or unless, because of improvements placed thereon, the lands have become subject to disposition only by sale for the benefit of the reclama

Circular letter No. 1300, May 8, 1924, refers to instructions prohibiting Department of Interior employees from acquiring oil, gas, or mining leases covering Indian land.

Sec. 35. [Disposal of receipts-To the Treasury-To the reclamation fund-To States for roads, etc.-From naval petroleum reserves to the Treasury.]—That 10 per centum of all money received from sales, bonuses, royalties, and rentals under the provisions of this act, excepting those from Alaska, shall be paid into the Treasury of the United States and credited to miscellaneous receipts; for past production 70 per centum, and for future production 522 per centum of the amounts derived from such bonuses, royalties, and rentals shall be paid into, reserved, and appropriated as a part of the reclamation fund created by the act of Congress, known as the reclamation act, approved June 17, 1902, and for past production 20 per centum, and for future production 371⁄2 per centum of the amounts derived from such bonuses, royalties, and rentals shall be paid by the Secretary of the Treasury after the expiration of each fiscal year to the State within the boundaries of which the leased lands or deposits are or were located, said moneys to be used by such State or subdivisions thereof for the construction and maintenance of public roads or for the support of public schools or other public educational institutions, as the legislature of the State may direct: Provided, That all moneys which may accrue to the United States under the provisions of this act from lands within the naval petroleum reserves shall be deposited in the Treasury as "Miscellaneous receipts." (41 Stat. 450.)

Naval petroleum receipts.-The State of California is not entitled to any portion of moneys derived from the products of lands in naval petroleum reserves, under provisions of leasing act of February 25, 1920, the last proviso of section 35 thereof requiring that all such moneys shall be deposited in the Treasury as "Miscellaneous receipts." (1. Comp. Gen. 422.)

For digest of decisions and opinions in connection with the administration of this act see 47 L. D. 463.

For departmental decisions see J. D. Mell et al., 50 L. D. 312; and instructions of May 23, 1924, 50 L. D. 501.

Circular letters.-No. 934, September 25, 1920, regulations governing production of oil and gas under oil leasing bill.

No. 955, January 10, 1921, and No. 1228, June 15, 1923, reports on oil prospecting permits or leases.

No. 1228, June 15, 1923, applicant prohibited from drilling upon any constructed works of Reclamation Service (Bureau of Reclamation), or upon the right of way therefor.

No. 1259, September 24, 1923, additional stipulation to be incorporated in oil and gas permits. $5,000 bond required.

No. 1261, October 11, 1923, oil and gas waiver by homestead entrymen.

SALE OF WATER FOR MISCELLANEOUS PURPOSES

An act for furnishing water supply for miscellaneous purposes in connection with reclamation projects. (Act February 25, 1920, 41 Stat. 451)

[Sale of water for miscellaneous purposes other than for irrigationContract-Delivery not to be detrimental to water service-Moneys received to be covered into the reclamation fund.]-That the Secretary of the Interior, in connection with the operations under the reclamation law, is hereby authorized to enter into contract to supply water from any project irrigation system for other purposes than irrigation, upon such conditions of delivery, use, and payment as he may deem proper: Provided, That the approval of such contract by the water users' association or associations shall have been first obtained: Provided, That no such contract shall be entered into except upon a showing that there is no other practicable source of water supply for the purpose: Provided further, That no water shall be furnished for the uses aforesaid if the delivery of such water shall be detrimental to the water service for such irrigation project, nor to the rights of any prior appropriator: Provided further, That the moneys derived from such contracts shall be covered into the reclamation fund and be placed to the credit of the project from which such water is supplied. (41 Stat. 451.)

NOTES

Penalties for delinquent payments. Same penalties for delinquent payments are provided as in reclamation extension act of August 13, 1914. 686.) (Reclamation instructions of June 9, 1920, C. L. 898 or 47 L. D. 404.)

(38 Stat.