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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Public lands withdrawn for a reservoir site, or other similar purpose, which contain deposits of oil or gas, may be restored and leased pursuant to the act of February 25, 1920,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 reclamation fund. (Idem.)

Lands subject to statute.—This section limits the right of the Secretary of the Interior to receive applications for oil and gas prospecting permits and to grant licenses thereunder to lands containing such deposits owned by the Uinted States. (Work v. Mason (1925), 6 Fed. (2d) 474, 55 App. D. C. 349.)

Circular letters.—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.

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.

Miscellaneous.-See 52 L. D. 171 (Anna M. Derden), regarding assignment of oil and gas prospecting permit.

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 5212 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 legislaiure 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.)

Textual note.—The substance of this section is codified as section 191. title 30, United

States Code.

NOTES

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.

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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 entryman.
Miscellaneous.See 52 L. D. 40.

Sec. 37. [Provisions applicable to all deposits—Exception as to valid existent claims—Perfection of valid claims allowed.]—That the deposits of coal, phosphate, sodium, oil, oil shale, and gas, herein referred to, in lands valuable for such minerals, including lands and deposits described in the joint resolution entitled “Joint resolution authorizing the Secretary of the Interior to permit the continuation of coal mining operations on certain lands in Wyoming,” approved August 1, 1912 (Thirty-seventh Statutes at Large, page 1346), shall be subject to disposition only in the form and manner provided in this Act, except as to valid claims existent at date of the passage of this Act and thereafter maintained in compliance with the laws under which initiated, which claims may be perfected under such laws, including discovery.

Textual note.-The substance of this section is codified as section 193, title 30, U. S. C.

NOTE

See note "Mining claims held valid” following section 7, act June 17, 1902.

Act of August 21, 1935, 49 Stat. 674, amends secs. 13, 14, 17 and 28 of above act.

See act of Feb. 7, 1927, 44 Stat. 1057, making applicable the general provisions of sections 1 and 26 to 38 inclusive of above act to permits and leases issued under the act of Feb. 7, 1927, and amending sections 1 and 3 of above act to include potassium.

SALE OF WATER FOR MISCELLANEOUS PURPOSES

An act for furnishing water supply for miscellaneous purposes in connection with reclama

tion 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.)

Textual note. This act is codified as section 521, title 43, United States Code, the introductory word “That" being omitted ; and the word “hereby" in the third line being omitted.

NOTES

Penalties for delinquent payments.-Same penalties for delinquent payments are provided as in reclamation extension act of August 13, 1914. (38 Stat. 686.) (Reclamation instructions of June 9, 1920, C. L. 898 or 47 L. D. 404.)

Water for condensation purposes in proposed power plant.—The above act apparently is designed to permit the sale of surplus water from any irrigation project system for consumptive uses other than irrigation, and does not apply to cases where no consumptive use is proposed to be made of the water and where it is claimed it will be returned undiminished and undeteriorated above the point of diversion of the project. (Department opinion-citing Kinney on Irrigation, vol. 2, p. 1376_of April 26, 1929, addressed to the Elephant Butte Irrigation District, to the effect that an appropriation by the El Paso Electric Co. of water for condensation purposes below the Elephant Butte Dam and above the intake of project canals, can not be prevented under the law.)

INVESTIGATION OF IRRIGATION POSSIBILITIES IN IMPERIAL

VALLEY, CALIF.

An act to provide for an examination and report on the condition and possible irrigation

development of the Imperial Valley in California. (Act May 18, 1920, ch. 188, 41 Stat. 600.)

[Sec. 1. Examination authorized of lands which can be irrigated by diversion of water from Colorado River.]—That the Secretary of the Interior is hereby authorized and directed to have an examination made of the Imperial Valley in the State of California, with a view of determining the area, location, and general character of the public and privately owned unirrigated lands in said valley which can be irrigated at a reasonable cost, and the character, extent, and cost of an irrigation system, or of the modification, improvement, enlargement, and extension of the present system, adequate, and dependable for the irrigation of the present irrigated area in the said valley, and of the public and privately owned lands in said valley and adjacent thereto not now under irrigation, which can be irrigated at a reasonable cost from known sources of water supply, by diversion of water from the Colorado River at Laguna Dam. (41 Stat. 600.)

Sec. 2. [Report with recommendations.]—That the said Secretary shall report to Congress not later than the 6th day of December, 1920, the result of his examination, together with his recommendation as to the feasibility, necessity, and advisability of the undertaking, or the participation by the United States, in a plan of irrigation development with a view of placing under irrigation the remaining unirrigated public and privately owned lands in said valley and adjacent thereto, in connection with the modification, improvement, enlargement, and extension of the present irrigation systems of the said valley. (41 Stat. 600.)

Sec. 3. [Detailed estimates of costs, effects, etc.]—That the said Secretary shall report in detail as to the character and estimated cost of the plan or plans on which he may report, and if the said plan or plans shall include storage, the location, character, and cost of said storage, and the effect on the irrigation development of other sections or localities of the storage recommended and the use of the stored water in the Imperial Valley and adjacent lands. (41 Stat. 600.)

Sec. 4. [Proportionate share of expense-Other agencies Supervision of control.]—That the said Secretary shall also report as to the extent, if any, to which, in his opinion, the United States should contribute to the cost of carrying out the plan or plans which he may propose; the approximate proportion of the total cost that should be borne by the various irrigation districts or associations or other public or private agencies now organized or which may be organized; and the manner in which their contribution should be made; also to IRRIGATION POSSIBILITIES IN IMPERIAL VALLEY, CALIF. 241

what extent and in what manner the United States should control, operate, or supervise the carrying out of the plan proposed, and what assurances he has been able to secure as to the approval of, participation in, and contribution to the plan or plans proposed by the various contributing agencies. (41 Stat. 600.)

Sec. 5. [Appropriation authorized — Local payment required.]—That, for the purpose of enabling the Secretary of the Interior to pay not to exceed one-half of the cost of the examination and report herein provided for, there is hereby authorized to be appropriated the sum of $20,000: Provided, That no expenditure shall be made or obligation incurred hereunder by the Secretary of the Interior until provision shall have been made for the payment of at least one-half the cost of the examination and report herein provided for by associations and agencies interested in the irrigation of the lands of the Imperial Valley. (41 Stat. 601.)

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