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get it we do not care how quickly you end the supervision of the Government over Osage property. There is a great deal of talk about full-blood Indians with it. On one side is Chief Bacon Rine; and he went to school as many days as I did. He may not have had other opportunities to acquire knowledge equal to the white people, but he went to school there where every Indian living upon this reservation who was born since this allotment act was passed has gone. Those born since that time will be 25 years of age in 1931.

If you educate a boy for 21 years at these schools that are praised by the superintendent and send him to the Army of the United States and let him win glory on the fields of battle in France-become an airplane ace-I will say to you that man riding that airplane, that boy, even though he spends all his money, is entitled to get it, in the first place, and is entitled to have no supervision over his property whatever. The courts of this State will take care of incompetents, of course. We will have a lot of them legally incompetent and non compos mentis to apply to those courts, and they can be trusted to take care of them.

You have heard another thing about the quantum of Indian blood. I appeal to this committee, whatever your opinions may be as to the quantum of Indian blood, let not that quantum of white blood or Indian determine the amount that you take over from the members of this tribe. It matters not about the quantum of Indian blood. You gentlemen do not deal with things of that kind. An equitable law will not deprive my children because they are less than half bloods. I want to call your attention to one point and I am through, and that is this:

A few years ago in the Indian agent's office here there was a tract of land put up for sale. I had made a bid on that land, under seal, of $5 an acre, because it adjoined the place I had. My bid was a higher bid, twice as high, as any other bid. That Indian woman was legally incompetent at that time. Her land was sold. She walks these streets to-day. That land has since passed out of my hands, but I want to ask you gentlemen if, at the end of 1931, there is not a well drilled upon that, where has she received any equity? How did the owner of that land get the mineral that went with the surface? What has he paid for it, and upon what ground can you gentlemen give it to him? I want to say to you that the law of the land prevented that woman from selling her mineral right. It prevented the white man from acquiring it. In that case it was mine first, afterwards it was her's.

Then you say to these people, "You can not sell your mineral or drill upon it," and we could not drill upon our own land and give the oil to the tribe, because they would prevent us from doing it, and when 15 or 25 years has elapsed, then we say to you it is high time that you commence to talk about this matter of the mineral period extension. This matter should be submitted to the Department of Justice and the best legal talent that we have in the land should pass upon it, and if these white people or surface owners have the vested right the Congress of the United States is powerless to take it over from them. On the other hand, shall you do it now? From now on here will be a greater conflict-more controversy as to where this drilling shall be.

The map shown on that wall [indicating] shows you a lot that has not been leased and shows you a lot that has been leased. From this time on, as you advertise these lands for sale, the price that respective bidders will pay will be inevitable. It will be greater than it will be less. A question will now arise, Where shall we drill in the future? If this goes to the surface owner in 1931, is it not a natural proposition for us to say we will drill only upon the land of these surface owners? It is our mineral up to this time, indisputably, and you bring a controversy up that will result in injury to the bona fide farmer in the proper conduct of his business. I believe, gentlemen, that is all I care to say to you about it.

The CHAIRMAN. Does anybody desire to ask any questions?
Mr. PALMER. I will be glad to answer questions.

Mr. ELSTON. What is your quantum of blood that you have?
Mr. PALMER. About half Indian.

Mr. ELSTON. Were you born in the Osage?

Mr. PALMER. No; I am an adopted member of the tribe-a member of the tribe by adoption. But my wife is a member of the tribe by blood.

Mr. ELSTON. This woman you spoke of as walking the streets, does she own an equity in the royalties as a member of the tribe? Mr. PALMER. Yes, sir.

Mr. ELSTON. Was she well provided for in land?

Mr. PALMER. I mean she is walking the streets here. I just happened to see her yesterday. She has sold her mineral.

The CHAIRMAN. You have given us a splendid statement, and it will be useful and agreeable to the committee. We will excuse you.

STATEMENT OF MR. GEORGE E. TINKER, SECRETARY OF THE OSAGE COUNCIL.

The CHAIRMAN. Kindly state your name and official position. Mr. TINKER. George E. Tinker, secretary of the Osage Council at the present time.

The CHAIRMAN. Do you desire to make a statement here?

Mr. TINKER. I have here a statement prepared by the Osage Council, a statement made by the chief to this committee in Washington. I desire to present it.

(The statement referred to is as follows:)

ARGUMENT AND STATEMENT ON BEHALF OF THE OSAGE TRIBE OF INDIANS BY ITS TRIBAL COUNCIL.

On June 28, 1906, what is commonly known as the Osage allotment bill was passed by Congress and approved by the President. Under the terms of that bill the surface of the land was allotted among the members of the tribe and all the minerals were reserved to the tribe for a period of 25 years, at which time according to the provisions of said act said minerals were to become the property of the owner of the surface of the land unless otherwise provided by act of Congress in the meantime. At the time of the allotment there were 2,229 enrolled Osage Indians, of whom 926 were full-blood members of the tribe and 1,303 of less than full blood. Since that time 153 of the full-blood members of the tribe have died and there has been approximately that number of children born to the full bloods. Those born since that time are not enrolled members of the tribe, and therefore do not share in any tribal property except as heirs. The same situation is true with reference to the mixed-blood Indians, except that the percentage of deaths has been less among them.

Since the passage of the allotment bill approximately 425,000 acres have passed into the hands of white men or Indians other than the original allottee, and these lands are unrestricted. The Osage Indian Reservation originally embraced all of what is now Osage County, Okla., and included more than 1,400,000 acres. Of this land, approximately 186,000 acres is tillable, the remainder being unfit for agriculture except for grazing purposes. This tillable land is scattered somewhat over the entire county, but is largely confined to river and creek bottoms and some of the level prairie. At the time of the passage of said allotment bill Congress provided that the oil, gas, and other minerals should remain the property of the Osage Tribe for a period of 25 years, unless otherwise provided by act of Congress, and that the Osage Tribe of Indians, through its tribal council, with the approval of the Secretary of the Interior, might lease said mineral lands, the royalty to be derived from the same to be fixed by the President of the United States, and the rules and regulations under which such leases were to be made to be provided by the Secretary of the Interior. It was at that time contemplated by Congress that 25 years would be sufficient time in which to take the oil and gas from the ground and in which to give the Indians an opportunity to have the full benefit of same; however, a very small amount of development at that time had been done and very little was known as to the extent or value of the oil or gas minerals covered by the Osage lands. It is now known that 25 years is not nearly long enough to obtain this wealth by the Indians, and that if the Indians are to get the benefit from the wealth that rightfully belongs to them that at least an additional 25 years will have to be given them in which to get it. To permit the mineral trust period to expire in 1931 would be equivalent to taking away from the tribe millions of dollars' worth of property and turning it over to those who have not paid for it and who are from no standpoint of equity and justice entitled to it. Since the allotment of the Osage lands there has been considerable land sold through the Indian office and the price these lands brought will show that the parties who purchased the same did not pay an amount which would indicate that they were buying mineral in addition to surface rights.

During the year ending June 30, 1916, 13,126 acres were sold at an average price of $6.31 per acre. During the year ending June 30, 1917, 10,346 acres were sold at an average price of $9.51 per acre. No land was sold during the fiscal year of 1917 and 1918. On March 4, 1919, 5,886 acres were sold at an average price of $18.44 per acre. All of the above sales were at public auction and on terms which permitted the purchaser to pay one-fourth down, onefourth in one year, one-fourth in two years, and the remaining fourth in three years, with interest at 6 per cent. At private sales during the fiscal year June 30, 1919, with the approval of the department, there were sold 3,549 acres at an average price of $20.66 per acre. Much land was sold by members of the tribe who had received certificates of competency, and much was sold through the probate court, but the average price of such sales did not amount to as much as the price given above, so that it can be seen from this that the purchaser of said lands did not pay an amount which would justify anyone in saying after he bought the same that he allowed any extra consideration for any mineral prospects that might be and which might come to him after the expiration of such mineral trust period. All deeds issued contain a clause stating that the land is sold subject to the mineral rights of the Osage Tribe of Indians as provided by act of Congress of June 28, 1906.

Some of those who have purchased these lands either from the individual allottee who had received certificates of competency or through sales as above specified are contesting against Congress extending the mineral period, and they are organized. Others who have purchased said land are not contesting the extension of the mineral period.

To show the value of the oil and gas mineral rights to the Osage Tribe of Indians the following figures are given:

The income per capita from oil and gas for a number of years last past.

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For the year ending June 30, 1919_

From July 1, 1919, to Dec. 31, 1919, both inclusive_

1744-20-VOL 326

$320. 14

799.88

272.68

384.93

2,719. 96

3,672, 36

3,930. 00

3, 190. 00

During the year ending June 30, 1914, there was what was known as a bonus payment made, which was derived from the sale of oil leases, and bonuses were made during the years ending June 30, 1917, 1918, 1919, and the last half of 1919. The oil and gas leases made by the Osage Tribe of Indians provide for a one-sixth royalty, and in addition to that whatever bonuses may be paid for the leases when sold at public auction.

On November 12, 1917, oil leases on 19,868 acres were sold, bringing a total of $1,677,200, or $84.32 per acre.

February 14, 1918, leases were sold on 25,440 acres, bringing a total of $1,275,500, or $50 per acre.

May 11, 1918, 38,980 acres were sold, bringing a total of $1,180 575, or an average per acre of $30.

On November 9, 1918, 34,720 acres were sold for a total of $3,350,200, or an average per acre of $75.

On March 5, 1919, leases were sold on 20,420 acres, at a total of $2,790,925, or an average per acre of more than $100.

On June 5, 1919, 38,451 acres were sold, at $3,884,925, or an average per acre of more than $100.

On October 6, 1919, 34,670 acres were sold for $6,056,950, or an average per acre of more than $174.40.

These figures given above are for oil leases sold on undeveloped territory, although a considerable part of it was adjacent to territory which had been proven. They show conclusively that the price paid by those who bought the surface of the land could not be considered as any compensation for mineral rights. In addition to the sale of oil leases, the gas leases sold on said lands brought to the tribe $1.173,920.48. These figures all show the exceedingly great value of this mineral property and give some idea as to what will be taken away from the Osage Tribe and delivered to the owner of the surface if Congress should fail to extend the mineral period.

At the time of the passage of the allotment bill in 1906, the oil production reached its highest mark up to that time, and during the year ending June 30, 1906, produced 4,514,004 barrels of oil. This was very much more than had been produced in any year previous to that. Thereafter the production did not increase materially until 1911, when the production for the year ending June 30, 1911, was 9.418,767 barrels. For the year ending June 30, 1915, it produced only 7,258.788 barrels and has greatly increased since that time until for the year ending June 30, 1919, it produced 12,138,086 barrels, and the production at this time is the greatest it has been at any time in the history of the Osage oil field.

Under the act of Congress of March 3, 1905, the old oil and gas lease that had been in existence covering the Osage Reservation was renewed as to 680,000 acres and on March 16, 1916, leases covering 187,000 acres of said 680,000 acres were renewed for a period not longer than the time in which the title to the minerals belonged to the tribe. Since March 16, 1916. there have been leased by the tribal council, in accordance with the rules and regulations of the Secretary of the Interior, and with his approval, 272,342 acres, making a total acreage leased up to this time for oil purposes, of 459,342 acres. The total bonus received for these 272,342 acres is $25,928,514.36. The average price per acre which this land brought for oil mineral purposes only was a little more than $95. In addition to the oil leases that have been made, the entire Osage Reservation has been leased for gas mining and mining for gas is going on practically in every part of said reservation. Leases for oil are all made in units of 160 acres each; and no company is permitted to lease in excess of 4,800 acres on what is known as the east side of Osage County, and 4,800 acres on what is known as the west side of Osage County. The purpose of this restriction is, first, to prevent monopoly, and second, to have more companies operating in producing oil, thereby hastening the development of this territory. The great value of this mineral property to the Osage Tribe as compared to what it was in 1906 may well be shown by a statement setting out the prices that have been paid for oil since the passage of the allotment bill above referred to:

In 1906, the price per barrel for oil ranged from 52 to 39 cents.
In 1907, the price per barrel ranged from 39 cents to 41 cents.
In 1908, the price remained throughout the year at 41 cents.
In 1909, the price per barrel ranged from 41 cents to 35 cents.
In 1910, the price ranged from 38 to 42 cents.

In 1911, the price ranged from 44 cents to 50 cents.

In 1912, the price ranged from 53 cents to 83 cents.
In 1913, the price ranged from 86 cents to $1.03.
In 1914, the price ranged from $1.05 to 55 cents.
In 1915, the price ranged from 55 cents to $1.20.

In 1916, it ranged from $1.25 to $1.40.

In 1917 it ranged from $1.50 to $2.

In 1918 it remained throughout the year at $2.25 per barrel.

In 1919 it ranged from $2.25 per barrel to $2.75, and at the present time the price per barrel is $3.

On June 30, 1907, there had been drilled 779 oil wells, 67 gas wells, and 309 dry wells, making a total of 1,155. On June 30, 1919, there had been drilled and which were producing oil, 4,442 oil wells, 468 gas wells, and 1,930 dry wells and wells that were abandoned, making a total of 5,840. On January 1, 1920, there were 5,036 oil wells, 513 gas wells, 2,100 dry and abadoned wells, ór a total of 7,892 wells, and there were 241 wells drilling. Up to March, 1916, there had only been drilled 65,548 acres. This acreage was divided in units of 160 acres each, not all of which had been fully drilled. On October 1, 1919, there were 2.700 leases of 160 acres each, or a total of 415,900 acres which were under lease for oil-mining purposes, leases on practically 45,000 acres having been surrendered or canceled. Of this number, 753 leases were producing oil, 340 had been proven dry and 241 had wells drilling on them, leaving at that time, of the territory that theretofore had been leased for oil-mining purposes, 1,240 that had not been tested.

Under the terms and conditions of leases under which these 1,240 tracts were held, they must all be tested not later than March 16, 1921.

It is not known definitely how long oil wells will produce oil in the Osage Reservation, but many wells have been producing at this time for as long as 15 years and it is reasonable to expect that many wells that have been drilled and will be drilled in the future, will produce oil for as long as 20 years. This of itself clearly demonstrates that it would be impossible for the Osage Tribe to secure all this oil by 1931, even from the wells that have already been drilled. When the vast amount of territory that has already been leased and not drilled, and the still greater amount that is to be leased in the future has been leased and drilling operations started on it, it will be seen that the extension of 25 years from 1931 would indeed be a short time in which the tribe may hope to even get a large percentage of all of the oil that may be found and produced in its reservation.

Attention is called to the fact that oil leases and gas leases are made separately, although covering the same territory. Gas leases are made on a very large amount of acreage, while oil leases are confined to 160 acres. This has proven beneficial to the Osage Tribe in several ways, especially it has enabled the tribe to get the best possible terms for its gas and to realize the most money out of gas leases. It has also resulted in a conservation of gas and has caused the life of gas wells in the Osage Reservation to be more than three times that of the gas wells in any other part of what is known as the midcontinent field. The average life of a gas well in the Osage Reservation is four years, while the average life throughout the midcontinent field other than the Osage Reservation is only 14 months. This conservation of gas has resulted in great benefit to the public generally in that more than 50 per cent of all the gas produced and sold in the States of Oklahoma, Missouri, and Kansas has been produced in the Osage Reservation. At the present time the annual income from gas royalty in the Osage Reservation is nearly $1,000,000.

Attached hereto and marked Exhibit A is a map of Osage County, Okla., showing the acreage as at present leased for oil. It also shows what leases are producing oil, on what leases drilling operations are now being carried on, on which oil has not been found, leases that have been made and which have not yet been drilled, and tracts which are now being offered for lease and are to be sold at public auction on the 3d of February, 1920. What is denominated as the east side of the Osage Reservation is all that territory east of the range line between ranges 7 and 8, and what is denominated as the west side of Osage Reservation is all territory lying west of said range line.

The Osage Tribe of Indians are exceedingly anxious and desirous for the extension of the mineral period, notwithstanding the individual members of the tribe each own approximately 659 acres of land, except in those instances where they have sold a part of the same. They feel that they selected their allotments with the understanding that the minerals beneath the same should go to the

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