March 10, 1938 Rules and Regulations

Form LU-LA-22  (3-9-38)

UNITED STATES DEPARTMENT OF AGRICULTURE

BUREAU OF AGRICULTURAL ECONOMICS

RULES AND REGULATIONS TO GOVERN THE EXERCISE OF MINERAL RIGHTS
RESERVED IN CONVEYANCE TO THE UNITED STATES UNDER TITLE III
OF THE BANKHEAD-JONES FARM TENANT ACT

Pursuant to the provisions of Title III of the Bankhead-Jones Farm Tenant Act, approved
July 22, 1937, I, Henry A. Wallace, Secretary of Agriculture, do hereby establish the following rules and regulations to govern the extraction of minerals, oil, gas, and other inorganic resources from lands purchased by the United States under authority of said act of July 22, 1937, in cases where the right to extract such mineral resources is to be reserved by the vendor by stipulation in the deed of conveyance to the United States.

Before anyone other than the vendor begins such operations, he must, on demand, exhibit to the Regional Director of the Bureau of Agricultural Economics, or other duly authorized representative of the Secretary of Agriculture, satisfactory evidence of authority from the vendor so to do.  All operators, whether vendors or persons acting under authority from vendors, must comply with the following requirements:
1. Only so much of the surface of the land shall be used or disturbed as is necessary in the bona fide prospecting, mining, drilling, or manufacturing of the minerals; but no right to so occupy, use, or disturb such land shall be recognized until the recorded owner of the reserved minerals, or persons acting under authority from the recorded owner, shall have notified the Regional Director, or other duly authorized representatives, of his intention to commence such operations. All buildings, camps, equipment, and other structures shall be removed from the land within 1 year from date of completion or abandonment of the operations. Otherwise such buildings, camps, equipment, and other structures shall become the property of the United States.  Upon the termination of operations, all mines and wells shall be properly and effectively sealed by the operator in a manner satisfactory to the Regional Director, or other duly authorized representative.

2. In underground operations all reasonable and usual provision shall be made for the support of the surface, and to that end the tunnels, shafts, and other workings shall at all reasonable times be open to inspection and examination by duly authorized Federal or State officers and by mining experts or inspectors of the United States. However, if the exercise of the rights herein reserved shall result in the stripping, collapse, or other damage of the land or any improvements thereon, the recorded owner of the reserved rights, or persons acting under authority from the recorded owner, shall, upon written notification by the Regional Director, or other duly authorized representative, restore the land to a serviceable or safe condition, or repair or replace the improvements damaged or destroyed, or at the option of the Regional Director, or other duly authorized representative, pay to the United States a sum sufficient to reimburse the United States for the damage sustained.

3. All marketable timber and other timber products cut, destroyed, or damaged in prospecting, mining, drilling, or removing minerals, coal, oil, and gas, or in manufacturing products therefrom, and in the location and construction of buildings or works of any kind for use in connection therewith, shall be paid for at the usual rates charged in the locality for sales of similar timber and timber products. All slash resulting from such cutting or destruction shall be disposed of as directed by the Regional Director, or other duly authorized representative.  In case timber or reproduction shall be unnecessarily cut, destroyed, or damaged, payment therefore shall be at double the usual rates charged in the locality for the sales of similar material.

4. All mining operators shall in all developments and operations make all reasonable provisions for the disposal of tailings, dumpage, and other deleterious materials or substances in such manner as to prevent use, obstruction, pollution, or deterioration of the land, streams, ponds, lakes, or springs. All due and customary precautions shall be taken to prevent economic waste of minerals and damage to mineral-bearing formations and deposits.

5. Nothing herein contained shall be construed to exempt the operator or the mining operations from any requirements of the laws of the State in which situated; nor from compliance with or conformity to any requirements of any law or regulation which later may be enacted or promulgated, and which otherwise would be applicable.

6. While operations are in progress, the operators, contractors, subcontractors, and employees of contractors and subcontractors at work within the Government Project Area shall use due diligence in the prevention and suppression of fire, shall be available for service in the extinguishment and suppression of all fires within 2 miles of said operation, and shall be responsible for any damage resulting from fires of which they are directly or indirectly the cause.

7. Wells for oil or gas shall not be drilled within two hundred (200) feet of any of the boundaries of the land covered by this reservation when title to adjoining land is vested in the United States.

8. In those cases in which the reservation is not perpetual, the vendor, his heirs or assigns shall, upon the termination of operations and not later than the expiration date of this reservation, record a formal release of the rights reserved in the deed of conveyance to the United States. -

In testimony thereof, I have hereunto set my hand and official seal in the city of Washington this 10th day of March 1938.

(SEAL]

H. A. Wallace
Secretary of Agriculture.