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be stricken out and the following inserted in lieu thereof: 'and as the consideration for such conveyance the railway company shall be permitted to take from the water impounded above Elephant Butte Dam, now under construction by the Reclamation Service'; also, that a proviso be added to the bill, as follows: *Provided, That neither the United States nor its successors in interest shall be held liable for or obligated to supply the water hereinbefore described; but in the event that the United States or its successors in interest shall abandon the use of the land upon which the said Atchison, Topeka & Santa Fe Railway has its said right of way for a reservoir site, as herein contemplated, said right of way, so far as the same may be conveyed to the United States hereunder, shall revert to the said railway company.' “Respectfully,

A. A. JONES, Acting Secretary." Inasmuch as S. 1843, Sixty-fourth Congress, first session, conforms in every par. ticular to the report this department of September 23, 1913, I see no objection to its enactment into law, and I recommend the passage of the bill. Cordially, yours,

FRANKLIN K. LANE. HR-64-1-vol 2– -23

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CONGRESS,

METALLIFEROUS MINERALS ON INDIAN RESERVATIONS.

APRIL 12, 1916.-Committed to the Committee of the Whole House on the state of the

Union and ordered to be printed.

Mr. HAYDEN, from the Committee on Indian Affairs, submitted the

following

REPORT.

[To accompany H. R. 12426.)

pass,

The Committee on Indian Affairs, to whom was referred the bill (H. R. 12426) to authorize mining for metalliferous minerals on Indian reservations, having carefully considered the same, recommends that the bill be amended, and that as so amended the bill do

Amend the title of the bill by striking out the words “in the State of Arizona."

On page 1, line 11, strike out the words "in the State of Arizona."

On page 2, strike out all of lines 5, 6, 7, 8, 9, 10, and 11 and insert in lieu thereof the following:

Sec. 2. That after the passage and approval of this act unallotted lands within Indian reservations heretofore withheld from disposition under the mining laws may be declared by the Secretary of the Interior to be subject to exploration for and discovery of deposits of gold, silver, copper, and other valuable metalliferous minerals by citizens of the United States, and after such declaration mining claims may be.

On 3, line 18, strike out the word "twenty" and insert in lieu thereof the word “eighty.”

On page 4, line 25, strike out the word “two" and insert in lieu thereof the word "five."

On page 6, line 14, strike out the word “carry” and insert in lieu thereof the word "carrying.

On page 6, after line 20, insert a new section as follows: Sec. 13. That the provisions of this act shall not apply to the Five Civilized Tribes and Osage Nation of Indians in Oklahoma.

The bill as amended will read as follows:

page

A BILL To authorize mining for metalliferous minerals on Indian reservations. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Interior be, and hereby is, authorized and empowered, under general regulations to be fixed by him and under such terms

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and conditions as he may prescribe, not inconsistent with the terms of this act, to lease to citizens of the United States or to any association of such persons or to any corporation organized under the laws of the United States or of any State or Territory thereof, any part of the unallotted lands within any Indian reservation heretofore withdrawn from entry under the mining laws for the purpose of mining for deposits of gold, silver, copper, and other valuable metalliferous minerals, which leases shall be irrevocable, except as herein provided, but which may be declared null and void upon breach of any of their terms.

Sec. 2. That after the passage and approval of this act unallotted lands within Indian reservations heretofore withheld from disposition under the mining laws may be declared by the Secretary of the Interior to be subject to exploration for and discovery of deposits of gold, silver, copper, and other valuable metalliferous minerals by citizens of the United States, and after such declaration mining claims may be located by such citizens in the same manner as mining claims are located under the mining laws of the United States: Provided, That the locators of all such mining claims, or their heirs, successors, or assigns, shall have a preference right to apply to the Secretary of the Interior for a lease, under the terms and conditions of this act, within one year after the date of the location of any mining claim, and any such locator who shall fail to apply for a lease within one year from the date of location shall forfeit all rights to such mining claim: Provided further, That duplicate copies of the location notice shall be filed within sixty days with the superintendent in charge of the reservation on which the mining claim is located, and that application for a lease under this act may be filed with such superintendent for transmission through official channes to the Secretary of the Interior.

Sec. 3. That leases under this act shall be for a period of fifty years, with the preferential right in the lessee to renew the same for successive periods of ten years upon such reasonable terms and conditions as may be prescribed by the Secretary of the Interior, unless otherwise provided by law at the time of the expiration of such periods: Provided, That the lessee may, in the discretion of the Secretary of the Interior, be permitted at any time to make written relinquishment of all rights under such a lease and upon acceptance thereof be thereby relieved of all future obligations under said lease.

Sec. 4. That in addition to areas of mineral land to be included in leases under this act the Secretary of the Interior, in his discretion, may grant to the lessee the right to use, during the life of the lease, a tract of unoccupied land, not exceeding eighty acres in area, for camp sites, milling, smelting, and refining works, and for other purposes connected with and necessary to the proper development and use of the deposits covered by the lease.

Sec. 5. That the Secretary of the Interior, in his discretion, in making any lease under this act, may reserve to the United States the right to lease, sell, or otherwise dispose of the surface of the lands embraced within such lease under existing law or laws hereafter enacted, in so far as said surface is not necessary for use of the lessee in extracting and removing the deposits therein: Provided, That the said Secretary, during the life of the lease, is hereby authorized to issue such permits for easements herein provided to be reserved.

SEC. 6. That any successor in interest or assignee of any lease granted under this act, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the conditions of the approval under which such rights are held and also subject to all the provisions and conditions of this act to the same extent as though such successor or assign were the original lessee hereunder.

SEC. 7. That any lease granted under this act may be forfeited and canceled by appropriate proceedings in the United States district court for the district in which said property or some part thereof is situated whenever the lessee, after reasonable notice in writing, as prescribed in the lease, shall fail to comply with the terms of this act or with such conditions not inconsistent herewith as may be specifically recited in the lease.

Sec. 8. That for the privilege of mining or extracting the mineral deposits in the ground covered by the lease the lessee shall pay to the United States, for the benefit of the Indians, a royalty which shall be five per centum of the gross value of the output of the minerals at the mine, due and payable at the end of each month succeeding that of the extraction of the minerals from the mine, and an annual rental, payable at the date of such lease and annually thereafter on the area covered by such lease, at the rate of 25 cents per acre for the first calendar year thereafter; 50 cents per acre for the second, third, fourth, and fifth years, respectively; and $1 per acre for each and every year thereafter during the continuance of the lease, except that such rental for any year shall be credited against the royalties as they accrue for

that year.

SEC. 9. That in addition to the payment of the royalties and rentals as herein provided the lessee shall expend annually not less than $100 in development work for each mining claim located or leased in the same manner as an annual expenditure for labor or improvements is required to be made under the mining laws of the United States.

Sec. 10. That the Secretary of the Interior is hereby authorized to examine the books and accounts of lessees, and to require them to submit statements, representations, or report, including information as to cost of mining, all of which statements, representations, or reports so required shall be upon oath, unless otherwise specified, and in such form and upon such blanks as the Secretary of the Interior may require; and any person making any false statement, representation, or report under oath shall be subject to punishment as for perjury.

Sec. 11. That all moneys received from royalties and rentals under the provisions of this act shall be deposited in the Treasury of the United States to the credit of the Indians belonging and having tribal rights on the reservation where the leased land is located, which moneys shall be at all times subject to appropriation by Congress for their education, support, and civilization.

Sec. 12. That the Secretary of the Interior is hereby authorized to perform any and all acts and to make such rules and regulations not inconsistent with this act as may be necessary and proper for the protection of the interests of the Indians and for the purpose of carrying the provisions of this act into full force and effect: Provided, That nothing in this act shall be construed or held to affect the right of the State or other local authority to exercise any rights which they may have to levy and collect taxes upon improvements, output of mines, or other rights, property, or assets of any lessee.

SEC. 13. That the provisions of this act shall not apply to the Five Civilized Tribes and Osage Nation of Indians in Oklahoma.

The Department of the Interior favors the passage of this legislation, as shown by the following letter:

DEPARTMENT OF THE INTERIOR,

Washington, April 10, 1916. MY DEAR MR. STEPHENS: I have your request for report upon H. R. 12426, which proposes to permit prospecting for and leasing of metalliferous mineral deposits within Indian reservations in the State of Arizona for 50-year periods upon a flat royalty of 2 per cent of the gross value of the output at the mine, the proceeds to be deposited in the Treasury to the credit of the Indians.

I favor the enactment of this measure. I find that 5 per cent is the ordinary commercial leasing rate, and would suggest that in lieu of 2 per cent. It also appears that there is a public demand that mineral deposits in Indian reservations in other States be opened to development, and I therefore suggest that the words in the the State of Arizona,” in line 11, page 1, be stricken out, making the bill applicable to such deposits in all Indian reservations. It is also suggested that lines 5 to 11, page 2, be eliminated, and the following substituted therefor:

"That after the passage and approval of this act unallotted lands within Indian reservations heretofore withheld from disposition under the mining laws may be declared by the Secretary of the Interior to be subject to exploration for and discovery of deposits of gold, silver, copper, and other valuable metalliferous minerals by citizens of the United States, and after such declaration mining claims may be."

The latter amendment is suggested for the reason that there may be cases where the opening of all lands within a given Indian reservation to exploration and prospecting would be destructive of the rights and interests of the Indians or inadvisable from the standpoint of public policy, and the proposed amendment gives some discretion to the officers of the United States in that connection.

In line 14, page 6, the word “carry” should be "carrying."
With these amendments, I recommend the bill be enacted.
Cordially, yours,

(Signed) FRANKLIN K. LANE. Hon. JOHN H. STEPHENS, Chairman Committee on Indian Affairs,

House of Representatives. The following table shows the area of unallotted lands included within Indian reservations in the Rocky Mountain and Pacific Coast States which will be opened to prospecting for gold, silver, copper,

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