disregarding all improvements, is at least double the amount of the loan.

(c) Notes shall be drawn to run for twentythree and one-half years, payment of four per cent of the full face value of each note to be made semi-annually; at each payment, interest at the rate of six per cent, per annum, upon the unpaid balance of such note to be deducted from the amount paid and the remainder to be credited upon the principal of the loan. Loans from said fund, shall be made only for the following purposes:

(d)

First: To assist the borrower to pay for a home. Second: To pay off any existing mortgage upon the home.

Third: To make permanent improvement upon the home farm; Provided, that if such investments as herein before provided are not reasonably available, then such funds may be invested in other securities authorized by the constitution.

Section 2. For the purpose of supplying additional funds for the loans herein authorized to be made, the commissioners of the land office are hereby authorized to sell, for not less than par and accrued interest, all or any portion of the notes and mortgages or obligations taken for the sale price, or unpaid portion thereof, of any of the land above referred to, such sale to be absolute and without recourse; Provided, Further, that the said Commissioners are hereby authorized to issue and sell at not less than par value, bonds drawing not to exceed five per cent per annum, interest, payable semi-annually, and to pledge for the payment of same, principal and interest, all notes and mortgages taken for loans from said fund; Provided, that the amount of the bonds so issued, sold and outstanding, shall not at any time exceed ninety per cent of the face value of the unpaid portion of the principal of such note.

Section 3. The bonds herein authorized to be is

sued, shall be designated as "Oklahoma Ownership Bonds," shall be in denominations of Twenty-five ($25.00) Dollars, One Hundred ($100.00) Dollars, Five Hundred ($500.00) Dollars, and One Thousand ($1,000.00) Dollars, and shall not be subject to ad valorem tax, but the income from such bonds shall be taxable under the income tax law.

Section 4. Each series of the bonds so issued and sold, shall be made payable, ten per cent in four years from the date of the issue, ten per cent in eight years, ten per cent in eleven years, ten per cent in fourteen years, ten per cent in sixteen years, ten per cent in eighteen years, ten per cent in twenty years, fifteen per cent in twenty-two years and fifteen per cent in twenty-three and one-half years. Attached to each bond, shall be coupons, numbered consecutively, also bearing the number of the bond to which it is attached, for the payment of interest as herein provided.

Section 5. All payments upon the principal of any loan, shall be credited to the sinking fund for payment of bonds at maturity.

Section 6. Any bank or trust or insurance company,organized under the laws of this State, may invest in the bonds issued under the provisions of this debtedness for the payment of which such sinking fund of this State or of any county, city town, township or school district thereof, may invest the sinking fund of the State or of such county, city, town, township, or school district in "Oklahoma Home Ownership Bonds," which mature prior to the due date of the bonded indebtedness for the payment of which suc hsinking fund is created. Said bonds shall be approved collateral as security for the deposit of any public funds and for the investment of trust funds.

Section 7. Said bonds shall be signed by the Governor and by the President of the State Board of Agriculture, also by the State Auditor, with the seal of his

office affixed, and each interest coupon attached thereto, shall bear the facsimile signature of the State Auditor. Said bonds shall be registered by the State Treasurer with appropriate endorsement thereon, showing such registration.

Section 8. All "Oklahoma Home Ownership Bonds," issued as provided by this Act, together with the interest thereon, shall be paid in the order in which they fall due. Should the Commissioners of the Land Office fail to pay any bond (or coupon) issued pursuant to this Act, upon presentation of same, at or after date of maturity, the holder thereof may, by mandamus, compel payment of same; Provided, that nothing in this Act, shall be construed so as to in any manner, hold the State of Oklahoma liable for the payment of such bonds, but they shall be paid from the proceeds of the loans herein authorized to be made.

Section 9. Any premium upon bonds sold, and the difference between interest paid upon the bonds and the interest collected upon loans, shall be paid into the State Treasury and kept in a special fund to be known as the "Maintenance Fund" from which shall be paid all expenses of loaning this fund and the sale of the bonds.

Section 10. The Commissioners of the Land Office shall have power to provide all necessary rules for the investment of this fund, not inconsistent herewith, and to employ such assistance as may be necessary and to fix the compensation of the same, requiring each employee to file an approved bond equal to the maximum amount of such fund that may be in his possession or subject to his order at any time.

Section 11. It shall be the duty of the State Examiner and Inspector to make a thorough examination of said fund annually, and to furnish a copy of his report to each holder of any "Oklahoma Home Owner

ship Bond," whose name and address he may reasonably secure, and he shall file a copy of same with the Governor.

R. L. Williams,

Governor.

HOUSE BILL NO. 168.

AN ACT Defining and Prohibiting the Waste of Crude Oil or Petroleum, Providing for the Equitable Taking of the same from the Ground and Conferring Authority on the Corporation Commission, Prescribing the Penalty for the Violation of this Act, and declaring an Emergency.

Be it Enacted by the People of the State of Oklahoma: Section 1. That the production of crude oil or petroleum in the State of Oklahoma, in such manner and under such conditions as to constitute waste, is hereby prohibited.

Section 2. That the taking of crude oil or petroleum from any oil-bearing sand or sands in the State of Oklahoma at a time when there is not a market demand therefor at the well at a price equivalent to the actual value of such crude oil or petroleum is hereby prohibited, and the actual value of such crude oil or petroleum at any time shall be the average value as near as may be ascertained in the United States at retail of the by-products of such crude oil or petroleum when refined less the cost and a reasonable profit in the business of transporting, refining, and marketing the same, and the Corporation Commission of this State is hereby invested with the authority and power to investigate and determine from time to time the actual value of such crude oil or petroleum by the standard herein provided, and when so determined

said Commission shall promulgate its findings by its orders duly made and recorded, and publish the same in some newspaper of general circulation in the State.

Section 3. That the term "WASTE" as used herein, in addition to its ordinary meaning, shall include economic waste, underground waste, surface waste, and waste incident to the production of crude oil or petroleum in excess of transportation or marketing facilities or reasonable market demands. The Corporation Commission shall have authority to make rules and regulations for the prevention of such wastes, and for the protection of all fresh water strata, and oil and gas bearing strata, encountered in any well drilled for oil.

Section 4. That whenever the full production from any common source of supply of crude oil or petroleum in this State can only be obtained under conditions constituting waste, as herein defined, then any person, firm, or corporation, having the right to drill into and produce oil from any such common source of supply, may take therefrom only such proportion of all crude oil and petroleum that may be produced therefrom, without waste, as the production of the well or wells of any such person, firm, or corporation, bears to the total production of such common source of supply. The Corporation Commission is authorized to so regulate the taking of crude oil or petroleum from any or all such common sources of supply, within the State of Oklahoma, as to prevent the inequitable or unfair taking, from a common source of supply, of such crude oil or petroleum, by any person, firm, or corporation, and to prevent unreasonable discrimination in favor of any one such common source of supply as against another.

Section 5. That for the purpose or determining such production, a guage of each well shall be taken under rules and regulations to be prescribed by the