30 U.S.C. § 228 : US Code - Section 228: Prospecting permits and leases to persons of lands not withdrawn; terms and conditions of; fraud of claimants

Search 30 U.S.C. § 228 : US Code - Section 228: Prospecting permits and leases to persons of lands not withdrawn; terms and conditions of; fraud of claimants

Any person who on October 1, 1919, was a bona fide occupant or
claimant of oil or gas lands under a claim initiated while such
lands were not withdrawn from oil or gas location and entry, and
who had previously performed all acts under then existing laws
necessary to valid locations thereof except to make discovery, and
upon which discovery had not been made prior to February 25, 1920,
and who has performed work or expended on or for the benefit of
such locations an amount equal in the aggregate of $250 for each
location if application therefor shall be made within six months
from February 25, 1920, shall be entitled to prospecting permits
thereon upon the same terms and conditions, and limitations as to
acreage, as other permits provided for in this chapter, or where
any such person has made such discovery, prior to said February 25,
1920, he shall be entitled to a lease thereon under such terms as
the Secretary of the Interior may prescribe unless otherwise
provided for in section 227 (!1) of this title: Provided, That
where such prospecting permit is granted upon land within any known
geologic structure of a producing oil or gas field, the royalty to
be fixed in any lease thereafter granted thereon or any portion
thereof shall be not less than 12 1/2 per-centum of all the oil or
gas produced except oil or gas used for production purposes on the
claim, or unavoidably lost: Provided, however, That the provisions
of this section shall not apply to lands reserved for the use of
the Navy. No claimant for a permit or lease who has been guilty of
any fraud or who had knowledge or reasonable grounds to know of any
fraud, or who has not acted honestly and in good faith shall be
entitled to any of the benefits of this section.
All permits or leases hereunder shall inure to the benefit of the
claimant and all persons claiming through or under him by lease,
contract, or otherwise, as their interests may appear.