less than five per centum of the gross value of all petroleum and natural gas products extracted during the term of the lease, payable quarterly. Failure on the part of any such lessee to comply with the terms and conditions of his lease shall work a forfeiture and cancellation thereof, as herein provided in this chapter. §5218. SALINE, OIL, GAS LANDS-NOT TO BE SOLD-LEASES. SEC. 41. State saline lands and State lands known to contain valuable minerals, petroleum or natural gas in paying quantities, and sections of State lands adjoining lands upon which there are producing mines, oil wells or gas wells, or which are known to contain valuable minerals, petroleum or natural gas in paying quantities, shall not be sold, but may be leased as provided in this chapter. §5219. SALINE LANDS-LEASES-ROYALTY. SEC. 42. The Commissioner may execute leases for the extraction of salt from the saline lands and lakes belonging to the State. Such leases shall provide for a royalty on all salt extracted therefrom of not less than ten cents per ton payable quarterly. §5220. SHALE AND CLAY DEPOSITS-LEASES TERMS. SEC. 43. The Commissioner may also execute leases for the mining, extraction or disposition of shale, clay or other natural deposits in or upon, or products of, State lands, not otherwise provided for in this chapter, upon such terms and conditions as he may deem for the best interests of the State not repugnant to law. Any mortgage upon improvements on any such lands so leased shall be void. $5221. MINERAL LANDS-HOW DEVELOPED. SEC. 44. All lands under lease for extraction of coal or other deposits, shall be developed and operated in a workmanlike manner and with a view to development of the whole area tributary to the shafts, drifts, tunnels or other openings made, and failure of the lessee or his assigns to observe this provision shall be cause for cancellation and forfeiture of the lease thereon in the manner hereinbefore provided in this chapter. SEC. 54. The Commissioner may grant rights-of-way and easements over, upon or across State lands for public highways, railroads, tramways, telegraph, telephone and power lines, irrigation works, mining, logging and for other purposes, upon pay ment by the grantee or grantees of the price fixed by the Commissioner, which shall not be less than the minimum price for the lands, used, as fixed by law. §5233. LEASES- -GRAZING AND AGRICULTURAL - MINERAL RESERVED. SEC. 56. In all leases of State lands for grazing or agricultural purposes there shall be inserted a clause reserving the right to execute leases for mining purposes thereon, or for the extraction of petroleum, natural gas, salt, or other deposit therefrom, and the right to sell or dispose of any other natural surface products of such lands other than grazing, agricultural or horticultural products; also a clause reserving the right to grant rights-of-way and easements for any of the purposes mentioned in section 5231. SEC. 57. Improvements placed upon lands leased for grazing, agricultural or mining purposes shall be subject to taxation. In case of default in the payment of taxes on such improvements, and the sale thereof for such unpaid taxes, only the interest of the lessee shall be sold. SEC. 70. Any person, association of persons, or corporation claiming any right, title, interest or priority of claim, in or to any State lands, covered by any lease, contract, grant or any other instrument executed by the Commissioner, shall have the right to initiate a contest before the Commissioner who shall have the power to hear and determine same. The Commissioner shall prescribe appropriate rules and regulations to govern the practice and procedure of such contests. |