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B-126598, MAY 24, 1956

B-126598 May 24, 1956
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DUNCAN MILLER: FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 13. WHEREIN THERE WAS WITHHELD THE AMOUNT OF $350 REPRESENTING UNPAID RENTALS DUE THE UNITED STATES AS UNDER OIL AND GAS LEASE NO. THE MATTER WAS MADE THE SUBJECT OF A FURTHER INVESTIGATION AND ADDITIONAL REPORTS FROM THE DEPARTMENT OF THE INTERIOR RECENTLY WERE RECEIVED IN OUR OFFICE. THESE REPORTS SHOW THAT YOUR APPLICATION FOR THE NEVADA LEASE WHICH INCLUDED YOUR REMITTANCE FOR RENTAL IN THE AMOUNT OF $400 WAS REJECTED ON NOVEMBER 29. YOU WERE ISSUED THE EVANSTON LEASE ON JUNE 1. THE NONCOMPETITIVE LEASE FORM ISSUED YOU IN THIS INSTANCE PROVIDES UNDER SECTION 2 (A) THAT: "UNTIL A GENERAL LEASE BOND IS FILED A NONCOMPETITIVE LESSEE WILL BE REQUIRED TO FURNISH AND MAINTAIN A BOND IN THE PENAL SUM OF NOT LESS THAN $1000 IN THOSE CASES IN WHICH A BOND IS REQUIRED BY LAW FOR THE PROTECTION OF THE OWNERS OF THE SURFACE RIGHTS.

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B-126598, MAY 24, 1956

TO MR. DUNCAN MILLER:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 13, 1955, ACKNOWLEDGED JANUARY 10, 1956, IN EFFECT, REQUESTING REVIEW OF OUR SETTLEMENT OF NOVEMBER 23, 1955, WHEREIN THERE WAS WITHHELD THE AMOUNT OF $350 REPRESENTING UNPAID RENTALS DUE THE UNITED STATES AS UNDER OIL AND GAS LEASE NO. EVANSTON 022091 (WYOMING), FROM THE SUM OF $400 OTHERWISE DUE YOU AS A REFUND IN CONNECTION WITH YOUR REJECTED APPLICATION FOR LEASE NO. NEVADA 029474.

IN VIEW OF YOUR PROTEST OF THE ADJUSTMENT MADE IN THE LEASE ACCOUNT, THE MATTER WAS MADE THE SUBJECT OF A FURTHER INVESTIGATION AND ADDITIONAL REPORTS FROM THE DEPARTMENT OF THE INTERIOR RECENTLY WERE RECEIVED IN OUR OFFICE. THESE REPORTS SHOW THAT YOUR APPLICATION FOR THE NEVADA LEASE WHICH INCLUDED YOUR REMITTANCE FOR RENTAL IN THE AMOUNT OF $400 WAS REJECTED ON NOVEMBER 29, 1954, FOR THE REASON THAT THE APPLICATION DESCRIBED LANDS EMBRACED UNDER PRIOR LEASING TO ANOTHER PARTY. YOU WERE ISSUED THE EVANSTON LEASE ON JUNE 1, 1947, FOR A PERIOD OF FIVE YEARS AND THE REPORTS REFLECT THE NONPAYMENT OF THE FOURTH YEAR'S RENTAL COVERING THE PERIOD BEGINNING JUNE 1, 1950, WHICH BECAME DUE AND PAYABLE IN ADVANCE ON MARCH 1, 1950. AS TO THE DUE DATE OF THE RENTAL, THE NONCOMPETITIVE LEASE FORM ISSUED YOU IN THIS INSTANCE PROVIDES UNDER SECTION 2 (A) THAT:

"UNTIL A GENERAL LEASE BOND IS FILED A NONCOMPETITIVE LESSEE WILL BE REQUIRED TO FURNISH AND MAINTAIN A BOND IN THE PENAL SUM OF NOT LESS THAN $1000 IN THOSE CASES IN WHICH A BOND IS REQUIRED BY LAW FOR THE PROTECTION OF THE OWNERS OF THE SURFACE RIGHTS. IN ALL OTHER CASES WHERE BOND IS NOT OTHERWISE REQUIRED, A $1000 BOND MUST BE FILED FOR COMPLIANCE WITH THE LEASE OBLIGATIONS NOT LESS THAN 90 DAYS BEFORE THE DUE DATE OF THE NEXT UNPAID ANNUAL RENTAL,BUT THIS REQUIREMENT MAY BE SUCCESSIVELY DISPENSED WITH BY PAYMENT OF EACH SUCCESSIVE ANNUAL RENTAL NOT LESS THAN 90 DAYS PRIOR TO ITS DUE DATE.'

ALSO THE REPORTS SHOW THAT THE CUSTOMARY COURTESY NOTICE WAS SENT TO YOU ON JANUARY 30, 1950, CALLING FOR THE FOURTH YEAR'S ANNUAL RENTAL WHICH WAS DUE FOR THE ONE-YEAR PERIOD BEGINNING JUNE 1, 1950. HOWEVER, THE RENTAL WAS NOT PAID AND BECAUSE YOUR NOTICE OF RELINQUISHMENT OF THE LEASE WAS NOT RECEIVED IN THE CHEYENNE, WYOMING, OFFICE UNTIL JUNE 23, 1950, YOU BECAME INDEBTED FOR THE FOURTH YEAR'S ANNUAL RENTAL IN THE AMOUNT OF $350 PURSUANT TO THE ABOVE-QUOTED LEASE PROVISION. THE ACREAGE COVERED BY THIS LEASE WAS NOT LEASED AGAIN DURING THE PERIOD FROM JUNE 23, 1950, TO MAY 31, 1951. SINCE THERE WAS DUE YOU THE SUM OF $400 UNDER THE ABOVE MENTIONED REJECTED LEASE AND SINCE YOU WERE IN ARREARS FOR RENTAL UNDER THE EVANSTON LEASE THE NECESSARY ADJUSTMENT WAS ADMINISTRATIVELY RECOMMENDED AND ACCOMPLISHED IN THE SETTLEMENT OF NOVEMBER 23, 1955.

WHENEVER THERE IS INVOLVED ANY CLAIM OR DEMAND WHATEVER BY THE UNITED STATES AGAINST ANY PERSON WHO HAS A CLAIM OR DEMAND AGAINST THE GOVERNMENT, OUR OFFICE NOT ONLY HAS THE AUTHORITY BUT IS REQUIRED, IN THE PROPER DISCHARGE OF ITS DUTY, IN SETTLING SUCH OPPOSING CLAIMS OR DEMANDS, TO SET OFF ONE INDEBTEDNESS AGAINST THE OTHER, AND TO CERTIFY FOR PAYMENT OR COLLECTION, AS THE CASE MAY BE, ONLY THE BALANCE DUE. SEE UNITED STATES V. MUNSEY TRUST CO., 332 U.S. 234, 239-240. YOU HAVE FAILED TO SUBMIT ANY CONVINCING EVIDENCE TENDING TO SHOW THAT YOU DID NOT OWE THE AMOUNT OF $350 UNDER LEASE NO. EVANSTON 022091.

ACCORDINGLY, ON THE BASIS OF THE PRESENT RECORD, THE ACTION TAKEN IN THE SETTLEMENT OF NOVEMBER 23, 1955, WAS CORRECT AND IT IS SUSTAINED.

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