Industrial Minerals - Leasing of Government Potash Lands

WHEN Spain established colonies on the North American continent, some of her land grants, in what is now the United States, reserved to the Crown deposits of gold, silver, and mercury. Later mineral rights were reserved under some of the English Crown charters involving land in the eastern part of North America, with provisions for the payment of royalties thereon to the Crown. Reservation of mineral deposits to the United States Government was instituted by an ordinance of Congress on May 20, 1785, which applied to such deposits in the Northwest Territory, then north of the Ohio River and east of the Mississippi River, and provided that there should be reserved "one third of all gold, silver, lead, and copper mines, to be sold or otherwise disposed of as Congress shall hereafter direct." Little was known then of the mineral resources of the country; the Great Lakes copper region had just come into the possession of the United States by treaty and much of the western mineral land still belonged to France and Spain. The policy of leasing mineral deposits was enacted by Congress under the act of March 3, 1807, which provided that "the President of the United States shall be, and is hereby, authorized to lease any lead mine which has been or may hereafter be discovered in the Indiana Territory, for a term not exceeding five years," and in the same year the Government reserved 345,600 acres of land in northern Illinois, valuable for lead. In 1816 Congress provided that in all cases where a tract of public land containing a lead mine or salt spring was applied for by settlers on the public domain, no permission to work the mine or spring would be granted without the approbation of the President of the United States. By the act of March 1, 1847 (9 Stat. 146), the control of mineral lands was transferred, with all records, from the War Department to the Treasury Department, and by the act of March 3, 1849 (9 Stat. 395), supervisory powers over lead and other mines of the United States were transferred to the Secretary of the Interior. Following the discovery of gold in California in 1848, President Polk advocated the leasing of mineral lands acquired from Mexico under the treaty of 1848. However, owing to the lack of communication and transportation facilities and the consequent difficulty of checking on production and operations, leasing was found impracticable. Mining was permitted to be carried on in each district under rules made by the miners themselves and patterned after the Mexican mining system. To meet the situation, Congress enacted mining laws in 1866, 1870, and 1872, which provided for possession by location and for private ownership, after discovery, by patent of essentially all mineral deposits belonging to the United States, except coal. Many other acts were passed by Congress applying to specific regions and states, reserving salt, lead, or other minerals, some of which provided for the leasing of such deposits. However, very few if any leases were issued thereunder. Not until 1901 (31 Stat. 745) were the mining laws extended to include salt, and in 1910 they were revised to specify salines and associated products. At the turn of the century, it became more and more evident that the mining laws developed for metallic minerals were not practical for the development and conservation of oil and gas, coal, potash, phosphate, or oil shale. Following withdrawals by the Secretary of the Interior as authorized by the act of June 25, 1910, the Department of the Interior recommended leasing legislation; however, it was not until February 25, 1920, that the Mineral Leasing Act was passed by Congress. This act authorized leasing all public lands potentially valuable for oil, gas, coal, phosphate, sodium, or oil shale. The Organic Act, creating the Geological Survey in 1879, imposed upon its director the duty of classifying the public lands.' The early years of the Survey were devoted largely to the accumulation of fundamental data and, with only minor exceptions, land classification was not seriously undertaken until 1906. Since that year, it has been actively pursued with respect particularly to leasable minerals and water power values. On March 3, 1873 (17 Stat. 607) Congress authorized the sale of coal lands of limited acreage to individuals at $10 to $20 an acre, depending on the distance from a railroad, and in 1907 a new scale of prices was adopted by the Secretary of the Interior, based, more logically, on the quality and thickness of the coal deposits, their depth below the earth's surface, and their accessibility. At that time it was much cheaper and easier to obtain incidental title to coal rights under the homestead laws at $1.25 an acre. On March 3, 1909, the first separation act (35 Stat. 844) became a law. It authorized patents, with a reservation of the coal and mining rights involved to the United States, to persons who in good faith had entered public lands under the non-mineral land laws prior to withdrawal, classification, claim, or report that such lands were valuable for coal. It solved the problem only partially, and the practice thereupon adopted by the department of making coal withdrawals "from all forms of entry" instead of "from coal entry" expedited the more complete solution effected by later acts. By the act of June 22, 1910 (36.Stat. 583) withdrawn and classified coal lands were declared subject to entry under the homestead, desert land, and Carey acts, provided a waiver of the coal rights accompanied the application, and by the act of April 30, 1912 (37 Stat. 105) the same privilege was extended to State selections and isolated tracts. The act of August 24, 1912 (37 Stat. 496) extended the separation policy to lands withdrawn for oil and gas in Utah, and finally the act of July 17, 1914 (38 Stat. 509) extended it to all nonmineral filings on public lands theretofore or thereafter