The first recognition of the right to "enter and obtain patent to Federal lands containing petroleum or other mineral oils" was by the Act of Feb ruary 11, 1897. The method of procedure was in accordance with the pro visions of the laws relating to placer mineral claims.
This was manifestly inadequate as under the placer mining laws a dis covery had to be made in order to create a valid location. Oil can only be discovered by the costly and lengthy process of drilling. The courts had to devise a method by which to protect the locator while he was engaged in the process of drilling to establish the discovery, and complete the location.
The mining law gives the right to any citizen to explore the public domain to find mineral; hence, the courts have protected a citizen in actual physical possession of a prospective claim on the public domain, while he is engaged in diligent prosecution of work leading to discovery of mineral.
This "diligent" prosecution of work leading to discovery is not satisfied by the doing of assessment work. It calls for the diligent, continuous pros ecution of the work leading to discovery, with the expenditure of whatever money may be necessary to that end in view.
A discovery being necessary to complete the location, there could be no assignable right recognized. This hardship was remedied by the terms of the act of March 2, 1911, when the act of that date provided that in "no case shall a patent be denied to or for any lands heretofore located or claimed under the mining laws of the United States containing petroleum, mineral oil, or gas, solely because of any transfer or assignment thereof or of any interest or interests therein by the original locator or locators, or any of them, to any qualified persons or person, or corporation, prior to discovery of oil or gas therein." Owing to the inadequacy of the laws relating to placer oil locations and the growing sentiment in Congress that a policy of leasing should be adopted, large withdrawals were made in 1909, pending the passage of legislation covering the situation. These withdrawals were ultimately sustained by the Supreme Court, but before the decision was rendered Congress passed (act of June 25, 1910) an act directly authorising the President to tempo rarily withdraw from settlement, location, sale, or entry any of the public lands of the United States and reserve the same for water-power sites, irri gation, classification of lands, or other purposes.
This act contained a specific recognition of the "rights of any person who,. at the date of any order of withdrawal heretofore or hereafter made, is a bona fide occupant or claimant of oil or gas bearing lands, and who, at such date, is in diligent prosecution of work leading to discovery of oil or gas" and who remains in such diligent prosecution.
There has and is a strict construction of the word "diligent." It has been held that the failure of sufficient money to continue the drilling, the cessation thereof pending the attempt to secure additional funds, and the consequent resumption is nova compliance with the rule of diligent prosecution of work.
The agitation for relief on the part of those who had claims within the withdrawn area, and for legislation which would supply some method of securing rights on oil lands, was met by the passage of the act of February 25, 1920, or what is known as the "oil-leasing bill." This act is divided into 2 parts, the sections granting relief based upon rights claimed to have arisen before the passage of the bill, and those sec tions which point out the method in which a right may be acquired by pro ceedings had subsequent to the passage of the act.
Relief applications had to be made on before August 26, 1920, except in cases which would arise under section 18a, and under section 20. The former section grants 1 year time within which the President may be ap pealed to to effect a compromise of any claim, the validity of which has been drawn into question, where the land was embraced within the area in the executive withdrawal of September 27, 1909. Under the rules as estab lished and now in force the entryman of lands sought in good faith as agri cultural, the lands not being withdrawn or classified as mineral at the time of entry, has 30 days within which to apply for his preference right, after service upon him, the entryman, by a seeker after permit under the general provisions of the act, of notice that he the applicant intends to apply to the Secretary for permit to explore for oil or gas.