SECTION 8. HELIUM The right to extract helium from any gas produced from the Reserve shall belong exclusively to Navy, and Navy shall not be compelled to account to Standard in any degree for such helium as it may elect to take hereunder. Navy shall bear all costs directly attributable to the extraction of such helium. SECTION 9. DETERMINATION OF DISPUTES (a) In the event the Operating Committee is unable to agree upon any matter arising in the performance of its functions, such matter shall be referred to the Secretary of the Navy for determination; and his decision in each such instance shall be final and shall be binding upon Navy and Standard. (b) In the event the Engineering Committee is unable to agree unanimously upon any matter subject to determination by it, said Committee shall notify both Navy and Standard thereof and shall refer such matter to the Secretary of the Navy for determination. Thereupon the Secretary of the Navy on his own initiative may, and upon the request of Standard shall, submit the matter to an independent petroleum engineer, to be selected by him, for the purpose of securing an advisory report thereon from such engineer. The compensation and expenses of such engineer shall be borne by Navy and Standard in the respective percentages then obtaining under Section 2, and a copy of such report shall be supplied to Standard. After consideration of the matter, the Secretary of the Navy shall render his decision thereon and such decision shall be final and binding upon Navy and Standard. SECTION 10. ACCOUNTING Navy shall cause to be kept complete and accurate records of all matters and transactions affecting the Reserve or its development and operation hereunder, and such records shall be available at all reasonable times for inspection by Standard's accredited representatives. Navy shall, within a reasonable time after the end of each calendar month throughout the term of this contract, cause to be furnished to Standard a detailed statement of account setting forth the quantity of production from the Reserve during such month and the costs of development and operation incurred therein. The expenses incurred or contracted for by Navy under this Section 10 shall be deemed a part of the costs of operating the Reserve hereunder and, as such, shall be borne and paid by Navy and Standard under the provisions of Sections 3 and 6. All records of Standard pertaining to the exploration, prospecting, development, and operation of the Reserve, either prior to or after the date of this contract, and all data obtained from wells on lands owned in fee by Standard outside the Reserve but contiguous thereto, shall be available at all reasonable times for inspection by Navy's accredited representatives. SECTION 11. TERM (a) Unless sooner terminated as provided in paragraph (b) of this Section, this contract shall continue and remain in full force and effect as long as oil, gas, natural gasoline and/or associated hydrocarbons can be produced from the Reserve in paying quantities. (b) This contract may be terminated at any time by the Secretary of the Navy in his discretion and subject to the approval of the President on six (6) months' written notice to Standard. Such termination shall be effective as of the date fixed therefor and shall not operate retroactively or to impair the rights and obligations of Navy or Standard under this contract accruing to the termination date. Termination shall be followed by an adjustment of all such rights and obligations, including the rights and obligations growing out of the costs incurred, and the respective quantities of production received, by Navy and Standard, respectively, under the contract, on a fair and equitable basis. SECTION 12. NOTICES All notices required or permitted to be given under this contract shall be directed to the parties as follows: Secretary of the Navy, Standard Oil Company of California, San Francisco, Calif. Any such notice shall be in writing and may be personally delivered or sent by registered mail or telegraph to the party for whom intended at the address of such party as specified above. Either party may by notice given as aforesaid change its address for notices thereafter. SECTION 13. UNLAWFUL INTEREST No Member or Delegate to Congress or Resident Commissioner, after his election or appointment, or either before or after he has qualified and during his continuance in office, and no officer, agent, or employee of the Department of the Navy, shall be admitted to any share or part of this contract or derive any benefit that may arise therefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit; and the provisions of Section 3741 of the Revised Statutes of the United States, and Sections 114, 115, and 116 of the Codification of the Penal Laws of the United States approved March 4, 1909 (35 Stat. 1109), relating to contracts, enter into and form a part of this contract so far as the same may be applicable. SECTION 14. COVENANT AGAINST CONTINGENT FEES Standard warrants that it has not employed any person to solicit or secure this contract upon any agreement for a commission, percentage, brokerage, or contingent fee. Breach of this warranty shall give Navy the right to annul this contract or, in its discretion, to deduct from any amounts which may become owing to Standard by Navy hereunder the amount of such commission, percentage, brokerage, or contingent fee. SECTION 15. INCLUSION OF ADDITIONAL LANDS It is contemplated that it may hereafter be desirable to include under the terms of this contract other lands located outside of the present limits of the Reserve but which lie on the same geologic structure underlying the present limits of the Reserve. If and when any such situation shall arise, Navy and Standard will endeavor to agree upon the terms and conditions on which such additional lands may be included under this contract. IN WITNESS WHEREOF, the parties hereto have executed this contract in triplicate on the day and year first above written. I, FRANKLIN D. ROOSEVELT, President of the United States of America, on the day - 1943, do hereby approve the execution of the foregoing contract by the Secretary of the Navy. President of the United States. EXHIBIT B DEVELOPMENT COSTS WITH EXPLORATION, PROSPECTING, AND RESPECT TO THE STEVENS ZONE INCURRED by Standard PRIOR TO NOVEMBER 20, 1942 The costs incurred and paid by Standard prior to November 20, 1942, in connection with the exploration, prospecting, and development of the Stevens Zone are as follows: Drilling and equipping four (4) producing wells which disclosed the existence of commercial production in the Stevens Zone: Well No. 42-31-S_ Well No. 62-31-S_ Well No. 44-33-S_ Well No. 43-31-T_ Total.. Exploring and prospecting the Stevens Zone by means of geophysical surveys on the Reserve during the period from February to July 1942, inclusive, for the purpose of determining the outline of the structure in the Stevens Zone and of acquiring data necessary to the location of future wells.. - . Total.. $401, 458 252, 864 193, 226 191, 364 1,038, 912 79, 607 1, 118, 519 О TAYLOR W. TONGE MAY 29, 1944.- Committed to the Committee of the Whole House and ordered to be printed Mr. MILLER of Missouri, from the Committee on Claims, submitted the following REPORT [To accompany S. 1112] The Committee on Claims, to whom was referred the bill (S. 1112) for the relief of Taylor W. Tonge, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The purpose of the proposed legislation is to appropriate the sum of $499.50 to Taylor W. Tonge, of Bremerton, Wash., in full settlement of all claims against the United States for compensation for loss of wages and for reimbursement of medical and hospital expenses incurred by him as the result of personal injuries sustained by him and his minor children, Danny Tonge and Larry Tonge, when the automobile in which they were riding was struck by a United States Army truck on June 11, 1942. The facts will be found fully set forth in Senate Report No. 582, of the Seventy-eighth Congress, second session, which is appended hereto and made a part of this report. Your committee concur in the recommendation of the Senate. STATEMENT OF FACTS The report of the War Department states that on June 11, 1942, at about 2:35 p. m., an Army truck on official business, operated by an enlisted man, was proceeding in a southerly direction on Old Military Road at a point about three-fourths of a mile north of Tracyton, Wash., at an estimated speed of 20 to 25 miles per hour. Upon approaching a sharp right-hand curve, the soldier drove his truck onto the left-hand side of the road in an effort to see farther ahead past a dense growth of bushes on his right, and when he had proceeded about halfway around the curve he saw coming toward him on its proper side of the road a 1938 Ford coach owned and |