of 2,000 pounds of mineral taken from such water or land by such person, firm or corporation and sold during the preceding year, in the manner provided for the collection of personal property taxes; provided that the royalty on sodium bicarbonate and on sodium hydrate so taken shall be fifty (50) cents for each ton of 2000 pounds.

(b) Application to Lease Lands.-Any person, firm or corporation desiring to lease any lands under this act must make application therefor to the surveyor general of the state, describing the lands sought to be leased by legal subdivisions, or, if the legal subdivisions are unknown to the applicant, by metes and bounds. The application must be accompanied by a filing fee of $10.00.

(c) Survey of Lands.-Upon the receipt of such application, the surveyor general shall direct the county surveyor of the county in which such lands are situated to survey the land sought to be leased. The county surveyor shall make an actual survey of the land, at the expense of the applicant, establishing the four corners to each quarter section, and connecting the same with a United States survey; and within 30 days file with the surveyor general a copy, under oath, of his field notes and plat. If the county surveyor fails to make the survey as herein provided, the surveyor general shall immediately direct another person to make the survey at the expense of the applicant, and said survey shall be made and completed within 30 days after the authorization, and the field notes and plats, or copies thereof, shall be sworn to by the surveyor making them and shall be filed with the surveyor general.

(d) Approval or Rejection of Application.—All applications to lease land under this act shall be approved or rejected by the surveyor general within ninety days after the receipt thereof. Immediately after the approval of the application, the surveyor general shall execute and deliver to the applicant a lease of the lands described in the application.

(e) Rental. The lands designated in this act shall be leased at the rate of $2.50 per acre, per year, payable yearly in advance. All moneys received as rental for such lands and as royalty upon the mineral product of the waters of the lakes, streams or lands above mentioned, shall be paid into the state school land fund.

(f) First Payment.-Whenever any lease is delivered to the applicant by the surveyor general, the lessee shall, within 15 days thereafter, present said lease to the treasurer of the State of California, and make payment of the first annual rental. The treasurer shall receive the money and give a receipt therefor. All subsequent annual payments of rental must be paid to the state treasurer, in like manner, within 15 days after they become due.

(g) Limit of Lease. In case payments are not made as herein provided, the lease and all rights thereunder shall cease and terminate. No lease shall run for more than 25 years; provided, that upon the expiration of any lease, such lease may be extended for a period of 25 years upon such terms and conditions as may then be prescribed by law.

(h) Reservations to State. All leases made under the authority of this act shall contain a reservation to the state of a right to locate rights of way across such leased lands, subject only to the requirements that the rights of way shall be located in such manner as to cause the least injury to the leased lands across which the same may be located, and that any damage suffered by the lessee of such lands shall be compensated by the lessee of the lands for whose benefit the right of way is required; and every such lease shall be subject to, and shall contain a reservation of, the right of any city and county or incorporated city or town of this state to at any time appropriate and take, under the laws of this state relative to the appropriation of waters, water from any stream or lake tributary to or discharging into any stream or lake of the character mentioned in section one of this act for any use or uses within the authorized

powers of such city and county, or incorporated city or

town.

(i) Lease to Rights of Way.-Leases of rights of way, not exceeding 100 feet in width, for access to any waters or lands designated by this act, may be applied for and granted in the manner herein provided for leasing lands. Such rights of way shall be leased at an annual rental of $2.50 an acre, and the same shall be paid as herein provided for leased lands.

(j) Termination of Lease.-All leases of mineral lands provided for by this act shall cease and terminate on December 31st of any year if the lessee or assigns has not, during the year preceding, extracted or removed from such land and water an amount of mineral equal, in the aggregate, to a minimum of 5 tons per acre of land leased; provided that when a lease is not delivered to the lessee until after the fifteenth day of January of any year, the minimum tonnage for such year shall be less than five (5) tons, and shall be proportional to the number of days remaining in such year after the completion of the works.

(k) Legislature May Change Royalty.-The Legislature shall have the right to change, from time to time, the royalty per ton of minerals extracted and the annual rental per acre of land, and such change shall apply to all persons, firms or corporations holding leases hereunder; provided, that no lease given under this act shall be subject to any change, as to the royalty or rental provided for in said lease, subsequent to the execution of such lease until after ten years from the passage of this act.

(1) Abandonment of Lease.-Any lessee hereunder may abandon and surrender a lease at the expiration of any calendar year by filing with the county assessor of the county in which is situated the lands described in said lease, and with the surveyor general and the state controller, notices of said abandonment or surrender; but said notices must be filed at least 60 days before the expiration of said calendar year;

and said abandonment and surrender shall not absolve the said lessee from the payment of any royalty which may be due at the end of said fiscal year for minerals extracted from the waters or lands in this act specified.

Act of the Legislature, approved April 27, 1911.

Section 1012.-MORTGAGE OF MINING PROPERTY. The directors of a mining corporation have no power or authority to mortgage the mining ground of the company without a ratification by the holders of two-thirds of the capital stock. The want of such ratification can be raised by anyone who connects himself with the title of the corporation which owned the property, as well as by the stockholders thereof. The consent of the stockholders cannot be presumed from the mere fact of the execution of the mortgage, whether under the corporate seal or not.

(Decided by the District Court of Appeals of California, Second District, in the case of Mrs. M. T. Bennett vs. Red Cloud Mining Company, which decision is printed in Volume 11 of California Appellate Decisions, page 623.)

PART IX.

WATER AND WATER RIGHTS.

Section

1013.-APPROPRIATION OF WATER.The right to the use of running water, flowing in a river or stream, or down a canyon or ravine, may be acquired in California by appropriation. Appropriation must be for some useful or beneficial purpose, and when the appropriator or his successor in interest ceases to use it for such purposes, the right ceases.

Civil Code, Sections 1410, 1411.

Section 1014.-NOTICE OF APPROPRIATION. A person desiring to appropriate water must post a notice, in writing, in a conspicuous place at the point on the stream where he intends to take the water from it. This notice must state (1) that he claims the water there flowing to the extent of (giving the number) inches, measured under a four-inch pressure; (2) the purpose for which he claims it, and the place of intended use; (3) the means by which he intends to divert it; (4) and the size of the flume, pipe, or aqueduct in which he intends to divert it from the streama. Statutes of 1903, page 361.

Section 1015.-NOTICE MUST BE RECORDED.—A copy of the notice of appropriation must be recorded, within ten days after it is posted, in the office of the Recorder of the county in which it is posted.

Statutes of 1903, page 361.

Section

1016.-CHANGE

OF PLACE OF INTENDED DIVERSION.-The law passed in 1903, above stated, provides that after filing the notice of appropriation