Correspondence that discusses the issue of acquiring mineral rights from the Osage Tribe for the construction of the Skiatook Lake project. The Justice Department has determined that Congressional intent is required for condemnation to be undertaken. The Osage Tribal Council opposes subordination of the mineral rights and there are concerns about the impact on oil and gas recovery. The construction of the project is proceeding under the assumption that the minerals can be subordinated, but there may be temporary inundation of producing wells. There is a lack of public understanding of the governments position, and a public announcement is planned to address this. The future of the Skiatook Lake project is jeopardized by the Osage Tribes position on the mineral rights, and special legislation may be needed to resolve the issue. The current oil production in the project area is estimated at 300 barrels per day, and only a small portion of the land is considered productive for oil. The initial decrease in oil production would be minimal compared to the benefits of flood control