Alaska Limestone Corp. v. Hodel

614 F. Supp. 642, 1985 U.S. Dist. LEXIS 20753
CourtDistrict Court, D. Alaska
DecidedApril 12, 1985
DocketA 82-392 Civil
StatusPublished
Cited by4 cases

This text of 614 F. Supp. 642 (Alaska Limestone Corp. v. Hodel) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Limestone Corp. v. Hodel, 614 F. Supp. 642, 1985 U.S. Dist. LEXIS 20753 (D. Alaska 1985).

Opinion

OPINION

FITZGERALD, Chief Judge.

This cause comes before the court on cross-motions for summary judgment. The litigation raises important issues of statutory construction, administrative procedure and judicial review surrounding the government’s implementation of federal mining laws in the national parks. For the reasons set forth below, plaintiff’s (Alaska Limestone’s) summary judgment motion is now denied and defendants’ (the government’s) motion for summary judgment will be granted.

FACTS

On November 25, 1958, Alaska Limestone properly recorded a number of unpatented limestone mining claims within the Foggy Pass area of Mt. McKinley National Park. 1 Congress permitted mining activity within McKinley during this period.

It is undisputed that Alaska Limestone’s claims contained large deposits of high quality limestone, a primary ingredient for cement production. Studies by the University of Alaska and the United States Geological Survey have well established the importance of the location. On August 16, 1960, Alaska Portland Cement Corporation obtained for $8,500 a five-year option from Alaska Limestone to buy Alaska Limestone’s McKinley claims. The price, if the *644 option were to be exercised, amounted to 15 million dollars.

During the next two decades, Alaska Limestone did not develop its unpatented claims in the park. The company seems to have attempted to build an access road to its claims in McKinley Park, but was blocked from doing so by the National Park Service because of failure on the part of the company to obtain the requisite permits. Additionally, Alaska Portland Cement chose not to exercise its option to purchase Alaska Limestone’s claims. According to Alaska Limestone, this decision did not reflect any belief by the cement company that Alaska Limestone’s claims did not contain rich quantities of limestone. Rather the cement company’s decision reflected uncertainty over whether the government would ever permit the construction of an access road to the claims. 2

On September 28, 1976, an Act of Congress further diminished the chances that Alaska Limestone’s unpatented claims would ever be developed. On that date, Congress formally withdrew lands in McKinley from mineral entry. Pub.L. 94-429, 16 U.S.C. §§ 1901-1912 (1982). In passing the so-called “Mining in the Parks Act,” Congress noted that mining activities were threatening important environmental values within the National Park System. Congress declared that:

all mining operations in areas of the National Park System should be conducted so as to prevent or minimize damage to the environment and other resource values, and, in certain areas of the National Park System, surface disturbance from mineral development should be temporarily halted while Congress determines whether or not to acquire any valid mineral rights which may exist in such areas.

16 U.S.C. § 1901(b) (1982) (emphasis added).

Most importantly for Alaska Limestone’s purposes, Congress provided in § 1905 of the Act that:

within two years after September 28, 1976, the Secretary of the Interior shall determine the validity of any unpatented mining claims within ... Mount McKinley National Park and submit to the Congress recommendations as to whether any valid or patented claims should be acquired by the United States, including the estimated acquisition costs of such claims, and a discussion of the environmental consequences of the extraction of minerals from these lands.

16 U.S.C. § 1905 (1982) (emphasis added).

The Secretary of Interior (the Secretary) failed to comply with § 1905’s two-year deadline to inventory the validity of the unpatented mining claims and to report his findings to Congress. Nevertheless, under his direction the Bureau of Land Management (BLM) initiated a contest challenging the validity of Alaska Limestone’s McKinley mining claims on March 21, 1979. 3 Within a week, Alaska Limestone filed a complaint in this court. It sought, among other things, a declaration that the enactment of the Mining in the Parks Act, and the Secretary’s subsequent failure to determine the validity of its McKinley claims within § 1905’s statutory deadline, constituted a taking of its property without due process of law. This action was dismissed as premature.

In the BLM contest, a hearing was held by an Administrative Law Judge of the Office of Hearings and Appeals, Department of the Interior, May 6 to May 10, 1980, in Anchorage, Alaska. At the outset *645 of the hearing, Alaska Limestone moved to dismiss the government’s contest on jurisdictional grounds. Specifically, Alaska Limestone argued to the Administrative Law Judge, as it has done here, that the Secretary lost his long-established authority to pass on the validity of Alaska Limestone's claims when he failed to comply with § 1905’s two-year deadline. The Administrative Law Judge held that the Secretary’s authority to contest such unpatented claims remained intact, and denied Alaska Limestone’s motion to dismiss.

During the subsequent five day hearing, the government and Alaska Limestone presented extensive oral and documentary evidence to the Administrative Law Judge. At issue was the marketability of the contested claims. Although the government conceded that Alaska Limestone’s claims contained large deposits of high-quality limestone, it argued that the claims were nonetheless without validity due to lack of a reasonable market for the limestone. Alaska Limestone presented substantial evidence which, if asserted, demonstrated that absent government interference, its claims were highly marketable.

On July 15,1981, the Administrative Law Judge issued a decision concluding Alaska Limestone’s unpatented McKinley mining claims were invalid due to their lack of marketability. Alaska Limestone appealed the Administrative Law Judge’s decision to the Interior Board of Land Appeals (IBLA) of the Department of the Interior. In its opinion of August 25, 1982, the IBLA affirmed the AU’s decision. United States v. Alaska Limestone Corp., 66 IBLA 316 (1982). Shortly thereafter Alaska Limestone brought the present litigation in this court.

In its complaint, Alaska Limestone has alleged three causes of action. First, it reasserts the argument made before the AU that the Department of Interior lacked jurisdiction to contest the validity of Alaska Limestone’s mining claims. Second, because the Department of Interior improperly exercised jurisdiction, it is argued, the government took a valuable property right from Alaska Limestone without due process. Third, Alaska Limestone asserts that the decision of the AU was erroneous because, among other things, the evidence presented at the administrative hearing supported a finding that there was a market for the limestone from Alaska Limestone’s McKinley claims.

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Bluebook (online)
614 F. Supp. 642, 1985 U.S. Dist. LEXIS 20753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-limestone-corp-v-hodel-akd-1985.