Amoco Production Co. v. Southern Ute Indian Tribe

526 U.S. 865, 119 S. Ct. 1719, 144 L. Ed. 2d 22, 1999 U.S. LEXIS 4002
Supreme Court of the United States·Decided May 24, 1999·No. 98-830·Published·Cited by 54 cases

Opinions

Justice Kennedy

delivered the opinion of the Court.

Land patents issued pursuant to the Coal Lands Acts of 1909 and 1910 conveyed to the patentee the land and everything in it, except the “coal,” which was reserved to the United States. Coal Lands Act of 1909 (1909 Act), 35 Stat. [868]*868844, 80 U.S.C. §81; Coal Lands Act of 1910 (1910 Act), ch. 318, 36 Stat. 583, 30 U. S. C. §§ 88-85. The United States Court of Appeals for the Tenth Circuit determined that the reservation of ‘‘coal” includes gas found within the coal formation, commonly referred to as coalbed methane gas (CBM gas). See 151 F. 3d 1251, 1256 (1998) (en banc). We granted certiorari, 525 U. S. 1118 (1999), and now reverse.

I

During the second half of the 19th century, Congress sought to encourage the settlement of the West by providing land in fee simple absolute to homesteaders who entered and cultivated tracts of a designated size for a period of years. See, e. g., 1862 Homestead Act, 12 Stat. 392; 1877 Desert Land Act, ch. 107, 19 Stat. 377, as amended, 43 U. S. C. §§ 321-323. Public lands classified as valuable for coal were exempted from entry under the general land-grant statutes and instead were made available for purchase under the 1864 Coal Lands Act, ch. 205, § 1, 13 Stat. 343, and the 1873 Coal Lands Act, ch. 279, § 1, 17 Stat. 607, which set a maximum limit of 160 acres on individual entry and minimum prices of $10 to $20 an acre. Lands purchased under these early Coal Lands Acts — like lands patented under the Homestead Acts- — were conveyed to the entryman in fee simple absolute, with no reservation of any part of the coal or mineral estate to the United States. The coal mined from the lands purchased under the Coal Lands Acts and from other reserves fueled the Industrial Revolution.

At the turn struck the West. See Hearings on Coal Lands and Coal-Land Laws of the United States before the House Committee on Public Lands, 59th Cong., 2d Sess., 11-13 (1906) (testimony of Edgar E. Clark, Interstate Commerce Commissioner). At the same time, evidence of widespread fraud in the administration of federal coal lands came to light. Lacking the resources to make an independent assessment [869]*869of the coal content of each individual land tract, the Department of the Interior in classifying public lands had relied for the most part on the affidavits of entrymen. Watt v. Western Nuclear, Inc., 462 U. S. 36, 48, and n. 9 (1983). Railroads and other coal interests had exploited the system to avoid paying for coal lands and to evade acreage restrictions by convincing individuals to falsify affidavits, acquire lands for homesteading, and then turn the land over to them. C. Mayer & G. Riley, Public Domain, Private Dominion 117-118 (1985).

In 1906, President Theodore Roosevelt responded to the perceived crisis by withdrawing 64 million acres of public land thought to contain coal from disposition under the public land laws. Western Nuclear, 462 U. S., at 48-49. As a result, even homesteaders who had entered and worked the land in good faith lost the opportunity to make it their own unless they could prove to the land office that the land was not valuable for coal.

President Roosevelt’s order outraged homesteaders and western interests, and Congress struggled for the next three years to construct a compromise that would reconcile the competing interests of protecting settlers and managing federal coal lands for the public good. President Roosevelt and others urged Congress to begin issuing limited patents that would sever the surface and mineral estates and allow for separate disposal of each. See id., at 49 (quoting Special Message to Congress, Jan. 22, 1909, 15 Messages and Papers of the Presidents 7266). Although various bills were introduced in Congress that would have severed the estates— some of which would have reserved "natural gas” as well as "coal” to the United States — none was enacted. See 41 Cong. Rec. 630 (1907) (bill by Rep. Volstead "reserving coal, lignite, petroleum, and natural-gas deposits from disposal... under existing land laws”); id., at 1483-1484 (bill by Sen. La Follette providing for the sale of surface lands, but “reserving from entry and sale the mineral rights to coal and other [870]*870materials mined for fuel, oil, gas, or asphalt”); id., at 1788 (bill by Sen. Nelson “to provide for the reservation of the coal, lignite, oil, and natural gas in the public lands”).

Finally, Congress passed the Federal Government, for the first time, to issue limited land patents. In contrast to the broad reservations of mineral rights proposed in the failed bills, however, the 1909 Act provided for only a narrow reservation. The 1909 Act authorized issuance of patents to individuals who had already made good-faith agricultural entries onto tracts later identified as coal lands, but the issuance was to be subject to “a reservation to the United States of all coal in said lands, and the right to prospect for, mine, and remove the same.” 80 U. S. C. §81. The 1909 Act also permitted the patentee to “mine coal for use on the land for domestic purposes prior to the disposal by the United States of the coal deposit.” Ibid. A similar Act in 1910 opened the remaining coal lands to new entry under the homestead laws, subject to the same reservation of coal to the United States. 30 U. S. C. §§88-85.

Among the lands patented to 1910 Acts were former reservation lands of the Southern Ute Indian Tribe, which the Tribe had ceded to the United States in 1880 in return for certain allotted lands provided for their settlement. Act of June 15,1880, eh. 223, 21 Stat. 199. In 1938, the United States restored to the Tribe, in trust, title to the ceded reservation lands still owned by the United States, including the reserved coal in lands patented under the 1909 and 1910 Acts. As a result, the Tribe now has equitable title to the coal in lands within its reservation settled by homesteaders under the 1909 and 1910 Acts.

We are advised that over 20 million acres were patented under the 1909 and 1910 Acts and that the lands— including those lands in which the Tribe owns the coal — contain large quantities of CBM gas. Brief for Montana et al. as Amici Curiae 2. At the time the Acts were passed, CBM [871]*871gas had long been considered a dangerous waste produet of coal mining. By the 1970’s, however, it was apparent that CBM gas could be a significant energy resource, see Duel & Kimm, Coalbed Gas: A Source of Natural Gas, Oil & Gas J., June 16, 1975, p. 47, and, in the shadow of the Arab oil embargo, the Federal Government began to encourage the immediate production of CBM gas through grants, see 42 U. S. C. §§ 5901-5915 (1994 ed. and Supp. Ill), and substantial tax credits, see 26 U. S. C. §29 (1994 ed. and Supp. III).

gas was hampered, however, by uncertainty over its ownership.

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Amoco Production Co. v. Southern Ute Indian Tribe, 526 U.S. 865, 119 S. Ct. 1719, 144 L. Ed. 2d 22, 1999 U.S. LEXIS 4002 (1999).

526 U.S. 865 (Amoco Production Co. v. Southern Ute Indian Tribe) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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