Burkey v. United States

25 Cl. Ct. 566, 1992 U.S. Claims LEXIS 101, 1992 WL 52529
CourtUnited States Court of Claims
DecidedMarch 19, 1992
DocketNo. 90-3965L
StatusPublished
Cited by7 cases

This text of 25 Cl. Ct. 566 (Burkey v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burkey v. United States, 25 Cl. Ct. 566, 1992 U.S. Claims LEXIS 101, 1992 WL 52529 (cc 1992).

Opinion

OPINION

BRUGGINK, Judge.

This is an action brought pursuant to the Fifth Amendment to the United States Constitution. The plaintiff, Mrs. Doris Burkey, contends that actions of the Bureau of Reclamation (“Bureau”) connected with the construction of Ridgeway Dam, in Ouray County, Colorado, resulted in a taking of the value of minerals held under a mineral reservation clause. After trial, and for the reasons expressed herein, the court concludes that Mrs. Burkey is not entitled to compensation.

FACTS

a. The ranch

The property in question, now inundated, consists of 300 acres of what was once ranch land in the valley of the Uncompahgre River. The river flowed through the property and the bed of the stream was owned as part of the entire tract. The stream bed consisted largely of sand and gravel. Sand and gravel were also visible in the banks of the terraces above the [567]*567stream bed, and were evident upon any excavation.

The property at issue was purchased in 1949 by Doris and Oliver Flury. They farmed it and raised cattle. When the Flurys sold the property in 1951 to the Shepardsons, they retained a lk interest in “oil, gas, and minerals lying in, on or under said premises ..., together with the right to enter upon, explore, prospect, mine and drill for ... and remove the same ..., provided, however, that [the surface owners] shall be held harmless for any and all damage to the premises on account thereof.” Mrs. Flury testified that she knew there was sand and gravel on the property, and that it was her expectation that the retained mineral interest encompassed the sand and gravel. In the time the Flurys held the half interest in all the minerals, they did nothing to exploit any minerals on the property.

In 1955 the Burkeys purchased the ranch from the Shepardsons. The Shepardsons also retained a one half interest in the mineral estate that they conveyed (at that time only one half). The Burkeys thus acquired the entire legal estate, subject to the V2 mineral interest still then retained by the Flurys, and the quarter interest in minerals retained by the Shepardsons. Although the ranch had a house on it, the Burkeys lived in Grand Junction, which is 88 miles from the ranch site. John Bur-key’s primary occupation was operation of a lumber business in Grand Junction, but he apparently had a number of varied business interests and responsibilities. He was characterized as an astute businessman. The Burkeys hired a foreman, Lloyd Berry-man, to operate the ranch. The home on the property was improved, and Berryman and his family lived on the ranch from 1955 until 1977.

Warren Gibbs, a local real estate agent, testified concerning the Ridgeway area in general and the parcel in particular. He has lived in Ouray County since 1937. He stated that the year he arrived a gravel pit was developed at the site, the rock crushed, and then used to top a local road. The pit was abandoned and became a pond. He also testified that it was not uncommon in the past for anyone needing small quantities of gravel for specific projects to remove them from the river bed at any suitable place in the valley. The deposits would be replenished during spring floods. More recently, however, state, local and federal environmental and land use regulations have virtually eliminated excavation of gravel from the river bed. Some limited pit mining occurs in the vicinity of Ridge-way, but even this is becoming more problematic because of regulatory restrictions.

Because of the nature of the alluvial soils, the Uncompahgre River Valley has been extensively explored for placer gold.1 Although small placer gold mining operations were present along the river during the period 1930-1939, all were marginal enterprises. Plaintiff’s son, Brooke Bur-key, testified that several years ago, someone approached his father about working the sand and gravel on the property for placer gold. The material removed was to be replaced by fill dirt. That was not pursued, however.

b. The dam

By the 1960’s it was common knowledge in Ouray County that the Bureau of Reclamation had an interest in damming the river and impounding a lake near Ridge-way. Because of its original intended site, this project was referred to as the Dallas Creek Project. In 1968 Congress authorized construction under Public Law 90-537. By 1972 it would have been common knowledge that the probable site of the dam itself would be immediately downstream of the Burkey property. The Bur-keys knew or should have known that, if the dam were built, their land would largely be flooded.

The dam was to be built almost exclusively of earth fill materials, as opposed to concrete. In 1972, prior to acquiring the [568]*568necessary land, the Bureau did a feasibility study of the site of the future reservoir to locate suitable materials for dam construction. The dam required approximately 12 million cubic yards of earth and rock fill material. The Bureau geologist responsible for this examination was Joe Barnes, who testified at trial. His report is dated September 1972. Barnes and his crew bored dozens of auger holes throughout the area, and evaluated the soils encountered. Three were dug on the Burkey ranch. Because the parties’ characterizations of the materials ultimately taken off the Burkey property are important, the report is quoted here:

The materials investigations were concentrated in the proposed reservoir basin where basically two types of soil are available. The two types are fine-grained soils containing small amounts of cobbles and boulders and gravelly soils containing large numbers of cobbles and boulders. Fine-grained soils are not abundant and have been deposited as slope wash, alluvial fans, and stream deposited materials____ The alluvium in the proposed reservoir is mostly gravelly material deposited by streams as out-wash and fairly large areas are found____
Borrow Area 500 — Pervious Materials
Two terraces of glacial outwash form this area; about 5,660,000 cubic yards has been outlined with three bucket auger holes. The material varies from silty to clayey gravel containing a high percentage of cobbles and boulders____
Riprap or rockfill
The gravelly soils proposed as borrow areas for previous material contain high percentages of cobbles or boulder ... These cobbles and boulders are of hard rock types such as andesite, rhyolite, volcanic tuff, and quartzite and are subangular to subrounded.

The report identified five borrow areas within the reservoir zone. The Burkey property made up approximately % of Borrow Area 500.

Barnes testified that prior to boring the test holes, he went to the Burkey property to ask permission to come onto the ranch with the auger equipment. He encountered Lloyd Berryman, who told Barnes that he could not give permission, that he would have to check, presumably with John Burkey. A couple of days later, Berryman called Barnes back and gave him permission. Barnes and his crew were on the Burkey property for two or three days. Their work would have been readily apparent to anyone on the property, although the holes were filled after the soil was analyzed.

Barnes testified that he told Berryman that the reason for the testing was to look for fill material. Berryman, for his part, testified that he did not recall Barnes’ visit.

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Bluebook (online)
25 Cl. Ct. 566, 1992 U.S. Claims LEXIS 101, 1992 WL 52529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burkey-v-united-states-cc-1992.