Burlington Northern Railroad v. Montana Department of Public Service Regulation

720 P.2d 267, 221 Mont. 497, 1986 Mont. LEXIS 922
CourtMontana Supreme Court
DecidedJune 5, 1986
Docket85-603
StatusPublished
Cited by7 cases

This text of 720 P.2d 267 (Burlington Northern Railroad v. Montana Department of Public Service Regulation) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burlington Northern Railroad v. Montana Department of Public Service Regulation, 720 P.2d 267, 221 Mont. 497, 1986 Mont. LEXIS 922 (Mo. 1986).

Opinions

MR. JUSTICE WEBER

delivered the Opinion of the Court.

After a hearing and submission of briefs, the Montana Public Service Commission (PSC) dismissed a petition by Burlington Northern Railroad Company (BN) to close its operation at Lodge Grass, Montana. The dismissal was based on the PSC’s conclusion that it lacked jurisdiction. Lodge Grass is on the Crow Indian Reservation. BN sought review in the District Court for Yellowstone County, and the court affirmed the PSC’s order. We reverse.

The issue is whether the PSC properly determined that it does not have regulatory jurisdiction over the proposed closure of the Lodge Grass Station.

BN’s predecessor, Big Horn Southern Railroad Company, was [499]*499granted a right-of-way through the Crow Indian Reservation by Act of Congress in 1889. The purpose of the right-of-way was “for the construction, operation, and maintenance of [Big Horn’s] railroad, telegraph, and telephone lines . . Section 3 of the Act provided in part that “the surveys, construction, and operation of such railroad shall be conducted with due regard for the rights of the Indians, and in accordance with such rules and regulations as the Secretary of the Interior may make to carry out this provision. . .” The Act was amended in 1893 to expand the time frame for construction and to modify the legal description of the right-of-way. The Lodge Grass station was constructed on the right-of-way, and BN eventually succeeded to Big Horn’s interest under the 1889 and 1893 Acts.

In 1981, BN requested authority from the PSC to discontinue its station at Lodge Grass. The request was made under A.R.M. Section 38.4.301. The reasons given for the request were the lack of business at Lodge Grass and the availability of a station at Hardin to take over the Lodge Grass station’s remaining duties. On July 27, 1982, the PSC held a public hearing on the proposed closure. There was testimony that there had been no shipments into or out of the Lodge Grass station for over two years. There was also testimony about proposed Tribal business ventures which would use the station. At the end of the hearing, the PSC requested briefs on whether it had jurisdiction to decide upon BN’s application.

The Crow Tribe has since enacted a common carrier ordinance. The ordinance was not relied upon by either the PSC or the District Court in their decisions.

In concluding that it did not have jurisdiction over BN’s petition, the PSC found that: (1) Burlington Northern had succeeded to Big Horn’s interest under the 1889 and 1893 Acts; (2) the 1889 Act “provided generally that the surveying, construction, and operation of the right-of-way was to be subject to the approval and/or regulations of the Secretary of Interior;” and (3) “[t]he impact of the proposed abandonment will fall predominantly, if not exclusively, on the Lodge Grass agency and Tribal members dependent upon rail service to that station.” Relying on White Mountain Apache Tribe v. Bracker (1980), 448 U.S. 136, 100 S.Ct. 2578, 65 L.Ed.2d 665, the PSC concluded that the propriety of its asserting jurisdiction over BN’s application involved balancing state and federal/tribal interests and that federal/tribal interests predominated under these circumstances. The District Court affirmed this decision on cross-motions for summary judgment.

[500]*500The White Mountain Apache test applies where “a State asserts authority over the conduct of non-Indians engaging in activity on the reservation.” White Mountain Apache, 448 U.S. at 144, 100 S.Ct. at 2584. BN argues that its interest in the railroad right-of-way is in the nature of a fee interest, and that the balancing test set out in White Mountain Apache does not apply. BN’s argument is not persuasive. The PSC cites United States v. Soldana (1918), 246 U.S. 530, 38 S.Ct. 357, 62 L.Ed. 870 as authority that the title of the Crow Tribe to the land within the Big Horn (now BN) right-of-way was not extinguished when the right-of-way was created. We conclude that the Crow Tribe retains an interest in the land underlying the right-of-way and therefore, the White Mountain Apache balancing test applies.

White Mountain Apache concerned the State of Arizona’s efforts to apply its motor carrier license and use fuel taxes to a non-Indian enterprise operating solely on the Fort Apache Reservation. The Court held that the taxes were pre-empted by federal law, but distinguished the process it used to reach this conclusion from standard preemption analysis. The Court held that:

“[w]hen on-reservation conduct involving only Indians is at issue, state law is generally inapplicable, for the State’s regulatory interest is likely to be minimal and the federal interest in encouraging tribal self-government is at its strongest. (Citations omitted.) More difficult questions arise where, as here, a State asserts authority over the conduct of non-Indians engaging in activity on the reservation. In such cases we have examined the language of the relevant federal treaties and statutes in terms of both the broad policies that underlie them and the notions of sovereignty that have developed from historical traditions of tribal independence. This inquiry is not dependent on mechanical or absolute conceptions of state or tribal sovereignty, but has called for a particularized inquiry into the nature of the state, federal, and tribal interests at stake, an inquiry designed to determine whether, in the specific context, the exercise of state authority would violate federal law. (Citations omitted.)” White Mountain Apache, 448 U.S. at 144-45, 100 S.Ct. at 2584.

In White Mountain Apache a crucial factor in the balance of State interests against federal/tribal interests was the comprehensive scheme of federal regulation of the harvesting of Indian timber, in the form of Acts of Congress, detailed Interior Department regulations, and day-to-day supervision by the Bureau of Indian Affairs. White Mountain Apache, 448 U.S. at 145-48, 100 S.Ct. 2584-86. [501]*501Also weighed in the Court’s consideration were the economic burden on the Tribe of the asserted taxes, and the “significant geographical component of tribal sovereignty.” White Mountain Apache, 448 U.S. at 151, 100 S.Ct. at 2587. On the other side of the balance was the State’s general interest in raising revenue. White Mountain Apache, 448 U.S. at 150, 100 S.Ct. at 2587. The Court held that the federal/tribal interests outweighed the State’s interest, and the State was denied jurisdiction.

In the present case, in marked contrast, there is an absence of federal regulation of railroad rights-of-way over Indian land, although there is clearly authority for it. The absence of regulatory action by both the federal government and the Crow Tribe during a period of close to 100 years is highly significant. It could even be called acquiescence, in view of Montana’s 70 years of regulation of railroads, including railroads running through this reservation. Montana has enacted a comprehensive regulatory scheme governing all railroads doing business in this state, at Title 69, Chapter 14, MCA.

Second, and also in contrast to White Mountain Apache, the state jurisdiction sought here is regulatory jurisdiction for the public good, not authority to tax.

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Cite This Page — Counsel Stack

Bluebook (online)
720 P.2d 267, 221 Mont. 497, 1986 Mont. LEXIS 922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burlington-northern-railroad-v-montana-department-of-public-service-mont-1986.