Coastal Petroleum Co. v. Secretary of Army of United States

315 F. Supp. 845, 1 ERC (BNA) 1475, 1970 U.S. Dist. LEXIS 11073
CourtDistrict Court, S.D. Florida
DecidedJuly 1, 1970
Docket68-951-Civ., 69-699-Civ. (consolidated)
StatusPublished
Cited by9 cases

This text of 315 F. Supp. 845 (Coastal Petroleum Co. v. Secretary of Army of United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coastal Petroleum Co. v. Secretary of Army of United States, 315 F. Supp. 845, 1 ERC (BNA) 1475, 1970 U.S. Dist. LEXIS 11073 (S.D. Fla. 1970).

Opinion

MEMORANDUM OPINION

ATKINS, District Judge.

A lake is many things to many people. In this lawsuit the lake is Okeechobee, the largest body of water wholly contained within the borders of the continental United States. It serves as a playground, wildlife preserve, a link in navigation between the east and west coasts of Florida, and, most importantly, water source for the people of South Florida and the many visitors to this area.

The plaintiff is Coastal Petroleum Company. While the Company’s name is generally descriptive of its function, petroleum is not at stake in this case. Coastal seeks to exercise claimed mineral rights and extricate quantities of limestone from a portion of the bed of Lake Okeechobee. In pursuit of this objective the company sought to obtain a permit from the U. S. Army Corps of Engineers and the Secretary of the Army in accordance with Title 33 U.S.Code § 403 which prohibits the creation of any obstruction of the navigable waters of the United States unless it has been authorized by the Secretary. 1 The Army initially replied that, in accordance with certain regulations, 2 application for a *847 permit would not be processed unless accompanied by approval of appropriate local authorities. Coastal’s request for such approval from these authorities was refused. At this point the positions of all parties to this lawsuit became apparent and Coastal initiated the action seeking a declaratory judgment and an injunction.

As the style of this case indicates, the defendants are the Department' of the Army, the Central and Southern Florida Flood Control District and the Trustees of the Internal Improvement Fund of the State of Florida, referred to hereafter as the Army, the Flood Control District and the Trustees'. As the suit seeks to cause issuance of the aforementioned permit the Army was initially the principal defendant. The latter two defendants are the “appropriate local authorities” whose approval the Army requires.

Subsequent to the filing of the suit and notwithstanding the absence of approval from the Trustees and the Flood Control District the Corps of Engineers conducted hearings and processed plaintiff’s application for a permit. The result was negative as set forth in a letter from John F. McElhenny, Colonel, Corps of Engineers, District Engineer to Mr. Benjamin W. Heath, President, Coastal Petroleum Company, Inc., Suite 500, 37 Lewis Street, Hartford, Connecticut 06103, on August 26, 1969. 3 The grounds which are set forth for denial of the permit do not include obstruction of the navigable capacity of Lake Okeechobee.

The action of the Army thus comes directly under the purview of Zabel v. Tabb, 296 F.Supp. 764 (Fla.M.D. 1969). I embrace the reasoning of this opinion written by my distinguished brother Judge, Ben Krentzman, and find that the denial of the permit by the Army is invalid as it is not bottomed on the finding that the work which' Coastal seeks to perform will obstruct navigation in Lake Okeechobee. 4 Regardless of this conclusion, for reasons set forth below, I decline to order issuance of the permit.

The division of this case into Zabel and non -Zabel issues occurred prior to the trial held this past October. The result of the Zabel decision was total polarization between Coastal and the Army. Coastal relied on Judge Krentzman’s opinion and the Army on briefs filed before the Fifth Circuit appealing this decision. The effect was the shifting of the focus of the dispute to issues between Coastal and the Trustees as to the basic right of Coastal to mine limestone in the Lake. While these issues *848 could have been litigated in the Courts of Florida I have retained the ease to determine the issues under the doctrine of pendent jurisdiction. Much judicial labor was expended on all aspects of the case before the Army’s position became clear and it is unquestioned that there would have been much duplication of effort had I declined to consider the “non-federal” questions. These issues along with the clear federal question “derive from a common nucleus of operative fact” United Mine Workers v. Gibbs, 383 U.S. 715, 725, 86 S.Ct. 1130, 1138, 16 L.Ed.2d 218 (1966) and as such are appropriately decided by this Court.

As mentioned, the trial of this cause was held in October, 1969. The decision rendered at this time follows months of extensive briefing by the remaining adversaries — Coastal and the Trustees. 5 Reiterating that issues relating to Coastal’s claim of compensation for limestone removed from the Lake have been severed, the questions which remain to be determined concern (1) the validity of leases which Coastal obtained from the Trustees and which allegedly give Coastal the right to mine in the Lake and (2) whether limestone is a substance within the mineral rights Coastal claims by virtue of the leases. The pretrial stipulation drew these two as follows:

a. Whether the decision of the Supreme Court of the State of Florida in Collins v. Coastal Petroleum Company, Fla.App., 118 So.2d 796, or any other decision of the State or Federal Courts has finally determined the validity of Leases Nos. 248, 224A and 224B, so that their validity is no longer an issue which may be determined by this Court.
b. Whether limestone is covered by Lease No. 248.

The latter issue will be dealt with first as it is more readily disposed of. I find that the decree of Judge Hugh Taylor in Coastal Petroleum Company v. Bryant, Chancery No. 18569, Circuit Court of the Second Judicial Circuit, Leon County, Fla. is determinative. Judge Taylor held that calcium carbonate 6 is a mineral within Coastal leases. The form of calcium carbonate at stake in the instant case clearly fits the description of the form of calcium carbonate found covered by the Coastal leases in Bryant, i.e., “deposits which are found substantially beneath the surface of the ground and which are useful only because of their chemical content or, (which) to be used because of physical characteristics, must be broken and crushed as rock.” In view of the Bryant decision I do not find any merit in an evaluation of textbook authorities on the question of limestone being a mineral or a long discussion of the intent of the parties to the leases being determinative of this question.

The question of the validity of the leases is the most significant aspect of the lawsuit. Coastal leases numbered 248, 224A and 224B cover large areas of this State and can be the locale for all types of activity by Coastal- — activity which may not require government approval or be limited by such things as the definition of a mineral. In light of Collins v. Coastal Petroleum, 118 So.2d 796 (Fla.App.1960), Coastal’s Exhibit 48, a letter written by an employee of the Trustees, James T.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Coastal Petroleum Co.
220 Ct. Cl. 690 (Court of Claims, 1979)
Coastal Petroleum Co. v. Secretary of Army
547 F.2d 288 (Fifth Circuit, 1977)
Coastal Petroleum Company v. Secretary Of The Army
547 F.2d 288 (Fifth Circuit, 1977)
Coastal Petroleum Co. v. United States
524 F.2d 1206 (Court of Claims, 1975)
Vang v. Mount
220 N.W.2d 498 (Supreme Court of Minnesota, 1974)
City of West Palm Beach v. Williams
291 So. 2d 572 (Supreme Court of Florida, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
315 F. Supp. 845, 1 ERC (BNA) 1475, 1970 U.S. Dist. LEXIS 11073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-petroleum-co-v-secretary-of-army-of-united-states-flsd-1970.