Continental Resources, Inc. v. United States

136 F.4th 778
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 2, 2025
Docket23-2249
StatusPublished

This text of 136 F.4th 778 (Continental Resources, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Resources, Inc. v. United States, 136 F.4th 778 (8th Cir. 2025).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 23-2249 ___________________________

Continental Resources, Inc., an Oklahoma corporation

Plaintiff - Appellee

v.

North Dakota Board of University and School Lands

Defendant - Appellee

United States of America

Defendant - Appellant ____________

Appeal from United States District Court for the District of North Dakota - Western ____________

Submitted: October 22, 2024 Filed: May 2, 2025 ____________

Before SHEPHERD, KELLY, and STRAS, Circuit Judges. ____________

SHEPHERD, Circuit Judge. The United States appeals the district court’s 1 denial of its motion to dismiss for lack of subject matter jurisdiction and grant of summary judgment in favor of the North Dakota Board of University and School Lands (the Land Board) in this interpleader action concerning the entitlement to royalties from minerals extracted from the bed of Lake Sakakawea in North Dakota. The United States also asks this Court to take judicial notice of several documents for the first time on appeal. Having jurisdiction under 28 U.S.C. § 1291, we deny the motion for judicial notice and affirm the judgments of the district court.

I.

North Dakota was admitted into the Union in 1889 and acquired title to the bed of the untamed Missouri River up to the location of the Ordinary High Water Mark (OHWM) from the United States under the equal-footing doctrine. See PPL Mont., LLC v. Montana, 565 U.S. 576, 591 (2012) (describing the equal-footing doctrine). This acquisition included title to the minerals underneath the bed of the River, below the OHWM. See id. at 590. To delineate the boundary between the state-owned riverbed and federally owned lands above the OHWM, the General Land Office, now known as the Bureau of Land Management (BLM), prepared surveys to demarcate the OHWM as it existed at the time of North Dakota’s admission to the Union. In the years following North Dakota’s admission, the United States patented and conveyed some tracts of land above the OHWM to private landowners.

Decades after the initial determination of the OHWM, Congress passed the Flood Control Act of 1944 to manage the Missouri River Basin, which was prone to flooding. Pub. L. No. 78-534, § 9, 58 Stat. 887, 891 (1944); see also EEE Minerals, LLC v. North Dakota, 81 F.4th 809, 814 (8th Cir. 2023) (describing the Flood Control Act and its aims). This authorized the construction of the Garrison Dam and

1 The Honorable Daniel L. Hovland, United States District Judge for the District of North Dakota. -2- the creation of Lake Sakakawea on the Missouri River. To construct the Garrison Dam, the United States Army Corps of Engineers (Corps) needed to reacquire some land above the OHWM of the Missouri River that the United States had conveyed to third parties. Thus, the Corps created Segment Maps to identify which lands would need to be reacquired to construct the dam. The Corps Segment Maps used the original BLM surveys as a reference tool and ultimately identified the OHWM as it existed in 1952 before it became fixed within Lake Sakakawea.

Where the United States reacquired privately owned land through voluntary sale, landowners reserved rights to the minerals. Where the United States used the power of eminent domain to reacquire land, it acquired title to the surface and mineral estate. Further, some tracts of land above the OHWM under Lake Sakakawea were never conveyed away by the United States after originally being acquired by the United States from France in 1803. Accordingly, the tracts of land now owned by the United States above the OHWM under Lake Sakakawea consist of a patchwork of different tracts of land: some never conveyed away by the United States—“retained lands”—and some “reacquired lands.” Additionally, the United States owns the minerals under some, but not all, of these “reacquired lands.”

Lake Sakakawea pooled upon completion of the Garrison Dam, after which the OHWM became fixed. Decades later, the Land Board hired a private engineering firm, Bartlett & West, to survey the Missouri River and determine the now- permanent location of the OHWM. The Bartlett & West Survey identifies the OHWM in accordance with North Dakota’s guidelines; it did not use the Corps Segment Maps to do so. All of the oil, gas, and other mineral leases currently leased by the Land Board to third parties are made pursuant to the location of the OHWM identified in the Bartlett & West Survey.

Originally, the Land Board claimed “title to the bed of the Missouri River up to the current ordinary high watermark” as to lands that had been sold and reacquired by the United States for construction of the lake. Wilkinson v. Bd. of Univ. & Sch. Lands, 903 N.W.2d 51, 54 (N.D. 2017). In 2017, however, North Dakota enacted -3- N.D. Cent. Code Chapter 61-33.1 to address the ownership of the bed of the Missouri River and rejected this view, stating that “state sovereign land mineral ownership of the riverbed segments subject to inundation . . . extends only to the historical Missouri riverbed channel up to the ordinary high water mark.” N.D. Cent. Code § 61-33.1-02 (emphasis added). Additionally, § 61.33.1-03 outlines the process to verify the 1952 Corps Survey’s demarcation of the OHWM, providing a comprehensive scheme through which a selected surveying firm would “conduct a review of the [C]orps [S]urvey.” N.D. Cent. Code § 61-33.1-03(2). Thereafter, in 2017, the Land Board commissioned Wenck Associates Inc. to determine the location of the OHWM relevant to the acquired lands. See N.D. Cent. Code § 61-33.1-03(2)-(3). The Wenck Survey constitutes the Land Board’s official location of the OHWM as relevant to this appeal.

Continental Resources (Continental) is an oil and gas production company that leases minerals from both the Land Board and the United States. In exchange for these leases, the United States and the Land Board have a continuing royalty interest in the minerals extracted by Continental. Continental brought an interpleader action to resolve the United States’ and Land Board’s competing claims to over 3.5 million dollars in royalty proceeds, as entitlement depends on the location of the OHWM. In plain terms, if North Dakota law and the state survey govern the location of the OHWM, the Land Board is entitled to a larger percentage of the royalties; conversely, if the federal survey controls, the United States is entitled to a larger percentage of the royalties. Finally, Continental has never been delinquent on payments to either party and does not claim title to any of the proceeds.

After Continental initiated this interpleader action in state court, the United States removed the action to federal court and moved to dismiss based on sovereign immunity. The district court denied the motion, holding that under 28 U.S.C. § 2410(a)(5), the United States expressly waived sovereign immunity in this action because North Dakota law created a lien in favor of the United States immediately upon Continental severing the leased minerals from the land. The case proceeded on the merits, and the parties filed cross-motions for summary judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
136 F.4th 778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-resources-inc-v-united-states-ca8-2025.