Dale v. Lannom

279 P.2d 624, 59 N.M. 77
CourtNew Mexico Supreme Court
DecidedJanuary 22, 1955
DocketNo. 5812
StatusPublished
Cited by1 cases

This text of 279 P.2d 624 (Dale v. Lannom) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dale v. Lannom, 279 P.2d 624, 59 N.M. 77 (N.M. 1955).

Opinions

LUJAN, Justice.

This is an appeal from an order of the District Court of Lea County dismissing plaintiffs’ first amended complaint, with prejudice, for the reason, among others, that it failed to state a claim against defendants upon which relief could be granted. The parties will be referred to as they appeared in the court below.

It must be borne in mind that the interest in the land here being litigated is of the public domain. “The Congress shall . have Power to dispose of and make needful Rules and Regulations respecting the Territory or other Property belonging to the United States; * * Article IV, § 3, Cl. 2. It can prohibit absolutely or fix the terms on which its property may be used. Light v. United States, 220 U.S. 523, 536, 31 S.Ct. 485, 488, 55 L.Ed. 570. To provide for the use of government lands by the public Congress has enacted statutes conferring upon executive officers power to handle the administrative details, to prescribe rules and regulations governing the use of said lands in the various localities in order to carry out and fulfill the purposes of the statute.

The Secretary of the Interior is authorized by the Leasing Act, “to prescribe necessary and proper rules and regulations and to do any and all things necessary to carry out and accomplish the purposes of this Act.” C. 85, § 32, 41 Stat. 450, 30 U.S.C. § 189, 30 U.S.C.A. § 189, which is entitled “An Act To promote the mining of coal, phosphate, oil, oil shale, gas, and sodium on the public domain.” C. 85, 41 Stat. 437. The Act p'rovides that the Secretary of the Interior shall “when the lands to be leased are not within any known geological structure of a producing oil or gas field, the person first making application for the lease who is qualified to hold a lease under said sections shall be entitled to a lease of such lands without competitive bidding. * * * Leases issued under this section shall be for a primary term of five years and shall continue so long thereafter as oil or gas is produced in paying quantities.” 30 U.S.C. § 226, 30 U.S.C.A. § 226. The Act further provides that the record title holder of an oil and gas lease shall have a preference right over others to a new lease for the same land, “that upon the expiration of the five-year term of any non-competitive oil and gas lease issued pursuant to the provisions of the Act of August 21, 1935 (49 Stat. 674), amending the Act of February 25, 1920, and maintained in accordance with the applicable statutory requirements and regulations, their record title holder shall be entitled to a preference right over others to a new lease for the. same land pursuant to the provisions of section 17 of the Act of February 25, 1920, as amended, and under such rules and regulations as are then in force, if he shall file an application therefor within ninety days prior to the date of the expiration of the lease. * * * ” § 1 of the Act of Congress of July 29, 1942, 30 U.S.C. § 226b, 56 Stat. 726. (Emphasis supplied.)

The facts which gave rise to this litigation are substantially as follows: On January 1, 1939, an oil and gas lease was issued to one Ray E. Levers for the land in question, which was due to expire on December 31, 1943. Prior to the expiration date, lessee died intestate, and Grace L. Levers, his widow, and Frances Dale, his daughter, succeeded to his interest in the lease as his sole heirs. On December 4, 1943, within ninety days of the expiration date of the base lease, Grace L. Levers and Frances Dale applied for a first preference right lease on the same land. On January 1, 1944 a first preference right oil and gas lease was issued to plaintiffs which was due to expire on December 31, 1948. On June 28, 1949, plaintiffs filed an application for a second preference right lease. On September 1, 1951, an oil and gas lease was issued to the defendant Ralph Lannom.

Under their point one plaintiffs argue that: “As a matter of law, the term of appellants’ lease Las Cruces 062242 did not. commence to run until January, 1946, and therefore they were the owners of a preference right to a new lease when they filed thei’r application therefor and were then entitled to a new lease.”

Pursuant to § 1 of the Act of Congress of July 29, 1942, 30 U.S.C. § 226b, 56 Stat. 726, there was issued to the plaintiffs, at the expiration of the base lease issued to Ray E. Levers, on January 1, 1939, a first preference right oil and gas lease which read, in part, as follows:

“This indenture of lease, entered into, in triplicate, as of the first day of January, 1944, by and between the United States of America * * * and Grace L. Levers and Frances Dale, * * * ” (Emphasis supplied.)

Under the terms of this lease plaintiffs agreed “to abide by and conform to any and all reasonable regulations of the Secretary of the Interior now or hereafter in force, all of which regulations are made a part and condition of this lease.”

This lease was not signed until January 15, 1946, and was delivered to plaintiffs on January 29, 1946.

Relying on the record as it appeared in the District Land Office, which showed that an oil and gas lease had been made by the United States to the plaintiffs for a term of five years commencing on January 1, 1944, the defendant, Ralph Lannom, on January 3, 1949, filed his application for a lease under the Mineral Act and on September 1, 1951, a lease was issued to him noncompetitively.

On June 28,' 1949, approximately six’ months after the first preference right lease had expired, plaintiffs filed'an‘application 'for-a second preference right lease, which stated, in part, as follows:

“During the existence of the oil and gas lease issued under Las Cruces Serial No. 062242 these applicants caused all rentals thereon to be paid when due and had full intention of applying for a preference right at the time that they became eligible to do so under the laws of the United States. By reason of failure to receive notice of any character of the termination of said lease or of their right in the premises to apply for a preference right lease; this application was not filed prior to expiration of the primary term of the lease aforesaid.” (Emphasis supplied.)

This application was not acted upon until August 21, 1951, when the manager of the land and survey office of Santa Fe rendered a decision holding that said application could not be treated as a preference right application because it was not filed within the 90-day period prior to the expiration date of the base lease, and that it could not be regarded as a regular application. The decision stated that the right of appeal is allowed.

Feeling aggrieved by the decision of the manager of the land and survey office plaintiffs sought relief, by appeal, through the Department of the Interior.

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

Related

Mason v. Mason
282 P.2d 317 (Utah Supreme Court, 1955)

Cite This Page — Counsel Stack

Bluebook (online)
279 P.2d 624, 59 N.M. 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-v-lannom-nm-1955.