Del-Rio Drilling Programs, Inc. v. United States

17 Cl. Ct. 844, 1989 U.S. Claims LEXIS 159, 1989 WL 99201
CourtUnited States Court of Claims
DecidedAugust 28, 1989
DocketNo. 569-86L
StatusPublished
Cited by9 cases

This text of 17 Cl. Ct. 844 (Del-Rio Drilling Programs, Inc. 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
Del-Rio Drilling Programs, Inc. v. United States, 17 Cl. Ct. 844, 1989 U.S. Claims LEXIS 159, 1989 WL 99201 (cc 1989).

Opinion

ORDER

REGINALD W. GIBSON, Judge:

On September 11, 1986, Del-Rio Resources, Del-Rio Drilling Programs, Inc., Syndicators, Inc., Western United Mines, Inc., Oil Canyon Fund, No. 1, and three limited partnerships identified as 1980-1, 1979-1, and 1979-2, filed a complaint in this court against the United States alleging breach of certain federal oil and gas leases located in Unitah County, Utah, by the Department of the Interior, Bureau of Land Management. The complaint also named 25 plaintiffs identified only as “John Doe.” The complaint further alleged that actions taken by the defendant through the Department of the Interior, Bureau of Indian Affairs, constituted a taking without payment of just compensation in violation of the Fifth Amendment of the United States Constitution.

Thereafter, on April 22, 1987, plaintiffs filed an amended complaint which specifically named 26 plaintiffs, some of whom had been previously identified as “John Doe,” plaintiffs. Pursuant to RUSCC 19(c), plaintiffs’ amended complaint named an additional 11 entities or groups of individuals holding an interest in the subject oil and gas mineral estates who either refused to join the present action or had not been asked to join. In view of such, on June 1, 1987, defendant moved to dismiss this action, pursuant to RUSCC 19, averring that plaintiffs failed to join certain lessees and fractional interest holders as indispensable parties. On August 10, 1989, this court ordered the parties to brief RUSCC 14(a)(1) and its applicability to this matter. On August 16, 1989, plaintiffs requested this court to issue such notices on its own motion or, in the alternative, to issue such notices on plaintiffs’ motion for good cause shown pursuant to the requirements of RUSCC 14(a)(3). Oral argument was held on August 18, 1989. The jurisdiction of this court is premised upon 28 U.S.C. § 1491 (1989). After a thorough review of the pleadings, the court denies defendants’ motion to dismiss.

Statement of Facts

Beginning in 1957 and continuing through 1974, the defendant, through the Department of the Interior, Bureau of Land Management, executed a series of leases covering subsurface oil and gas mining rights in Unitah County, Utah. Eleven of these federal oil and gas leases are the subject matter of the present litigation. These leases were originally executed by the defendant as lessor with six individuals.1

Following execution, the record title, operating royalty, overriding royalty, and working interests of each lease were fragmented by numerous transfers and assignments. Most recently, the subject leases were consolidated in the Oil Canyon Two Unit Area.2 Plaintiffs obtained various in[847]*847terests in the leased subsurface mineral estate and constructed buildings and other improvements on the surface of the leased estate. They drilled and developed six wells — three capable of production, two not completed, and one abandoned. Plaintiffs also built a 17-mile pipeline, which was unfinished at the commencement of this litigation, to enable delivery of gas produced in the unit to commercial purchasers.

The leases in question are located on and within Indian tribal lands held in trust by the United States Government for the Uni-tah and Ouray Indians of the Ute Tribe. On or about September 8, 1983, the plaintiffs’ access to the leased property was terminated by the Department of the Interior, Bureau of Indian Affairs. This denial of access was at the request of the Ute Indian Tribes, which retained the right to veto any Department of the Interior attempt to grant access or right of way over the surface estate of lands held in trust for the Ute Tribe.

Plaintiffs have identified 26 interested parties who have voluntarily joined in litigation seeking compensation for the alleged denial of access to the leased premises. Pursuant to RUSCC 19(c), plaintiffs have also identified 11 groups who have not yet joined this suit.3 Of those interests held by plaintiffs, some were accomplished by assignments approved and recorded by the Bureau of Land Management.4 The defendant has submitted a compilation of record title and operating right interest holders for the leased estate under consideration here as of July 28, 1987.5 These records demonstrate, and both parties agree, that there are at least some record title and royalty interest holders who have not yet joined this litigation. This fact is the basis for defendant’s motion to dismiss for failure to join indispensable parties.

Contentions of the Parties

A. Defendant

Pursuant to RUSCC 19, the defendant moved to dismiss the plaintiff’s complaint on the grounds that there are indispensable parties who have not been joined. More specifically, the defendant has taken the position that the plaintiffs must join each and every party holding an interest in the oil and gas leases, particularly those un-joined parties who hold a record title interest. The defendant bases its motion on the premise that joinder of these parties is not feasible under RUSCC 19(a), and that, pursuant to RUSCC 19(b), this action must therefore be dismissed following such a determination of nonfeasibility.

In support of its RUSCC 19 argument, the defendant in effect contends that, un[848]*848der RUSCC 4, this court lacks the jurisdiction to effect service of process on any party other than the United States. Consequently, according to the defendant, the inability of this court to effect service of process on the interested third parties herein deprives the court of jurisdiction to join those parties as involuntary plaintiffs pursuant to RUSCC 19(a).6 However, because RUSCC 19(a) contains inconsistent provisions,7 and because a ruling on RUSCC 19(a) would not be dispositive, due to the applicability of the more appropriate provisions set forth in RUSCC 14(a)(1), this court need not address the merits of defendant’s RUSCC 19 motion. We choose, instead, to resolve this matter through the issuance of appropriate notices pursuant to RUSCC 14(a)(1).

B. Plaintiffs

As previously noted, on August 10, 1989, this court ordered the parties to brief RUSCC 14(a)(1) and its applicability to this litigation. The plaintiffs subsequently replied on August 16, 1989, requesting that this court, sua sponte, issue notices pursuant to its discretion. In the alternative, plaintiffs’ brief contains verbiage requesting issuance of notices pursuant to their own motion for good cause shown as required by RUSCC 14(a)(3). For the reasons expressed hereinafter, the court, sua sponte, issues such notices pursuant to RUSCC 14(a)(1).

Discussion

The ultimate objective of this court in general, and in these proceedings in particular, is to ensure that all parties required for a full, complete, fair, and just adjudication of the issues are present to assert or defend any interest in the subject matter of this litigation. This goal may be substantially achieved through RUSCC 14. RUSCC 14(a)(1) provides that:

The court, on its own motion or on the motion of a party, may notify any person with legal capacity to sue and be sued and who is

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Bluebook (online)
17 Cl. Ct. 844, 1989 U.S. Claims LEXIS 159, 1989 WL 99201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/del-rio-drilling-programs-inc-v-united-states-cc-1989.