Exxon Mobil Corp. v. Babbitt

346 F.3d 1244, 158 Oil & Gas Rep. 821, 2003 U.S. App. LEXIS 20944, 2003 WL 22346985
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 15, 2003
Docket02-1344
StatusPublished
Cited by6 cases

This text of 346 F.3d 1244 (Exxon Mobil Corp. v. Babbitt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Exxon Mobil Corp. v. Babbitt, 346 F.3d 1244, 158 Oil & Gas Rep. 821, 2003 U.S. App. LEXIS 20944, 2003 WL 22346985 (10th Cir. 2003).

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

Plaintiffs Exxon Mobil Corporation and TOSCO Corporation appeal the district court’s judgment affirming the Interior Board of Land Appeals (“IBLA”) decision invalidating their thirty-two unpatented oil shale mining claims. The IBLA concluded that the claims were null and void because plaintiffs had failed to substantially perform the assessment work required by statute. We affirm.

BACKGROUND

Exxon has twenty and TOSCO has twelve unpatented oil shale mining claims located in the Piceance Creek Basin in Garfield County, Colorado. Exxon and TOSCO acquired these claims from their previous owners, who had located them prior to February 25, 1920, in accordance with the General Mining Law of 1872, 30 U.S.C. §§ 21-54.

That law, “premised on a policy of encouraging exploration of valuable mineral deposits in the western United States .... provides that one who claims a mineral deposit is known as a ‘locator’ and is required to perform a certain amount of work each year in prosecution of the claim site, known as the ‘location.’ ” Cliffs Synfuel Corp. v. Norton, 291 F.3d 1250, 1252-53 (10th Cir.2002). That annual work requirement, called assessment work, is described in the 1872 Law as follows:

On each claim located after the 10th day of May 1872, and until a patent has been issued therefor, not less than $100 worth of labor shall be performed or improve-. ments made during each year. ■

30 U.S.C. § 28. The Mining Law further contained a provision stating that if a claimant failed to perform the required assessment work for a period of time but later resumed such work before someone else asserted a claim to the same land, the original claimant did not lose his claim. This provision became known as the “resumption doctrine”:

[U]pon a failure to comply with these conditions, the claim or mine upon which such failure occurred shall be open to relocation in- the same manner as if no location of the same had ever been made, provided that the original locators, their heirs, assigns, or legal representatives, have not resumed work upon the claim after failure and before such location.

Id; see also Cliffs Synfuel, 291 F.3d at 1253.

With the passage of the Mineral Leasing Act in 1920, Congress “completely changed the national policy over the disposition of oil shale lands.” Hickel v. Oil Shale Corp., 400 U.S. 48, 51, 91 S.Ct. 196, 27 L.Ed.2d 193 (1970). Those lands “were no longer open to location and acquisition of title but only to lease.” Id. The Act contained a savings clause, however, which provided that oil shale claims in existence as of February 25, 1920,' remained intact, and could pass into private ownership as before, as long as they were “thereafter maintained in' compliance with the laws under which initiated.... ” 30 U.S.C. § 193. “Thus, if one had a claim that existed prior to February 25, 1920, the claimant would not be required to lease the claimed land from the government, but could perfect title to it so long as the claim was maintained pursuant to pre 1920 law.” Cliffs Synfuel, 291 F.3d at 1254.

With that general background in mind, we turn to the particular facts of plaintiffs’ *1247 claims. Exxon’s twenty claims were located by its predecessor-in-interest on December 1, 1919. Exxon purchased those twenty claims and fifty-two others on February 2, 1966, for $100.00. TOSCO’s twelve claims were located by its predecessor-in-interest on December 16, 1917. TOSCO purchased them on April 23, 1979 for $9,562.10.

Exxon filed a patent application for its claims in January 1984. TOSCO filed its patent application in June 1985. On June 15, 1989, the Department of the Interior (“DOI”) determined that Exxon had complied with the initial paperwork requirements of the Mineral Leasing Act and issued First Half of Mineral Entry Final Certificates (“FHFC”s). 1 On July 27, 1988, DOI issued FHFCs for TOSCO’s claims. Issuance of those FHFCs relieved plaintiffs of the obligation to perform further assessment work. See Silver Crystal Mines, Inc., 147 I.B.L.A. 146, 149 (1999). DOI continued to investigate the validity of the claims, however, and on May 3, 1995, the Bureau of Land Management (“BLM”) initiated a contest of Exxon’s claims and on May 25, 1995 initiated a contest of TOSCO’s claims.

The two contest complaints were consolidated for a hearing before an Administrative Law Judge (“ALJ”). The ALJ issued a decision on January 9, 1998, holding, inter alia, that plaintiffs’ claims were invalid because plaintiffs failed to comply substantially with the annual assessment work requirement of 30 U.S.C. § 28. 2 More specifically, the ALJ concluded that TOSCO had failed to perform the required assessment work on its claims for the years 1929 through 1931, 1933 through 1957, and 1960 through 1974, with the exception that no assessment work was required for six of the claims in 1935 because a notice of intent to hold those claims was filed for that year. The ALJ found that TOSCO did satisfy the assessment work requirement for the years 1975 through 1987.

The ALJ found that, with respect to Exxon’s claims, annual assessment work was required from 1919 to 1988, with the exception of 1932. The ALJ concluded that assessment work had been done for each of Exxon’s claims in 1957, 1958, 1964 and 1966, and that assessment work had been done for a one-year period on approximately ten claims sometime between 1967 and 1972. Except for those time periods, the ALJ determined that no other assessment work had been done on Exxon’s claims between 1920 and 1972. Exxon filed affidavits stating that it had performed assessment work for the years 1973 through 1988, but the ALJ determined that it was non-qualifying road maintenance work.

Exxon and TOSCO appealed the ALJ’s decision to the IBLA. The IBLA affirmed the ALJ’s decision, for substantially the same reasons as the ALJ. Thus, the IBLA concluded that plaintiffs had failed to substantially satisfy the assessment work requirement of 30 U.S.C. § 28. 3

*1248 Plaintiffs sought review of the IBLA’s decision in the federal district court. They argued that 30 U.S.C. § 28

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Bluebook (online)
346 F.3d 1244, 158 Oil & Gas Rep. 821, 2003 U.S. App. LEXIS 20944, 2003 WL 22346985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exxon-mobil-corp-v-babbitt-ca10-2003.