Gilpin Investment Co. v. Perigo Mines Company

421 P.2d 477, 161 Colo. 252, 1966 Colo. LEXIS 561
CourtSupreme Court of Colorado
DecidedDecember 19, 1966
Docket21080
StatusPublished
Cited by15 cases

This text of 421 P.2d 477 (Gilpin Investment Co. v. Perigo Mines Company) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilpin Investment Co. v. Perigo Mines Company, 421 P.2d 477, 161 Colo. 252, 1966 Colo. LEXIS 561 (Colo. 1966).

Opinion

Opinion by

Mr. Justice Schauer.

The parties appear here in the order of their appearance in the trial court. Defendants named in the complaint, other than Perigo Mines Company and Sleeping Giant Company, were in default and have made no appearance before this court. The defendants Perigo Mines *254 Company and Sleeping Giant Company, appearing herein, will be appropriately referred to.

The property involved in the controversy is a placer mining claim in Gilpin County, Colorado. It was variously referred to in the testimony, but its identity is not in question. It is described as:

“The John Q. A. Rollins et al Placer Claim upon Gamble Gulch, Survey No. 340, Mineral District No. 1, Independent Mining District, Gilpin County, Colorado. Also commonly known as Gamble Gulch Placer, Survey No. 340, Gilpin County, Colorado.”

This placer claim is two miles long and 330 feet wide, and lies in a valley with the boundaries of the tract sloping up on either side. A small stream runs its entire length. Over the years, and up to the present time, rains and surface water have been washing gravel down the slopes, leaving on the surface of the claim a light deposit containing flecks of gold and other valuable minerals.

In its complaint, plaintiff alleges its ownership of a six-acre tract, a part of the placer claim, described as follows:

“Beginning at Patent Corner No. 10 of Gamble Gulch Placer, Survey No. 340; thence to Patent Corner No. 11 thereof; thence to Patent Corner No. 12 thereof; thence to Patent Comer No. 13 thereof; thence to the point of beginning, containing about six acres of land, together with the water rights appertaining thereto, * *

Plaintiff describes the deeds and documents constituting its chain of title and asks for reformation thereof in order that the property and plaintiff’s rights in connection therewith may be properly described. It also claims title under the seven-year statute of limitations, and asks for a decree adjudging it to be the owner of all loose minerals on the tract claimed or, in the alternative, the loose minerals that have been deposited thereon since the date it obtained title to the tract.

In their answer, defendants set out a counterclaim. Sleeping Giant Company, as a grantee of Perigo Mines *255 Company, alleges its ownership of the entire placer claim and asks that its title thereto be quieted as against the plaintiff.

In essence, this is a quiet title action, involving not only the title to the surface of the lands in controversy, but also title to the minerals and the mineral rights on and underlying the surface, the water rights appertaining to the land, the right to build and use wagon roads thereon, and the right of way of the existing public road across the same. Since it was tried as a quiet title action, each party was required to assume the burden of establishing by competent evidence its title to the lands respectively claimed.

It is agreed that on December 5, 1921, the Perigo Mining Company was the owner of the subject property. The chain of title of each of the parties hereto may well be traced from that date. Plaintiff bases its title to the tract claimed upon the following deeds and documents (We have added the emphasis indicated.):

1. Warranty Deed, dated December 5, 1921, from Perigo Mines Company to Henry F. Christenson, which conveys a tract of six acres, described by metes and bounds, together with the water rights to the land. The following exception and reservation is material:

“Excepting and reserving, all mineral rights, and the right of ingress to and egress from and to mine any part of said land that is not covered with buildings; reserving also right to use or build wagon roads across said lands. Also the right of way of the public road as now used is hereby reserved from this conveyance.”

2. Warranty Deed, dated September 21, 1922, from Henry F. Christenson to The Maryland Mines & Reduction Company, which conveys several lode mining claims and:

“Also, 1000 feet by 300 feet in what is known as The J.Q.A. Rollins Placer Claim, Survey number Three Hundred and Forty (340) in Gamble Gulch, as recorded in book 171, Page 404 in the recorders office, Gilpin Co. *256 Colo. May 8th 1922. Subject to Mineral and Road rights. * * * Subject to all General and Special Taxes.”

3. Tax Sale Certificate of Purchase No. 19727, issued by the County Treasurer of Gilpin County to Gilpin County on December 24, 1932. It shows the sale on December 24, 1932, for the delinquent taxes for the year 1931, to Gilpin County of “Six acres of Surface Ground of Gamble Gulch Placer ,” Survey No. 340, assessed to Maryland Mines and Reduction Co. Endorsements show payment of subsequent taxes for the years 1932 to 1955, both inclusive.

4. County Treasurer’s Deed, dated October 24, 1956, from the County Treasurer of Gilpin County to Gilpin County of several lode claims, and “Six Acres of Surface Ground of Gamble Gulch Placer, U. R. [?] Survey No. 340,” assessed to Maryland Mines and Reduction Co., identifies this tract as being the same tract sold under Tax Sales Certificate of Purchase No. 19727, supra, and shows payment by Gilpin County of subsequent taxes for the years 1932 to 1955, inclusive.

5. Correction deed, dated May 4, 1961, from Gilpin County to Gilpin Investment Company (plaintiff herein), conveys: “Six (6) Acres of Surface Ground of the Gamble Gulch Placer, U. S. Survey No. 340.”

There were no reservations or limitations shown in any of the above exhibits, with the exception of Nos. 1 and 2.

Defendant, Sleeping Giant Company, bases its title upon the following conveyance:

1. Warranty Deed, dated October 9, 1961, from The Perigo Mines Company to The Sleeping Giant Company, for several other claims, and “Gamble Gulch Placer (Survey # 340),” excepting two tracts theretofore conveyed, of no interest in this action. No reservations affecting minerals or mineral rights.

Upon considering the title of the plaintiff in its six-acre tract, it is evident from the exhibits that it has title to but “Six Acres of Surface Ground of Gamble Gulch *257 Placer, Survey No. 340.” (Emphasis supplied.) By its tax deed, plaintiff could secure title to no more than Maryland owned. Maryland had no title to minerals or mineral rights in the property involved, they having been reserved by Perigo in its deed to Christenson.

This court has held that a tax assessment must be sufficient by description to include the surface as well as the minerals and, if the minerals were properly reserved before the assessment, an assessment of the surface rights does not include the minerals. Johnson v. McLaughlin, 125 Colo. 298, 242 P.2d 812; Mitchell v. Espinosa, 125 Colo.

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Bluebook (online)
421 P.2d 477, 161 Colo. 252, 1966 Colo. LEXIS 561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilpin-investment-co-v-perigo-mines-company-colo-1966.