Jackson v. Gates Oil Co.

297 F. 549, 1924 U.S. App. LEXIS 2852
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 31, 1924
DocketNo. 6358
StatusPublished
Cited by7 cases

This text of 297 F. 549 (Jackson v. Gates Oil Co.) 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
Jackson v. Gates Oil Co., 297 F. 549, 1924 U.S. App. LEXIS 2852 (8th Cir. 1924).

Opinion

LEWIS, Circuit Judge.

[1] Appellant brought this suit in a State court to cancel an oil and gas lease on 70 acres of his land, for an accounting for the value of oil taken therefrom (alleged to be $1,200,-000) by appellee as assignee of the lessee, and for a receiver to be put in possession with authority to continue production. On trial in the Federal court his suit was dismissed on tire merits. He objected to its removal to that court and the refusal of that court to remand it after removal, both parties being citizens of Oklahoma; and the first question presented here for consideration is that of jurisdiction. The ground for removal to the Federal court was that the complaint on its face, without more, shows that the matter in controversy to be [550]*550litigated arises under the laws of the United States, and that a construction and application of those laws are necessary to the final and just determination of the issue which the complaint tenders. This claim "on the part of appellee was and is denied by appellant. The answer to these contentions is to be found, of course, in a correct estimate of the .complaint. It alleges that appellant is a full-blood member of the Choctaw Tribe of Indians, that he became of lawful age January 20, 1921, that while he was a minor and on August 11, 1913, his guardian executed to one Dings an oil and gas lease on the 70 acres, that the Probate court by an order entered on the same day approved the lease to Dings, that thereafter the lease was presented to the Secretary of the Interior and he approved it by endorsing his approval thereon. The lease is attached to the complaint and by reference made a part of it. It recites that it is made under and in pursuance of the provisions of the Act of Congress approved May 27, 1908 (35 Stat. 312). It is the familiar form of lease used by the Department of the Interior in such cases. It grants, leases and lets to the lessee an exclusive right to prospect for and remove oil and gas from the premises and to occupy for that purpose so much of the surface as may be necessary. It is for a term of ten years from the date of its approval by the Secretary of the Interior, and as much longer thereafter as oil or gas is found in paying quantities. It requires the lessee to pay the royalties, 12y2 per cent, of the gross proceeds of all crude oil extracted from the land and a named sum annually on each gas-producing well when used, to the United States Indian Superintendent at Muskogee, Oklahoma. It contains in detail provisions for superintendence by the Secretary, or by some officer to be named by him, of operations under the lease and for forfeiture on conditions ■ named. It bears the recommendation of the Indian Superintendent at Muskogee, the Commissioner of Indian Affairs at Washington, and the approval of the Secretary of the Interior of date November 7, 1913. The complaint further alleges that Dings assigned the lease to appellee and that the Secretary gave his written approval of the assignment, but it is alleged that the lease to Dings was void, because the Probate court was without jurisdiction to make the order approving the lease “without first authorizing the guardian to execute a lease and by advertising and giving notice that a lease would be sold on said lands, and without having said lease sold at public outcry and bids, and the lease so executed not having been advertised for sale, and not having been sold at public outcry and public bids, the order so made on the 11th day of August, 1913, is void.” It is then alleged that the Secretary’s approval of the lease and its assignment were both without effect and gave no validity to the lease.

The Act of May 27, 1908, is entitled:

“An Act for the removal of restrictions from part of the lands of allottees of the Five Civilized Tribes, and for other purposes.”

Its first section, after removing all restrictions on homesteads and allotted lands of those enrolled as intermarried whites, as freedmen, and as mixed-blood Indians having less than half Indian blood including minors, and also all restrictions on allotted lands (but not [551]*551homesteads) of those enrolled as mixed-blood Indians having half or more than half and less than three-quarters Indian blood, reads:

“All homesteads of said allottees enrolled as mixed-blood Indians having half or more than half Indian blood, including minors of such degrees of blood, and all allotted lands of enrolled full-bloods, and enrolled mixed-bloods of three-quarters or more Indian blood, including minors of such degrees of blood, shall not be subject to alienation, contract to sell, power of attorney, or any other incumbrance prior to April twenty-sixth,, nineteen hundred and thirty-one, except that the Secretary of the Interior may remove such restrictions, wholly or in part, under such rules and. regulations concerning terms of sale and disposal of the proceeds for the benefit of the respective Indians as he may prescribe.”

Section 2:

“That all lands other than homesteads allotted to members of the Five Civilized Tribes from which restrictions have not been removed may he leased by the allottee if an adult, or by guardian or curator under order of ' the proper probate court if a minor or incompetent, for a period not to exceed five years, without the privilege of renewal: Provided, that leases of restricted lands for oil, gas or other mining purposes, leases of restricted homesteads for more than one year, and leases of restricted lands for periods of more tham five years, may he made, with the approval of the Secretary of the Interior, under rules and regulations provided by the Secretary of the Interior, and not otherwise; And provided further, that the jurisdiction of the'probate courts of the State of Oklahoma over lands of minors and incompetents shall he subject to the foregoing provisions.”

Section 6, in part:

“That the persons and property of minor allottees of the Five Civilized Tribes shall, except as otherwise specifically provided by law, be subject to the jurisdiction of the probate courts of the State of Oklahoma.”

The proposition that the case stated in the complaint could not be prosecuted to judgment nor defended without construing and giving effect to the Act of May 27, 1908, seems too plain for argument. The rights which the complaint asserts the appellee claims and is exercising could be acquired only under Federal law, and the averments raise the inquiry whether that law was complied with in acquiring those rights. In Osborne v. Bank, 9 Wheat. 738, 824 (6 L. Ed. 204) it is said:

“The appellants say, that the case arises on the contract; but the validity of the contract depends on a law of the Unite.d States, and the plaintiff is compelled in every case, to show its validity. The case arises emphatically under the law; the Act of Congress is its foundation. The contract could never have been made, but under the authority of that Act. The Act itself is the first ingredient in the case — is its origin — is that from which every other part arises.”

In Cooke v. Avery, 147 U. S. 375, 13 Sup. Ct. 340, 37 L. Ed. 209, it was held that if from the questions involved some right—

“on which the recovery depends will be defeated by one construction of * * * a law of the United States, or sustained by the opposite construction, then the case is one arising under the * * * laws of the United States.”

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Bluebook (online)
297 F. 549, 1924 U.S. App. LEXIS 2852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-gates-oil-co-ca8-1924.