John Hjelvik, True Craig, Jr. v. Bruce Babbitt, Secretary of the Interior, United States Department of the Interior

198 F.3d 1072, 99 Daily Journal DAR 12361, 99 Cal. Daily Op. Serv. 9595, 1999 U.S. App. LEXIS 32017, 1999 WL 1101281
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 7, 1999
Docket98-35340
StatusPublished
Cited by24 cases

This text of 198 F.3d 1072 (John Hjelvik, True Craig, Jr. v. Bruce Babbitt, Secretary of the Interior, United States Department of the Interior) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Hjelvik, True Craig, Jr. v. Bruce Babbitt, Secretary of the Interior, United States Department of the Interior, 198 F.3d 1072, 99 Daily Journal DAR 12361, 99 Cal. Daily Op. Serv. 9595, 1999 U.S. App. LEXIS 32017, 1999 WL 1101281 (9th Cir. 1999).

Opinions

[1074]*1074ORDER

BRUNETTI, Circuit Judge:

The memorandum disposition filed October 27, 1999, is hereby WITHDRAWN. An opinion is being filed in place of the memorandum disposition.

OPINION

This appeal involves the review of an administrative proceeding which culminated in a decision of the Interior Board of Land Appeals (“IBLA”) finding that fourteen1 unpatented mining claims held by appellees, John Hjelvik and True Craig, Jr., were null and void for lack of discovery of valuable mineral deposit. The United States District Court for the district of Montana reversed the IBLA’s decision. On appeal, the government argues that the IBLA’s decision must be affirmed because it is in accordance with federal mining law and supported by substantial evidence. We agree and reverse the district court’s summary judgment order.

“In reviewing decisions of the IBLA, this court exercises a limited standard of review.” Baker v. United States, 613 F.2d 224, 226 (9th Cir.1980). We review the case from the same position as the district court and will reverse the IBLA’s decision only if that decision is arbitrary, capricious, not supported by substantial evidence, or contrary to law. See Gilmore v. Lujan, 947 F.2d 1409, 1411 (9th Cir.1991). To determine whether the IBLA’s decision is supported by substantial evidence, we carefully search the entire record to determine whether it contains “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion,” Drouin v. Sullivan, 966 F.2d 1255, 1257 (9th Cir.1992), and whether it demonstrates that the “decision was based on a consideration of the relevant factors,” Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971).

I.

The validity of a mining claim depends on the -discovery of a valuable mineral deposit. See 30 U.S.C. § 22. “[I]n order to qualify as ‘valuable mineral deposits” the discovered deposits must be of such a character that ‘a person of ordinary prudence would be justified in the further expenditure of his labor and means, with a reasonable prospect of success, in developing a valuable mine....’” United States v. Coleman, 390 U.S. 599, 602, 88 S.Ct. 1327, 20 L.Ed.2d 170 (1968) (quoting Castle v. Womble, 19 L.D. 455, 457 (1984)). In Coleman, the Supreme Court refined the prudent person test and held that “profitability is an important consideration in applying the prudent-man test.” Id. The supplemental marketability test requires a showing that the mineral deposit can be extracted, removed, and marketed at a profit. See Baker, 613 F.2d at 225-26. Where a claim is located on land withdrawn from mineral entry pursuant to the Wilderness Act, a claim must be supported by a discovery of a valuable mineral deposit at the time of withdrawal in order to qualify as an existing right under Section 4 of the Wilderness Act. See Wilderness Society v. Dombeck, 168 F.3d 367, 375 (9th Cir.1999). Additionally, a claim must be shown to be valid as of the time of the contest hearing. See United States v. Beckley, 66 IBLA 357, 361 (1982).2

When the government contests the validity of a mining claim for lack of a discovery, it bears the initial burden of going forward with sufficient evidence to [1075]*1075establish a prima facie case that no discovery of a valuable mineral deposit has been made. United States v. Williamson and Lapine Pumice Co., 45 IBLA 264, 278 (1980). The IBLA has explained that:

prima facie case means that the case is adequate to support the Government’s contest of the claim and that no further proof is needed to nullify the claim. The Government does not have to negate the evidence presented by the mining claimant. If the Government shows that one essential criterion of the test was not met, it has established a prima facie case.

Id. (internal citations omitted).

Once the government establishes a prima facie case, the burden of proof devolves to the claimant who must refute by a preponderance of the evidence the government’s case. Lara v. Secretary of Interior, 820 F.2d 1535, 1542 (9th Cir.1987). The claimant does not have to establish all the necessary elements required for a valid discovery, but rather only needs “to preponderate on the issues raised by the evidence.” United States v. Crawford, 109 IBLA 264, 268 (1989).

The principal issue here is whether the government went forward with sufficient evidence to establish that the appropriate measure of resources for the purpose of determining the validity of contested claims was 16,840 short tons. In their brief to this court and at oral argument, the claimants have not contested the IBLA’s determination that they could not mine 22,340 short tons of chromite, the amount of resources found by the IBLA to be in place on the contested claims,3 at a profit. Nor have the claimants posited that the IBLA erred in finding that they did not preponderate on the issue of the proper measure of resources found on the claims. Instead, they argue that the government’s evidence did not raise the issue of the proper measure of resources for determining the validity of the claims and that they therefore did not have the burden of establishing the appropriate measure of resources at the contest hearing. Thus, if substantial evidence supports the IBLA’s determination that the government made a prima facie case that the proper measure of the chromite on the contested claims was 16,840 short tons, we must uphold the IBLA’s decision.

Where the physical presence of a mineral deposit on a claim has been established, proof that minerals exist on the claims sufficient to justify discovery may be evidenced by geological inferences. See, e.g., Barton v. Morton, 498 F.2d 288, 292 n. 6 (9th Cir.1974); United States v. New York Mines, 105 IBLA 171, 191 (1988). Geological inferences can be used to infer sufficient quantity of similar quality mineralization beyond the actual exposed areas where the values of the exposed deposits on claims owned or controlled by claimants are high and relatively consistent. United States v. Freezor, 74 IBLA 72 (1983). Moreover, where there is evidence of exposed mineral deposit on each claim, a series of contiguous claims may be considered as a group when determining whether a prudent person would be justified in expending resources on developing a mine on all of the contiguous claims. New York Mines, 105 IBLA at 191.

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198 F.3d 1072, 99 Daily Journal DAR 12361, 99 Cal. Daily Op. Serv. 9595, 1999 U.S. App. LEXIS 32017, 1999 WL 1101281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-hjelvik-true-craig-jr-v-bruce-babbitt-secretary-of-the-interior-ca9-1999.