Kerr-McGee Corp. v. United States

36 Fed. Cl. 776, 1996 WL 668600
CourtUnited States Court of Federal Claims
DecidedNovember 18, 1996
DocketCong.Ref. No. 92-718 X
StatusPublished
Cited by3 cases

This text of 36 Fed. Cl. 776 (Kerr-McGee Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerr-McGee Corp. v. United States, 36 Fed. Cl. 776, 1996 WL 668600 (uscfc 1996).

Opinion

HEARING OFFICER’S REPORT

WIESE, Hearing Officer:

Introduction

In an earlier phase of this congressional reference litigation, this court, sitting in the capacity of a hearing officer under 28 U.S.C. § 2509, determined that the Secretary of the Interior had committed legal error in denying plaintiffs’ applications for phosphate mining leases on the basis of an environmental study whose adverse findings plaintiffs had not been given the opportunity to challenge in an evidentiary hearing. Kerr-McGee Corp. v. United States, 32 Fed.Cl. 43, 51 (1994). The court went on to decide that the error was not harmless — the excluded evidence had the potential to change the result — and plaintiffs were therefore entitled to a trial before the court to offer evidence proving that they could, in fact, have met prescribed post-mining reclamation standards and, by so doing, have established their statutory right to the mining leases at issue. Id. at 53.

The trial contemplated by the court’s ruling was held from November 13, 1995 to December 14, 1995. Following the conclusion of the trial but before the court had issued a decision in the matter, the parties filed a document, titled “Joint Proposed Findings of Fact, Conclusions of Law and Recommendation Regarding Entry of Report Concerning Claims of Plaintiffs” which, in effect, proposes a stipulated settlement of the controversy and asks the court to adopt the same as the basis for its decision in the case. We proceed by reviewing the parties’ stipulation and discussing the reasons for adopting their compromise. To put the matter in perspective, we briefly recount below the events that have led to the present circumstances. A more complete recitation of the facts, we should add, appears in the court’s earlier opinion in this case as well as in the accompanying appendix which sets out the parties’ proposed findings of fact as adopted by the court.

The Factual Background—

A Brief Recapitulation

On September 10,1992, there was referred to the chief judge of this court a bill, H.R. 477, for the conduct of proceedings in accordance with 28 U.S.C. § 2509 — the Congressional Reference Statute. The bill, titled “A Bill for the relief of Global Exploration and Development Corporation, Kerr-McGee Cor[778]*778poration and Kerr-McGee Chemical Corporation,” reads in part as follows:

The Secretary of the Treasury shall pay, out of any money not otherwise appropriated, to [plaintiffs Kerr-McGee and Global], a sum of money in compensation for any damages incurred by [plaintiffs] on account of the failure of the Secretary of the Interior to grant, and permit [plaintiffs] to conduct mining operations pursuant to, phosphate leases in the Osceola National Forest, and/or ... the enactment of the Florida Wilderness Act of 1983 ...

H.R. 477,102d Cong., 1st Sess. (1991).

In implementation of this reference, the chief judge appointed the undersigned judge to serve as hearing officer and Judges Robinson, Margolis and Futey to serve as members of the Review Panel. As directed by the terms of 28 U.S.C. § 2509, the hearing officer is charged with responsibility for determining the facts and for rendering conclusions “sufficient to inform Congress whether the [claimant’s] demand is a legal or equitable claim or a gratuity, and the amount, if any, legally or equitably due from the United States to the claimant.”

The events that led to the enactment of H.R. 477 began more than thirty years ago, in 1964 and 1965, when plaintiffs first filed applications for phosphate prospecting permits on lands in the Osceola National Forest. These permits were granted and, following plaintiffs’ discovery of phosphate deposits on the lands, the question arose whether plaintiffs were entitled to leases permitting them to mine the deposits. Put in terms of the statutory criterion, the question was whether plaintiffs could satisfy the “valuable deposits” test that is prescribed by the Mineral Leasing Act of 1920, as amended, 30 U.S.C. §§ 181-287 (1988 Supp. IV 1992) as a condition for the issuance of a phosphate mining lease.

In 1983, following numerous studies conducted by the Department of Interior, the Secretary of the Interior concluded that sufficient technological capabilities did not exist to ensure a reasonable likelihood of the successful reclamation of mined areas consistent with stipulations (ie., standards) that had been established for that purpose by the United States Forest Service — the agency charged with the primary responsibility for protecting the lands in question. Specifically, plaintiffs were advised that:

The Department of the Interior has performed studies which indicate current technology is not capable of meeting the prescribed reclamation standards. The fact that no reclamation technology exists which can reclaim these lands precludes the possibility that this phosphate deposit could meet the valuable deposit test.

The Secretary’s conclusions were based on an Environmental Assessment (EA) prepared by the United States Department of Interior. In connection with the preparation of this study, representations had been made by agency personnel that plaintiffs would be given the opportunity to comment on the findings and conclusions in the EA before it was issued in final form. That opportunity, however, was not afforded plaintiffs. The conclusions reached in the EA were accepted by the Secretary without further examination.

Over the next several years plaintiffs sought unsuccessfully to obtain relief from the Secretary’s decision through the courts. They were not successful. What thwarted their efforts in this regard was the enactment in 1983 of the Florida Wilderness Act, Pub.L. No. 98-430, 98 Stat. 1665 (1984). Because that Act effectively foreclosed the Secretary from issuing phosphate mining leases in the Osceola National Forest, it thereby also mooted any rights plaintiffs might have had either to compel the Secretary to reopen his decision denying their mining leases or to demand just compensation on account of the alleged erroneous denial of those leases. Plaintiffs were left without an effective legal remedy. These then, were the circumstances which brought forth H.R. 477.

After plaintiffs filed their congressional reference actions in this court, defendant United States moved for summary judgment. The United States contended that plaintiffs could not, as a matter of law, establish a legal or equitable claim. Plaintiffs responded to the Government’s motion and, on September 12,1994, this court issued a decision granting [779]*779in part, and denying in part, that motion. Kerr-McGee Corp. v. United States, 32 Fed. Cl. 43 (1994). The court ruled that plaintiffs did not have a legal claim to recovery, 32 Fed.Cl. at 50. The court also held, however, that in failing to solicit comments on the draft EA, “the Government committed a wrongful act that is amenable to equitable relief.” Id. at 51.

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36 Fed. Cl. 776, 1996 WL 668600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-mcgee-corp-v-united-states-uscfc-1996.