McKenzie County, ND v. United States

131 F.4th 877
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 20, 2025
Docket24-1177
StatusPublished

This text of 131 F.4th 877 (McKenzie County, ND v. United States) 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
McKenzie County, ND v. United States, 131 F.4th 877 (8th Cir. 2025).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 24-1177 ___________________________

McKenzie County, ND

Plaintiff - Appellee

v.

United States of America; Department of Interior

Defendants - Appellants ____________

Appeal from United States District Court for the District of North Dakota - Western ____________

Submitted: October 23, 2024 Filed: March 20, 2025 ____________

Before SHEPHERD, KELLY, and STRAS, Circuit Judges. ____________

SHEPHERD, Circuit Judge.

This case concerns mineral royalties under certain lands in McKenzie County, North Dakota. McKenzie County sued the United States, claiming those royalty interests as its own and that previous litigation settled the matter. The United States asserts that the prior litigation involved different lands and that the County’s 1 claim is untimely. The district court granted judgment for the County, and the United States appeals. Having jurisdiction under 28 U.S.C. § 1291, we reverse.

I.

Before it achieved statehood in 1889, North Dakota was part of the Dakota Territory, an organized incorporated territory of the United States. Much of the land in present-day North Dakota was then part of the public domain: “land owned by the [Federal] Government . . . that was ‘available for sale, entry, and settlement under the homestead laws, or other disposition under the general body of land laws.’” See Hagen v. Utah, 510 U.S. 399, 412 (1994) (citation omitted). These lands were “in the first instance the exclusive property of the United States, to be disposed of to such persons, at such times, . . . in such modes, and by such titles, as the Government may deem most advantageous . . . .” Irvine v. Marshall, 61 U.S. (20 How.) 558, 561-62 (1857).

Beginning in the mid-nineteenth century, Congress exercised that authority “to encourage the settlement of the West.” See Amoco Prod. Co. v. S. Ute Indian Tribe, 526 U.S. 865, 868 (1999). It did so by providing land “in fee simple absolute” to settlers in the Dakota Territory and the newly admitted North Dakota under various land-patent laws. See id. Some of these acts authorized patents with title to both the surface and mineral estates. Id.; see, e.g., 1862 Homestead Act, ch. 75, 12 Stat. 392 (1862). Others authorized the conveyance of title in only the surface estate, reserving the mineral interest as part of the public domain. Amoco Prod. Co., 526 U.S. at 870; Watt v. W. Nuclear, Inc., 462 U.S. 36, 38-39 (1983); see, e.g., Stock-Raising Homestead Act of 1916, ch.9, 39 Stat. 862. In both cases, the lands were “valuable for grazing [livestock] and raising forage crops.” See Watt, 462 U.S. at 38 (citation omitted).

1 For clarity, we refer to the plaintiff-appellee municipal entity as “the County,” while we refer to the geographic location as “McKenzie County.” -2- In the 1920’s and 1930’s, however, the economic bounty of these lands began to falter. A series of droughts hit North Dakota, causing widespread dust storms and crop failure. Exacerbated by the onset of the Great Depression, property values plummeted as the Dust Bowl ravaged the Great Plains. Many landowners were forced into bankruptcy, unable to afford the property taxes on their once profitable land. Like many other counties, the County foreclosed on a significant acreage of land within McKenzie County and acquired title to the property through tax forfeiture proceedings. Whatever title the previous landowner held passed to the County: only the surface estate if the United States initially reserved the minerals, or both the surface and mineral estates if the original patent included title to both.

But the dire times continued. By 1935, vast swaths of land were in such poor condition “that the operators ha[d] practically no chance of securing a decent living,” and much of the land remained “submarginal” to the point of nearing “retire[ment] from cultivation.” See M.L. Wilson, The Report on Land of the National Resources Board, 17 J. Farm Econ. 39, 44 (1935). Congress responded to the crisis with a series of emergency relief bills authorizing the President to acquire and restore these “submarginal” lands. See National Industrial Recovery Act, Pub. L. No. 73-67, §§ 201-03, 48 Stat. 200 (1933); Federal Emergency Relief Appropriation Acts, Pub. L. No. 74-11, 49 Stat. 115 (1935), and Pub. L. 74-739, § 689, 49 Stat. 1608 (1936). Eventually, Congress enacted the Bankhead-Jones Farm Tenant Act, which, like the earlier acts, codified the authority to “acquire by purchase, gift, or devise, or by transfer from . . . any State, Territory, or political subdivision, submarginal land and land not primarily suited for cultivation.” See Pub. L. 75-210, § 32(a), 50 Stat. 522, 525-26 (1937). The Act also permitted the Secretary of Agriculture2 to acquire these lands “subject to any reservations, outstanding estates,

2 The lands in McKenzie County were initially administered by the Secretary of Agriculture, and that authority was assigned to the United States Forest Service. See 19 Fed. Reg. 74, 75 (Jan. 6, 1954). These lands were later designated as part of the Little Missouri National Grassland, with surface administration again vested in the Forest Service. 36 C.F.R. § 213.1(b), (d), and (e). While the Department of Agriculture continues to manage the surface, see id. § 213.1, the Secretary of the -3- interests, easements, or other encumbrances which . . . w[ould] not interfere” with the Act’s purposes. Id. § 32(a), 50 Stat. at 526. Moreover, like the earlier relief acts, the Act authorized the sale, lease, or other disposal of land acquired under the Act, but not property acquired through other means. Id. § 32(c), 50 Stat. at 526.

Using this collection of statutes and relevant executive orders, the United States sought to acquire lands from the County. To avoid the possibility of redemption by the previous landowners and to obtain clear title, the United States used the power of eminent domain. So, beginning in 1937, the United States invoked the Condemnation Act, Pub. L. 50-728, 25 Stat. 357 (codified as amended at 40 U.S.C. § 3113), and the Declaration of Taking Act, Pub. L. 71-736, 46 Stat. 1421 (codified as amended at 40 U.S.C. §§ 3114-16, 3118), and filed six declarations of taking in federal district court in North Dakota. The declarations listed the specific tracts the United States wanted—some where the County held both the surface and mineral estates (acquired lands or, when referring to the mineral estate only, acquired minerals) and others where the County held only the surface estate, as the United States had retained the mineral estate in the original patent (public domain lands or public domain minerals). See Wallis v. Pan Am. Petroleum Corp., 384 U.S. 63, 65 & n.2 (1966) (“[I]n general[,] acquired lands are those granted or sold to the United States by a State or citizen and public domain lands were usually never in state or private ownership.”). The lands were listed by tract number and legal description.3

Interior is responsible for managing the subsurface estate. See 30 U.S.C.

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Bluebook (online)
131 F.4th 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenzie-county-nd-v-united-states-ca8-2025.