McKown v. United States

908 F. Supp. 2d 1122, 2012 WL 5423863, 2012 U.S. Dist. LEXIS 159146
CourtDistrict Court, E.D. California
DecidedNovember 5, 2012
DocketCase No. 1:09-cv-00810-SKO
StatusPublished
Cited by2 cases

This text of 908 F. Supp. 2d 1122 (McKown v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKown v. United States, 908 F. Supp. 2d 1122, 2012 WL 5423863, 2012 U.S. Dist. LEXIS 159146 (E.D. Cal. 2012).

Opinion

ORDER DENYING PLAINTIFF’S APPEAL OF CLAIMS PURSUANT TO THE ADMINISTRATIVE PROCEDURE ACT

SHEILA K. OBERTO, United States Magistrate Judge.

I. INTRODUCTION

On July 6, 2012, Plaintiff John H. McKown IV (“Plaintiff’) filed his opening brief, pursuant to the Administrative Pro[1124]*1124cedure Act (“APA”), 5 U.S.C. §§ 701-06, in support of his appeal of the decision issued by the United States Department of the Interior, Interior Board of Land Appeals (“IBLA”) in United States v. McKown, 181 IBLA 183 (June 30, 2011). (Doc. 59.) On August 13, 2012, Defendant United States of America and the other federal defendants (collectively, “Defendants” or the “Government”) filed their response brief in opposition to Plaintiffs appeal. (Doc. 62.) Plaintiff filed his reply brief on August 23, 2012, and Defendants’ reply brief was filed on September 7, 2012.1

Plaintiff appeals the finding by the IBLA that three unpatented mining claims to which he asserts an interest are invalid for lack of discovery of a valuable mining deposit. Defendants assert that the IBLA correctly determined that the evidence submitted by the Government during the administrative hearing was sufficient to establish a prima facie case of invalidity of the mining claims and that Plaintiff failed to meet his burden to rebut the prima facie showing and prove by a preponderance of the evidence that the mining claims were valid.

The Court has reviewed the parties’ briefs and supporting documents and determined that this matter is suitable for decision without oral argument pursuant to the Local Rules of the United States District Court, Eastern District of California, Rule 230(g). For the reasons set forth below, Plaintiffs appeal of his APA claims is DENIED.

II. BACKGROUND

A. Relevant Mining Law

Under the General Mining Law of 1872, 30 U.S.C. §§ 21-54, (the “Mining Law”) miners have limited rights for prospecting and mining valuable mineral deposits on federal land. The Mining Law allows private parties to acquire nonexclusive possessory interest on federal land and to assert a claim for mining purposes and ownership. See United States v. Shumway, 199 F.3d 1093, 1098-99 (9th Cir.1999). Further, the Mining Law permits the location of valuable mineral deposits on United States’ public land. See 30 U.S.C. § 26. Location refers to a miner’s identification of a particular mineral deposit and to his claim of exclusive mineral rights over that deposit. The location system provides that the first mineral claimant who identifies a valuable deposit of a beatable mineral and who fulfills the Mining Law’s administrative requirements is entitled to produce all the minerals from the deposit without being required to purchase fee simple title from the United States. See 1 Am. L. of Mining § 30.01 (2d ed.). The Mining Law permits location of valuable mineral deposits on United States public lands. See 20 U.S.C. § 26.

Once a valuable mineral deposit has been located, the unpatented mining claim “is a property right in the full sense, unaffected by the fact that the paramount title to the land is in the United States,” Union Oil Co. of Cal. v. Smith, 249 U.S. 337, 349, 39 S.Ct. 308, 63 L.Ed. 635 (1919), and constitutes a property interest “which is within the protection of the Fifth Amendment’s prohibition against the taking of private property for public use without just compensation,” Skaw v. United States, 740 F.2d 932, 936 (Fed.Cir.1984). The Ninth Circuit, however, has determined that, while a mining claimant may possess a property interest in an unpatented mining claim, “the property right in an [1125]*1125unvalidated claim ... may permissibly be restricted pending determination of validity, in order to guard against damage to the claim and surrounding land.” Clouser v. Espy, 42 F.3d 1522, 1535 n. 15 (9th Cir. 1994).

A mining claim’s validity is dependent upon the discovery of a valuable mineral deposit. See 30 U.S.C. § 22. “[T]o 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) (citation and quotation marks omitted). In applying this “prudent man test,” profitability of the claim must be considered. See Hjelvik v. Babbitt, 198 F.3d 1072, 1074 (9th Cir.1999) (citing Coleman, 390 U.S. at 602, 88 S.Ct. 1327). “The supplemental marketability test requires a showing that the mineral deposit can be extracted, removed, and marketed at a profit.” Hjelvik, 198 F.3d at 1074; see also Baker v. United States, 613 F.2d 224, 226 (9th Cir.1980).

Where a mining claim is located on land withdrawn from mineral entry under the Wilderness Act, 16 U.S.C. §§ 1131-36, the claimant must prove discovery of a valuable mineral deposit at the time of a withdrawal. See Wilderness Soc’y v. Dombeck, 168 F.3d 367, 375 (9th Cir.1999); United States v. Mauros, 122 IBLA 297, 301 (1992) (“When land is withdrawn from the operation of the mining laws the existence of a discovery on the date of withdrawal is critical to a validity determination.”) (citing Cameron v. United States, 252 U.S. 450, 456, 40 S.Ct. 410, 64 L.Ed. 659 (1920)). The claimant must also demonstrate that the mining claim is valid at the time of the contest hearing. See Hjelvik, 198 F.3d at 1074; Lara v. Sec’y of Interior, 820 F.2d 1535, 1542 (9th Cir.1987) (“Because the right to prospect for minerals ceases on the date of withdrawal, a discovery must have existed at the date of withdrawal as well as at the date of the hearing.”) (internal citation omitted). As such, a claim must be shown to be valid at both the time of the withdrawal and at the time of the contest hearing.

When the Government contests a mining claim, the Government bears the burden of establishing a prima face case that the claim is invalid.

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908 F. Supp. 2d 1122, 2012 WL 5423863, 2012 U.S. Dist. LEXIS 159146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckown-v-united-states-caed-2012.