Neely v. United States

167 Ct. Cl. 407, 1964 U.S. Ct. Cl. LEXIS 206, 1964 WL 8619
CourtUnited States Court of Claims
DecidedJuly 17, 1964
DocketNo. 374-56
StatusPublished
Cited by3 cases

This text of 167 Ct. Cl. 407 (Neely v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neely v. United States, 167 Ct. Cl. 407, 1964 U.S. Ct. Cl. LEXIS 206, 1964 WL 8619 (cc 1964).

Opinion

Per Curiam:

Following our disposition of the issue of liability in this case in plaintiff’s favor (152 Ct. Cl. 137, 285 F. 2d 438 (1961)), the case was referred pursuant to Pule 38 (c) (now Pule 47(c)) to Mastín G. White, a trial commissioner of this court, with directions to make findings of fact and conclusions of law respecting the amount of recovery. The commissioner has done so in a report filed February 20, 1963. Briefs were filed by the parties, exceptions to the commissioner’s findings of fact and recommended conclusion of law were filed by both parties, and the case was submitted to the court on oral argument of counsel. Since the court is in agreement with the additional findings of fact, supplemental opinion and recommendation of the trial commissioner, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case.

Plaintiff is entitled to recover, and judgment is entered for bim in the sum of $176,800.

SUPPLEMENTAL OPINION OE COMMISSIONER

The court disposed of the issue of liability in this case by rendering on January 18,1961, a decision (152 Ct. Cl. 137,285 F. 2d 438) which held that the Government, during the period 1950-1951, had breached a contract then in existence [409]*409between the plaintiff and the Government, and that the plaintiff was entitled to a judgment against the Government.

During the 1950-1951 period mentioned in the preceding paragraph, the plaintiff held a lease, numbered BLM-C-018126 (Oklahoma), which had been issued to the plaintiff by the Government (acting through the Department of the Interior) and which authorized the mining of the coal deposits in 2,162.71 acres of public land situated near Bokoshe, Oklahoma. The plaintiff desired to strip-mine the land in question, but he was prohibited from doing so by the Geological Survey of the Department of the Interior. The court, in its opinion of January 18, 1961, said that the prohibition against strip-mining “was unjustified and constituted a breach of the contract of lease” (285 F. 2d at p. 442). The court entered a judgment to the effect that the plaintiff was entitled to recover, and remanded the case to the commissioner for further proceedings under Buie 88(c) to determine the amount of recovery.

The problem of attempting to determine what would have happened if the plaintiff had been permitted to strip-mine the public land covered by lease BLM-C-018126 (Oklahoma) in accordance with his desire was a difficult one. Further trial sessions were held over a 5-day period for the reception of evidence bearing on this problem. The transcript of the additional testimony covered 952 pages, and numerous additional exhibits were received in evidence. Most of the testimony was given by expert witnesses whose qualifications were quite impressive and who had obviously devoted a great deal of time and effort to the task of preparing for their appearances. As frequently happens in such situations, however, the opinions of the experts varied widely with respect to some of the important matters that had to be resolved in reaching a conclusion regarding the amount of the damages sustained by the plaintiff because of the refusal of the Geological Survey to permit him to strip-mine the public land covered by lease BLM-C-018126 (Oklahoma).

On the basis of the whole record, the defendant concedes that the plaintiff, if he had been permitted to strip-mine the 2,162.71 acres of public land under lease BLM-C-018126 [410]*410(Oklahoma), could reasonably have made profits totaling $154,446.97. The plaintiff, on the other hand, contends that his profits from such strip-mining operations would have totaled $1,901,769.56.

The additional findings of fact that are included in this supplemental report represent the results of a careful attempt to evaluate the often conflicting opinions of the expert witnesses. The material in the additional findings will be summarized in the succeeding paragraphs of this opinion.

In the expectation of being permitted to strip-mine the land covered by lease BLM-C-018126 (Oklahoma), the plaintiff arranged in 1950 with Hanford Farrell for the use of some good equipment which was then located about 10 miles from the land involved in this action and could have been transferred to this land without any great difficulty. Included among this equipment were a large Monighan 9-W Special dragline, a D-8 bulldozer, a No. 12 motor patrol, a truck-mounted Hardscog horizontal drill, a truck-mounted McCarthy vertical drill, two 6-inch centrifugal pumps, one 3-inch centrifugal pump, a Linkbelt combination dragline and shovel, a 105-cubic-foot air compressor, two jackhammers, a pickup truck, and a 4-track coal tipple. For furnishing this equipment, Mr. Farrell was to receive 50 percent of the profits (if any) derived from the contemplated strip-mining operations. Under the agreement between the plaintiff and Mr. Farrell, the latter has a 50 percent interest in any amount that may be recovered by the plaintiff in the present action.

With the equipment mentioned in the preceding paragraph, it would have been physically and economically feasible for the plaintiff, if he had been permitted to strip-mine the 2,162.71 acres of public land under lease BLM-C-018126 (Oklahoma), to produce coal beginning at a depth of about 10 feet below the surface of the ground and continuing to a depth of about 65 feet below the surface of the ground. The quality of any coal lying closer than 10 feet to the surface of the ground would not have been sufficiently good to justify its recovery and marketing. The recoveiy of coal lying more than 65 feet below the surface of the ground [411]*411would not have been physically and economically feasible with the available equipment. The evidence in the record indicates that, between the 10-foot and the 65-foot depths previously mentioned, the public land in question contained approximately 555,000 tons of coal.

One of the questions involved in the supplemental proceedings under Rule 38 (c) is whether the plaintiff, if he had been permitted to conduct strip-mining operations under lease BLM-C-018126 (Oklahoma), would have been required to leave a plug in order to make provision for the subsequent establishment of an underground mine to recover the deeper coal deposits in the 2,162.71 acres of public land.

At all times pertinent to this litigation, there was a recognized and accepted mining procedure in the operation of a strip mine for coal whereby a plug or barrier pillar was left unstripped along the outcrop line for the purpose of preserving an entry for subsequent slope mining to reach the deeper coal deposits after the completion of strip-mining operations. The leaving of such plugs was common in the eastern Oklahoma coal areas, up to and including the 1950-1951 period when the plaintiff was endeavoring to obtain permission for the conduct of strip-mining operations under lease BLM-C-018126 (Oklahoma).

During the 1950-1951 period, the Geological Survey was of the opinion that the proper and maximum development of the coal resources in the public land covered by lease BLM-C-018126 (Oklahoma) required the ultimate establishment on such land of an underground mine for the recovery of the deeper coal deposits.

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Bluebook (online)
167 Ct. Cl. 407, 1964 U.S. Ct. Cl. LEXIS 206, 1964 WL 8619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neely-v-united-states-cc-1964.