Petro-Hunt, L.L.C. v. United States

862 F.3d 1370, 2017 WL 3013206, 2017 U.S. App. LEXIS 12703
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 17, 2017
Docket2016-1981, 2016-1983
StatusPublished
Cited by62 cases

This text of 862 F.3d 1370 (Petro-Hunt, L.L.C. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petro-Hunt, L.L.C. v. United States, 862 F.3d 1370, 2017 WL 3013206, 2017 U.S. App. LEXIS 12703 (Fed. Cir. 2017).

Opinion

Clevenger, Circuit Judge.

Petro-Hunt, L.L.C. appeals the decision of the United States Court of Federal Claims to dismiss its claims for permanent takings, temporary takings, judicial takings, and breach of contract by the United States (“United States” or “the Government”). The Court of Federal Claims dismissed Petro-Hunt’s permanent takings claims, contract claims, and some temporary takings claims under the statute of limitations. Petro-Hunt, L.L.C. v. United *1373 States, 90 Fed.Cl. 51 (2009) (“Petro-Hunt I”). The Court of Federal Claims subsequently held that the remaining temporary takings claims were barred by 28 U.S.C. § 1500. Petro-Hunt, L.L.C. v. United States, 105 Fed.Cl. 37 (2012) (“Petro-Hunt II”). And, because Petro-Hunt’s judicial takings claim would require the Court of Federal Claims to question the merits of the Fifth Circuit’s decision regarding the same servitudes asserted in the instant case, the Court of Federal Claims held it also lacked jurisdiction over those claims. Petro-Hunt, L.L.C. v. United States, 126 Fed.Cl. 367 (2016) (“Petro-Hunt III”). Because we agree with the Court of Federal Claims’ reasons for its dismissal of Petro-Hunt’s claims, we affirm.

I

The facts of this case are generally undisputed and are set forth in the Court of Federal Claims’ multiple decisions. See Petro-Hunt I, 90 Fed.Cl. at 53-57. We recite here the facts pertinent to the issues before us.

A

Petro-Hunt’s claims relate to ninety-six mineral servitudes underlying roughly 180,000 acres of the Kisatchie National Forest in Louisiana (“Kisatchie”). Under Louisiana law, the right to enter land and extract minerals can be held separately from ownership of the land in the form of a mineral servitude. Petro-Hunt I, 90 Fed. Cl. at 53. Such servitudes generally prescribe (i.e., revert back to the landowner) if not used for a period of ten years. Id. This ten-year rule of prescription cannot be modified by contract. Id.

Between 1932 and 1934, the original owners of the relevant servitudes, Bodcaw Lumber Company and Grant Timber Company, transferred six mineral conveyances, resulting in ninety-six servitudes, to Good Pine Oil. Each of these six deeds conveying mineral rights to Good Pine Oil contained a clause contemplating that a ten-year prescriptive period would apply. From 1934 to 1937, Bodcaw and Grant conveyed, through eleven written instruments, 180,000 acres of land, burdened by ninety-six mineral servitudes in favor of Good Pine Oil, to the. United States. All but one of the eleven transfer instruments explicitly stated that the conveyances were subject to one or more of the mineral deeds granting rights to Good Pine Oil,

In 1940, the Louisiana legislature enacted Act 315 of 1940, 1940 La. Acts 1250 (“Act 315”). 1 Act 315 created an exception to Louisiana’s law of prescription and retroactively confirmed that all outstanding, but not yet prescribed mineral rights reserved in land sold to the United States, were now imprescriptible, so long as the United States remained the landowner.

In 1941, Good Pine Oil transferred its mineral rights to William C. Brown. One year later, Brown transferred his mineral rights to Nebo Oil Company. Based on Act 315, Nebo Oil believed it had acquired imprescriptible mineral servitudes.

In 1948, the United States filed a declaratory judgment against Nebo Oil, claiming that Nebo’s mineral rights to an 800 acre tract of land had prescribed to the Government due to non-use. The district court *1374 ruled that Act 315 was retroactive and thus Nebo Oil owned the mineral property in perpetuity. United States v. Nebo Oil Co., 90 F.Supp. 73, 89 (W.D. La. 1950). On appeal, the Fifth Circuit agreed, holding that Nebo Oil’s mineral rights to that specific tract were imprescriptible. United States v. Nebo Oil Co., 190 F.2d 1003, 1010 (5th Cir. 1951) (“Nebo Oil”).

In 1973, the Supreme Court decided United States v. Little Lake Misere Land Co., 412 U.S. 580, 93 S.Ct. 2389, 37 L.Ed.2d 187 (1973). The Court held that Act 315 could not be applied retroactively to outstanding mineral interests in land acquired by the United States under the Migratory Bird Conservation Act, 45 Stat. 1222, 16 U.S.C. §§ 715-715s. Id. at 595, 93 S.Ct. 2389. It reasoned that retroactive application of Act 315 would deprive the United States of “bargained-for contractual interests” by abrogating the terms of the acquisition instruments relating to prescription and thus was “plainly hostile to the interests of the United States.” Id. at 597, 93 S.Ct. 2389. Notably, the Court did not overrule Nebo Oil and distinguished its facts. Id. at 586, 93 S.Ct. 2389.

In the 1980s, relying on the Court’s decision in Little Lake Misere, the Government, through the Bureau of Land Management (“BLM”), began to issue mineral leases on Petro-Hunt’s mineral property. While the parties disagree as to the exact timing of these leases (and even as to the number thereof), it appears that the majority of them were granted beginning in 1991, with more than forty-five leases made from that year up to the beginning of this lawsuit. Each lease was for a period of ten years.

In the 1990s, owners of the mineral ser-vitudes disputed the Government’s issu-anee of leases on their mineral property. In response, in 1991, the Forest Service informed BLM, in a letter on which Hunt Petroleum (a co-owner of the relevant ser-vitudes) was copied, that all but two of the mineral servitudes had prescribed and were now owned by the United States. The letter cited a 1986 U.S. Department of Agriculture legal opinion indicating that the United States had ownership of the servitudes on all parcels acquired before the enactment of Act 315 and on which no wells had been drilled. In 1993, BLM responded to another protest by Hunt Petroleum in a letter to Hunt and Placid Oil, its co-owner at the relevant time, by citing a title report indicating that the servitudes had prescribed to the United States. In 1998, Petro-Hunt acquired Placid Oil’s 64.3% undivided interest in the servitudes and thus owns the mineral servitudes at issue in this case as a successor in interest. 2

In 1996, Central Pines Land Company and other holders of mineral servitudes brought an action against the government and lessees under mineral leases granted by the government, seeking declaratory relief and to quiet title in the servitudes. Central Pines Land Co. v. United States, No. 2:96-cv-02000 (W.D. La. filed Aug. 22, 1996). Like those at issue in this case and in Nebo Oil, the mineral servitudes in

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Bluebook (online)
862 F.3d 1370, 2017 WL 3013206, 2017 U.S. App. LEXIS 12703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petro-hunt-llc-v-united-states-cafc-2017.