Ram Petroleums, Inc. v. Andrus

478 F. Supp. 1165, 1979 U.S. Dist. LEXIS 8954
CourtDistrict Court, D. Nevada
DecidedOctober 25, 1979
DocketCiv. No. 79-0005 BRT
StatusPublished
Cited by2 cases

This text of 478 F. Supp. 1165 (Ram Petroleums, Inc. v. Andrus) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ram Petroleums, Inc. v. Andrus, 478 F. Supp. 1165, 1979 U.S. Dist. LEXIS 8954 (D. Nev. 1979).

Opinion

ORDER

BRUCE R. THOMPSON, District Judge.

This case seeks review of a decision of the Interior Board of Land Appeals (IBLA) denying the plaintiff’s petition for reinstatement of terminated oil and gas leases. 30 U.S.C. § 188. The matter is before the Court on the government’s motion alternatively to dismiss or for judgment on the pleadings and the plaintiff’s cross motion for summary judgment.

The plaintiff, Ram Petroleums, Inc., formerly held a number of oil and gas leases on public lands lying in Nevada.1 Those leases terminated automatically when the Bureau of Land Management (BLM) did not receive the annual rentals on the day they fell due. See 30 U.S.C. § 188(b). Ram then sought administrative reinstatement of its leases pursuant to 30 U.S.C. § 188(c). That statute authorizes the Secretary of the Interior to reinstate automatically terminated leases if the required rental is tendered within twenty days of termination, [1167]*1167together with a petition demonstrating that the lessor’s delinquency was either not due to a lack of reasonable diligence or justifiable.2 Although timely, Ram’s petition was denied by the Acting Chief of Lands and Mineral Operations of the BLM. His decision was affirmed on appeal to the IBLA.

Ram contends that the Secretary’s rejection of its proffered excuse was arbitrary and capricious, amounting to an abuse of discretion. The excuse offered in its petition, as set forth in the IBLA decision, is as follows:

“Appellants [plaintiff here] expound at length on appeal as to the extenuating circumstances which they assert justify reinstatement. A particular employee who was responsible for mailing rental checks on their leases in this area and who had satisfactorily performed the required procedures in the past, in this instance failed, for whatever reason, to take the required measures to send in the rental payments in good time. The employee’s supervisor specifically inquired whether the payment had been made and she responded they had been paid, when in fact they had not. Later, a similar inquiry by the corporation’s president evoked the same untrue response. Appellants allege that this inquiry was made of the employee sufficiently in advance of the rental due dates so that timely payment could still have been made if the employee had responded truthfully that she had not performed her duties. Appellants point out that they have no control over the veracity of their employees. Appellants argue, in essence, that they had done all they could under the circumstances to comply with the regulations, and that they had acted in a way that satisfies one or both of the criteria for reinstatement.”
(1) a petition for reinstatement, together with the required rental, including back rental accruing from the date of termination of the lease, is filed with the Secretary; and
(2) no valid lease has been issued affecting any of the lands covered by the terminated lease prior to the filing of said petition. The Secretary shall not issue any new lease affecting any of the lands covered by such terminated lease for a reasonable period, as determined in accordance with regulations
issued by him. In any case where a reinstatement of a terminated lease is granted under this subsection and the Secretary finds that the reinstatement of such lease will not afford the lessee a reasonable opportunity to continue operations under the lease, the Secretary may, at his discretion, extend the term of such lease for such period as he deems reasonable: Provided, That (A) such extension shall not exceed a period equivalent to the time beginning when the lessee knew or should have known of the termination and ending on the date the Secretary grants such petition; (B) such extension shall not exceed a period equal to the unexpired portion of the lease or any extension thereof remaining at the date of termination; and (C) when the reinstatement occurs after the expiration of the term or extension thereof the lease may be extended from the date the Secretary grants the petition.”

No hearing was held on Ram’s petition and the government does not now contest its veracity. The sole question before the Court is the legal one of whether the Secretary, acting through the IBLA, abused its discretion in concluding that employee error and mendacity do not make a tardy rental payment excusable as being either “not due to a lack of reasonable diligence” or “justifiable.”

At the outset, it should be noted that the government’s challenge to the jurisdiction of this Court is unavailing. Whatever the merits of the government’s argument with respect to 28 U.S.C. § 1361, jurisdiction clearly lies under the Administrative Procedure Act, 5 U.S.C. § 701 et seq. “There is . .a presumption of judicial review under the APA unless there is clear and convincing evidence that Congress intended to foreclose review of a final agency action either by a specific statute or by committing action to agency discretion.” Standard Oil Co. of California v. F.T.C., 596 [1168]*1168F.2d 1381, 1384 (9th Cir. 1979). Although a given action may involve the exercise of agency discretion, it remains reviewable except “in those rare instances where ‘statutes are drawn in such broad terms that in a given case there is no law to apply.’ ” Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 410, 91 S.Ct. 814, 821, 28 L.Ed.2d 136 (1971) (citation omitted).

No statute specifically prohibits judicial review of decisions denying reinstatement of terminated oil and gas leases. To the contrary, 30 U.S.C. § 226-2 which prescribes the time for commencement of actions contesting decision of the Secretary involving oil and gas leases strongly suggests that judicial review is intended. Maisano v. Morton, Civ.No. 38720 (E.D.Mich., filed October 12, 1973); cf. Samuel v. Morton, Civ.No. 74-1112-EC (C.D.Cal., filed Aug. 26, 1974). In providing that it must be shown “to the satisfaction of the Secretary” that the default was not due to a lack of reasonable diligence or was otherwise justifiable, section 188(c) vests the Secretary with a measure of discretion in acting on reinstatement petitions. From this it does not follow, however, that the statute is drawn in such broad terms that courts are left no standard by which to measure the lawfulness of the agency’s action. The statute itself erects certain standards when it conditions reinstatement on a showing by the petitioner that the default was “not due to a lack of reasonable diligence” or “justifiable.” The legislative history, implementing regulations and judicial and administrative decisions all lend added meaning to those standards. Plainly there is “law to apply” and jurisdiction thus exists under the APA. Accord San tor v. Morton, 383 F.Supp. 1265 (D.Wyo.1974); Maisano v.

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Related

Ram Petroleums, Inc. v. Andrus
658 F.2d 1349 (Ninth Circuit, 1981)
Ram Petroleums, Inc. v. Cecil Andrus
658 F.2d 1349 (Ninth Circuit, 1981)

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Bluebook (online)
478 F. Supp. 1165, 1979 U.S. Dist. LEXIS 8954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ram-petroleums-inc-v-andrus-nvd-1979.