Revenue Oil Co. v. United States

75 Ct. Cl. 692, 1932 U.S. Ct. Cl. LEXIS 340, 1932 WL 2129
CourtUnited States Court of Claims
DecidedJuly 5, 1932
DocketNo. M-351
StatusPublished

This text of 75 Ct. Cl. 692 (Revenue Oil Co. 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
Revenue Oil Co. v. United States, 75 Ct. Cl. 692, 1932 U.S. Ct. Cl. LEXIS 340, 1932 WL 2129 (cc 1932).

Opinion

Booth, Chief Justice,

delivered the opinion of the court:

Defendant demurs to plaintiff’s petition, relying upon two assignments therefor. First, that the allegations of the peti[693]*693tion do not state a canse of action witbin tbe jurisdiction of the court, and second, that the facts alleged do not constitute a cause of action against the defendant.

Eight separate suits have been brought in this court by ■eight individual plaintiffs, claiming and designated as original locators.” Another suit is instituted by these same individuals jointly, and this case brought in the name •of the Revenue Oil Company, a corporation, makes ten separate proceedings involving the precise subject matter, and the determination of one will determine all.

The present plaintiff, Revenue Oil Company, sues as .assignee of and successor in title to whatever interests the original locators ” possessed in the claims herein asserted. The defendant concedes that the assignment of the claim by the “ original locators ” to the plaintiff is not within the prohibition of section 3477, Revised Statutes, which prohibits assignments of claims against the United States prior to judgment, and that the present plaintiff is entitled to sue.

The assignment to the plaintiff antedated the act of March 4, 1923, which legislation by its terms enabled the plaintiff for the first time to assert a claim. The act of March 4, 1923, is important and vital to the issues raised by the defendant and will be discussed hereafter.

The pertinent allegations of plaintiff’s petition disclose a situation and relationship arising out of the unsettled and controversial issue as to whether the United States, the State of Texas, the State of Oklahoma, and other intervenors were the owners of the lands lying within the bed of the Red River, a stream upon the border line between the States •of Texas and Oklahoma, a controversy which was finally settled and adjudicated by the Supreme Court in the case of Oklahoma v. Texas, 258 U. S. 574.

On January 1, 1919, Henry L. Roberts and seven associates, all citizens of the United States, entered as they claim, upon what they honestly and in good faith believed to be vacant, unappropriated and unreserved public lands, lying within the bed of the Red River, for the purpose and with the object of obtaining a patent thereof under the placer mining laws of the United States. The tract described contained 160 acres, more or less, part of the same lying north [694]*694and the remaining portion south of the medial line of the main channel of said river.

The petition states that on January 1,1919, and long prior to said date an acute controversy and dispute was known to-exist with respect to the ownership of the lands of which the above described tract was a part, between the States-above mentioned and the United States as well as others; that oil was discovered in the bed of the Red River in 1918 and as a consequence the lands therein were sought by numerous claimants, some asserting claims under the authority of the laws of the United States, others under the laws-of Texas and Oldahoma, and some seeking to maintain rights to claims by force of arms; that in the midst of this-conflict and confusion, augmented by litigation in the State and Federal courts, Henry L. Roberts and his associates,, “ original locators,” were, after they had caused the tract to be surveyed, staked oif, posted notices of their claims and' otherwise complied with the laws relating to obtaining said claims, precluded from doing more than attempting to begin oil drilling operations and developing said lands until in or about December, 1919.

The petition further alleges that on December 26, 1919, Roberts and his associates executed a lease of said lands to R. J. Baker, trustee, by the terms of which Baker, the lessee, was to go upon said lands, drill oil wells thereon, and develop the same, paying to said “ original locators ” a royalty of one-eighth of the oil produced from said wells; that Baker in December, 1919, succeeded in entering upon the lands, erected a derrick and other buildings thereon at a cost of $1,150, and maintained possession and occupancy thereof until the same were taken possession of by a reciever appointed by the Supreme Court following the institution of the suit of Oklahoma v. Texas (supra) in that court.

In March, 1920, the petition states and the facts are important, the Pacific-Wyoming Oil Company, a Wyoming corporation, as sub-lessee of a 20-acre tract out of the lands leased to Baker, trustee, in December, 1919, and lying south of the medial line of the main channel of the river, went upon said 20-acre tract, erected a derrick with which to drill an oil well, and had about completed said well when the [695]*695receiver appointed by the Supreme Court took possession of the same, and said well, thereafter known as “ Receiver’s Well #171,” had been drilled to a depth of about 1,575 feet at a cost and expense to said corporation in excess of $18,000.

The petition then proceeds to allege that the decision of the Supreme Court in the case of Oklahoma v. Texas, 258 U. S. 574 (supra), wherein it was held (1) that the north half of the bed of the Red River between Texas and Oklahoma was subject to the riparian rights of the north-bank meander lands, and (2) that the south half of the river bed was United States land located in the State of Oklahoma and not subject to any of the public land laws, thereby rendered the original locators, their lessee and sublessee, trespassers without color of title to lands of the United States.

It is then stated that the act of March 4, 1923, an act to be hereafter quoted and referred to, accorded to the plaintiff certain rights notwithstanding the decision of the Supreme Court with respect to the ownership of said lands;, that plaintiff complied with all the terms and conditions of the said act, and has been denied its lawful rights thereunder,, and that as a result of the decision of the Secretary of the Interior acting under said act plaintiff has suffered a loss of $899,023.13, royalties accruing from developed wells on lands claimed herein.

Finally it is said that plaintiff makes no claim to any portion of said tract of 160 acres leased to conflicting claimants for the same, but does claim for all that portion for which no conflicting claims were filed or allowed lying south of the bed of the river and which were developed and produced oil to the extent and in the amounts set out in detail. A. prayer is interposed for a discovery and accounting from the United States as to the proceeds derived from said lands subsequent to February 20, 1926, the plaintiff claiming the right to all of said proceeds subsequent to that date, less a one-eighth royalty payable therefrom to the United States. Interest on the sum is also claimed.

We have not set forth in detail all the facts alleged in the petition for the reason that many allegations are conclusions [696]*696of law and others argumentative and immaterial. It is enough to say in this connection that the material facts alleged are sufficient to present the issue of jurisdiction, and that in any event the controversy is narrowed to the act of March 4, 1923, without which the plaintiff would obviously be remediless.

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Bluebook (online)
75 Ct. Cl. 692, 1932 U.S. Ct. Cl. LEXIS 340, 1932 WL 2129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/revenue-oil-co-v-united-states-cc-1932.