Shore v. Shell Petroleum Corp.

60 F.2d 1, 1932 U.S. App. LEXIS 2428
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 7, 1932
DocketNos. 622-625
StatusPublished
Cited by2 cases

This text of 60 F.2d 1 (Shore v. Shell Petroleum Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shore v. Shell Petroleum Corp., 60 F.2d 1, 1932 U.S. App. LEXIS 2428 (10th Cir. 1932).

Opinion

LEWIS, Circuit Judge.

The issue in these eases is, Who owns certain portions of the Arkansas River bed in Sumner County, Kansas, — the State of Kansas or appellants who claim as riparian proprietors. The bills allege that the river has always been non-navigable in its course through Sumner County, that the state’s executive council composed of state officers, including the Governor as a member, had given oil and gas leases on the river bed to some of the a.ppellees who had put down wells on the portions of the bed claimed by appel[2]*2lants, were producing oil therefrom, paying royalties on the oil produced to the State Treasurer and applying the remainder to their own use and benefit. They allege that the leases are clouds on appellants’ titles, and ask that they be adjudged owners of the parts of the bed which each claims, that said elouds be removed, that the lessees be held to account to them for oil and gas taken, and that the state executive council, the State Auditor and State Treasurer be enjoined from receiving any of the proceeds from oil and gas produced from the river bed.

The answers admit appellants own land bordering upon the river, deny that they own .any part of the river bed, allege that title to the bed is in the state, admit the giving of the leases as alleged in the complaint, the production of oil, and the receipt by the state of royalties thereon, and allege that said leases are valid. They deny that the river has always been non-navigable.

The. particular locality in question and around about in wide scope was included in the reservation of the Great and Little Osage Indians pursuant to the treaty of June 2, 1825. 7 Stat. 240. By that treaty the United States gave said tribes a right in and to the reservation “so long as they may choose to occupy the same. * * * ” By treaty of September 29, 1865 (14 Stat. 687), the reservation was reduced in area, but the lands here involved and the surrounding country remained within the diminished reservation. By the act of July 15, 1870 (16 Stat. 362), Congress provided for the removal of the Great and Little Osages from Kansas, with their consent, to a permanent home to be provided for them by the United States in" the Indian Territory to consist of a tract of land in compact form equal in quantity to one hundred sixty acres for each member of the tribes, or such part thereof as said Indians might desire, to be paid for out of the proceeds of the sales of their lands in the State of Kansas. Not a great while thereafter all of the Indians on the reservation in Kansas were removed to their new home in the Indian Territory, and they have remained there since. Congress then made provision for survey and sale of the Osage lands in Kansas. As shown by an official plat of the survey returned to the General Land Office, the Arkansas River in the locality in question was meandered on both banks. This made the subdivisions bordering on the stream fractional in acreage. 'They were given lot numbers and so described in government patents when later sold, the acreage being also stated and reference made to the official plat in the General Land Office. One tract here involved was in section thirty-six which had been set aside by the United States to the state as school lands, and the state issued its patent conveying 'that tract. The earliest of these patents was issued in September, 1872, and the last in July, 1888. Appellants derived their titles from those pat-entees as remote grantors. No reference is made in any of the patents to the river or its bed, — nothing whatever indicating expressly or impliedly an intention of the United States or the state to convey any part of the river bed.

The acquisition and devolution of titles-of the kind here under consideration is a matter within state power and control. In United States v. Cress, 243 U. S. 316, 319, 37 S. Ct. 380, 381, 61 L. Ed. 746, the court said: “The states have authority to establish for themselves such rules of property as they may deem expedient with respect to-the streams of water within their borders, both navigable and non-navigable, and the ownership of the lands forming their beds and banks. * * * ” In Brewer-Elliott Oil & Gas Co. v. United States, 260 U. S. 77, 89, 43 S. Ct. 60, 64, 67 L. Ed. 140, the court said this:

“In government patents containing no-words showing purpose to define riparian rights, the intention to abide the state law is inferred. Mr. Justice Bradley, speaking for the court in Hardin v. Jordan, 140 U. S. 371, 384, 11 S. Ct. 808, 813 (35 L. Ed. 428), said:

“ 'In our judgment the grants of the government for lands bounded on streams and other waters, without any reservation or restriction of terms, are to be construed as to their effect according to the law of the state in which the lands lie.’ ”

It is conceded that in Kansas titles of riparian proprietors extend to the thread of non-navigable streams, and if a river be navigable title to the entire bed vested in the state on its admission into the Union in 1861. It was so held by the Supreme Court of that state in Wood v. Fowler, 26 Kan. 682; and that court has consistently held that the Arkansas River throughout its course in the state is navigable. Dana v. Hurst, 86 Kan. 947, 122 P. 1041; Winters v. Myers, 92 Kan. 414, 140 P. 1033; Steckel v. Vancil, 92 Kan. 591, 141 P. 550; State ex rel. v. Berk, 129 Kan. 645, 284 P. 386. The substance of appellants’ contention is that the river is not and never was navigable, that the Kansas Supreme Court erred in fact in hold[3]*3ing it to be or to have been navigable, that the Federal court is not bound by that finding of fact, and its duty in these eases is to make inquiry and determino the fact of navigability or non-navigability. United States v. Holt State Bank, 270 U. S. 49, 46 S. Ct. 197, 70 L. Ed. 465. But the United States is not a party, and appellants’ claim of non-navigability at. all times refutes any presumption that the United States would ever be interested in the question of title to the bed.

In the several cases in the Supreme Court of Kansas in which that court held tho Arkansas River to have been navigable, title to the bed was tho issue, and that issue was decided in favor of the state in each ease. They establish a rule of property as to the bed of that stream. - Moreover, the finding of navigability at an early day can not be said to have been wholly without support in view of the evidentiary and historical faets reviewed at length in the decisions in those cases. In Wear v. Kansas, 245 U. S. 154, 38 S. Ct. 55, 62 L. Ed. 214, Ann. Cas. 1918B, 586, it was held that, if a state court takes upon itself to know without evidence whether a, river is navigable, a Federal court can not say it erred. And in Donnelly v. United States, 228 U. S. 243, 262, 33 S. Ct. 449, 455, 57 L. Ed. 820, Ann. Cas. 1913E, 710, the court said:

“But it results from the principles already referred to that what shall be deemed a navigable water within the meaning of the local rules of property-is for the determination of the several states.”

See, also, Jackson-Walker Coal & Material Co. v. Hodges (D. C.) 283 F. 457.

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60 F.2d 1, 1932 U.S. App. LEXIS 2428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shore-v-shell-petroleum-corp-ca10-1932.