State of Wyoming, Oscar E. Swan, Commissioner of Public Lands v. Cecil D. Andrus, Secretary, United States Department of Interior, Defendant

602 F.2d 1379, 67 Oil & Gas Rep. 150, 1979 U.S. App. LEXIS 13097
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 18, 1979
Docket77-2031
StatusPublished
Cited by12 cases

This text of 602 F.2d 1379 (State of Wyoming, Oscar E. Swan, Commissioner of Public Lands v. Cecil D. Andrus, Secretary, United States Department of Interior, Defendant) 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
State of Wyoming, Oscar E. Swan, Commissioner of Public Lands v. Cecil D. Andrus, Secretary, United States Department of Interior, Defendant, 602 F.2d 1379, 67 Oil & Gas Rep. 150, 1979 U.S. App. LEXIS 13097 (10th Cir. 1979).

Opinion

WILLIAM E. DOYLE, Circuit Judge.

INTRODUCTION — EXPLANATION OF ISSUES

The ultimate question which is presented in this case is whether Wyoming is entitled to so-called lieu lands for acres included within rights-of-way previously granted to the Union Pacific Railroad. Wyoming is entitled to compensatory grants if it is de *1380 termined that the conveyances of railroad rights-of-way to the Union Pacific constituted prior dispositions of the areas included within those conveyances to the railroad as the term “prior disposition” is used in the Wyoming Enabling Act. Wyoming maintains that these conveyances to the railroad were lands “otherwise disposed of”, the words used in the Enabling Act as the test for determining indemnity lieu selections to replace the disposed of portions.

The district court, The Honorable Ewing Kerr, ruled that Wyoming was not entitled to a patent which excluded the railroad right-of-way portion from certain school sections, and that Wyoming was not entitled to select indemnity or lieu lands for the acres encompassed within the railroad right-of-way. Wyoming v. Andrus, 436 F.Supp. 933 (D.Wyo.1977).

The facts are stipulated, and the judgment was rendered on the basis of motions for summary judgment filed by both sides. As noted, the motion of the Secretary of the Interior was granted.

The controversy had its beginning in July 1970, at which time Wyoming filed an application, W-24998, seeking a patent for certain school sections traversed by the right-of-way of .the Union Pacific Railroad. 1 The actual controversy arose in conjunction with Wyoming’s request for a patent which excepted from the school sections that portion in the original main line right-of-way of the Union Pacific Company. The sections involved are located in Laramie County; Wyoming, and the patent was requested pursuant to 43 U.S.C. § 871a (1970), which section has been repealed by the Act of October 21, 1976, Pub.L. No. 94-579, § 705(a), 90 Stat. 2743.

The Bureau of Land Management (BLM) rejected the Wyoming application on the ground that Wyoming could not exclude or except the acreage in the Union Pacific right-of-way from its patent application since the law gave it the entire section. The BLM’s position was that any patent would have to be issued for a school section based on the full legal description, but subject to the right-of-way.

On December 10, 1971, Wyoming filed application W-32556 for lieu land selections for the acreage in the right-of-way which it had excluded from the previous patent application. The request was made pursuant to 43 U.S.C. §§ 851, 852. BLM rejected this application on the basis that Wyoming took title to the school land sections subject to the Union Pacific’s right-of-way; that Wyoming was not entitled to indemnification for the acreage in the right-of-way.

The decisions of the BLM were appealed to the Interior Board of Land Appeals (IBLA), which affirmed BLM’s decisions. State of Wyoming, 27 I.B.L.A. 137, 83 I.D. 364 (1976). The reasoning of the Interior Board was that the right-of-way grant to the Union Pacific 2 was a special grant in 1862 which did not give Wyoming a right to indemnity selections. Relied on was an administrative decision of the Interior Board under which Wyoming is not entitled to indemnification. See State of North Dakota, 13 L.D. 454 (1891).

The suit which was subsequently brought in district court sought a mandatory injunction, a writ of mandamus, a declaratory judgment and judicial review of Interior’s allegedly arbitrary and capricious administrative actions. Wyoming sought to compel the issuance of the patent in the form that it had submitted, excepting the right-of-way of the Union Pacific.

The district court’s ruling was that Wyoming’s Enabling Act gave it a fee interest in the right-of-way subject to the railroad’s easement and the reservation by the United States of minerals. See Wyoming v. Andrus, 436 F.Supp. 933, 934 (D.Wyo.1977). *1381 The reasoning of the court was that the grant to the Union Pacific of the coal and iron in the right-of-way was a profit a prendre. The court held further that Wyoming held the fee interest in the right-of-way and thus that there was not a prior disposition of the land such as would entitle Wyoming to indemnification.

Wyoming’s position, on the other hand, is that the railroad right-of-way was land otherwise disposed of.

The Secretary argues that the grant of the right-of-way to the railroad did not render the land otherwise disposed of; that this did not constitute a prior disposition; and so Wyoming is not entitled to be indemnified with other lands to compensate for the grant of right-of-way to the railroad.

The issue is simply stated even though hard to resolve. If the grant to the railroad was a disposition, Wyoming is entitled to be indemnified in accordance with the school land grants made in its Enabling Act in 1890. If Congress did not intend that this should be a prior disposition, and if indeed it was not, Wyoming would not be entitled to indemnification. So, our analysis must include consideration of the property interest that was granted to the railroad and what, if anything, was granted to Wyoming. Only then can we decide whether there has been a prior disposition of the portion of the school sections that are here under consideration. If Wyoming received a vested fee interest in the right-of-way subject to the railroad’s rights, it could not claim that there had been a prior disposition giving rise to indemnification in its favor. If this court were to hold for the government here, it would have to determine that the Union Pacific received only a limited right in land, an easement, and that the United States retained the fee interest, whereby it could have conveyed that to Wyoming in the school land grants in the Enabling Act.

The case of Wyoming v. Udall, 379 F.2d 635 (10th Cir.), cert. denied, 389 U.S. 985, 88 S.Ct. 470, 19 L.Ed.2d 479 (1967), comes close to our problem, but falls short. There this court concluded that Wyoming had no interest in the minerals underlying the right-of-way. The case held that the Union Pacific had a right-of-way together with the right to explore for and mine coal and iron with a reversion to the United States if the land ceased to be used for railroad purposes.

Apparently the matter in issue is ownership of the surface of the right-of-way. 3 To better understand this it is necessary to consider some of the history together with the form of the grants. First, we take up the right-of-way granted to the Union Pacific.

HISTORICAL FACTS AND LAW

In 1862, the Union Pacific was granted a right-of-way through the public lands for the construction of a railroad. Act of July 1, 1862, ch. 120, § 2, 12 Stat. 489.

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Bluebook (online)
602 F.2d 1379, 67 Oil & Gas Rep. 150, 1979 U.S. App. LEXIS 13097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-wyoming-oscar-e-swan-commissioner-of-public-lands-v-cecil-d-ca10-1979.