Sunray Mid-Continent Oil Co. v. State

368 P.2d 563, 149 Colo. 159
CourtSupreme Court of Colorado
DecidedJanuary 29, 1962
DocketNo. 19,888
StatusPublished

This text of 368 P.2d 563 (Sunray Mid-Continent Oil Co. v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunray Mid-Continent Oil Co. v. State, 368 P.2d 563, 149 Colo. 159 (Colo. 1962).

Opinion

Mr. Justice Moore

delivered the opinion of the Court.

We will refer to plaintiffs in error as the leaseholders or by name. Defendants in error will be referred to as plaintiffs in those instances where all of them are included in the reference, and as Board of Agriculture or Land Commissioners where the reference is to only one of said agencies.

There were no controverted issues of fact presented in the trial court. They are all admitted and raise a single question of law as to whether certain oil and gas leases executed by the State Board of Land Commissioners are valid. The trial court adjudged that the leases were void and the leaseholders seek review by writ of error. Uncontroverted facts are as hereinafter set forth.

By Act of Congress adopted April 4, 1910, 36 Stat. 274, about 6,000 acres of land in La Plata county, with certain improvements thereon, were granted to the State of Colorado by the United States. The land is generally known as the Fort Lewis lands. Section 5 of said statute provides in part:

“There is hereby granted to the State of Colorado, upon the terms and conditions hereinafter named, the property known as the Fort Lewis School, including the lands, buildings, and fixtures pertaining to said school: Provided, That said lands and buildings shall be held and maintained by the State of Colorado as an institution of learning, and that Indian pupils shall at all times be admitted to such school free of charge for tuition and on terms of equality with white pupils * * * .”

[161]*161During the year 1957 various oil and gas leases were executed by the Land Commissioners, and the leaseholders above named became the assignees of one or more of the leasehold interests, or were the original lessees named therein. Insofar as related to the question presented, it makes no difference whether the leaseholders are original lessees or assignees.

The Board of Agriculture contests the validity of the leases which are involved in this controversy, by reason of the following legislative enactments:

“School at Fort Lewis. There is hereby established at the Fort Lewis school in La Plata county a school of agriculture, mechanic arts and household arts upon the grounds heretofore accepted by the governor of the state of Colorado, * * C.R.S. ’53, 124-14-1.

“Part of agricultural college system. The state board of agriculture shall take and assume control of the lands, buildings and equipments at Fort Lewis School, now owned and held by the state, and the lands, buildings and equipment shall be a part of the agricultural college system of the state, and shall be controlled and managed under the same laws, rules and regulations by the state board of agriculture as the Colorado Agricultural and Mechanical College; provided, that Indian pupils shall at all times be admitted to such school free of charge for tuition and on terms of equality with white pupils.” 124-14-2.

* * *

“Development of natural resources. The state board of land commissioners and the state board of agriculture are hereby authorized and directed to develop such coal measures, mineral deposits and oil structures under lease executed jointly, and providing for such statutory royalties or other rentals as may be agreed upon, and wherein the obligations assumed by the state of Colorado shall be faithfully kept, and mining or drilling operations be not permitted to interfere with the con[162]*162duct and operation of the Fort Lewis School.” 124-14-9.

“Leasing of mineral lands. Applications for leases of the coal measures, mineral deposits and oil structures shall be made to the state board of land commissioners, which board, with the consent and approval of the state board of agriculture, shall execute such leases as required by law, and all rentals and royalties from such leases shall be certified to the state treasurer and credited to the permanent endowment fund designated in section 124-14-8.” 124-14-10.

The State Board of Land Commissioners is an agency of the State of Colorado created by Article IX, of the state constitution. In pertinent part sections 9 and 10 of said Article read as follows:

“Section 9. State board of land commissioners. The state board of land commissioners shall be composed of three (3) persons to be appointed by the governor, with the consent of the senate, who shall have the direction, control and disposition of the public lands of the state under such regulations as are and may be prescribed by law, * * *.

“Section 10. Selection and control of public lands. It shall be the duty of the state board of land commissioners to provide for the location, protection, sale or other disposition of all the lands heretofore, or which may hereafter be granted to the state by the general government, under such regulations as may be prescribed by law; and in such manner as will secure the maximum possible amount therefor. * * *” C.R.S. ’53, 112-3-13 provides:

“Leases — rental — mineral lands. The state board of land commissioners may lease any portion of the land of the state at a rental to be determined by it, except as provided in section 112-3-18. The lessee shall pay the annual rental to the state board of land commissioners, who shall receipt for the same in the lease. Upon receiving such annual rental, the state board shall trans[163]*163mit the same to the state treasurer, as provided by law, and take his receipt therefor. If stone, coal, oil, gas, or other mineral not herein mentioned be found upon the state land, such land may be leased for the purpose of obtaining therefrom the stone, coal, oil, gas or other mineral, for such length of time, and conditioned upon the payment to the state board of such royalty upon the product as the state board of land commissioners may determine.”

It is admitted that the Board of Agriculture did not join as lessor in any of the leases in question, and that said board did not consent thereto or otherwise approve or ratify the same, as allegedly required by C.R.S. ’53, 124-14-9 and 124-14-10, above quoted.

As ground for reversal of the judgment it is contended that the trial court erred “in sustaining the right of the legislature to require Agriculture Board consent” to the issuance of the leases. It is argued that the lands included in said oil and gas leases are public lands which by the Colorado Constitution are subject to exclusive disposition by the Land Commissioners.

The attorney general narrows the issue for determination by the following statement which we quote from his brief:

“* * * we wiH concede that if the Fort Lewis School lands are ‘public lands’ over which the Board of Land Commissioners has absolute control under the Constitution, then the statutory provisions in question vesting the control of said lands in the Board of Agriculture and requiring the consent and approval of that agency and its joinder with the State Board of Land Commissioners in the leasing of said lands are unconstitutional and void. * * *” He argues that:

“It is the contention of plaintiffs that the Fort Lewis School lands are not ‘public lands’ over which the Board of Land Commissioners has exclusive jurisdiction under sections 9 and 10 of article IX of the Colorado Consti[164]*164tution, and that the provisions of C.R.S. ’53, 124-14-2, which vests the control and management of the Fort Lewis School lands in the Board of Agriculture, C.R.S.

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128 F. 910 (Ninth Circuit, 1904)

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Bluebook (online)
368 P.2d 563, 149 Colo. 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunray-mid-continent-oil-co-v-state-colo-1962.