True Oil v. BLM

Court of Appeals for the Tenth Circuit·Decided September 9, 2025·No. 23-8082·Published

Opinion

FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS September 9, 2025

Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

TRUE OIL, LLC, a Wyoming limited liability company; TRUE RANCHES, LLC, a Wyoming limited liability company,

Plaintiffs - Appellants, No. 23-8082

v.

BUREAU OF LAND MANAGEMENT; DUANE SPENCER, in his official capacity as Wyoming Bureau of Land Management Deputy State Director; JOHN ELLIOTT, in his official capacity as Acting Field Manager of the Rawlins Field Office, High Desert District; UNITED STATES DEPARTMENT OF INTERIOR; DOUG BURGUM ∗, in his official capacity as Secretary of the Interior,

Defendants - Appellees.

------------------------------

PETROLEUM ASSOCIATION OF WYOMING,

Amicus Curiae.

Pursuant to Fed. R. App. P. 43(c)(2), Deb Haaland is replaced by Doug

Burgum, as Secretary of the Interior.

Appeal from the United States District Court for the District of Wyoming (D.C. No. 2:22-CV-00188-KHR)

Patrick J. Murphy (Scott E. Ortiz, and Alia T. Scott, with him on the briefs), Williams, Porter, Day & Neville, P.C., Casper, Wyoming, for Plaintiffs-Appellants.

Kevin W. McArdle, Attorney (Todd Kim, Assistant Attorney General, with him on the brief), Environment and Natural Resources Division, United States Department of Justice, Washington, D.C., for Defendants-Appellees.

Kathleen C. Schroder, Davis Graham & Stubbs LLP, Denver, Colorado, filed an amicus curiae brief for Petroleum Association of Wyoming, in support of Plaintiffs-Appellants.

Before HOLMES, Chief Judge, EBEL, and BACHARACH, Circuit Judges.

EBEL, Circuit Judge.

This case presents a dispute over the respective property rights of a surface owner and a mineral owner in a split estate. Plaintiff True Ranches owns the surface estate in a tract of land in which the federal government owns the mineral estate. Plaintiff True Oil, a related entity, owns the mineral estate in an adjacent tract of land. True Ranches has agreed to let True Oil drill a traversing well that begins on True Ranches’ surface estate, traverses through the subsurface containing the federal minerals, and ends up in True Oil’s adjacent tract. The Bureau of Land Management (BLM) manages the federal minerals that would be traversed. The process of drilling the proposed well would involve removing a small amount of federal minerals, but,

once completed, the well would produce only from True Oil’s minerals in the adjacent tract.

BLM informed Plaintiffs that they would need to submit an application for a permit to drill (APD) to the agency prior to drilling the proposed well through the federal mineral estate. Following some unsuccessful negotiations during which Plaintiffs insisted they did not need a permit, Plaintiffs brought this claim under the Administrative Procedure Act (APA) and the Declaratory Judgment Act (DJA) requesting a declaration that they have a right to drill the proposed traversing well through the federal mineral estate without BLM’s consent. Plaintiffs argued that BLM does not have the authority to require its consent for the proposed traversing well pursuant to either (1) the government’s rights as owner of the mineral estate that Plaintiffs want to traverse or (2) BLM’s statutory authority under the Mineral Leasing Act (MLA). The district court rejected Plaintiffs’ arguments and entered judgment in favor of BLM on the merits. Notwithstanding having received a favorable ruling, BLM now argues on appeal that the district court lacked jurisdiction to hear Plaintiffs’ claim because that claim had to be brought under the Quiet Title Act (QTA). We agree, and therefore resolve this case on jurisdictional grounds without reaching the merits of the dispute.

The QTA is “the exclusive means by which adverse claimants [can] challenge the United States’ title to real property.” Block v. N. Dakota ex rel. Bd. of Univ. & Sch. Lands, 461 U.S. 273, 286 (1983). Thus, if a claim falls within the purview of the QTA, then courts lack jurisdiction to hear it under another statute. See Rosette,

Inc. v. United States, 141 F.3d 1394, 1396–97 (10th Cir. 1998); Navajo Tribe of Indians v. New Mexico, 809 F.2d 1455, 1468–69 (10th Cir. 1987). Here, Plaintiffs assert that their surface ownership includes a property right to drill through the subsurface containing minerals owned by the United States and that the government’s mineral ownership does not give BLM the right to prevent Plaintiffs from doing so, even where drilling involves removing a small amount of those minerals. This presents a legal dispute over ownership rights (i.e., title rights) in the subsurface minerals being traversed and removed, and such disputes belong under the QTA. Therefore, the district court lacked jurisdiction to hear this dispute under the APA or the DJA.

Because we decide this case on jurisdictional grounds, we do not address the merits of Plaintiffs’ claim or determine either party’s rights with respect to this dispute. Rather, we conclude only that granting Plaintiffs’ requested relief in this case requires resolving a dispute over property rights that can be resolved only under the QTA. Therefore, we, like the district court, lack jurisdiction to consider the merits of Plaintiffs’ claim brought under the APA and the DJA. Exercising jurisdiction under 28 U.S.C. § 1291, we VACATE the district court’s judgment in favor of BLM and REMAND this case with instructions to dismiss this action for lack of jurisdiction.

I. BACKGROUND

In 1922, the federal government conveyed a 160-acre surface estate in Laramie County, Wyoming to True Ranches’ predecessor in interest, while reserving the

underlying mineral estate for the public. True Ranches acquired this surface estate in 1983, subject to the federal government’s mineral reservation. True Oil owns the mineral estate in an adjacent tract. In order to develop its minerals, True Oil wants to drill a horizontal well starting on True Ranches’ surface estate (with True Ranches’ permission) and traversing through the federal subsurface mineral estate on that tract to get to True Oil’s minerals in the adjacent tract.

In February 2022, True Oil contacted BLM, which manages the federal minerals at issue, to discuss its plan and “respectfully request[] BLM grant its consent through the approval of federal APDs or other acceptable means to drill through but not complete that portion of the laterals traversing the federal [mineral tract].” 1 (II Aplt. App. 73.) BLM informed True Oil that it could not authorize the proposed well because the federal mineral tract through which True Oil’s well would traverse was subject to an order from the United States District Court for the District of Montana prohibiting oil and gas development and BLM believed the proposed well might violate that order. 2 BLM also advised True Oil that, if it drilled without

1 In this context, “completion” of a well refers to those post-drilling processes necessary to make the well capable of producing oil and gas from the penetrated subsurface property, such as perforating the well casing to allow oil and gas to flow in. See Exxon Corp. v. Emerald Oil & Gas Co., 348 S.W.3d 194, 211 (Tex. 2011). In stating that it would not “complete” the portion of the well traversing the federal mineral tract, True Oil thus expressed that it did not intend to carry out those processes necessary to produce oil and gas from the federal mineral tract itself. Instead, True Oil would complete, and thus be able to produce oil and gas from, only that portion of the well located in True Oil’s mineral tract.

2 The order stemmed from an ongoing case in which several environmental organizations challenged BLM’s issuance of various federal mineral leases. Montana

Free access — add to your briefcase to read the full text and ask questions with AI

True Oil v. BLM, (10th Cir. 2025).

True Oil v. BLM (True Oil v. BLM) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Rio Grande Silvery Minnow v. Bureau of Reclamation
599 F.3d 1165 (Tenth Circuit, 2010)
McMaster v. United States
177 F.3d 936 (Eleventh Circuit, 1999)
Loretto v. Teleprompter Manhattan CATV Corp.
458 U.S. 419 (Supreme Court, 1982)
Bender v. Williamsport Area School District
475 U.S. 534 (Supreme Court, 1986)
Rosette Incorporated v. United States
141 F.3d 1394 (Tenth Circuit, 1998)
The Wilderness Soc. v. Kane County, Utah
632 F.3d 1162 (Tenth Circuit, 2011)
Montanans for Multiple Use v. Barbouletos
568 F.3d 225 (D.C. Circuit, 2009)
Navajo Tribe of Indians v. State of New Mexico
809 F.2d 1455 (Tenth Circuit, 1987)
Leisnoi, Inc. v. United States
267 F.3d 1019 (Ninth Circuit, 2001)
Exxon Corp. v. Emerald Oil & Gas Co., LC
348 S.W.3d 194 (Texas Supreme Court, 2011)
Picard v. Richards
366 P.2d 119 (Wyoming Supreme Court, 1961)
Robinson v. United States
586 F.3d 683 (Ninth Circuit, 2009)
Kane County, Utah v. United States
772 F.3d 1205 (Tenth Circuit, 2014)
Stephens County v. Mid-Kansas Oil & Gas Co.
254 S.W. 290 (Texas Supreme Court, 1923)
Cedar Point Nursery v. Hassid
594 U.S. 139 (Supreme Court, 2021)