True Oil v. BLM

CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 9, 2025
Docket23-8082
StatusPublished

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

Opinion

Appellate Case: 23-8082 Document: 59-1 Date Filed: 09/09/2025 Page: 1 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. Appellate Case: 23-8082 Document: 59-1 Date Filed: 09/09/2025 Page: 2

_________________________________

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,

2 Appellate Case: 23-8082 Document: 59-1 Date Filed: 09/09/2025 Page: 3

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,

3 Appellate Case: 23-8082 Document: 59-1 Date Filed: 09/09/2025 Page: 4

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

4 Appellate Case: 23-8082 Document: 59-1 Date Filed: 09/09/2025 Page: 5

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

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True Oil v. BLM, Counsel Stack Legal Research, https://law.counselstack.com/opinion/true-oil-v-blm-ca10-2025.