Tyonek Native Corp. v. Cook Inlet Region, Inc.

853 F.2d 727, 1988 U.S. App. LEXIS 10333, 1988 WL 79750
Court of Appeals for the Ninth Circuit·Decided August 3, 1988·No. 86-4073·Published·Cited by 4 cases

Opinion

CANBY, Circuit Judge:

INTRODUCTION

Plaintiff, Tyonek Native Corporation (“Tyonek”), a village corporation organized under the Alaska Native Claims Settlement Act, (“ANCSA”), 43 U.S.C. §§ 1601 et seq., appeals from an adverse judgment in its action against defendant, Cook Inlet Region, Inc., (“Cook Inlet”), one of twelve regional corporations established under ANCSA.

The Alaska Native Claims Settlement Act was enacted into law “to provide an equitable solution to the claims made by the Natives of Alaska through a combination of land and money.” H.R. 92-523, 92nd Cong., 1st Sess., 1971 U.S.Code Cong. & Ad.News 2192, 2193. Under ANCSA, the surface estate in some 22 million acres of land was patented to village corporations such as Tyonek. The subsurface estate in those same lands was patented to regional corporations such as Cook Inlet. 43 U.S.C. §§ 1611, 1613. Lands so divided are referred to as the “dually owned lands.” Another 16 million acres, the “fee lands,” were patented in their entirety to regional corporations, but those corporations are required to distribute most of the revenues from the subsurface estate among all the regional corporations in Alaska. 43 U.S.C. § 1606®.

This case arises with regard to land dually owned by Tyonek and Cook Inlet. The issue is whether sand and gravel reserves form part of Tyonek’s surface estate or Cook Inlet’s subsurface estate.

DISCUSSION

Against a background of recurring dispute between regional corporations and village corporations over the rights to sand and gravel, Tyonek brought this action for a declaratory judgment. Its brief com *729 plaint asked the district court for a declaration of Tyonek’s “surface rights in dually owned lands including their rights to all uses including movement and placement of sand, stone, gravel, pumicite and cinders.” In support of its complaint, Tyonek argued broadly that sand and gravel (which term we take to include stone, pumicite and cinders) is by its nature more appropriately considered part of the surface estate than of the subsurface estate. The district court was of the view that the question was controlled by our decision in Chugach Natives, Inc. v. Doyon, Ltd., 588 F.2d 723 (9th Cir.1978), and that sand and gravel were generally a part of the subsurface estate. We agree.

Chugach, like this case, presented the question “whether sand and gravel are part of the surface or subsurface estate.” Id. at 725. It held that such deposits were part of the subsurface estate. The issue arose, however, on fee lands that were wholly owned by a regional corporation. For that reason, Tyonek contends that the question was a totally different one, and that Chugach’s decision regarding surface versus subsurface estates on fee lands simply does not address the issue of surface versus subsurface rights on dually owned lands.

Chugach cannot be brushed aside that easily, however. Imporant economic rights turned on the distinction between surface and subsurface rights in that case, because revenues from the subsurface estate are broadly shared under ANCSA. 43 U.S.C. § 1606(j). That economic distinction, which was a substantial basis for Chugach’s conclusion that sand and gravel belonged to the subsurface, also exists in this case. Moreover, we stated in Chugach:

Technically, the only issue on appeal here is whether the district court erred in holding that sand and gravel are part of the subsurface estate in lands entirely owned by the Regional Corporations. Our decision on this issue, however, necessarily affects the disposition of sand and gravel on dually owned lands, since, as we discuss below, the term “subsurface estate” under ANCSA must have the same meaning regardless of who owns the surface estate. Thus, we exercise our discretion to review the reasoning and holdings of the district court with respect to dually owned, as well as wholly owned, lands.

588 F.2d at 725 n. 7. The district court in this case understandably construed this language to control the issue presented here. It is true, as Tyonek points out, that in Aleut Corp. v. Tyonek Native Corp., 725 F.2d 527 (9th Cir.1984), we characterized the above passage from Chugach as dictum, but we also stated that it was likely to have a stare decisis effect adverse to Tyonek. Id. at 529-30. That likelihood has now come to pass. Chugach and its reasoning control this case.

Our conclusion that Chugach governs this case necessarily dispenses with many of the arguments of Tyonek, because they were rejected in Chugach. Tyonek’s analogies to provisions of ANCSA permitting village corporations to select surface lands and sand and gravel rights in National Wildlife Refuges or National Petroleum Reserves were rejected in Chugach, 588 F.2d at 729-30, as were its contentions founded on the first Koniag Amendment to ANCSA, id. at 730-31. Also rejected were arguments based on the economic and practical hardships to the villages if they did not own the sand and gravel. Id. at 731-32. Tyonek elaborates on those arguments more fully here than they were treated in Chugach, but any principled application of Chugach still requires their rejection.

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Tyonek Native Corp. v. Cook Inlet Region, Inc., 853 F.2d 727, 1988 U.S. App. LEXIS 10333, 1988 WL 79750 (9th Cir. 1988).

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