United States v. Midwest Oil Co.

236 U.S. 459, 35 S. Ct. 309, 59 L. Ed. 673, 1915 U.S. LEXIS 1776
CourtSupreme Court of the United States
DecidedFebruary 23, 1915
Docket278
StatusPublished
Cited by252 cases

This text of 236 U.S. 459 (United States v. Midwest Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Midwest Oil Co., 236 U.S. 459, 35 S. Ct. 309, 59 L. Ed. 673, 1915 U.S. LEXIS 1776 (1915).

Opinions

Mr. Justice Lamar

delivered the opinion of the court.

All public lands containing petroleum or other mineral oils and chiefly valuable therefor, have been declared by Congress to be “free and open to occupation, exploration and purchase by citizens of the United States . . . under regulations prescribed by law.” Act of February 11, 1897, c. 216, 29 Stat. 526; R. S. 2319, 2329.

As these regulations permitted exploration and location without the payment of any sum, and as title could be obtained for a merely nominal amount, many persons availed themselves of the provisions of the statute. Large areas in California were explored; and petroleum having been found, locations were made, not only by the discoverer but .by others on adjoining land. And, as the flow through the well on one lot might exhaust the oil under the adjacent land, the interest of each operator was to extract the oil as soon as possible so as to share what would otherwise be taken by the owners of nearby wells.

The result was that oil was so rapidly extracted that on September 17, 1909, the Director of the Geological Survey made a report to the Secretary of the Interior which, with, enclosures, called attention to the fact that, while there was a limited supply of coal on' the Pacific coast and the value of oil ás a fuel had been fully demonstrated, yet at the rate at which oil lands in California were being patented by private parties it would “be impossible for the people of the United States to continue ownership of oil lands for more than a few months. After that the [467]*467Government will be obliged to repurchase the very oil that it has practically given away. . . .” “In view of the increasing use of fuel by the American Navy there would appear to be an immediate necessity for assuring the conservation of a proper supply of petroleum for the Government’s own use . . .” and “pending the enactment of adequate legislation on this subject, the filing of claims to oil lands in the State of California should be suspended.”

This recommendation was approved by the Secretary of the Interior. Shortly afterwards he brought the matter to the attention of the President who, on September 27, 1909, issued the following Proclamation:

“Temporary Petroleum Withdrawal No. 5.”

“In aid of proposed legislation affecting the use and disposition of the petroleum deposits on the public domain, all public lands in the accompanying lists are hereby temporarily withdrawn from all forms of location, settlement, selection, filing, entry, or disposal under the mineral or nonmineral public-land laws. All locations or claims existing and valid on this date may proceed to entry in the usual manner after field investigation and examination.” The list attached described an area aggregating 3,041,000 acres in California and Wyoming— though, of course, the order only applied to the public lands therein, the acreage of which is not shown.

On March 27, 1910, six months after the publication of the Proclamation, William T. Henshaw and others entered upon a quarter section of this public land in Wyoming so withdrawn. They made explorations, bored a well, discovered oil and thereafter assigned their interest to the Appellees, who took possession and extracted large quantities of oil. On May 4, 1910, they filed a location certificate.

As the explorations by the original claimants, and the [468]*468subsequent operation of the well, were both long after the date of the President’s Proclamation, the Government filed, in the District Court of the United States for the District of Wyoming, a Bill in Equity against the Midwest Oil Company and the other Appellees, seeking to recover the land and to obtain an accounting for 50,000 barrels of oil alleged to have been illegally extracted. The court sustained the defendant’s demurrer and dismissed the bill. Thereupon the Government took the case to the Circuit Court of Appeals of the Eighth Circuit which rendered no decision but certified certain questions to this court, where an order was subsequently passed directing the entire record to be sent up for consideration.

The case has twice been fully argued. Both parties, as well as other persons interested in oil lands similarly affected, have submitted lengthy and elaborate briefs on the single and controlling question as to the validity of the Withdrawal Order. On the part of the Government it is urged that the President, as Commander-in-Chief of the Army and Navy, had- power to make the order for the purpose of retaining and preserving a source of supply of fuel for the Navy, instead of allowing the oil land to be taken up for a nominal sum, the Government being then obliged to purchase at a great cost what it had previously owned. It is argued that the President, charged with the care of the public domain,. could, by virtue of the executive power vested in him by the Constitution (Art. 2, § 1), and also in conformity with the tacit consent of Congress, withdraw, in the public interest, any public land from entry or location by private parties.

The Appellees, on the other hand, insist that there is no dispensing power in the Executive and that he could not suspend a statute or withdraw from entry or location any land which Congress had affirmatively declafed should be free and open to acquisition by citizens of the United States. They further insist that the withdrawal [469]*469order is absolutely void since it appears on its face to be a mere attempt to suspend a statute — supposed to be unwise, — in order to allow Congress to pass another more in accordance with what the Executive thought to be in the public interest.

1. We need not consider whether, as an original question, the President could have withdrawn from private acquisition what Congress had made free and open to occupation and purchase. The case can be determined on other grounds and in the light of the legal consequences flowing from a long continued practice to make orders like the one here involved. For the President's proclamation of September 27, 1909, is by no means the first instance in which the Executive, by a special order, has withdrawn land which Congress, by general statute, had thrown open to acquisition by citizens. And while it is not known when the first of these orders was made, it is certain that “the practice dates from an early period in the history of the government.” Grisar v. McDowell, 6 Wall. 381. Scores and hundreds of these orders have been made; and treating them as they must be (Wolsey v. Chapman, 101 U. S. 769), as the act of the President, an examination of official publications will show that (excluding those made by virtue of special congressional action, Donnelly v. United States, 228 U. S. 255) he has during the past 80 years, without express statutory authority — but under the claim of power so to do — -made a multitude of Executive Orders which operated to withdraw public land that would otherwise have been open to private acquisition. They affected every kind of land— mineral and nonmineral. The size of the tracts variéd from a few square rods to many square miles and the amount withdrawn has aggregated millions of acres. The number of such instances cannot, of course, be accurately given, but the extent of the practice can best be appreciated by a consideration of what is believed [470]*470to be a correct enumeration of such Executive Orders mentioned in public documents.1

They show that prior to the year 1910 there had been issued

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Cite This Page — Counsel Stack

Bluebook (online)
236 U.S. 459, 35 S. Ct. 309, 59 L. Ed. 673, 1915 U.S. LEXIS 1776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-midwest-oil-co-scotus-1915.