United States v. Navajo Nation

537 U.S. 488, 123 S. Ct. 1079, 155 L. Ed. 2d 60, 16 Fla. L. Weekly Fed. S 99, 196 A.L.R. Fed. 801, 71 U.S.L.W. 4146, 2003 U.S. LEXIS 1946, 2003 Cal. Daily Op. Serv. 1897
CourtSupreme Court of the United States
DecidedMarch 4, 2003
Docket01-1375
StatusPublished
Cited by194 cases

This text of 537 U.S. 488 (United States v. Navajo Nation) 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. Navajo Nation, 537 U.S. 488, 123 S. Ct. 1079, 155 L. Ed. 2d 60, 16 Fla. L. Weekly Fed. S 99, 196 A.L.R. Fed. 801, 71 U.S.L.W. 4146, 2003 U.S. LEXIS 1946, 2003 Cal. Daily Op. Serv. 1897 (2003).

Opinions

[493]*493Justice Ginsburg

delivered the opinion of the Court.

This case concerns the Indian Mineral Leasing Act of 1938 (IMLA), 52 Stat. 347, 25 U. S. C. § 396a et seq., and the role it assigns to the Secretary of the Interior (Secretary) with respect to coal leases executed by an Indian Tribe and a private lessee. The controversy centers on 1987 amendments to a 1964 coal lease entered into by the predecessor of Peabody Coal Company (Peabody) and the Navajo Nation (Tribe), a federally recognized Indian Tribe. The Tribe seeks to recover money damages from the United States for an alleged breach of trust in connection with the Secretary’s approval of coal lease amendments negotiated by the Tribe and Peabody. This Court’s decisions in United States v. Mitchell, 445 U. S. 535 (1980) (Mitchell I), and United States v. Mitchell, 463 U. S. 206 (1983) (Mitchell II), control this case. Concluding that the controversy here falls within Mitchell Fs domain, we hold that the Tribe’s claim for compensation from the Federal Government fails, for it does not derive from any liability-imposing provision of the IMLA or its implementing regulations.

I

A

The IMLA, which governs aspects of mineral leasing on Indian tribal lands, states that “unallotted lands within any Indian reservation,” or otherwise under federal jurisdiction, “may, with the approval of the Secretary , be leased for mining purposes, by authority of the tribal council or other authorized spokesmen for such Indians, for terms not to exceed ten years and as long thereafter as minerals are produced in paying quantities.” §396a. In addition “to providing] Indian tribes with a profitable source of revenue,” Cotton Petroleum Corp. v. New Mexico, 490 U. S. [494]*494163, 179 (1989), the IMLA aimed to foster tribal self-determination by “giv[ing] Indians a greater say in the use and disposition of the resources found on Indian lands,” BHP Minerals Int’l Inc., 139 I. B. L. A. 269, 311 (1997).

Prior to enactment of the IMLA, decisions whether to grant mineral leases on Indian land generally rested with the Government. See, e. g., Act of June 30, 1919, ch. 4, § 26, 41 Stat. 31, as amended, 25 U. S. C. § 399; see also infra, at 509 (describing § 399). Indian consent was not required, and leases were sometimes granted over tribal objections. See H. R. Rep. No. 1872, 75th Cong., 3d Sess., 2 (1938); S. Rep. No. 985, 75th Cong., 1st Sess., 2 (1937); 46 Fed. Cl. 217, 230 (2000). The IMLA, designed to advance tribal independence, empowers Tribes to negotiate mining leases themselves, and, as to coal leasing, assigns primarily an approval role to the Secretary.

Although the IMLA covers mineral leasing generally, in a number of discrete provisions it deals particularly with oil and gas leases. See 25 U. S. C. § 396b (requirements for public auctions of oil and gas leases); §396d (oil and gas leases are “subject to the terms of any reasonable cooperative unit or other plan approved or prescribed by [the] Secretary”); § 396g (“[T]o avoid waste or to promote the conservation of natural resources or the welfare of the Indians,” the Secretary may approve leases of Indian lands “for the subsurface storage of oil and gas.”). The IMLA contains no similarly specific prescriptions for coal leases; it simply remits coal leases, in common with all mineral leases, to the governance of rules and regulations promulgated by the Secretary. § 396d.

During all times relevant here, the IMLA regulations provided that “Indian tribes . . . may, with the approval of the Secretary ... or his authorized representative, lease their land for mining purposes.” 25 CFR §211.2 (1985). In line with the IMLA itself, the regulations treated oil and gas leases in more detail than coal leases. The regulations re[495]*495garding royalties, for example, specified procedures applicable to oil and gas leases, including criteria for the Secretary to employ in setting royalty rates. §§211.13, 211.16, 211.17. As to coal royalties, in contrast, the regulations required only that the rate be “not less than 10 cents per ton.” § 211.15(c). No other limitation was placed on the Tribe’s negotiating capacity or the Secretary’s approval authority.1

B

The Tribe involved in this case occupies the largest Indian reservation in the United States. Over the past century, large deposits of coal have been discovered on the Tribe’s reservation lands, which are held for it in trust by the United States. Each year, the Tribe receives millions of dollars in royalty payments pursuant to mineral leases with private companies.

Peabody mines coal on the Tribe’s lands pursuant to leases covered by the IMLA. This case principally concerns Lease 8580 (Lease or Lease 8580), which took effect upon approval by the Secretary in 1964. App. 188-220. The Lease established a maximum royalty rate of 37.5 cents per ton of coal, id., at 191, but made that figure “subject to reasonable adjustment by the Secretary of the Interior or his authorized representative” on the 20-year anniversary of the Lease and every ten years thereafter, id., at 194.

As the 20-year anniversary of Lease 8580 approached, its royalty rate of 37.5 cents per ton yielded for the Tribe only “about 2% of gross proceeds.” 263 F. 3d 1325, 1327 (CA Fed. 2001). This return was higher than the ten cents per ton minimum established by the then-applicable IMLA regula[496]*496tions. See 25 CFR § 211.15(c) (1985). It was substantially lower, however, than the 1214 percent of gross proceeds rate Congress established in 1977 as the minimum permissible royalty for coal mined on federal lands under the Mineral Leasing Act. See Pub. L. 94-377, §6, 90 Stat. 1087, as amended, 30 U. S. C. § 207(a). For some years starting in the 1970’s, to gain a more favorable return, the Tribe endeavored to renegotiate existing mineral leases with private lessees, including Peabody. See App. 138-139, 143-144.

In March 1984, the Chairman of the Navajo Tribal Council wrote to the Secretary asking him to exercise his contractually conferred authority to adjust the royalty rate under Lease 8580. On June 18, 1984, the Director of the Bureau of Indian Affairs for the Navajo Area, acting pursuant to authority delegated by the Secretary, sent Peabody an opinion letter raising the rate to 20 percent of gross proceeds. Id., at 8-9.

Contesting the Area Director’s rate determination, Peabody filed an administrative appeal in July 1984, pursuant to 25 CFR § 2.3(a) (1985). 46 Fed. Cl., at 222.2

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Bluebook (online)
537 U.S. 488, 123 S. Ct. 1079, 155 L. Ed. 2d 60, 16 Fla. L. Weekly Fed. S 99, 196 A.L.R. Fed. 801, 71 U.S.L.W. 4146, 2003 U.S. LEXIS 1946, 2003 Cal. Daily Op. Serv. 1897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-navajo-nation-scotus-2003.