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Fenelon BOESCHE, Administrator of the Estate of F. W. C. Boesche, deceased, Appellant, v. Stewart L. UDALL, Secretary of the Interior, Appellee

United States Court of Appeals for the District of Columbia Circuit1961-11-16No. No. 16238
303 F.2d 204

Summary

Holding. The Secretary of the Interior properly canceled the Boesche lease because the application was insufficient under the Secretary's regulation requiring a minimum of 640 acres, as an adjoining tract covered only by a competing application remained available for leasing. The judgment affirming the District Court's sustaining of the cancellation is affirmed.

The Secretary of the Interior canceled an oil and gas lease that had been issued to Boesche on 80 acres of public land after discovering that a competing application by Cuccia and Conley satisfied all legal requirements. The Secretary operated under a regulation requiring noncompetitive lease applications to cover at least 640 acres, with an exception for land surrounded by unleased territory. The court upheld the cancellation, finding that an adjoining 40-acre tract covered only by a pending application—rather than an issued lease—remained "available for leasing" under the Secretary's reasonable administrative interpretation, making Boesche's smaller application deficient.

The court rejected Boesche's challenge to the Secretary's interpretation of his own regulation, noting that administrative agencies need not publish all interpretive guidance in the Federal Register when applying rules to specialized factual circumstances. The opinion emphasized that the Secretary possessed both the authority and responsibility to cancel leases issued on defective applications. The full court later reinstated the original division's affirming judgment after considering a petition for rehearing.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a noncompetitive oil and gas lease validly issued could be canceled when a competing application was properly filed
  • Whether the Secretary's regulatory requirement of a 640-acre minimum for noncompetitive leases was reasonable
  • Whether land covered only by a pending application qualifies as "available for leasing" under the Secretary's regulation
  • Whether administrative interpretations require Federal Register publication to have legal effect

Procedural posture

An appeal of a District Court judgment sustaining the Secretary of the Interior's cancellation of an oil and gas lease, followed by a petition for rehearing in banc which was denied and the original division judgment reinstated.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

PER CURIAM.

Appellee’s predecessor as Secretary of the Interior issued to appellant’s predecessor Boesche a noncompetitive oil and gas lease on 80 acres of public land. After the Boesche application was filed, Cuccia and Conley filed an application which complied fully with the law and the regulations. The Secretary directed the cancellation of Boesche’s lease and the District Court, we think correctly, sustained his action.

By § 17 of the Mineral Leasing Act a noncompetitive lease must be issued to the first applicant who qualifies. The Secretary is authorized to make rules and regulations. To promote efficient exploitation of mineral deposits on unproven lands, the Secretary requires by regulation that an application must cover at least 640 acres, with two exceptions, one of which is “Where the land is surrounded by lands not available for leasing under the act * * *." We agree with the District Court that this is a reasonable and valid regulation.

“Not available for leasing” may well mean, not available for leasing to anybody. Accordingly the Secretary “has always considered lands covered only by an outstanding application to be available for leasing.” Natalie Z. Shell, 62 I.D. 417, 419 (1955). This interpretation is reasonable and we should not reject it. In interpreting “an administrative regulation a court must necessarily look to the administrative construction of the regulation if the meaning of the words used is in doubt.” Bowles v. Seminole Rock & Sand Co., 325 U.S. 410, 413-414, 65 S.Ct. 1215, 89 L.Ed. 1700 (1945). When Boesche filed his application, an adjoining 40-acre tract had been applied for but not leased. Since that tract was “available for leasing” the Boesche application was insufficient.

Although the Secretary’s interpretation of his regulation had “general applicability and legal effect”, it was not necessary to publish it in the Federal Register. “The function of filling in the interstices of the Act should be performed, as much as possible, through * * * quasi-legislative promulgations of rules * * *. But any rigid requirement to that effect would make the administrative process inflexible and incapable of dealing with many of the specialized problems which arise.” Securities & Exchange Commission v. Chenery Corp., 332 U.S. 194, 202, 67 S.Ct. 1575, 91 L.Ed. 1995 (1947).

This court has held that the Secretary not only has authority to cancel a lease issued on a defective application but may be required to do so. McKay v. Wahlenmaier, 96 U.S.App.D.C. 313, 226 F.2d 35 (1955). Cf. Hawley v. Diller, 178 U.S. 476, 495, 20 S.Ct. 986, 44 L.Ed. 1157.

Affirmed.

On June 15, 1962, the court in banc entered the following order:

The court in banc having granted appellant’s petition for rehearing in banc on February 21, 1962, and the appeal having been reheard by the court in banc, and the court in banc now being of the view that the judgment of the division of this court should be reinstated,

It is ORDERED by the court in banc:

(1) that the order entered February 21, 1962, granting the petition for rehearing in banc and vacating the judgment of the division entered November 16, 1961, is hereby set aside;

(2) that the petition for rehearing in banc is hereby denied; and

(3) that the judgment of the division entered herein November 16, 1961, is hereby reinstated.

. 49 Stat. 677 (1935), as amended, 30 U.S.C.A. § 226.

. 41 Stat. 450 (1920), 30 U.S.C.A. § 189.

. Annie Dell Wheatley, 62 I.D. 292 (1955).

. 17 F.B. 5615 (June 21, 1952), as amended, 43 C.F.R. 192.42(d) (1961 Supp.).

. Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124; Western Union Telegraph Co. v. United States, 2d Cir.1954, 217 F.2d 579, 581.

. 49 Stat. 501 (1935), as amended, 44 U.S.C.A. § 305(a).

Wilbur K. Miller, Chief Judge, and Edgerton, Bazelon, Fahy, Washington, Danaher, Bastían and Burger, Circuit Judges.