Document: 446 U.S. 253 100 S.Ct. 1618 64 L.Ed.2d 196 UNITED STATES, Plaintiff,v.State of LOUISIANA et al. No. 9, Orig. Argued March 18, 1980. Decided April 28, Rehearing Denied June 16, See 447 930, 3007. Syllabus Held: 1. As the Special Master recommended, United States is not obligated to account for and pay Louisiana either value use Louisiana's share impounded funds that have been awarded paid State under mineral leases on lands off its Gulf Coast, or interest upon portion those funds. The Interim Agreement parties entered into in response this Court's ruling enjoining them from leasing wells disputed tidelands area except by agreement provided only payments made each lease within were be "in a separate fund Treasury States" and, determination ownership lands, taken party entitled them. contains no provision payment investment, there nothing agreement's word "impound," characterization arrangement as an escrow, imply obligation States' part money. impoundment having served intended purpose, all due made, has fulfilled obligations imposed it agreement. Pp. 261-266. 2. Contrary Master's recommendations, revenues derived areas zone contiguous coastline (Zone 1) adjudicated States. Outer Continental Shelf Lands Act authorizing make with existing issuance new "pending settlement adjudication" controversy ultimate ownership, stating pursuant such shall considered compliance certain validation requirements Act, does govern lessees Zone 1 so foreclose any federal claim respect payments. means more than lessee default long remains effect he makes required payments, basis reading waiver independent duty account, money State's derive but was 1950 decree specifying accounting sums received States, waived Agreement, excused above Act. 266-272. 3. Court accepts, acquiescence parties, recommendations collected severance taxes minerals removed P. 272. Exceptions supplemental report overruled sustained part, case remanded. Louis F. Claiborne, Washington, D. C., plaintiff. William J. Guste, Jr., Atty. Gen., Frederick W. Ellis, Baton Rouge, La., defendants. Mr. Justice BLACKMUN delivered opinion Court. We are concerned here features what appears final stage long-continuing sometimes strained between over proceeds Coast. Specifically at issue asserted on, of, Louisiana, unimpounded State. 2 * Litigation rights submerged Mexico coast began 30 years ago, 1948, when moved Court, original jurisdiction, leave file complaint. Government prayed (a) declaring against "underlying Mexico, lying seaward ordinary low-water mark outside inland waters, extending twenty-seven marine miles bounded east west, respectively, eastern western boundaries Louisiana," (b) requiring after 23, 1947, designated. Over opposition, requested granted. v. 337 902, 69 1040, 93 L.Ed. 1716 (1949). directed answer. 928, 1490, 1736 State, however, filed demurrer motions dismiss other relief. These denied. 338 806, 70 36, 94 488 3 then did answer, placing claims asserting affirmative defenses. plaintiff's responsive motion judgment set down argument. ruled California, 332 19, 67 1658, 91 1889 (1947), recently decided, controlled litigation. In case, had held California owner marginal belt along beyond mark, Federal primary power belt. rationale, said, "[n]ational must therefore paramount area." 339 699, 704, 914, 916, 1216 (1950). A enunciating possession "paramount rights" lack "title thereto property therein"; carrying activities purpose taking petroleum, gas, products without authority first obtained States; since 5, (the date opinion). 340 899, 71 275, 95 651 like companion Texas. Texas, 900, 276, 652 4 Submerged Stat. 29, 43 U.S.C. § 1301 seq., passed May 22, 1953, came these rulings. By statute, released coastal stated limits confirmed own therein limits. constitutional exercise Congress' dispose property. Alabama 347 272, 74 481, 98 689 (1954). 5 passage end controversy. Opposing continued asserted, conduct area. Accordingly, 1956, sought granted complaint suit present litigation) Louisiana. 350 990, 76 541, 856. forthwith enjoined "from beginning drilling . unless here." 351 978, 1043, 1494 (1956). ruling, October 12, designed permit further development dispute. Interpretation central task opinion. lawsuit continued, 1957 intervene. 354 515, 77 1373, 1525. 6 course held, among things, "to distance greater three geographical coastlines, wherever lines may ultimately shown be." 363 1, 79, 80 961, 1005, 1025 (1960). "Final Decree" accordingly. 364 502, 81 258, 247 That decree, one earlier litigation, land, minerals, natural resources underlying geographic coastline; recited interfering miles, (with exception inapplicable here); whenever location should agreed determined, render appropriate 1950, "either sale, leasing, licensing, exploitation otherwise [decreed States] provided, allocation, withdrawal now dated shall, subject terms hereof, accordance provisions said Agreement." Id., 503, S.Ct., 259. 7 On December 13, 1965, entered. 382 288, 86 419, 15 331. It generally reconfirmed respective theretofore determined; attributable State; directed, 75 days, other, id., 293, 421; retained jurisdiction particularly remainder area," 295, 423. 8 exact remained resolution. 381 139, 85 1401, 14 296 (1965), Congress left courts defining "inland waters," adopted purposes definitions contained international Convention Territorial Sea Contiguous Zone, ratified 1961. [1964] U.S.T. (pt. 2) 1607, T.I.A.S. 5639. 1969, which, consists "the line marking limit see 1301(c), also drawn Convention. decided refer particularized disputes precise boundary belonging 394 11, 89 773, 22 44. appointed. 395 901, 1737, 23 215 (1969). 9 second 20, 1971. 404 388, 92 544, 525. determined exclusive foot described; 389, partly landward thereof affected therefrom remain impoundment, 402, 557. 10 Still third 1972. 409 17, 1478, 34 170. that, exception, described shore, 17-18, 1479; land impoundment; wholly allotted 31, 1491. 11 thereafter his July 1974. overruled, accepted, prepare proposed establishing "a baseline entire Louisiana." 420 529, 530, 1180, 373 (1975). able agree, fourth 1975. 422 2022, 44 652. Exclusive affirmed baseline, 13-14, 2023. Cross-payments 90 days cross-accountings 60 ordered. 15, recited: "It understood unable agree whether 1956." 2024. accountings referred Master. 423 909, 96 211, 46 138 12 hearings objections interposed. He August 27, 1979. exceptions report. II 13 observed opinion, near long-enduring territorial dispute resolved. state formal entry yet another describing boundary, fixed. And sovereign. recites filing several accountings; agreements reached parties; fact issues unresolved. phrased Master, are: First issue—Is funds? 16 Second issue—Does 1? 17 Third subsequently belong States? 18 negative. recommended approved filed. 19 Before issue. issue, concerning taxes, thus here.1 absence we accept consider turn. III Stated Issue 20 1960, U.S., 259, being provided: 21 "IT IS FURTHER ORDERED America pending order 1494. "desire provide payable area, adjudication controversy." App. Reply Brief 9a. divided four zones described. designated next most 2, 3, 4. 10a-11a. comprising Zones "disputed 11a, conferred exceptions) responsibility collecting receipts zones, 26a-27a. ¶ 7(a), exclusions material here) impound sum equal heretofore hereafter lease, thereof, 3." 14a. Certain Paragraph provides: "[T]he herein intact, affected, until title determined. Whereupon, 24 25 "(b) Any finally owned [with material] herein," 26 officer 18a-19a. 27 Pursuant operations consequence 421, some $34 million Indeed, additional $136 1975, 14-15, 2023, made. But impounded, while they Treasury. asserts interest, apparently approximating $88 million, during period resists claims. 28 position least fourfold: (1) implied trust fiduciary trustee handling escrow established. presence evident relationship documentary evidence, admissions officials. (2) used Agreement. deposited general Treasurer where available, used, meet cash needs Government. (3) invest benefit both parties. This agreement; matter law; breached refusal honor request funds; supported 31 547a "[a]ll invested" interest-bearing securities; limited (4) Equitable remedies prevent unjust enrichment expense appropriate. 29 find merit contentions. express investment. Neither do anything "impound" or, indeed, (a appear agreement), implies application funds, take retain custody law." Black's Law Dictionary 681 (5th ed., 1979); Bouvier's 1515 (8th 1914). obligation, hold deliver intact. What actually happened here, course, lessees' checks cashed resulting commingled governmental operations. 14X6709, nonetheless, established books credit covered every receipt stockpile inflowing far corner vaults. special maintained accurately recorded increasing potential liability much recordkeeping device. never treated revenues. recognition contingent liability, corresponding deposited, enabled prompt congressional authorization appropriation. There proof even suggestion time insufficient amount might impoundment. Apart requirements, specific contract "express consent Congress," run Smyth 302 329, 353, 58 248, 252, 82 294 (1937); Albrecht 329 599, 605, 606, 609, 532 (1947); N. Y. Rayon Importing Co., 654, 658-659, 601, 603-604, 577 (1947). 2516. follows same true invest. 32 persuaded, also, omission, conscious one. When signed almost $60 already accumulated. importance obvious. pertinent two negotiators candidly conceded insist clause because knew would Tr. 70, 95, 98, 99, 102, 103, 163. Nor intimation willing pass silence expected short lived carry weight. itself specified term, year elapsed. 33 note, too, assert unaware invested know responsible interest. regular monthly reports amounts credited required. Those reflected accepted distribution, 1965 about communications flowed officers representatives Congress, suggesting deposit banks, presumably enjoy free Legislature, true, 6, 1967, House Concurrent Resolution 251, call steps necessary prudent effective investment impounded." 1967 Legislative Calendar 161-162. quoted language, precatory suggestive; demanding. At most, amounted change status. official, pleading authority, promptly returned negative fact, took upon, 1975 accounting. modification acquiesced decades. conclude purpose; performed. IV 35 concerns oil gas right permanently involved $19 million.2 36 During past decades administered acted unilaterally areas; date, given 37 concluded permitting administer demand to, Zone. acknowledge very opposite result "would certainly contrary." Supplemental Report 15. found centered 1336, which read foreclosing noted language regarding 4, although stressed agreement, notwithstanding adverse claim, (and 4), "shall supervision administration, authorize notice obtaining party." rentals question so. anticipated possibility portions leases, adjudged inserted granting extract parts leasehold conclusion drew keep prior recover 38 constrained disagree submission "ground rules" laid 1950. issued specified, principle independently not-yet-enacted roots decision 39 1953 ground rules. "confirmed" thereby "release[d] relinquishe[d] arising out [past] operations" 1311(b)(1). For belt, unchanged. suit, unambiguous matter, plain vitality 7, 83, n. 140, 1007, 140. cited footnote flatly: 40 "On 41 Texas cases, put possessed their coasts. [T]he relinquished [by Act]." preceding 1956 forced continuing conflict, injunction courts, 1956. noted, hereinabove first, nearest others requirement concurrence zone. Receipts "impounded." No 42 turned coincide meanders back forth across producing bulges side. successful accounted areas. Yet denies successfully claimed. abandoned life words waiver. hand, neither specifically eventual repayment recite: "nor hereof waiving manner right, whatsoever proceedings otherwise." measured surveyed fixed, inference baseline. 10a. persuade us reserving monetary expected, accounts enjoy, interim, area.3 45 complement detail administration authorized "respecting leases" ownership. 1336. focused attention. placed particular stress following sentence statute: "Payments stipulation section 1335(a)(4) title." 47 viewed governed foreclosed. 48 sentence. provision, feel, it. protects lessee. Whatever lessee's if any, turn be, 1336 Act; 49 buttressed actions rulings consistently indicate common understanding. 1960 prepared invitation 85, 1007. recognized once pay. distinguishing nonimpounded relating impounded. 294, 422. 373, implementing 652, places shoreward line. 1180. declared many places, correspond edge other. 15-16, 2023-2024. reason included informational purposes, rather spell parties' pecuniary obligations.4 V 50 summary: accept, overrule Instead, sustain rule Subject 51 owing, method payment. remanded proceedings. 52 53 MARSHALL, consideration case. 54 POWELL, whom STEWART REHNQUIST join, concurring dissenting part. 55 I concur disposition "second issue." Ante, framed ." 260. obligation. sustains 56 issues, including finding latter doubt, intimate familiarity "long-continuing controversy," ante, 254, appellate judge possibly can acquire studying available record. Although judgment, cannot erroneous. dissent asserts: "For variety reasons—including reluctance burden esoteric complex recurring importance—we excepting extraction jurisdiction." Memorandum Support Exception, p. total $23 million. figure, includes issue) longer claim. calculates will indebted sustained. concedes, offset moneys, excess $5 pp. 40-41, 23. recognize argues indebtedness smaller substance all, Some antedated merely repeating pattern. recital hardly acceptable device self-serving capable detrimental who surely thought getting, paying for, full value. note reach entail pressing hardship disgorging enjoyed doing depreciated dollars represented accumulated "split exceed claimed split due. 16-17, 2024-2025. asserts, content defer settled, waive likewise. 40.

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