Opinion ID: 210370
Heading Depth: 3
Heading Rank: 4

Heading: Control of the Management and Collection of Coal Mining Royalties

Text: In addition, the government assumed comprehensive control of the management and collection of royalties from coal mining. Section 303 of the Federal Oil and Gas Royalty Management Act of 1983 directed the Secretary of the Interior to study the question of the adequacy of royalty management for coal, uranium and other energy and nonenergy minerals on Federal and Indian lands. The study shall include proposed legislation if the Secretary determines that such legislation is necessary to ensure prompt and proper collection of revenues owed to the United States, the States and Indian tribes or Indian allottees from the sale, lease or other disposal of such minerals. Concluding that the existing auditing systems should be extended to cover solid minerals royalty management in addition to oil and gas and that new legislation was not required to do so, 51 Fed.Reg. 15,764 (Apr. 28, 1986), the Department of the Interior promulgated regulations for solid minerals such as coal, requiring the maintenance and access to records, the accounting and auditing of royalties, and the collection of royalties. See 30 C.F.R. Parts 212, 216, 218 (1987). Also pursuant to the Federal Oil and Gas Royalty Management Act of 1983, the Department of the Interior promulgated 30 C.F.R. Part 206 Subpart F (1989), which prescribes the procedures to establish the value, for royalty purposes, of all coal from Federal and Indian Tribal and allotted leases. 30 C.F.R. § 206.250(a) (1989). These rules largely continue past practice for coal valuation, 54 Fed.Reg. 1492 (Jan. 13, 1989) (stating purpose and background in final rule); adopt valuation methods [that] would yield a reasonable and long-term maximum rate of return for both Federal and Indian leases, 52 Fed. Reg. 1840 (Jan. 15, 1987) (stating purpose and background of proposed rulemaking notice); and are intended to ensure that the trust responsibilities of the United States with respect to the administration of Indian coal leases are discharged in accordance with the requirements of the governing mineral leasing laws, treaties, and lease terms, 30 C.F.R. § 206.250(d). Citing Navajo III, 537 U.S. at 508 n. 12, 123 S.Ct. 1079, the government emphasizes that 30 C.F.R. Part 206 Subpart F was not promulgated until 1989, after the events at issue in this case, and as such, until 1989 the regulation was just that  a practice  and therefore irrelevant to Tucker Act jurisdiction. U.S. Br. 42-43. While it is true that the regulation was adopted after the events at issue, Navajo III, 537 U.S. at 508 n. 12, 123 S.Ct. 1079, the government does not dispute that the asserted sections of 30 C.F.R. Part 206 Subpart F describe actual practices that existed at the time of the lease amendments and that such practices are within the Department of the Interior's authority. Where the government exercises actual control within its authority, neither Congress nor the agency needs to codify such actual control for a fiduciary trust relationship that is enforceable by money damages to arise. See Apache, 537 U.S. at 475, 123 S.Ct. 1126 (finding a fair inference that an obligation to preserve the property improvements was incumbent on the United States as trustee where government exercised its discretionary authority to supervise and occupy property); see also Mitchell II, 463 U.S. at 225, 103 S.Ct. 2961 ([W]here the Federal Government takes on or has control or supervision over tribal monies or properties, the fiduciary relationship normally exists with respect to such monies or properties (unless Congress has provided otherwise).). Therefore, the practices described by 30 C.F.R. Part 206 Subpart F are relevant and support a finding that the government had comprehensive control of the management and collection of royalties from coal mining.