Opinion ID: 620486
Heading Depth: 3
Heading Rank: 1

Heading: History of the Reservation and Mineral Leasing

Text: The Tribes share an undivided interest in the Reservation in Wyoming. 1 Shoshone Indian Tribe of the Wind River Reservation v. United States, 51 Fed. Cl. 60, 61 (2001) (“Shoshone I”). On March 3, 1905, Congress ratified an agreement between the Government and the Tribes, whereby the Tribes ceded, granted, and relinquished to the Government all of their rights, title, and interest in approximately 1,480,000 acres of the Reservation. Shoshone III, 93 Fed. Cl. at 452; see also Pub. L. No. 58-185, 33 Stat. 1016, Art. I (1905). These so-called “ceded lands” were to be “disposed of by the United States under the provisions of the homestead, town-site, coal, and mineral land laws or by sale for cash—with proceeds to be paid to [the Tribes].” Shoshone III, 93 Fed. Cl. at 452 (citing 33 Stat. 1016, Art. II). The Government, moreover, agreed to act as trustee for the Tribes; it would dispose of the ceded lands and deliver the proceeds to the Tribes. Shoshone III, 93 Fed. Cl. at 452 (citing 33 Stat. 1016, Art. IX). At some point around 1910, it became apparent that some of the ceded lands contained potentially valuable oil and gas resources. Shoshone III, 93 Fed. Cl. at 452. This discovery prompted Congress to enact the Act of August 21, 1916, Pub. L. No. 64-218, 39 Stat. 519-20 (1916) (the “1916 Act”), which authorized “the Secretary of the Interior to lease, for production of oil and gas, ceded lands of the [Reservation].” Id. Proceeds from these leases would be for the use and benefit of the Tribes. Id. Under the 1916 Act, leases: (1) were for a period of twenty years; (2) 1 For a detailed discussion of the history of the Reservation, see Shoshone II, 364 F.3d at 1342–43. 5 SHOSHONE INDIAN TRIBE v. US could be renewed for successive periods of ten years “upon such reasonable terms and conditions as may be prescribed by the Secretary of the Interior”; (3) had a minimum royalty rate of ten percent; and (4) if there was no oil or gas production, the leases had a rental rate of not less than one dollar per acre per year. Id. Unlike the 1916 Act, which applied to the ceded lands of the Reservation, the Indian Mineral Leasing Act, Pub. L. No. 75-506, 52 Stat. 347 (1938) (codified at 25 U.S.C. §§ 396a–396g (2006)) (the “1938 Act”), does not apply to ceded lands. Id. at § 396f. While the 1916 Act leases were for fixed periods and did not require oil or gas production, leases under the 1938 Act were “for terms not to exceed ten years and as long thereafter as minerals are produced in paying quantities.” Id. at § 396a. In addition, leases under the 1938 Act are between the lessee and the Tribes. Id. The 1938 Act, moreover, requires competitive bidding for new leases. Id. at § 396b. Shortly after passage of the 1938 Act, Congress ordered the Secretary of the Interior to restore ownership of “all undisposed-of surplus or ceded lands within” the Reservation to the Tribes. Act of July 27, 1939, Pub. L. No. 76-238, 53 Stat. 1128 (1939). On May 17, 1940, and August 10, 1944, the Secretary of the Interior restored all seven Claim II parcels to the Tribes, subject to any valid existing rights. Shoshone III, 93 Fed. Cl. at 453 (citations omitted). While the seven Claim II parcels were no longer ceded lands, the 1916 Act leases for these parcels remained in force. Of course, any new leases for restored portions of the Reservation, which were not previously leased, would have to be made pursuant to the 1938 Act because such lands were no longer ceded. SHOSHONE INDIAN TRIBE v. US 6