Opinion ID: 156182
Heading Depth: 2
Heading Rank: 2

Heading: The Quiet Title Act's Statute of Limitations bars Rosette's lawsuit.

Text: 15 Actions brought pursuant to the Quiet Title Act are subject to a twelve-year statute of limitations. 28 U.S.C. § 2409a(g). That is, an action must be brought within twelve years of when the plaintiff knew or should have known of the claim of the United States. Id. The Quiet Title Act's statute of limitations is strictly construed in favor of the United States. Vincent Murphy Chevrolet Co. v. United States, 766 F.2d 449, 452 (10th Cir.1985); Knapp v. United States, 636 F.2d 279, 282 (10th Cir.1980). 16 Defendants argue that Rosette's action accrued in 1978, and, therefore, the statute of limitations bars its claims. We agree that Rosette's cause of action accrued in 1978. Mr. Burgett 2 himself bid on the geothermal lease in September 1978 when the Department of Interior offered to lease the geothermal resources at issue. In October 1978, after Amax Exploration was selected as the winning bidder, Mr. Burgett met with BLM officials to discuss calculation of royalty payments for his operations under Amax Exploration's lease. In addition, in December 1978, Rosette entered into an agreement with Amax Exploration whereby Rosette agreed to be bound by the terms of the lease and to make royalty payments. Finally, in February 1979, Rosette was formally designated as an operator under the lease. Thus, in 1978, Rosette knew or should have known that the United States claimed an interest in the geothermal resources. Rosette did not file suit until 1993, fifteen years later. 17 Rosette advances two reasons why its lawsuit should not be time-barred. First, Rosette claims that its cause of action accrued in 1993 when the BLM issued the shutdown order. Second, Rosette claims that the Quiet Title Act's statute of limitations was tolled by certain provisions of the Geothermal Steam Act of 1970, 30 U.S.C. §§ 1001-1028. We shall address each contention in turn. 18
19 Rosette argues that it was the Secretary's shutdown order, issued in 1993, that gave rise to its lawsuit. Regardless of what prompted Rosette to file suit, it now seeks to quiet title to the geothermal resources. Rosette did not file suit pursuant to the Administrative Procedures Act. Under the circumstances and the claims contained in its complaint, the Quiet Title Act provides Rosette's exclusive remedy. The Quiet Title Act is clear that a claim accrues when the plaintiff knew or should have known of the United States' interest. Rosette knew of the United States' interest in 1978, and it does not dispute this. The fact that it decided not to contest that interest until a disagreement arose cannot defeat the workings of the statute of limitations. 20
21 In the alternative, Rosette argues that even if its claim accrued in 1978, the Quiet Title Act's statute of limitations was tolled because the United States failed to comply with the requirements of the Geothermal Steam Act, 30 U.S.C. §§ 1001-1028. According to Rosette, the Geothermal Steam Act requires the United States to quiet title to geothermal resources when development is imminent. Rosette argues that because the United States failed to do so, it cannot now claim the benefit of the Quiet Title Act's statute of limitations. 22 The Geothermal Steam Act provides in relevant part as follows: 23 Geothermal resources in lands the surface of which has passed from Federal ownership but in which the minerals have been reserved to the United States shall not be developed or produced except under geothermal leases made pursuant to this chapter. If the Secretary of the Interior finds that such development is imminent, or that production from a well heretofore drilled on such lands is imminent, he shall so report to the Attorney General, and the Attorney General is authorized and directed to institute an appropriate proceeding in the United States district court of the district in which such lands are located, to quiet the title of the United States in such resources, and if the court determines that the reservation of minerals to the United States in the lands involved included the geothermal resources, to enjoin their production otherwise than under the terms of this chapter: Provided, That upon an authoritative judicial determination that Federal mineral reservation does not include geothermal steam and associated geothermal resources the duties of the Secretary of the Interior to report and of the Attorney General to institute proceedings, as hereinbefore set forth, shall cease. 24 30 U.S.C. § 1020(b) (first emphasis added). Rosette's tolling argument is unconvincing. If Rosette wanted to challenge the United States' authority to enter into the lease, it needed to file suit within the statute of limitations. We conclude that the Geothermal Steam Act did not toll the Quiet Title Act's statute of limitations.