Federal reservation of geothermal resources
Union Oil had developed or was seeking to develop wells on the land in Sonoma County, California in order to produce geothermal steam for generating electricity. The US Attorney General brought a quiet title action pursuant to 21(b) of the Geothermal Steam Act of 1970 to determine whether geothermal resources are included in the mineral reservation under the Homestead Act. The US District Court granted Union Oil's motion to dismiss for failure to state a claim upon which relief may be granted. On appeal, the Ninth Circuit reversed and remanded. In summary, the court concluded on the basis of the legislative history of the Stock-Raising Homestead Act that sources of energy are intended to remain in the government's possession, and the purposes of the Act will be best served by including geothermal resources in the reservation of mineral interests. Noting the strictly agricultural purpose of the Act, the subsurface estate reservation was broadly interpreted, even though title passed to all rights that were not expressly reserved. The court left open on remand the question of estoppel of the government from interfering with private lessees by developing subsurface resources compensation.This is a unique and intriguing decision, as it opens wide the definition of ''mineral interest,'' construing it in the timely terms of a valuable natural resource that may be in great demand for future energy needs. The decision is being appealed to the United States Supreme Court, and it will be interesting to observe whether this liberal interpretation of mineral interests will be upheld.
- OSTI ID:
- 5567427
- Journal Information:
- Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 18:1; ISSN NRJOA
- Country of Publication:
- United States
- Language:
- English
Similar Records
United States of America vs Union Oil Company of California. U. S. District Court, N. D. California Civ. No. 72-1866 GBH. [Ownership rights of geothermal steam and resources for public land leases; Stock Raising Homestead Act]
Development of geothermal resources and the 1970 Geothermal Steam Act: law in search of definition
Related Subjects
150400* -- Geothermal Energy-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
299002 -- Energy Planning & Policy-- Geothermal-- (-1989)
GEOTHERMAL RESOURCES
GOVERNMENT POLICIES
HEARINGS
LAWSUITS
LEGAL ASPECTS
MINERAL RESOURCES
MINERAL RIGHTS
NORTH AMERICA
OWNERSHIP
RESOURCES
USA