And now:Ish <[EMAIL PROTECTED]> writes:

>Date: Fri, 22 Jan 1999 14:33:25 -0800
>From: Tom Schlosser <[EMAIL PROTECTED]>
>Organization: Morisset Schlosser Ayer & Jozwiak, 801 2nd Ave., Ste. 1115,
Seattle, WA 98104, 206 386 5200, (206 386 7322 fax)
>X-Mailer: Mozilla 4.05 [en] (Win95; I)
>To: [EMAIL PROTECTED]
>CC: [EMAIL PROTECTED]
>Subject: Re: Court To Hear Southern Ute-Amoco Dispute
>Reply-To: [EMAIL PROTECTED]
>X-Comment: Nevada Indian Environmental Coalition
>
>    Here's an article from last summer with more info on this important
case.  The case can be found at:
>http://laws.findlaw.com/10th/941579v2.html
>
>Utes celebrate natural-gas decision
>By Electa Draper
>Denver Post Staff Writer
>
>July 22 - DURANGO - A federal appeals court ruling that the Southern Ute
tribe owns
>hundreds of millions of dollars worth of natural gas extracted from coal
could spark a
>modern day range war with non-Indians who thought they owned the minerals,
several
>landowners predicted Tuesday.
>
>Southern Ute tribal attorneys and associates were awash in celebratory
toasts into
>the early hours of Tuesday morning while many La Plata County landowners,
whose
>fortunes of the last decade could be stripped from them, were "drowning in
tears,'' as
>Durango-area mineral owner Bill Thurston put it.
>
>The appellate court's 6-3 decision Monday that the tribe owns the coal gas
reversed a
>lower court decision in 1994 that sided with defendant Amoco Production
Co., several
>other gas companies and 2,000 to 3,000 other mineral interest owners. Many
fear the
>reversal could spark hostilities between the wealthy Southwest Colorado
tribe and
>some of its neighbors. And worried mineral owners far from the reservation
said they
>are just waking up to the fact that the case has implications that could
rock their
>lives.
>
>Southern Ute tribal attorney Tom Shipps said the tribe is aware that the
court's ruling,
>if it stands, could impose a hardship on some mineral owners. "That's
something
>we're sympathetic to,'' Shipps said, "but, ultimately, we do not feel it's
the tribe's
>fault.'' He said that gas developers such as Amoco who pursued extraction
of coal
>gas before the tribal ownership issues were fully resolved are largely
responsible for
>false expectations among mineral owners. Amoco officials said Tuesday they
were
>very disappointed in the appellate court's decision and were considering
an appeal to
>the U.S. Supreme Court. The company also claims other defenses that,
officials say,
>would stop the tribe from recovering the wealth that coal-bed gas has
produced since
>the mid-1980s.
>
>For one thing, Amoco attorneys say, coal-bed gas production had been well
under
>way for several years before the tribe filed its suit claiming ownership
of the gas in
>December 1991.
>
>The U.S. Court of Appeals for the 10th Circuit ruled Monday that the
natural gas
>trapped within coal beds underlying 200,000 acres of the 700,000-acre
Southern Ute
>Reservation had been reserved to the U.S. government by Congress in its
Coal Land
>Acts of 1909 and 1910. The federal government conveyed its interest in the
coal to the
>tribe in 1938; the tribe claims it owns everything in the coal, including
the natural gas

>locked within it.
>
>Amoco claims that Congress reserved only the solid-rock coal and not the
gases.
>Amoco officials say the natural gas belonged to the farmers and others who
settled
>on parts of the reservation after the federal government opened it up to
homesteading
>at the turn of the century. Now, Amoco argues, those settlers' descendants
and other
>successors own the non-coal minerals, including all natural gas, whatever
its origin.
>
>In addition to the parties directly involved in the case, Amoco officials
claim, the ruling
>might also affect owners of more than 20 million acres of land in several
Western
>states - everywhere Congress reserved coal for the federal government but
not the
>land or other minerals such as natural gas. "It's a can of worms,'' said
Bayfield-area
>landowner Don Gosney, one of the largest mineral owners in the county.
"The ripple
>effect will be beyond belief. The lawyers for the next 100 years should
love it.''
>
>A three-judge appellate panel led by Chief Judge Stephanie Seymour had
first sided
>with the tribe in July 1997. Amoco asked for and was granted a rehearing
of the case
>before the full bench of the 10th Circuit in mid- March. The court
rendered its latest
>decision Monday. The appellate court said that Congress' intent regarding
coalbed
>gas was not plainly expressed in the 1909 and 1910 acts that reserved the
coal for
>the federal government. In such cases, the court said, the established
rule is that any
>uncertainty must be resolved in favor of the federal government or its
successors.
>"The direct legislative history of the coal land acts indicates that
Congress intended a
>reservation of coal that encompassed both the present and future economic
value of
>the coal,'' the court wrote, even though at the time the explosive gas
found in the coal
>was known as a hazard to coal miners and not a resource.
>
>Amoco still optimistic Amoco spokeswoman Margaret Laney in Denver said that
>Amoco is optimistic "it will ultimately prevail'' in the case. "We're not
giving up,'' Laney
>said. "We've seen many a case go back and forth. This one won't be
resolved for a
>very long time.'' Meanwhile, Amoco said, it must continue to suspend royalty
>payments to these mineral owners until a final, unappealable decision is
reached in
>the case on who should receive the money. By that time, it might be too
late for
>some, Gosney said. "It's doing a lot of damage now to local farmers and
ranchers
>who were depending on this income to survive in the farming and ranching
business,''
>Gosney said of the suspension of royalties. "Their notes are coming due
and the
>suspended royalties aren't helping them.'' Worried landowners in other
parts of the
>state where a federal coal reservation was made are now hearing from the
Bureau of
>Land Management and other federal agencies that there is a cloud on their
titles to
>natural gas, if it is extracted from reserved coal. Ron Leef, who owns 800
acres in
>Weston, 18 miles west of Trinidad, said he is flabbergasted by the potential
>ramifications of the case that he had just discussed with a BLM official.
>

>"We've been paying taxes on this land for 90 years,'' Leef said of
private landowners.
>"I've got 10 years of my life invested in it. I've got my kid's college
education and my
>retirement hanging on these few (gas) wells. I don't see how the federal
government
>can come in and just sweep this away from us based on a court case about
>something on an Indian reservation. "This is the biggest land grab I've
seen in the
>United States in my life, and I'm (in my 50s). No wonder people are
blowing up
>buildings around the United States. You can't just steal from people. You
can't just
>have $300,000 taken from you in one day.''
>
>Ish wrote:
>
>> Court To Hear Indian-Amoco Dispute
>>
>> .c The Associated Press
>>
>> By RICHARD CARELLI
>>
>> WASHINGTON (AP) -- The Supreme Court agreed Friday to referee a big-stakes
>> dispute between Amoco and an Indian tribe in Colorado over ownership of
>> methane gas contained in the coal located under the tribe's reservation.
>>
>> The justices said they will decide whether a pair of 90-year-old federal
laws
>> that gave the government ownership of the coal applied as well to
methane gas
>> found with it. A decision is expected by late June.
>>
>> For most of this century, such gas was viewed only as a dangerous
element of
>> coal mining, but relatively recent technological developments has made coal
>> bed methane commercially valuable.
>>
>> The Southern Ute Tribe, which undisputably owns the coal under its
>> reservation, contends it also owns the methane gas. But Amoco Production
Co.,
>> a subsidiary of Amoco Corp. that has purchased the right to drill for
natural
>> gas on the reservation, claims the methane is a natural gas it is
entitled to
>> take.
>>
>> A federal trial judge ruled for Amoco. But last July, the entire 10th U.S.
>> Circuit Court of Appeals reversed that decision in a 6-3 vote and ruled for
>> the tribe.
>>
>> In the appeal acted on Friday, lawyers for Amoco said the July ruling had
>> upset ``settled expectations of property rights in natural gas worth
billions
>> of dollars.''
>>
>> Amoco's lawyers argued the appeals court ``fundamentally
misinterpreted'' two
>> laws, the 1909 and 1910 Coal Land Acts that reserved federal ownership
of coal
>> while allowing the land surface to be bought by homesteaders.
>>
>> Lawyers for the tribe and the Clinton administration had urged the
justices to
>> reject Amoco's appeal.
>>
>> ``Congress has taken action in response to the court of appeals'
decision, and
>> it now appears that the decision will directly and immediately affect
only the
>> parties to this particular litigation,'' Justice Department lawyers told
the
>> court.
>>
>> But that assertion did not deter others in offering the justices their
>> unsolicited advice.
>>
>> Those who filed friend-of-the-court briefs supporting Amoco's appeal
included
>> the National Association of Royalty Owners, Independent Petroleum
Association
>> of America and five Western states -- Montana, New Mexico, North Dakota,
Utah
>> and Wyoming.
>>
>> The case is Amoco Production Co. vs. Southern Ute Indian Tribe, 98-830.
>>

>
>
>
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                     Unenh onhwa' Awayaton
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