The Dredge Corporation v. J. Russell Penny, State Supervisor, Bureau of Land Management

Proceeding under the Declaratory Judgment Act, 28 U.S.C. § 2201 (1964), appellant has brought suit to invalidate a decision of the Secretary of the Interior declaring void certain unpatented mining claims of appellant located in Clark County, Nevada. Summary judgment was rendered in favor of appellees.

Pursuant to the Small Tract Act, 52 Stat. 609 , (1938), 43 U.S.C. § 682a (1964), the Bureau of Land Management, on November 21, 1951, and January 25, 1952.- issued orders classifying all but forty acres of the land in dispute as suitable for small tract use. Subsequently at various dates prior to July, 1952, all of the classified area, with the exception of two five-acre tracts, was leased to third parties under the provisions of the Act. The two five-acre tracts not so leased were included in an oil and gas lease issued by the Department.

The Act provides in part that “patents for all tracts purchased under the provisions of this Act shall contain a reservation to the United States of the oil, gas, and other mineral deposits, together with the right to prospect for, mine, and remove the same under such regulations as the Secretary may prescribe.” By Regu lation the Secretary has…