United States v. Standard Oil Company of California, a Corporation

Standard Oil Co. of California (Standard) appeals from the district court’s award of summary judgment to the United States, in litigation involving the Navy’s and Standard’s unit operation of the Elk Hills Naval Petroleum Reserve. The matters in controversy are: (1) whether the Acting Secretary of the Navy exceeded his statutory authority, or misinterpreted relevant unit plan contract (UPC) provisions, by determining that certain land owned by Standard (called section “7R”), located outside the Elk Hills Reserve but adjoining it to the north, was properly included within the Unit; and (2) whether the Acting Secretary’s determination of “fair and equitable” terms and conditions for such inclusion was consistent with certain statutory and contractual provisions. The district court awarded summary judgment in favor of the United States on both issues. We affirm in part and reverse and remand in part.

I.

The complicated history of the origin, development, and operation of the Elk Hills Reserve is set forth in United States v. Standard Oil Co. (Asphalto), 545 F.2d 624 , 626-28 (9th Cir. 1976) (per curiam). Therefore, we set forth only those facts crucial to resolution of the matter…