Blackfeet Tribe of Indians v. State of Montana, Director of the Montana Department of Revenue, Glacier County, Montana, and Pondera County, Montana

This case involves the scope of state authority to tax the proceeds of tribal mineral leases, and requires that we examine a series of congressional enactments regulating the leasing of tribal land for oil and gas production.

Between 1932 and 1968, the Blackfeet Tribe executed 125 leases authorizing the mining of oil and gas on tribal land located within the Blackfeet Indian Reservation. Approximately 12 of the leases were made under the authority of the Act of February 28, 1891, ch. 383, 26 Stat. 795 , as amended by the Act of May 29, 1924, ch. 210, 43 Stat. 244 (codified at 25 U.S.C. §§ 397-98 (1976)). The balance of the leases were made under the authority of the Act of May 11, 1938, ch. 198, 52 Stat. 347 (codified at 25 U.S.C. §§ 396a-396g (1976)). All 125 leases remain in operation today and will continue until the oil and gas supply is exhausted. The Tribe is paid royalties calculated on the basis of the amount of gas or oil produced under the leases. The State of Montana imposes four distinct taxes on the Tribe’s royalty interests, without distinguishing between the royalties collected pursuant to 1938 Act leases and the royalties collected under 1891 Act leases. See…

with whom WALLACE and KENNEDY, Circuit Judges, join, concurring and dissenting:

I concur, but with additional reasons, in the majority’s holding that the 1938 Act did not impliedly repeal the 1924 Act. I respectfully dissent, however, from the majority’s view that the 1924 Act’s taxing authorization is inapplicable to leases entered into after promulgation of the 1938 Act.

My disagreement has three bases. First, the majority misapplies well-established rules of statutory construction by stating that the issue is whether the 1938 Act “expressly incorporated” the 1924 Act’s taxing authorization. Majority Opinion at 13. Once having concluded that the 1924 Act is still in effect, I fail to understand how it can be construed to have no force. Second, there has been a long-standing and consistent interpretation by the Department of Interior of the continued effectiveness of the 1924 Act’s taxing authorization. I find this prior consistent interpretation much more indicative of the intended effect of the 1938 Act on the 1924 Act than the Department’s reversal of its prior position in 1977. Third, if Congress meant to abrogate the authority of the states to tax the extraction of mineral…

729 F.2d 1192 BLACKFEET TRIBE OF INDIANS, Plaintiff-Appellant, v. STATE OF MONTANA, Director of the Montana Department of Revenue, Glacier County, Montana, and Pondera County, Montana, Defendants-Appellees. No. 81-3041. United States Court of Appeals, Ninth Circuit. Argued and Submitted En Banc Nov. 16, 1983. Decided April 3, 1984. Richard B. Collins, Boulder, Colo., for plaintiff-appellant. Helena S. Maclay, Missoula, Mont., Chris D. Tweeten, Asst. Atty. Gen., Helenea, Mont., Deirdre Boggs, Missoula, Mont., for defendants-appellees. Appeal from the United States District Court for the District of Montana. Before GOODWIN, WALLACE, KENNEDY, ANDERSON, FLETCHER, FARRIS, PREGERSON, CANBY, BOOCHEVER, NORRIS and REINHARDT, Circuit Judges. FLETCHER, Circuit Judge: 1 This case involves the scope of state authority to tax the proceeds of tribal mineral leases, and requires that we examine a series of congressional enactments regulating the leasing of tribal land for oil and gas production. 2 Between 1932 and 1968, the Blackfeet Tribe executed 125 leases authorizing the mining of oil and gas on tribal land located within the Blackfeet Indian Reservation. Approximately 12 of the leases were…