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Show Utah to seek rehearing on oil shale in-lieu lands Utah almost certainly will ask the U.S. Supreme Court for a rehearing in the court's latest ruling on Utah's claims to oil shale lands, Utah assistant attorneys general Richard Dewsnup and Dallin W. Jensen said Monday. The closeness of the court's decision 5-4 against Utah's claims indicate the court had a tough time reaching a majority, they said. The decision affects millions of dollars in oil shale lease payments. Involved was a ruling that basically affirmed the Interior secretary's discretion in considering mineral value of lands sought by the state in its "in-lieu" "in-lieu" land selection programs. In-lieu selection dates back to statehood when Utah was granted the ultimate right to claim equivalent acreage for its share of lands not yet surveyed or which were ultimately taken over by the federal government for national parks, monuments and forests. In the late 1960's, Utah "selected" 157,000 acres of federal lands in the eastern Uintah Basin. In 1974, it filed action in federal district court to assert its title. Its contentions were upheld in federal district court in 1976 and affirmed by a U.S. appeals court in 1978. In 1974, in the wake of the OPEC embargo and oil price hike, three companies (Sohio Oil Co., Sun Oil Co. and Phillips Petroleum Co.) were successful bidders for development of two 5,200-acre federal prototype oil shale tracts in Utah, the so-called Ua and Ub These were among the 15,000 acres claimed by the state. Their joint venture, later called the White River Oil Shale Project, made a bonus bid of near $121 million for the right to develop tracts. However, after it had made three annual payments totaling about $73 million, and when title claims had not been settled, White River asked for and got an injunction to suspend the fourth and fifth payments. The $73 million was impounded by the federal court registry and has since, with interest accumulation, grown to about $102 million. Mr. Dewsnup and Mr. Jensen said the court's action does not preclude the Secretary of Interior from making a title award to Utah. It merely affirms his discretion in the matter. They also said they believe that once the state or federal title has been affirmed, af-firmed, developers will go ahead with projects on the two tracts. As for the state's claim on the bonus and rental moneys put up by White River? Had the state been declared owner, it would also have claim to all of the bonus and rental moneys. Formerly, under federal ownership, the state woula have gotten 37.5 percent. per-cent. Recently, however, the law was changed to accord the states 50 percent. And said, Mr. Dewsnup, though 37.5 percent was the rule when the bonus bids were made, the state may seek 50 percent if federal ownership is confirmedon con-firmedon grounds that the timing of distribution of the impounded funds is the ultimate arbiter. But there is no certainty that the White River sponsors even want to remain involved. On April" 30, they filed in federal district court requesting the federal and state governments quickly dispose of other contending title claims on the sections, or return all of the bonus money to the sponsors. Among these claims, as yet all unresolved are claims made by: Holders of unpatented placer oil shale claims filed prior to 1920. Ute Indian Tribe claims to all or nearly all of the 157,000 acres. Justheim Petroleum Co. and Peninsula Mining Co. to be first lease applicants if state ownership were affirmed. Earlier, the Department of Interior held that the location of oil shale placer claims constituted discovery of valuable mineral. Locators were entitled en-titled to patent. But when the Interior reversed its positions, holders of the such claims took the matter to federal court in Colorado where a judge found in favor of the holders. The matter has since been appealed to the Supreme Court. In action in federal district court in Utah, the Ute Indian Tribe claimed that the so-called Umcompaghre Reservation Reser-vation was never disestablished. Therefore, the oil shale lands in Utah belong to the Utes. |
