United States v. Gas & Oil Development Co.

• Decision Date: 29 June 1954
• Docket Number: Civ. A. No. 1529.
• Citation: 126 F. Supp. 840
• Court: U.S. District Court — Western District of Washington
• Parties: UNITED STATES of America, Plaintiff, v. GAS & OIL DEVELOPMENT CO., a corporation; Union Oil Company of California, a corporation; James E. Hill and Grays Harbor County; Tom Hawksworth, Los Nietos Company, a corporation; and all persons claiming an interest in real property herein described, Defendants, State of Washington and Grays Harbor County; Louise Napoleon Johns, Harvey Johns, Emily Johns, Floyd Johns, Lavina (Laura Johns) McLeod, Flora Strom and Vance Johns (a minor), Additional Defendants.

126 F. Supp. 840

UNITED STATES of America, Plaintiff, v. GAS & OIL DEVELOPMENT CO., a corporation; Union Oil Company of California, a corporation; James E. Hill and Grays Harbor County; Tom Hawksworth, Los Nietos Company, a corporation; and all persons claiming an interest in real property herein described, Defendants State of Washington and Grays Harbor County; Louise Napoleon Johns, Harvey Johns, Emily Johns, Floyd Johns, Lavina (Laura Johns) McLeod, Flora Strom and Vance Johns (a minor), Additional Defendants.

Civ. A. No. 1529.

United States District Court W. D. Washington, S. D.

June 29, 1954.

Charles P. Moriarty, U. S. Atty., and George E. Heidelbaugh, Asst. U. S. Atty., Seattle, Wash., for the United States and the Indian heirs.

Davidson & Nikoloric, Portland, Or., for Gas & Oil Development Co. Kenneth Davis, Seattle, Wash., and John L. Miller, Elma, Wash., for Hawksworth and associates.

Selander, Espedal & Clark, Seattle, Wash., for Ocean City Oil Fields, Inc.

Little, LeSourd, Palmer & Scott, Seattle, Wash., for James E. Hill and Union Oil Co. of California and Los Nietos Co.

E. Albert Morrison, Asst. State Atty. Gen. for State of Washington, for the State of Washington.

Don G. Abel, Pros. Atty., for Grays Harbor County, Aberdeen, Wash., for Grays Harbor County.

Edward E. Merges, Seattle, Wash., guardian ad litem for Vance Johns, a minor.

R. H. Riddell, Seattle, Wash., receiver.

Kenneth Roegner, Tacoma, Wash., master.

BOLDT, District Judge.

The original complaint in this equity proceeding seeking to quiet title to property described in the complaint in the United States as trustee for certain Indian wards was filed November 29, 1951. Three amended complaints were filed, the third on April 24, 1952. Thereafter additional parties were brought in by answer and cross-complaint of defendant Gas & Oil Development Company. Motion of defendant State of Washington to dismiss the action as to the State for want of jurisdiction of the subject matter and of the State was served February 2, 1952 and filed May 22, 1952. By an order entered on June 3, 1952, on the application of Hawksworth and Gas & Oil Development Company, a receiver was appointed by the Honorable James M. Carter, then sitting in this Court by assignment. The receiver was directed by the order to assume control over the real property and improvements involved in the action for preservation during pendency of the litigation and to provide financing for continued oil exploration and production on said property subject to the order of the Court.

The transcript of the several hearings before Judge Carter prior to the appointment of the receiver indicates that although the State's motion to dismiss was called to the Court's attention no hearing thereon was had or requested and no objections were made to the appointment of the receiver. Thereafter Judge Carter heard various matters relating to the receivership, including a hearing in Los Angeles and authorization for a contract by the receiver with Ocean City Oil Fields, Inc. for extensive oil drilling operations, all without further objection to jurisdiction. The present judge first heard matters in this case on September 18, 1953 following the filing on September 12, 1953 of a stipulation and order transferring jurisdiction of the receivership and all matters incident thereto from Judge Carter to the present judge. The stipulation was signed by counsel representing all parties, including the State of Washington. At the commencement of the hearing on September 18, 1953, following examination of the voluminous files, the Court specifically enumerated all of the undetermined matters for consideration and determination of the Court at that date. Such enumeration did not include a challenge to the jurisdiction of the Court and such challenge was not mentioned in response to the Court's inquiry as to whether any matters had been overlooked or omitted in the enumeration.

At the September 18, 1953 hearing, forfeiture of a $25,000 cash performance bond deposited with the receiver pursuant to the Oil City Fields, Inc. contract was ordered at the instance of the adverse parties, including the State of Washington, and order to such effect was entered October 5, 1953. At the next hearing before the present judge on October 21, 1953 an enumeration of matters then to be heard did not include a challenge to jurisdiction and again the Court was not asked to consider such challenge.

On October 28, 1953 a hearing on the receiver's report was had, the report approved, and allowance of receiver's fee authorized without objection by the State of Washington. On February 1, 1954 a master was appointed to take evidence and report as directed in the order, such order being drafted, approved and presented for entry by counsel for the State of Washington. The master's report was filed May 4, 1954; a supplemental report was filed June 16, 1954 correcting the original report in certain particulars and at the hearing on the State's objections to the report the master was directed to take evidence and report on additional facts; the report thereon was filed June 28, 1954. The cause came on for trial June 22 and 23 but no additional evidence was presented to the Court following the hearing on the master's report. With the corrections provided for in the master's supplemental report and the additional facts found by the master as directed, no objection by any party as to the facts found by the master remains to be determined. Accordingly, such facts are accepted and found by the Court and the master's report with respect to the following findings of facts is approved in entirety:

During his lifetime Samson Johns was an enrolled Indian of the Quinault Tribe and settled upon lots 3 and 4, Sec. 15, Township 18 North, Range 12, W.W.M., Grays Harbor County, State of Washington. He married about the year 1880, raised a family and continuously resided on the premises until his death in 1930. Since the date of his death his heirs, Louise Napoleon Johns, Harvey Johns, Emily Johns, Floyd Johns, Lavina McLeod, Flora Storm and Vance Johns, have been in possession of the lands. Samson Johns made final proof by affidavit dated August 11, 1899, and on September 7, 1900 the Secretary of the Interior issued a fee simple patent covering lots 3 and 4 pursuant to the provisions of the Act of May 20, 1862, and his patent was duly recorded in the General Land Office (Washington Vol. 131, p. 337). In the year 1916 the Secretary of the Interior cancelled the fee simple patent and issued to Samson Johns a trust patent in lieu thereof covering the same lands, the trust period to expire in the year 1966. The lands are bounded on the west by the Pacific Ocean, and since Samson Johns' occupation there have been considerable accretions caused by the action of the ocean. Between the years 1858 to 1880, both dates inclusive, the accretions to lots 3 and 4 were approximately 50 acres, and during the years 1858 to 1900, both dates inclusive, the accretions to the lots were approximately 56 acres. The Gas & Oil Development Company and the Union Oil Company have drilled two oil wells on the accreted lands, known as State Oil Wells Nos. 3 and 4, under leases or permits from the ...