Geomet Exploration, Limited v. Lucky Mc Uranium Corporation
601 P.2d 1339 (Ariz. 1979)
Under the General Mining
Law of 1872 (30 U.S.C. §22), people were allowed to make claims to
"valuable mineral deposits" they found on Federal lands.
Basically, if you discovered
a valuable mineral (like gold or uranium) you could "stake a
claim" and get a permit to mine the mineral and keep the profits.
Geologists working for Lucky
detected some geologic formations that were indicative of uranium deposits
on some Federal lands. Lucky staked claims on 200 plots of land, and did
some test drilling.
They didn't actually find
any uranium. They (temporarily) abandoned the land, while they focused
on exploring other claims.
Geomet entered the land
already staked by Lucky and did some drilling of their own. They actually
found uranium.
When Geomet tried to stake a
claim on the lands that Lucky had already claimed, Lucky sued for an
injunction.
Geomet argued that the Mining
Law very clearly states that
discovery must precede claim locations. Since Lucky hadn't actually
discovered any uranium, their claim was void.
Lucky argued that under Union
Oil Co. v. Smith (249 U.S. 337
(1919)), they didn't need to actually have discovered it, the doctrine of
pedis possessio gave them a possessory right to the
property while they were exploring it.
The doctrine of pedis
possessio says that a miner may hold
the place in which he may be working against all others while he is
working towards discovery.
The Arizona Supreme Court
found for Geomet.
The Arizona Supreme Court
looked to Cole v. Ralph (252 U.S.
286 (1920)) which said that if the first possessor should relax his
occupancy or cease working towards discovery, and another enters
peaceably, openly, and diligently searches for mineral, the first party
forfeits their right to exclusive possession under the requirements of pedis
possessio.
In this case, the Court
found that since Lucky wasn't occupying the land, they lost the right to
claim it under pedis possessio.
Lucky claimed that Geomet
entered the land in bad faith, since they knew Lucky had already staked a
claim, but the Court found that Geomet entered the land openly and
peaceably, and that was enough to find they were acting in good faith.