BP America Production Co. v. Burton
Issues
In its attempt to recover gas and oil royalties through administrative orders, is MMS, a government agency, bound by the six-year statute of limitations that governs actions for money damages brought by the United States?
The Mineral Leasing Act of 1920, 30 U.S.C. 181 et seq., and other statutes charge the Secretary of the Interior with leasing federal and Indian lands for development of oil and gas resources. The Minerals Management Service ("MMS") administers the leases. In the wake of a dispute over royalties, the Minerals Management Service (“MMS”), sought to recover, through administrative order, contractual damages which arose more than six years beforehand. Petitioners, producers of natural gas, claim that the collection of these damages is barred by the limitations period set forth in 28 U.S.C. § 2415. MMS claims that this limitation period does not apply because the statute only applies to actions in court and not to administrative proceedings. The Supreme Court’s ruling will affect the parity of contractual relations between private citizens and the government with respect to the resolution of contract disputes.
Questions as Framed for the Court by the Parties
Whether - contrary to the decision below but consistent with decisions of the Tenth and Federal Circuits - the limitations period in 28 U.S.C. § 2415(a) applies to federal agency orders requiring the payment of money claimed under a lease or other agreement.
Under the Mineral Leasing Act of 1920, 30 U.S.C. 181 et seq. and other statutes, the Secretary of the Interior leases federal and Indian lands for development of oil and gas resources. Brief for Respondents at 2. Petitioner BP America Production Co. ("BP") is the successor in interest to oil and gas producers Amoco Production Company ("Amoco") and Atlantic Richfield Company and Vastar Resources, Inc.