to the United States under the treaty of peace ratified on Apr. 11, 1899 (30 Stat. 1754), who did not elect thereunder to remain a subject of Spain, became a citizen of Puerto Rico under the provisions of the Foraker Act of Apr. 12, 1900 (31 Stat. 77, 79; 48 U.S.C. 733), and acquired the status of a naturalized citizen of the United States under the provisions of the Jones Law of Mar. 2, 1917 (39 Stat. 951, 953; 8 U.S.C. 602, note). 58-135

A State may properly be regarded as a "citizen of the United States" within the meaning of that term as used in the Color of Title Act, and may apply for the benefits of the act. 60-465

CLAIMS AGAINST THE UNITED STATES

(See also Contracts; Irrigation Claims; Torts)

The term "erroneously allowed" as used in the act of June 16, 1880 (21 Stat. 287) has reference solely to erroneous action on the part of the Government, and furnishes no authority for repayment where a railroad selection list was canceled on relinquishment filed by the company after it was ascertained that the lands were not of the character represented at the date the lists were tendered to the district land office. 53-46

The Government cannot, except with the consent of Congress, be sued for the torts, misconduct, misfeasance, or laches of its officers or employees, but it is liable for property taken or injured by its employees for public use. 53-399

Section 236, Revised Statutes, as amended by section 305 of the act of June 10, 1921 (42 Stat. 24), confers upon the General Accounting Office authority to settle and adjust all claims, demands, and accounts in which the United States is concerned either as debtor or creditor, and the decisions of the accounting officer are controlling upon administrative officers of the Government.

53-586

As a general rule, no administrative officer of the United States is vested with authority to extend without consideration the time of payment of a debt due the United States. 54-335

Whether or not an inventor employed by the Interior Department, who makes an invention while so employed files a patent

application under the act of Mar. 3, 1883, as amended (35 U.S.C. 45), the Government is immune from suit for the use of the invention and is prohibited from paying him royalties for its use under the act of June 25, 1910 (36 Stat. 851), as amended by the act of July 1, 1918 (40 Stat. 705; 35 U.S.C. 68). 59-230

CLAIMS BY THE UNITED STATES Instructions of May 3, 1928, accounts. Paragraph 85, Cir. No. 616 (Aug. 9, 1918, 46 L.D. 513), amended. (Cir. No. 1148.) 52-365

Section 236, Revised Statutes, as amended by section 305 of the act of June 10, 1921 (42 Stat. 24), confers upon the General Accounting Office authority to settle and adjust all claims, demands, and accounts in which the United States is concerned either as debtor or creditor, and the decisions of the accounting officer are controlling upon administrative officers of the Government. 53-586

Interest accruing upon deferred charges under the moratorium act of Apr. 1, 1932 (47 Stat. 75), is neither a construction charge under section 3, nor an operation and maintenance charge under section 6 of the extension act of Aug. 13, 1914 (38 Stat. 686), and is not, therefore, subject to the delinquency penalty imposed by subsection H of section 4 of the act of Dec. 5, 1924. 54-86

The Federal statutes relative to the payment of debts and demands due the United States do not require the acceptance of money only in the settlement of such debts and demands, and accordingly the proper administrative official representing the United States may, where it would be to the interest of the United States, accept a "call" warrant for indebtedness of an irrigation district under its contract with the United States Reclamation Service for operation and maintenance of storage works, such warrant to be held by the United States until paid. 54-264

The provision in section 14 of the act of Dec. 21, 1928 (45 Stat. 1065), that "claims of the United States arising out of any contract authorized by this act shall have priority over all others" entitles the United States thereto only so long as the

Where claimant was still indebted to the Government for part of the purchase price of the subject matter of the claim, under a specific reimbursable agreement, the superintendent or other bonded officer of the Indian Service, to be determined by the Secretary of the Interior, to whom payment will be made under the act of Feb. 25, 1933 (47 Stat. 907), should be governed by the Reimbursable Regulations in order to protect the interests of the Government in the matter of the unpaid account. 57-121

An administrative officer is without authority to require reimbursement, either by withholding compensation or otherwise, from an employee for damage to Government property caused by the employee's negligence, since an officer or employee may not be administratively deprived of his lawful compensation, and is as much entitled to his day in court as any other citizen against whom the United States may assert a claim. The appropriate procedure is to refer such a claim to the Department of Justice for action if a request 57-334 for payment is unsuccessful.

Moneys legally due the Government under a contract and not paid, by reason of a mistake of law, may be set off against a of the contractor. subsequent claim

57-500

The departmental operation and maintenance assessments constitute a first lien in favor of the United States, and delinquencies in the payments of the assessments are properly subject to the interest penalty provided by 25 CFR (1940) 100.8. 58-41

The provisions of section 245.21(h) (43 CFR, 1944 Cum. Supp.) of the regulations of Dec. 14, 1942, which permit the Secretary of the Interior to prescribe a uniform accounting system for grantees of rightsof-way are a necessary means of insuring uniform reports which is within the discretionary authority of the Secretary, but because the purposes of the Department are fulfilled by the grantee's adoption of a system of accounting prescribed by the Federal Power Commission it is desirable that this section of the regulations should

be qualified by a proviso that adoption of such system shall be deemed compliance with the requirement of this section. 58-608

COAL LANDS

A coal-land withdrawal continues to be effective so long as it remains unrevoked, notwithstanding that the withdrawn lands had been classified as noncoal prior to the withdrawal. 52-336

A coal-land application for land that presumptively passed under a school-land grant is not a "valid claim" within the purview of the saving clause of the leasing act of Feb. 25, 1920 (41 Stat. 437). 52-503

Section 3 of the act of June 22, 1910 (36 Stat. 583) authorizes the Secretary of the Interior to require a bond before allowing any person to enter upon land patented with reservation of the coal to the United States for the purpose of prospecting thereon, but when the right to mine and remove the coal has been acquired his authority to require such a bond no longer exists. In the latter event the owner of the surface estate may by proper court proceedings protect himself from injury or loss in his improvements or crops. 53-444

Instructions of Oct. 28, 1931, coal lands; action upon proof, Rule 7, Cir. No. 276 (Oct. 30, 1913, 42 L.D. 474) amended. (Cir. No. 1261.) 53-518

Section 2 of the act of June 16, 1880 (21 Stat. 287), provides that "where, from any cause, the entry has been erroneously allowed and cannot be confirmed, the Secretary of the Interior shall cause to be repaid *** purchase money *** paid upon the same *** whenever such entry shall have been duly canceled by the Commissioner of the General Land Office ***" Coal land entries were canceled because (1) the entrymen had been guilty of fraudulent and illegal conduct, and (2) the entries should not have been allowed because of defects apparent on the face of the papers filed. The entrymen then applied for repayment of the purchase price of the lands, pursuant to the statute. Held: (1) The applications for repayment must be denied because one of the grounds for cancellation of the entries was the fraudulent conduct

of the entrymen. (2) The statute (21 Stat. 287) is construed to mean that where one of the grounds for cancellation of an entry is fraud, repayment must be refused, even though in addition the entry has been erroneously allowed because of mistake or error on the part of the land officers. (3) The statute is based upon equitable principles, and should be administered accordingly, hence applicants for repayment, whose entries have been canceled partly because of their fraudulent conduct, should be denied relief; the "clean-hands" doctrine should be applied.

56-73

Regulations of June 10, 1933, in re coal trespass, amending Cir. No. 953, July 19, 1924 (See 50 L.D. 501); Cir. No. 1135 (Oct. 1, 1927, 52 L.D. 216) and Cir. No. 1309. 54-226

Regulations of Oct. 30, 1933, amending Cir. 679 (47 L.D. 489), coal land regulations (Cir. No. 1314). 54-318

Circular No. 1309 (Aug. 17, 1933, 54 I.D. 226) amended Sept. 4, 1935. (Cir. No. 1366.) Coal Trespass Regulations.

55-347

The issuance of leases on the unreserved coal lands and coal deposits in Alaska is within the discretion of the Secretary of the Interior. 60-293

The determination by a bureau official, under a delegation of authority from the Secretary, that prospecting or exploratory work is necessary to determine the workability of coal deposits on an unclaimed, undeveloped area of public land involves an exercise of judgment, and an interested party who wishes the head of the Department to reverse such a determination must take timely action to bring the matter to the attention of the head of the Department. 60-516

Where a party protested against favorable action being taken by the Bureau of Land Management on an application from another person for a coal prospecting per

Where the holder of a coal prospecting permit, as the result of prospecting work done on the land covered by the permit, has demonstrated that the land contains coal in commercial quantities and has submitted an application for a preferenceright coal lease on the land, the longestablished policy of the Department permits the applicant to begin the commercial mining of coal from the land without awaiting the actual issuance of a lease to him. 60-516

A requirement that an assignee of a coal lease pay charges which became due under the lease before the lease was assigned to him is proper where the assignment recites that the assignee desires to assume all of the obligations of the lease and where one of the lease covenants provides that obligations thereunder shall extend to and be binding upon assigns, even though, when the assignment was approved, the Department erroneously stated that the lease account was in good standing. 61-340

II. APPLICATIONS

Where an applicant for a coal prospecting permit dies, one who was copermittee with the applicant in a previous permit which had expired including the same land and also a colessee and copartner under a coal lease for adjacent land has no rights cognizable by the Land Department in connection with the application. 53-699

Upon the death of an applicant for a coal prospecting permit, persons to whom the deceased applicant undertook to devise it will not be allowed to obtain the permit in their names because of the provisions of the applicant's will, but the executors of the deceased applicant will be allowed to file a permit application and bond, where

upon the permit may issue to the estate. 53-700

Instructions of Jan. 24, 1934, amending regulations (Cir. 679, 47 L.D. 489), governing applications for coal prospecting permits and leases. 54-350 Instructions of Feb. 1, 1934, applications for prospecting permits and leases. (Cir. No. 1318, amending Cir. 679 (47 L.D. 489).) 54-352

Where potential production of coal mines already opened within a given area is in excess of demand, further applications for permission to prospect are for the time being properly denied.

55-13

Departmental rule (43 CFR (1939 ed.) 193.3), precluding granting of coal leases absent a showing that an additional coal mine is needed and that there is an actual need for coal which cannot otherwise be reasonably met, reexamined and held appropriate in view of the economics of the coal industry and the position of the Government as a present and potential royalty holder. 59-207

Coal prospecting permits are not automatically canceled by expiration of the 2-year period for which they are issued, and until an outstanding permit is canceled and a notation of the cancellation made in the local office no other person is permitted to gain any right to the same class of deposits by the filing of an application. 59-238

In the absence of a showing of a need for coking and blacksmithing coal as would justify the expenditures incident to the opening and equipping of a new mine in Alaska, it was proper to reject an application for a coal lease. 60-293

III. CANCELLATION

Coal prospecting permits are not automatically canceled by expiration of the 2-year period for which they are issued, and until an outstanding permit is canceled and a notation of the cancellation made in the local office no other person is permitted. to gain any right to the same class of deposits by the filing of an application.

59-238

Automatic expiration of a permit, as distinguished from cancellation by affirmative action of the Commissioner (now Director, BLM) is provided for only at the

Regulations of June 11, 1929, coal mining leases, permits and licenses. Paragraphs 8a and 22, Cir. No. 679 (Apr. 1, 1920, 47 L.D. 489) as amended, further amended. Cir. No. 1193. 52-650

It is within the province of the Secre tary, before approving an assignment of a lease, to decide whether it has been satisfactorily shown that the right, title, and interest in the lease have been transferred to the one claiming under the assignment, and, if so, whether the assignee is competent and qualified to take and hold the lease under the leasing act and the regulations issued thereunder. 53-184

The authority of the Secretary to recognize and approve assignments or transfers of coal leases or interests therein is not limited by the leasing act to those effected by acts of the parties, but it extends to those effected also by operation of law. 53-184

While the validity of an assignment of a coal lease is dependent upon the approval of the assignment by the Secretary of the Interior, yet the binding force and effect of a pledge of a lease as security for a debt as between the parties is not contingent upon its prior authorization by that official. 53-184

Section 3 of the act of June 22, 1910 (36 Stat. 583) authorizes the Secretary of the Interior to require a bond before allowing any person to enter upon land patented with reservation of the coal to the United States for the purpose of prospecting thereon, but when the right to mine and remove the coal has been acquired his authority to require such a bond no longer exists; in the latter event the owner of the surface estate may by proper court proceedings protect himself from injury or loss in his improvements or crops. 53-444

The policy of the Department against the issuance of coal leases, in the absence of a showing that an additional coal mine is needed and that there is an actual need for coal which cannot otherwise be reasonably met, is not applicable in the case of 656477-63 vol. 52-5

an application for the extension of an existing mine from non-Federal to Federal land where such mine as of the time of the issuance of the proposed lease has been in successful operation for a number of years, mining and disposing of substantial quantities of coal extracted from adjacent non-Federal lands. 60-16

Where the holder of a valid coal prospecting permit has complied with its terms and has demonstrated through his prospecting work that the land contains coal in commercial quantities, he is entitled as a matter of law to a lease on the land covered by the permit. 60-516

V. PERMITS

Instructions of May 3, 1928, extensions of time under coal permits, act of Mar. 9, 1928 (45 stat. 251) (Cir. No. 1149). 52-366

Mere rights to receive a prospecting permit under the leasing act are not assignable, nor are they subject to testamentary disposition, but the right to pursue the course necessary to obtain the permit passes upon the death of the applicant to the personal representatives for the benefit of the estate. 53-699

Upon the death of an applicant for a coal prospecting permit, persons to whom the deceased applicant undertook to devise it will not be allowed to obtain the permit in their names because of the provisions of the applicant's will, but the executors of the deceased applicant will be allowed to file a permit application and bond, whereupon the permit may issue to the estate. 53-700

The Secretary of the Interior has discretionary authority over the issuance of permits to prospect for coal, and in the exercise of this authority may decide, in a given case, that no permit shall be issued.

55-13

Since a coal prospecting permittee under the leasing act of Feb. 25, 1920, possesses a valuable right which may be interpreted as exclusive even against the Government, the Government should obtain the consent of the permittee to exploration for coal by the Government in an instrument defining the interests of both parties. It is recommended that such an agreement provide that any discovery made by the Government shall not prevent the granting