BP America Production Co. Ex Rel. Amoco Production Co. v. BurtonBP America Production Co. Ex Rel. Amoco Production Co. v. Burton
delivered the opinion of the
This сase presents the question whether administrative payment orders issued by the Department of the Interior’s Minerals Management Service (MMS) for the purpose of assessing royalty underpayments on oil and gas leases fall within
I
A
The Mineral Leasing Act of 1920 (MLA) authorizes the Secretary of the Interior to lease public-domain lands to private parties for the production of oil and gas. 41 Stat. 437, as amended,
In 1982, Congress enacted the Federal Oil and Gas Royalty Management Act (FOGRMA), 96 Stat. 2447, as amended,
Under FOGRMA, lessees are responsible in the first instance for the accurate calculation and payment of royalties.
An MMS payment order may be appealed, first to the Director of MMS and then to the Interior Board of Land Appeals or to an Assistant Secretary.
Congress supplemented this scheme by enacting the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996 (FOGRSFA), 110 Stat. 1700, as amended,
There is no dispute that a lawsuit in court to recover royalties owed to the Government on pre-September 1, 1996, production is covered by
“Subject to the provisions of section 2416 of this title, and except as otherwise provided by Congress, every action for money damages brought by the United States or an officer or agency thereof which is founded upon any contract express or implied in law or fact, shall be barred unless the complaint is filed within six years after the right of action accrues or within one year after final decisions have been rendered in applicable administrative proceedings required by contract or by law, whichever is later.” (Emphasis added.)
Whether this general 6-year statute of limitations also governs MMS administrative payment orders concerning preSeptember 1, 1996, production is the question that we must decide in this case.
Petitioner BP America Production Co. holds gas leases from the Federal Government for lands in New Mexico’s San Juan Basin. BP’s predecessor, Amoco Produсtion Co., first
entered into these leases nearly 50 years ago, and these leases require the payment of the minimum 12.5 percent royalty prescribed by
Amoco appealed the order, disputing MMS’ interpretation of its royalty obligations and arguing that the payment order was in any event barred in part by the 6-year statute of limitations in
Amoco, together with petitioner Atlantic Richfield Co., sought review in the United States District Court for the District of Columbia, which agreed with the Assistant Secretary that
II
A
We start, of course, with the statutory text.
Central Bank of Denver, N. A.
v.
First Interstate Bank of Denver, N. A.,
The statute of limitations imposed by
Nothing in the language of
B
In an effort to show that the term “action” is commonly used to refer to administrative, as well as judicial, proceedings, petitioners have cited numerous statutes and regulations that, petitioners claim, document this usage. 5 These examples, however, actually undermine petitioners’ argument, since none of them uses the tеrm “action” standing alone to refer to administrative proceedings. Rather, each example includes a modifier of some sort, referring to an “administrative action,” a “civil or administrative action,” or “administrative enforcement actions.” This pattern of usage buttresses the point that the term “action,” standing alone, ordinarily refers to a judicial proceeding.
Petitioners contend that their broader interpretation of the statutory term “action” is supported by the reference to
“every
action for money damages” founded
Petitioners argue that their interpretation is supported by
Pennsylvania
v.
Delaware Valley Citizens’ Council for Clean Air,
West
helps petitioners even less. There, we considered whether the Equal Employment Opportunity Commission (EEOC) could order a federal agency to pay compensatory damages in an administrative proceeding. Section 717(b) of Title VII of the Civil Rights Act of 1964,
For these reasons, we are not persuaded by petitioners’ argument that the term “action” in
C
We similarly reject petitioners’ suggestion that an MMS letter or payment order constitutes a “complaint” within the meaning of
D
To the extent that any doubts remain regarding the meaning of
Bowers
v.
New York & Albany Lighterage Co.,
The Court recognized the canon, restating it much as we have above.
Id.,
at 349. But the Court concluded that the canon had no application in that case because the text of the relevant statute, unlike
E
We come now to petitioners’ argument that interpreting
“The provisions of this section shall not prevent the United States or an officer or agency thereof from collecting any claim of the United States by means of administrative offset, in accordancewith section 3716 of title 31.” 28U.S.C. §2415(i) .
An administrative offset is a mechanism by which the Government withholds payment of a debt that it owes another
party in order to recoup a payment that this party owes the Government.
Petitioners argue that, if
As the Court of Appeals noted, subsection (i) was not enacted at the same time as subsection (a) but rather was added 16 years later by the Debt Collection Act of 1982. 96 Stat. 1749. This enactment followed a dispute between the Office of the Comptroller General of the United States, head of the agency then named the General Accounting Office (GAO), and the Department of Justice’s Office of Legal Counsel (OLC) over whether an administrative offset could be used to recoup a debt where a judicial recoupment action was already time barred.
In 1978, in response to a question from the United States Civil Service Commission, OLC opined that an administrative offset could not be used to recoup a debt as to which a judicial action was already time barred. OLC reached this conclusion not because it believed that
GAO disagreed. See
In re Collection of Debts
— Statute
of Limitations on Administrative Setojf,
“[t]he general rule ... that statutes of limitations applicable to suits for debts or money demands bar or run only against the remedy (the right 'to bring suit) to which they apply and do not discharge the debt or extinguish, or even impair, the right or obligation, either in lаw or in fact, and the creditor may avail himself of every other lawful means of realizing on the debt or obligation. See Mascot Oil Co. v. United States,42 F. (Ct. Cl. 1930), affirmed2d 309 282 U. S. 434 ; and33 Comp. Gen. 66 (1953). See also Ready-Mix Concrete Co. v. United States,130 F. Supp. 390 (Ct. Cl. 1955).” Ibid.
That Congress had time barred the judicial remedy, GAO reasoned, imposed no limit on the administrative remedy.
The OLC-GAO dispute reveals that, even under the interpretation of subsection (a) — the one we are adopting — that considers it applicable only to court proceedings, subsection (i) is not mere surplusage. It clarifies that administrative offsets are not covered by subseсtion (a) even if they are viewed as an adjunct of a court action.
To accept petitioners’ argument, on the other hand, we would have to hold either that
Ill
Petitioners contend that interpreting
We are mindful of the fact that a statute should be read where possible as effecting a “‘symmetrical and coherent regulatory scheme,’”
FDA
v.
Brown & Williamson Tobacco Corp.,
Petitioners contend, finally, that interpreting
For one thing, petitioners overstate the scope of the problem, since Congress of
Second, and more fundamentally, the consequences of interpreting
In the final analysis, while we appreciate petitioners’ arguments, they are insufficient to overcome the plain meaning of the statutory text. We therefore hold that the 6-year statute of limitations in
* * *
For these reasons, the judgment of the Court of Appeals for the District of Columbia Circuit is affirmed.
It is so ordered.
Notes
MMS is not always the auditing body, as MMS may delegate its authority to the host State or an Indian tribe.
MMS intended this letter to implement its regulations, which required lessees “to place gas in marketable condition at no cost to the Federal Government unless otherwise provided in the lease agreement.”
These primary definitions have not changed in substance since 1966. Black’s (8th ed. 2004) now defines “action” as “[a] civil or criminal judicial proceeding” and a “comрlaint” as “[t]he initial pleading that starts a civil action and states the basis for the court’s jurisdiction, the basis for the plaintiff’s claim, and the demand for relief.” Id., at 31,303.
Moreover, it seems unlikely that Congress intended administrative proceedings to commence within one year after the conclusion of administrative proceedings.
See, e.
g.,
There was some question at oral argument whether MMS’ initial letter might constitute a “complaint” within the meaning of
Indeed, what emerges strikingly from OLC's 1978 opinion is that no one at the time — neither OLC nor GAO — even contemplated that