delivered the opinion of the court..
This is а Suit'by the United States to establish . title in it to eighty acres of land and to the proceeds of oil taken therefrom. The District Court rendered a decree dismissing the bill on the merits, which the Circuit Court of Appeals reversed, 262, Fed. Rep. 675, and the defendants bring the case here.
One of the defendants, the State of Wyoming, 1 claims qnder a lieu selection, made in 1912, and the other defendants under a lease from the State, made in 1916. It is against the selection and the lease that the United States seeks to establish title.
By the. Act of July 10, 1890, c. 664, § 4, 26 Stat. 222, Congress granted to the State for the support of common schools certain lands in place (sections 16 and 36 in eaсh township), with exceptions not material here; and by the Act of February 28,1891, c. 384, 26 Stat 796, amending §§ 2275, 2276, Rev. Stats., the State was invited and entitled, in the event any of the designated lands in
*494
place after passing under the school grant should be included within a public reservation, to waive its right thereto and select in lieu thereof other lands of equal acreage from unappropriated non-mineral public lands outside the reservation and within the State. See
California
v.
Deseret Water, etc., Co.,
In 1897 a traсt in.place which had passed to the State under the school grant was included within a public reservation, called the Big Horn National Forest. On April 4, 1912, the State — through its Governor, Joseph M. Carey, and its Land- Commissioner, S. G. Hopkins— filed in the proper local land office a selection list waiving its right to that tract and selecting in lieu thereof other land of the same area from public lands within the State and outside the forest reserve. The land so selected included the eighty acres now in controversy. At that time the State had a perfect title to the tract in the reserve and the land selected in lieu thereof was vacant, unappropriated, and neither known nor believed to be mineral. The list fully conformed to the directions on the subject issued by the Secretary of the Interior and was accompanied by the requisite proofs and the proper fees. Notice of the selection was regularly posted and published, proof thereof was duly made and the State paid the publisher’s charge. Thus, as the Circuit Court of Appeals said, “the State did everything necessary to show a perfect title to the land relinquished and perfect relinquishment thereof to the government, and everything thаt was required either by statute or regulation of the Land Department” in selecting the lieu land instead of the relinquished tract.
No objection was called forth by the notice and in *495 regular course the local officers transmitted the list and other papers to the General Land Office with a cértificate stating that no adverse filing, entry or claim to the selected land was shown by the records in their office and that the filing of the list was allowed and. approved by them. The list remained in the General Land Office awaiting consideration by the Commissioner for upwards of three years. In the meantime, on May 6, 1914, two years after the selection, the selected land, with оther lands aggregating more than 88,000 acres, was included in a temporary executive withdrawal as possible oil land under the Act of June 25, 1910, c. 421, 36 Stat. 847. On April 29, 1915, the Commissioner, coming to consider the selection, declined to approve it as made and called on the State either to accept a limited — surface right— certification of the selected land or to show that it still was not known or believed ;to be mineral. The State declined to accede to either alternative and insisted that its rights should be determined as of the time when the waiver and selection were made and that, applying that test, it became invested with the equitable title to the selected land two years prior to the temporary withdrawal and at a time when that land plainly was neither known nor believed to be mineral. The Commissioner thereupon ordered the selection canceled, — not because it was in any respect objectionable when made, but on the theory that he was justified in rejecting it by reason of the subsequent withdrawal and subsequent oil discoveries in that vicinity. The State appealed to the Secretary of the Interior, and, on October. 25, 1916, he affirmed the Commissioner’s action.
In the meantime, on May 24, 1916, the State had given to the defendant Ridgely a lease permitting him to drill the selected land for oil, and the lease had been assigned to the defendant oil, company. There was no oil discovery, nor any drilling, on the selected land up *496 to the time the lease was given; but thereafter the oil company began drilling and at large cost carried the same to discovery and successful production. This was four years after the selection. .
The question presented is whether, considering that the selection was lawfully made in lieu of the state-owned tract contemporaneously relinquished, and that nothing remained to be done by the State to perfect the selection, it was admissible for the Commissioner and the Secretary to disapprove and reject it on the ground that the selected land was withdrawn two years later under the Act of June 25, 1910, and still later was discovered to be mineral land, that is, to be valuable for oil. Or, putting it in another way, the question is whether it was admissible for those officers to test the validity of the selection by the changed conditions when they came to examine it, instead of by the conditions existing when the State relinquished the tract in the forest reserve and selectеd the other in its stead.
In principle it is plain that the validity of the selection should be determined as of the time when it was made, that is, according to the conditions then existing, The proposal for the exchange of land without for land within the reserve came from Congress. Acceptance rested with the State and of course would be influenced and controlled by the conditions existing at the time. It is not as if the selection was merely a proposal by the State which the land officers could accept or reject. They had no such option to exercise, but were charged with the duty of аscertaining whether the State’s waiver and selection met the requirements of the congressional proposal and of giving or withholding their approval accordingly. The power confided to them was not that of granting or denying a privilege to the State, but of determining whether an’ existing privilege conferred by Congress had been lawfully exercised; — in other words, *497 their action was to be judicial in its nature and directed to an ascertainment and declaration of the effect of the waiver and selection by the State in 1912. If these were valid then — if they met all the requirements of the congressional proposal, including the directions given by the Secretary — they remained valid notwithstanding the subsequent change in conditions. Acceptance of such a proposal and full compliance therewith confer vested rights which all must respect. Equity then regards the ¡State as the owner of the selected tract and the United States aS owning the other; and this equitable ownership carries with it whatever of advantage or disadvantage may arise from a subsequent change in conditions whether one tract or the other be affected. Of course the State’s right under-the selection was precisely thе same as if in 1912 it had made a cash entry of the selected land under an applicable statute, for the waiver of its right to the tract iñ the forest reserve was the equivalent of a cash ..consideration. And yet it hardly would be suggested that the Commissioner or the Secretary on coming to consider the cash entry could do otherwise than ap- - prove it, if at the time it was'made the land was open to such an entry and the amount paid was the lawful price.
The conclusion which , we deem plain in principle is fully sustained by prior adjudications. In
Benson Mining Co.
v.
Alta Mining Co.,
The Land Department uniformly has ruled that the States acquire a vested right' in all school sections in place which are not otherwise appropriated, and not known to he mineral, at the time they are identified by the survey, — or at- the date of the grant where the survey precedes it, — regardless of when thе matter becomes a subject of inquiry and decision, and that this right is not defeated or affected
*501
by a subsequent mineral discovery.
California
v.
Poley,
4 Copp’s L. O. 18;
Abraham L. Minor,
9 L. D. 408;
Rice
v.
California,
24 L. D. 14;
United States
v.
Morrison,
That Anew was repeated and applied in many -other-departmental decisions dealing with lieu selections. But afterwards the Secretary, conceiving that the decisions of this court in
Wisconsin Central R. R. Co.
v.
Price County,
Under this changed ruling the Secretary rejected several selections lawfully made by one Daniels and awarded and patented the land to others. Daniels then brought suits against the patentees charging that by the selections he acquired the equitable title, that his selections were rejected and the patents issued through a misapprehension of the law, and therefore that the patentees took thе legal title in trust for him. Ultimately the suits came to this court, and after a full review the changed ruling of the Secretary was disapproved and Daniels' contention sustained.
Daniels
v.
Wagner,
As thе Circuit Court of Appeals in the present case, like the Secretary in the other, regarded the decisions in the Wisconsin Central Case and the Cosmos Case as showing that no right attaches under a lieu selection unless and until approved by the Secretary, it is well to point out just what was involved in those cases; for it then will be apparent that there was no purpose in either to go to the length suggested*
The
Wisconsin Central Case
was a suit to enjoin the collection óf a tax levied on land which at the time was covered by a pending indemnify selection under a railroad land grant. The Commissioner of the General Land Office had reported that the company аlready had received indemnity lands largely in excess of the losses for which it was entitled to indemnity, and thé company was disputing that report. Until that controversy was determined it could not be known whether the company was entitled to an approval of the selection. In that situation the United States had such an interest in the land as made it nontaxable. Whether the selection was valid or otherwise was primarily a question for the Secretary of the Interior to. determine. Ultimately he held it valid, but not until after the tax was levied — indeed, after the suit was brought. The suit involved the validity of the tax, and nothing more. Its purpose was'not to control the action; of the Secretary by a writ of mandamus or injunction, 'nor to determine the title as between the United States and the company or between the company and a grantee of the United States. True, the court, after commenting on the difference between the granted .lands in place and the indemnity lands as respects the mode of identification, very broadly stated that an indemnity selection to be effective required the approval of the Secretary; but it was not meant , by this that the Secretary arbitrarily could
*505
defeát the right of. selection by withholding his approval, nor that if through a mistake of law he rejected a selection which was valid at the time it was made the company would be remediless. There was no occasion to consider those questions, nor could they properly be determined without the presence of parties not then before the court. And that the court did not intend its words to be taken so broadly is illustrated by the fact that it cited with approval the case of
St. Paul & Sioux City R. R. Co.
v.
Winona & St. Peter R. R. Co.,
The
Cosmos Case
was a suit by a lieu land selector to establish his title as against others who were claiming under placer mining locations. The selection was not accompanied by proof that the land was not then occupied adversely, although that was required. Within the time prescribed by the regulations the mining claimants filed in the land office verified protests assailing the regularity and validity of the selection, setting up locations of the selected land made under the placer mining law prior to the sеlection and alleging that the lands “were not subject to selection” because “the same was mineral land and was included within ” the mining locations. The protests were entertained and, with the selection, were pending when the suit was begun, which was shortly after the protests were filed. The suit was brought on the theory that by the selection the selector acquired “the full, complete and equitable title” to the selected land, notwithstanding he had not submitted any proof of non-occupancy, and that the protests were not such as could be entertained or investigated by the Land Department. That cаse and another
(Riverside Oil Co.
v.
Hitchcock,
The only exception to the general rule before stated respecting the time as of which the character of the land— whether mineral or non-mineral — is to be determined is one which in principle and practice is confined to railroad land grants. From the beginning the Land Department, by reason of the terms of those grants and the restrictive .interpretation to which they are subjected, uniformly has construed and treated them as requiring that the character of the land be determined as of the time when the patent issues. In 1890 Secretary Noble, in declining to disturb this construction and practice, pointed out the reasons which had led the Department to make a distinction in this regard between those grants and other land laws, and said: "This practice, having been uniformly followed and generally accepted for sо long a time, there should be, in my judgment, the. clearest evidence of error, as well as the strongest reasons of policy and justice controlling, before a departure from it should be sanctioned. It has, in effect, become a rule of property.”
Central Pacific R. R. Co. v. Valentine,
11 L. D. 238, 246. In 1893 the matter came before this court and the construction and practice of the Land Department were sustained.
Barden
v.
Northern Pacific R. R. Co.,
Of the executive withdrawal of the land two years after *509 the lieu selection was lawfully made, it suffices to say, following the recent decision in Payne v. Central Pacific Ry. Co., ante, 228, that the Act of 1910, under which the withdrawal was made, is confined to “public lands,” that by the selection this land had ceased to be public, and that the act could not be construed to embrace it without working an inadmissible interference with vested rights.
It results that the Secretary erred in matter of law in rejecting the selection and that the District Court rightly entered a decree for the defendants. See
Cornelius
v.
Kessel,
Reversed.
Notes
The State was not made a party at first, but afterwards at its own request was admitted as a defendant to enable it to defend the lieu selection]
