that Assistant Secretary Deer's decision in Samedan Oil Corporation, MMS-94-0003-IND (Sept. 16, 1994), is hereby REVERSED and SET ASIDE, and that the underlying Order and Bill for Collection (FBIL 40943001) issued to Samedan Oil Corporation on December 2, 1993 is hereby VACATED; and it is further ORDERED
that defendants' counterclaim to enforce the December 2, 1993 order for payment of royalties is hereby DISMISSED; and it is further ORDERED
that with respect to Samedan, it is hereby DECLARED that royalties are not owed on nonrecoupable take-or-pay settlement payments, as described in the accompanying memorandum opinion and the decision by the court of appeals, received by persons responsible for the payment of royalties on federal and Indian oil and gas leases; and it is further DECLARED
that these nonrecoupable natural gas contract settlement payments referred to above are not part of the value of production of natural gas produced on federal and Indian leases, nor are they part of the gross proceeds from the sale of production from such leases; and it is further ORDERED
that plaintiffs' motion for summary judgment on counts II and III is DENIED insofar as they challenge DOI's May 3, 1993 letter, deemed not to be final agency action; and it is further ORDERED
that defendants' motion for summary judgment is DENIED as to counts I, IV, and V, but GRANTED as to counts II and III insofar as the May 3, 1993 does not constitute final agency action, and Counts II and III are hereby DISMISSED with prejudice; and it is further ORDERED
that count IV of plaintiffs' complaint is DISMISSED pursuant to the court of appeals' decision; and it is further ORDERED
that count V of plaintiffs' complaint is DISMISSED as moot.
Upon consideration of Samedan's motion for a permanent injunction, that motion is GRANTED; and it is further ORDERED
that Secretary of the Interior Bruce Babbitt, Assistant Secretary of the Interior Bob Armstrong, Assistant Secretary of the Interior Ada Deer, their successors in office, and their employees are permanently ENJOINED from
(i) requiring Samedan Oil Corporation to prepare reports, respond to inquiries, pay sums, post sureties, or be subject to claims of offset with respect to sums received as nonrecoupable take-or-pay settlement payments as described in the accompanying memorandum opinion and in IPAA v. Babbitt, 320 U.S. App. D.C. 107, 92 F.3d 1248, 1252;
(ii) taking any action to issue a notice of violation or noncompliance, to commence a penalty proceeding, to assess civil or criminal penalties under 30 C.F.R. Part 241;
(iii) seeking to cancel oil and gas leases for failure to comply with any such orders or requests; or
(iv) otherwise engaging in any further conduct inconsistent with Order; and it is further ORDERED
that in conjunction with this relief defendants are directed to DISMISS with prejudice the following administrative matters involving their continuing claims for royalties on take-or-pay settlement payments received by Samedan: Docket Nos. MMS-95-0054, MMS-95-0055, MMS-95-0056, and MMS-96-0059; and it is further ORDERED
that IPAA et al.'s request for fees and costs is hereby DENIED; and it is further ORDERED
that pursuant to local rule 215, Samedan and defendants will confer and attempt to reach agreement as to the issue of attorneys' fees and costs in Samedan's action; and it is further ORDERED
that a status conference on fees is scheduled for 4:30 p.m. September 24, 1997, and plaintiff's time for filing a motion under Federal Rule of Procedure 54(d)(2)(B) is extended until for 10 days thereafter.
This order shall be deemed a final judgment, as set forth herein.
Royce C. Lamberth
United States District Court