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(ON RECONSIDERATION) August 3, 1973

Therefore, pursuant to the authority delegated to the Board of Land Appeals by the Secretary of the Interior, 43 CFR 4.1, the decision of this Board dated September 3, 1971, is set aside and the case is remanded for further hearing and decision.

NEWTON FRISHBERG, Chairman.

WE CONCUR:

JAMES M. DAY, Director,

Ex Officio Member.

FREDERICK FISHMAN, Member.

DOUGLAS E. HENRIQUES, Member.

MR. STUEBING CONCURRING IN PART, DISSENTING IN PART.

I am in full agreement with those portions of the majority opinion which hold (1) that the accomplishment of an environmental analysis and statement as contemplated by section 102 (C) of the National Environmental Policy Act of 1969 is not a prerequisite to the issuance of a patent to a valid mining claim located in compliance with the Act of May 10, 1872, as amended, and (2) that the law does not provide that claims so located may be found to be invalid by weighing the prospective value of their anticipated mineral yield against the present or prospective value of the land for other purposes.

However, I do not agree with the majority that the state of the record

is so deficient that it will not support the conclusion reached in the decision of September 3, 1971 (3 IBLA 189). Accordingly, I adhere to that decision.

EDWARD W. STUEBING, Member.

I CONCUR:

ANNE POINDEXTER LEWIS, Member.

MRS. THOMPSON CONCURRING IN PART, DISSENTING IN PART

I agree that this case must be remanded for a further hearing to resolve adequately the question of the validity of the claim and entitlement to patent.

I disagree with Mr. Frishberg's opinion with regard to the question relating to a comparison of mineral and other land values. I believe his opinion sweeps unnecessarily and too broadly in ruling on the materiality of comparative values. He recognizes that evidence of nonmineral values may be admitted for the purpose of evaluating the claimant's good faith and in assessing the weight and credibility of his testimony. With this I agree. However, I disagree with the attempt to resolve the broader question as to the application of the comparative value test on the validity of mining claims in other respects. There are conflicting precedents and viewpoints in applying such a balancing test. A ruling of such importance is best made after all of the facts are

known. It may be that this case will be resolved on further hearing without the necessity of deciding this question. Therefore, a ruling now is premature. Evidence on comparative values may be admitted, in any event, although cast in a different complexion.

Accordingly, I would defer a final ruling on the scope of the applicability of comparative values in evaluating the validity of a mining claim, and the mineral character of the land embraced thereby, until resolution of the question is required after the complete factual record has been made. This obviates any reason for discussing the principles involved and my viewpoints on this question at this time.

JOAN B. THOMPSON, Member.

WE CONCUR:

MARTIN RITVO, Member.

JOSEPH W. Goss, Member.

UNIFORM RELOCATION ASSISTANCE APPEAL OF MALDRUS AND GERALDINE EASLEY

1 OHA 18

Decided August 3, 1973

Appeal from a determination dated October 10, 1972, by the Regional Director of the Southwest Region of the Bureau of Reclamation, concurred in by the Commissioner of the Bureau of Reclamation, disallowing, in part, a claim for relocation assistance benefits in connection with the acquisition by the United States of Tract No.

1-35-417, Mountain Park Project, Oklahoma.

Affirmed.

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970: Uniform Relocation Assistance: Moving and Related Expenses: Payment for Moving Expenses: Generally

A claimed loss in appraised value of a dwelling property which serves as the headquarters for a farm operation, and the expense incurred in obtaining the appraisal, being unrelated to the transaction in which the United States acquired one of two disconnected tracts comprising the farm operation, one of which was situated approximately 8 miles north of the dwelling site property and the other approximately 5% miles southwest of it, are properly disallowed as not compensable.

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970: Uniform Relocation Assistance: Moving and Related Expenses: Payments in Lieu of Moving and Related Expenses: Fixed Payment: Partial Taking of Farm Operation

A claim for a fixed payment in lieu of actual moving and related expenses is properly disallowed in the case of a partial acquisition of a farm operation where the farm met the definition of a farm operation prior to the acquisition and the property remaining after the acquisition also meets that definition.

APPEARANCES: Maldrus and Geraldine Easley, pro se; Alvertus V. Rasco, Jr., Esq., Office of the Field Solicitor, U.S. Department of the Interior, Amarillo, Texas, for the Bureau

of Reclamation.

MALDRUS AND GERALDINE EASLEY
August 3, 1973

OPINION BY MS. PATTON
OFFICE OF HEARING AND
APPEALS,

Maldrus and Geraldine Easley have appealed from a determination dated October 10, 1972, by the Regional Director, Southwest Region of the Bureau of Reclamation.

concurred in on November 14, 1972, by the Commissioner of the Bureau of Reclamation, disallowing, in part, their claim, as displaced persons, for relocation assistance benefits under section 202 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1895, 42 U.S.C. § 4622 (1970), in connection with the acquisition by the United States on January 5, 1972, of an 80-acre portion of their farm operation, namely, the N2NE14 sec. 35, T. 4 N., R. 17 W., I.M., Kiowa County, Oklahoma, as Tract 1-35-417 of the Mountain Park Project. Disallowed were the following items:

(1) Reimbursement of $50, claimed under subsection 202 (a) (1) of the Act as moving expenses, and representing the cost of an appraisal procured by the Easleys in January 1972, on their dwelling property in Snyder, Oklahoma, the headquarters for their farm operation.

(2) Reimbursement of $3,000, claimed under subsection 202 (a) (2) of the Act as loss of tangible personal property as a result of discontinuing a portion of the farm operation. This item refers to a loss in appraised value of the Easley

dwelling property in Snyder and represents the difference between a $16,500 appraised valuation of that property in 1963, when it was purchased by the Easleys, and a $13,500 valuation of the same property in 1972, when the United States ac

quired the 80-acre portion of land in the farm operation.

(3) Payment of the sum of $2,500, claimed under subsection 202 (c) of the Act, as a fixed payment in lieu of items (1) and (2) above and in lieu also of a payment allowed by the Bureau under subsection 202 (a) (3) of the Act for expenses of $390.33 incurred by the Easleys in searching for a replacement farm operation.

The Bureau found that the acquisition of the 80-acre ownership of the Easleys in Kiowa County, situated approximately 8 miles north of the town of Snyder, did not necessitate a move from the Easley dwelling site in Snyder and that it did not render the remaining 160 acres in the farm operation, namely, E2NW4, W2NE14 sec. 29, T. 2 N., R. 17 W., situated in Tillman County, approximately 534 miles southwest of Snyder, an uneconomic unit. Thus it held that items (1) and (2) above did not qualify for payment because they were unrelated to the transaction in which the United States acquired the 80-acre tract, and, further, that the Easleys were not eligible for the payment sought in item (3) because there was a partial taking only of the farm

operation and an economic farm unit remained.

A hearing on the appeal was held on April 12, 1973, at Altus, Oklahoma, before Administrative Law Judge John F. Curran.

The record discloses that prior to the acquisition of the 80 acres by the Government, 202.5 acres of the 240-acre farm operation were used for agricultural purposes, 76 acres of the 80-acre tract, or approximately 37 percent of the total tillable acreage, being so used. Cotton, wheat and other grains were the usual agricultural products of the farming operation. In addition, the operation supported the raising of an average of 50 cattle. The cattle were grazed on each of the tracts. Farm machinery and other equipment used in the operation were maintained at the Easley dwelling site property in Snyder and moved to the components of the farming operation as required, on the average a dozen times a year. There was no house, barn or other such improvement on the 80-acre tract; there was constructed on the tract, however, a cattle corral and a dirt watering tank. In transactions with the Agricultural Stabilization and Conservation Service of the U.S. Department of Agriculture, the 240 acres were shown on work sheets and payments as one farm in Tillman County, wherein the major portion of the land in the farming operation was situated. Copies of Federal income tax returns of the Easleys for the years 1970–1971, submitted by them for the record,

show that the 80-acre tract was operated at a net loss for both years.

With respect to moving and related expenses, subsection 202 (a) (1) of the Act provides, pertinently, for reimbursement to a displaced person for "actual reasonable expenses in moving himself, his family, business, farm operation, or other personal property," and subsection 202 (a) (2) provides that such person may be reimbursed for "actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property." (Italics supplied.) In lieu of such payments and of "actual reasonable expenses in searching for a replacement business or farm," authorized by subsection 202 (a) (3), the Act provides in subsection 202 (c) for "a fixed payment in an amount equal to the average annual net earnings 1 of the business or farm operation, except that such payment shall be not less than $2,500 nor more than $10,000."

It is clear that the appellants' claims (1) and (2) do not fall

1 "Average annual net earnings" as used in subsection 202(c) of the Act means onehalf of any net earnings of the farm operation, before Federal, State, and local income taxes, during the two taxable years immediately preceding the taxable year in which such farm operation moves from the real property acquired, or during such other period as the displacing agency determines to be more equitable for establishing such earnings, and includes any compensation paid by the farm operation to the owner, his spouse, or his dependents during such period.

MALDRUS AND GERALDINE EASLEY
August 3, 1973

within the category of items for
which reimbursement is authorized
under subsections 202 (a) (1) and
202 (a) (2) of the Act. The argu-
ment that there will now be less
farm income from which to retire
the indebtedness on the Easley resi-
dence in Snyder, Oklahoma, is un-
availing. The Bureau properly held
that these claims are unrelated to
the acquisition of the 80-acre tract
by the Government and are not
compensable. Further, no other evi-
dence has been presented to show
any actual moving expenses in-
curred by the Easleys in connection
with the acquisition of the 80-acre
tract by the Government or any ac-
tual direct losses of tangible per-
sonal property as a result of moving
or discontinuing their farm opera-
tion, which are allowable under the
cited provisions of the Act. Indeed,
the farm operation was not relo-
cated or discontinued; it was merely
diminshed in size to the extent of
one of the two disconnected tracts
of which it had been comprised. The
periodic movement of cattle and
equipment from the acquired por-
tion of the farm operation appears
to have been accomplished in the
regular course of operation of the
two disconnected tracts as a single
farm operation. It thus appears
that no reimbursable expenses or
losses of the nature contemplated by
subsections 202 (a) (1) and 202(a)
(2) of the Act were incurred as a
result of the acquisition of the 80-
acre tract by the Government.

Concerning the claim for a fixed payment under subsection 202 (c) of the Act in lieu of any authorized moving and related expenses under subsection 202 (a), the Interim Regulations of the Department, issued April 16, 1971 (36 F.R. 7265–7273), which were in effect at the time of the submission of the appellants' claim, and which were promulgated in accordance with interim guidelines of the Office of Management and Budget, issued February 27, 1971, provided, in paragraph 9D, that where an entire farm operation is not acquired, the fixed payment shall be made only if the farm met the definition of a farm operation prior to the acquisition and the real property remaining after the acquisition is no longer an economic unit." The Interim Regulations incorporated, within paragraph 3M, the definition of "farm operation" supplied in § 101 (8) of the Act, namely, "any activity conducted solely or

The same provision in the final regulations of the Department within 41 CFR Part 114-50 (38 F.R. 3965-3980, February 9, 1973, as amended in 38 F.R. 7116, March 16, 1973), is contained in § 114-50.702-1 which reads as follows: "Farms-Partial taking. Where a displaced person is displaced from only a part of his farm operation, the fixed payment provided in § 114-50.702 shall be made only if the displacing agency determines that the farm met the definition of a farm operation prior to the acquisition and that the property remaining after the acquisition does not."

The changed language in the final regulations affords a clarification of the applicable rule where there is a partial taking of a farm operation and follows substantially the language of the Office of Management and Budget guidelines for development of uniform regulations and procedures for implementing the Act, issued May 1, 1972, in Circular No. A-103.

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