United Nuclear Corp. v. United States
United States Court of Appeals for the Federal Circuit
912 F.2d 1432 (1990)
- Written by Eric Miller, JD
Facts
The Secretary of the Interior (the government) (defendant) solicited bids for uranium mining on lands of the reservation of the Navajo Tribe (the tribe). United Nuclear Corporation (United) (plaintiff) was the successful bidder for mining rights on two tracts, for which United entered two 10-year leases with the tribe. The leases were given the required approval from the government. United then spent $5 million on exploration activities, which revealed significant amounts of uranium on the tracts. The government approved United’s exploration plan but withheld approval of United’s mining plan, citing the need for the tribe to approve. Over prolonged negotiations between United and the tribe, the tribe refused to approve the mining plan. As a result, the leases expired before United could undertake mining operations. United brought suit against the government (defendant) in the United States Court of Federal Claims, alleging that the government’s refusal to approve the mining plan constituted a taking under the Fifth Amendment to the United States Constitution. The court held that the government’s action was a valid exercise of regulatory power and not a taking. United appealed to the United States Court of Appeals for the Federal Circuit.
Rule of Law
Issue
Holding and Reasoning (Friedman, J.)
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