W. Dalton Larue, Sr. v. Stewart L. Udall, Individually and as Secretary of the Interior, and Northamerican Aviation, Inc.

*433BAZELON, Circuit Judge

(concurring).

Under § 8(b) of the Taylor Grazing Act, 43 U.S.C. § 315g(b) (1958), any landowner may propose to exchange his land [“offered” lands] for federal land of equal value located within a grazing district [“selected” lands]; and the Secretary of the Interior may approve the exchange if “public interests will be benefited thereby.” In this case, because the Secretary viewed the Taylor Act as a “multiple purpose” statute, he construed the term “public interests” as a broad reference to the general public interest, rather than being limited to grazing interests. In approving the exchange, the Secretary relied heavily on his finding that the exchange would benefit the general public interest, but he also found that the exchange would benefit grazing interests.1 This court holds that the exchange may be approved on either ground. I think approval can rest only on a finding of benefit to grazing interests.

The Taylor Grazing Act of 19342 closed the public domain, climaxing the reversal of earlier policy which had encouraged disposal of the public lands to. private ownership.3 The policy of land conservation — retaining federal ownership and regulating land use to prevent, depletion of natural resources — began with the creation of forest reserves after 1891.4 The Taylor Act extended this policy to the remaining 173,000,000. acres of public lands still unreserved by 1934. To prevent soil deterioration and stabilize the livestock industry which constituted the chief user of this public range,5 the Secretary of the Interior was authorized to reserve suitable lands for the creation of grazing districts and to. regulate grazing within the districts by-issuing permits.6 It was recognized however, that the existing checkerboard pattern of alternating public and private ownership, resulting from the course of land settlement during the nineteenth century,7 would make it difficult to administer the districts efficiently.8 To meet this problem, § 8 of the Act was, designed to foster consolidation in the manner of earlier forest reserves legis*434lation: 9 the Secretary was authorized to accept land which would consolidate the grazing districts, either by gift or in exchange for other grazing land of equal value.10

The legislative history of the Act shows that in authorizing the Secretary to convey public lands to private individuals as part of an exchange, § 8(b) was intended not as a new source of power to alienate federal lands, but simply to promote consolidation of the grazing districts.11 As such, I think that the determination that “public interests will be benefited [by an exchange]” includes only public interests in furtherance of the grazing and range stabilization policies which are the subject of the Act. The term was so construed in an opinion rendered by the Solicitor of the Department of the Interior shortly after the Act’s passage,12 and there is no basis for the Secretary’s suggestion that amendments since 1934 have changed the meaning of § 8.13

The Secretary argues that where Congress wished to consider only grazing interests, it said so. For this proposition, he cites § 8(a), dealing with the acceptance of gift lands, which requires the specific showing that the acquisition will “promote the purposes of a district or facilitate the administration of the public lands.” But I do not think the more general language in § 8(b) was intended to allow the Secretary to go beyond grazing interests for his standards. Rather, it indicates that in an exchange of lands, there will be more than one factor to consider under the heading of grazing interests. Thus where the Government is conveying land as well as procuring land, it must consider the eifect of the transaction not only on administration of the grazing district of the offered land, but also its effect on administration of the grazing district of the selected land and on the interests of grazing licensees of the land to be conveyed.14 While offered land might meet the required standards, the detriment involved in giving up the selected lands might outweigh the benefit. In Willis N. Farlow, 62 I.D. 206 (1955), a proposed exchange of lands equally valu*435able for grazing was disapproved because of the detrimental effect on two ranchers.

This court agrees with the Secretary that private interests may acquire public grazing land to the detriment of grazing licensees.15 I also agree. But that does not answer the question in this case. The question here is whether or not such an acquisition under the exchange provisions of § 8(b) requires a determination that the net effect of the exchange will benefit public grazing interests. I think this determination is required, and that the grazing value of the offered land is a critical consideration.16

A contrary conclusion would be inconsistent with the over-all congressional policy sharply limiting the Secretary’s authority to remove land from public ownership. Since 1891, when general alienation of public land was forbidden, land sales have been permitted only by specific legislation17 Such legislation is presently limited to a handful of special-purpose statutes, none of which authorizes the sale of land in excess of 1529 acres in a single transaction.18 The Secretary here claims a grant of authority under § 8(b) which greatly exceeds that under any other public land law.

The Taylor Act reflects Congress’ determination to limit the Secretary’s power.19 This purpose was reconfirmed as recently as 1958 by the legislative reaction to administrative claims — based on national defense needs — to greater authority over the public lands. Following a report criticizing excessive land demands by the military departments,20 Congress amended existing legislation authorizing reservation of land for military purposes21 to require specific congressional authority for each reservation exceeding 5,000 acres.22 The purpose of *436the amendment, as described in the Senate Committee 'Report, was:

to return from the executive branch to the Congress — to the extent that [public] lands are involved — the responsibility imposed by the Constitution on the Congress for their management.23

Nevertheless, in the present case, appellees argue that the special importance of national defense justifies a broad reading of § 8(b). But Congress has provided a method for making land — including grazing land — available for national defense. Under § 7 of the Taylor Act, land found “more valuable or suitable for any other use” than grazing may be reclassified and opened for “disposal in accordance with such classification under applicable public-land laws.”24 And 10 U.S.C. § 2667 (1958) authorizes a private lease “[w]henever the Secretary of a military department considers it advantageous to the United States.” This procedure, although not as expeditious as a § 8(b) exchange,25 is the one fixed by Congress for accommodating national defense interests.

The decrease in grazing since 1934,26 together with the growing importance of Western commercial and industrial development, may indicate that the Taylor Act’s emphasis on grazing is outdated. But Congress has not said so, nor has Congress relaxed its concern with land conservation and retention of federal ownership.27 If changed circumstances require a view of “public interests” under § 8(b) that goes beyond grazing interests, Congress — not the Secretary— must say so.28

. The Secretary’s finding of grazing benefit appears from his statements that the importance of grazing in the area of the selected lands has lessened in recent years, and that “acquisition of the offered lands would block out holdings of public lands and would facilitate the administration and management of the area for grazing purposes.” W. Dalton LaRue, Sr., A-29309 (1962).

. Act of June 28, 1934, 48 Stat. 1269 (1934), as amended, 43 U.S.C. §§ 315, 315a-315r (1958).

. See, e. g., Hearings on H.R. 6462 Before the Senate Committee on Public Lands and Surveys, 73d Cong., 2d Sess. 46 (1934) (statement by Senator O’Mahoney of Wyoming). See Robbins, Our Landed Heritage 285-423, especially 421-23 (1950); Peeper, The Closing oe the Public Domain 5, 8-231, 302-41 (1951); Clawson & Held, The Federal Lands 15-36 (1957) (Marion Clawson was Director of the Bureau of Land Management in 1948-53).

. 26 Stat. 1103 (1891), as amended, 16 U. S.C. § 471 (1958).

. See S.Rep. No. 1182, 73d Cong., 2d Sess. (1934); H.R.Rep. No. 903, 73d Cong., 2d Sess. (1934); 78 Cong.Rec. 6346, 6364-65 (1934). See also Ickes, The National Domain and the New Deal, Saturday Evening Post Dec. 23, 1933, p. 10.

. Section 1 of the Act originally limited the total amount of land which could be included in grazing districts to 80,000,000 acres. This limitation, inserted to curb, the power of the Secretary, 78 Cong.Rec. 11140 (1934), was shortly abandoned in order to allow maximum application of the Taylor Act’s policies. 49 Stat. 1976 (1936); 68 Stat. 151 (1954); see 80 Cong.Rec. 3815-16 (1936). Today there are 161,000,000 acres of federal land in 58-grazing districts. Bureau of Land Management, Publc Land Statistics, Table 81 (1962).

. Behind the checkerboard pattern is the familiar history of free land entry, railroad land grants, and school land cessions to the States. See Hibbard, Land Grants, 9 Encyc. Soc. Sci. 32 (1937).

. H.R.Rep. No. 903, 73d Cong., 2d Sess. 3, 7 (1934). See Clawson & Held 48-50.

. 42 Stat. 465 (1922), 16 U.S.C. § 485 (1958); 43 Stat. 1215 (1925), 16 U.S.C. § 516 (1958). See also 16 U.S.C. §§ 486a-4S6w (1958).

. Section 8, Act of June 28, 1934, 48 Stat. 1272 (1934) as amended, 43 U.S.C. § 315g (1958):

“(a) Where such action will promote the purposes of a district or facilitate the administration of the public lands, the Secretary is authorized to accept on behalf of the United States any lands within or without the exterior boundaries of a grazing district as a gift.
“(b) When public interests will be benefited thereby the Secretary is authorized to accept on behalf of the United States title to any privately owned' lands within or without the boundaries of a grazing district, and in exchange therefor to issue patent for not to exceed an equal value of surveyed grazing district land * * *
“(c) Upon application of any State to exchange lands within or without the boundaries of a grazing district the Secretary of the Interior shall, and is hereby, directed to proceed with such exchange at the earliest practicable date * * [Emphasis supplied.]

. See 78 Con&.Rec. 6359 (1934); Senate Hearings on H.R. 6462, supra note 3, at 94-100. In the Hearings, Representative Taylor said:

“But I would like to say that under this bill it is not intended to make a general exchange arrangement outside, where they [the lands] have nothing to do with this bill.” Id. at 98.

. Land exchange with States under Taylor Grazing Act, 55 I.D. 9 (1934).

. The only major change was a 1936 amendment eliminating an ambiguity in regard to State exchanges. 49 Stat. 1976 (1936); see Hearings on S. 2359 Before the Senate Committee on Public Lands and Surveys, 74th Cong., 1st Sess. 47-78 (1935) . Sections 8(a) and 8(b) have been amended to permit the Secretary to accept land situated outside the boundaries of a grazing district, 49 Stat. 1976 (1936) ; 62 Stat. 533 (1948). But it appears that these amendments were for the limited purpose of acquiring land needed for stock driveways adjacent to grazing districts. Cf. S.Rep. No. 1497, 80th Cong., 2d Sess. (1948), U.S. Code Congressional Service 1948, p. 1929.

. Although | 3, 43 U.S.C. § 315b (1958), provides that issuance of a grazing permit *435shall not create any vested right, it also states that “[s]o far as consistent with the purposes and provisions of this chapter, grazing privileges recognized and acknowledged shall be adequately safeguarded.” See Oman v. United States, 179 F. 2d 738 (10th Cir. 1949); Red Canyon Sheep Co. v. Ickes, 69 App.D.C. 27, 98 F.2d 308 (1938). Thus, while the existence of an outstanding permit does not preclude an exchange, it is a relevant consideration.

. Section 3 of the Act requires the Secretary to renew permits where the grazing unit covered is pledged as security for a bona fide loan. The purpose of this provision was to encourage bank credit, see Hearings on S. 2359 Before the Senate Committee on Public Lands andi Surveys, 74th Cong., 1st Sess. 37-39 (1935); 78 Cong.Rec. 11151-55, 11162 (1934), but there was no indication that it was intended to limit the Secretary’s power to consolidate districts by land exchange.

. Appellees cite two exchanges approved by the Secretary under § 8(b) to show that offered lands need not be valuable for grazing: In Elbert O. Jensen, 60 I.D. 231 (1948), the exchange was approved although the offered land was situated within a national forest, and not under the jurisdiction of the Taylor Act. But that case is distinguishable because similar land conservation policies underlie the creation and administration of the forest reserves and the grazing districts, and because grazing is one of the major issues of forest lands. See Clawson & Held 57-60, 200. See also 76 Stat. 140 (1902), 43 U.S.C. § 315g-l (Supp. IV 1959-1962); H.R.Rep. No. 1418, 87th Cong., 2d Sess. (1962). In Owen Ault, A-27845, which was not appealed; the Secretary based his approval of a proposed exchange on national defense interests. I think he erred.

. 26 Stat. 1099 (1891), 43 U.S.C. § 671 (1958).

. The major provisions are at 43 U.S.C. §§ 321-339, 351-360, 682a-682e, 1171-1177 (1958). See summary in Clawson & Held 391-92.

. See, e. g., 78 Cong.Rec. 11140-43 (1934).

. S.Rep. No. 857, 85th Cong., 1st Sess. (1957). See also H.R.Rep. No. 2856, 84th Cong., 2d Sess. (1956).

. 10 U.S.C. § 2667 (1958).

. 72 Stat. 27 (1958), 43 U.S.C. §§ 155-158 (1958).

. S.Rep. No. 857, 85th Cong., 1st Sess. 3 (1957).

. 43 U.S.C. § 315f (1958).

. Since the selected land in this case exceeds 5000 acres, specific congressional ■ approval would be required. See note 22 supra. In addition, North American Aviation would not gain fee title to the land, and holders of grazing licenses would be entitled to compensation for the destruction of their licenses. 56 Stat. 654 • (1942), as amended, 43 U.S.C. § 315q (1958).

. See Clawson & Held 335.

. See Int.Dept.Ann.Rep. (1962): New Horizons in Resource Conservation, IXLXXVI, especially XLYI-L. See also Clawson & Held 346-47.

. Congress considered legislation on the subject in 1963. See S. 601, S. 1598, S. 1599, S. 1600, S. 1601, and S. 1602, 88th Cong., 1st Sess. (1963). See also Senate Comm, on Interior and Insular Affairs, 88th Cono., 1st Sess., the Public Lands (Comm. Print 1963).