United States v. Southwest Potash Corporation and American Surety Company of New York

MURRAH, Chief Judge.

This suit involves the interpretation of the royalty provisions of Department of Interior leases for the mining and production of potash deposits on public lands in New Mexico. The United States appeals from a summary judgment for the lessee-appellee construing the pertinent provisions contrary to the administrative construction and application. These leases were issued pursuant to the so-called Potassium Act of February 7,1927, 44 Stat. 1057, 30 U.S.C. § 282, and in accordance with the statute provided for a royalty of 3% percent of the gross value of the “output of the…