Full opinion text
OPINION PER CURIAM: This case comes before the court on plaintiffs’ motion, filed November 7, 1977, moving that the court adopted, as the basis for its judgment in this case, the recommended decision of Trial Judge Thomas J. Lydon, filed July 15, 1977, pursuant to Rule 134(h), on liability, defendant having failed to file exceptions thereto within the time provided therefor and having by letter of November 1, 1977, informed the trial judge that it would not file exceptions. Upon consideration thereof, without oral argument, since the court agrees with the trial judge’s recommended decision, as hereinafter set forth, it hereby grants plaintiffs’ motion and adopts the said decision as the basis for its judgment in this case. Therefore, the court concludes as a matter of law that plaintiffs are not entitled to any recovery relative to the installation of Platform Hill-house on the west side of Tract 401 under their lease with defendant and their petitions in this regard are dismissed. The court further concludes as a matter of law that plaintiffs are entitled to recover damages for defendant’s breach of plaintiffs’ lease rights relative to installátion of Platform Henry on the east side of Tract 401, and judgment is entered for plaintiffs to that effect, with the determination of the exact amount of recovery to be made in further proceedings under Rule 131(c). Plaintiffs’ petitions setting forth an alternative taking theory of recovery relative to installation of Platform Henry are accordingly dismissed. OPINION OF TRIAL JUDGE LYDON, Trial Judge: This is an action by three major oil companies seeking to recover damages and/or just compensation emanating from an oil and gas lease which the companies, as a group, obtained from the Department of the Interior (Interior) on April 1, 1968. Interior granted the lease on the authority of the Outer Continental Shelf Lands Act, 67 Stat. 462 (1953), 43 U.S.C. § 1331-43 (1970). Under the lease, plaintiffs paid $38,380,032 for the exclusive right to drill for, remove and dispose of all oil and gas (hydrocarbons) deposits from lease Tract OCS-P-0240 (known as Tract 401) in the Santa Barbara Channel off the coast of California. Tract 401 was located on the Outer Continental Shelf Lands (OCSL) approximately 7½ miles southeast of the City of Santa Barbara. Tract 401 embraced two major oil and gas fields, the Dos Cuadras field and the Carpintería field. Plaintiffs’ claims herein center on their efforts to construct two platforms on Tract 401 in order to drill for, remove and dispose of oil and gas deposits lying within said tract. In the Dos Cuadras field, the concern focuses on Platform Hill-house, which was located on the west side of Tract 401; in the Carpintería field, attention settles on Platform Henry, which was to be located on the east side of Tract 401. As to Platform Hillhouse, the essence of plaintiffs’ claim is that defendant unreasonably delayed plaintiffs in their efforts to install Platform Hillhouse on Tract 401 and to drill for and produce oil and gas from said platform. Plaintiffs aver that this breach of lease contract by defendant was responsible for 189 days of delay and seek to recover attendant damages. Platform Hillhouse was installed on Tract 401 and did produce oil and gas from the Dos Cuadras field. As to Platform Henry, plaintiffs contend that defendant’s refusal to approve their application to install Platform Henry on Tract 401 constituted a breach of the lease contract entitling them to resulting damages. Further, plaintiffs maintain that defendant’s actions relative to Platform Henry resulted in a taking of their leasehold rights, in whole or in part, entitling them to a just compensation award under the Fifth Amendment to the United States Constitution. Plaintiffs have not as of the date proof was closed in this case produced any oil or gas from the Carpintería field on Tract 401. Defendant disclaims any unreasonable delay, interference or improper actions relative to installation of and production of gas and oil from Platform Hillhouse. As to Platform Henry, defendant asserts that the actions of the Secretary of the Interior (hereinafter Secretary) relative thereto were legal, proper and justified. Further, in response to plaintiffs’ taking claim, defendant advances the view that, in fact, no taking occurred; and that, in any event, the Secretary had no legal authority to effect a taking, in whole or in part, of plaintiffs’ leasehold. For reasons set forth herein, it is concluded that defendant did not breach the lease contract relative to the installation and operation of Platform Hillhouse. It is my opinion, however, that defendant did breach the lease agreement with respect to denial of plaintiffs’ application for installation of Platform Henry. It is also my opinion that, in any event, defendant’s actions as to Platform Henry did not constitute a taking, in whole or in part, of plaintiffs’ leasehold. I A The OCSL Act came into being in 1953. This Act provided inter alia, for federal jurisdiction over submerged lands on the Continental Shelf which were beyond the 3-mile limit from the coastline. See United States v. California, 381 U.S. 139, 85 S.Ct. 1401, 14 L.Ed.2d 296 (1965) and 382 U.S. 448, 86 S.Ct. 607,15 L.Ed.2d 517 (1966). Section 8 of the OCSL Act, 43 U.S.C. § 1337(a), authorized the Secretary to grant oil and gas leases on OCSL by competitive bidding. In Union Oil Company of California v. Morton, 512 F.2d 743, 747 (9th Cir. 1975), it was stated that: * * * A lease issued under this Act [OCSL Act], like a mineral lease granted under the Mineral Leasing Act of 1920, 30 U.S.C. § 181 et seq., does not convey title in the land, nor does it convey an unencumbered estate in the oil and gas. See Boesche v. Udall, 373 U.S. 472, 478, 83 S.Ct. 1373, 10 L.Ed.2d 491 (1963); McKenna v. Wallis, 344 F.2d 432, 440-41 (5th Cir. 1965), vacated, 384 U.S. 63, 86 S.Ct. 1301, 16 L.Ed.2d 369 (1966). The lease does convey a property interest enforceable against the Government, of course, but it is an interest lacking many of the attributes of private property. Oil and gas deposits beneath the continental shelf are precious resources belonging to the entire nation. Congress, although encouraging the extraction of these resources by private companies, provided safeguards to insure that their exploitation should inure to the benefit of all. These safeguards are not limited to those provided by covenants in the lease; Congress also authorized the Secretary to maintain extensive, continuing regulation of the oil companies’ day to day drilling operations. Section 5(a)(1) of the OCSL Act, 43 U.S.C. § 1334(a)(1), provided that: The Secretary shall administer the provisions of this subchapter relating to the leasing of the outer Continental Shelf, and shall prescribe such rules and regulations as may be necessary to carry out such provisions. The Secretary may at any time prescribe and amend such rules and regulations as he determines to be necessary and proper in order to provide for the prevention of waste and conservation of the natural resources of the outer Continental Shelf, and the protection of correlative rights therein, and, notwithstanding any other provisions herein, such rules and regulations shall apply to all operations conducted under a lease issued or maintained under the provisions of this subchapter. In the enforcement of conservation laws, rules, and regulations the Secretary is authorized to cooperate with the conservation agencies of the adjacent States. Without limiting the generality of the foregoing provisions of this section, the rules and regulations prescribed by the Secretary thereunder may provide for the assignment or relinquishment of leases, for the sale of royalty oil and gas accruing or reserved to the United States at not less than market value, and, in the interest of conservation, for unitization, pooling, drilling agreements, suspension of operations or production, reduction of rentals or royalties, compensatory royalty agreements, subsurface storage of oil or gas in any of said submerged lands, and drilling or other easements necessary for operations or production. Section 4(f) of the OCSL Act, 43 U.S.C. § 1333(f) provided that: The authority of the Secretary of the Army [acting through the Army Corps of Engineers] to prevent obstruction to navigation in the navigable waters of the United States is extended to artificial islands and fixed structures located on the Outer Continental Shelf. Both Interior and the Army Corps of Engineers (Corps) issued regulations implementing the OCSL Act. The lease (Form 3380-1) binding the plaintiffs and the Bureau of Land Management (BLM), Department of the Interior, provided that the lease was entered into “ * * * under, pursuant, and subject to the terms of the Outer Continental Shelf Lands Act of August 7, 1953 * * * and to all lawful and reasonable regulations of the Secretary of the Interior * * * when not inconsistent with any express and specific provisions herein, which are made a part hereof.” Under section 1 of plaintiffs’ lease, they, as lessees, were given: * * * [T]he exclusive right and privilege to drill for, mine, extract, remove and dispose of all oil and gas deposits * * * [in or under Tract 401] ****** (c) the right to construct or erect and to maintain within the leased area [Tract 401] all * * * platforms, fixed or floating structures * * * pipelines * * * and other works and structures necessary or convenient to the full enjoyment of the rights granted by this lease * * * Section 2(c) of plaintiffs’ lease required them: * * * Within 30 days after demand, to subscribe to and to operate under such reasonable cooperative or unit plan for the development and operation of the area, field, or pool, or part thereof * * as the Secretary [of the Interior] may determine to be practicable and necessary or advisable in the interest of conservation which plan shall adequately protect the rights of all parties in interest, including the United States. B The findings of fact deal in great detail with the varied and myriad facts advanced by the parties in this litigation. For present purposes only a brief account of the facts will be set forth in order to place the positions of the parties in proper perspective. Discussion of additional facts will occur when the arguments of the parties are considered. The Santa Barbara Channel (the Channel) runs in an east-west direction between the coast of Southern California from Point Conception to Port Hueneme and the offshore islands of San Miguel, Santa Rosa, Santa Cruz, and Anacapa. The Channel is about 70 miles long (east-west) and varies from about 10 to 30 miles in width (north-south). The Channel area has a number of oil and gas fields; and natural hydrocarbon seeps, both onshore and offshore, are a widespread phenomenon in the area. Offshore oil production in the Channel commenced without specific state or federal permission in 1896 by means of wells drilled from piers. Oil production from the Channel has continued since that time. After 1921, pursuant to state policy, California authorized exploration for hydrocarbons in the Channel. This exploration resulted in the discovery of a number of fields which yielded substantial hydrocarbon production. However, in response to protests from residents and officials of the City of Santa Barbara that exploration for and production of oil and gas on state lands in the Channel area bordering the city would be unsightly, the State of California, in 1955, established a “sanctuary area” 16 miles long, from shoreline to the 3-mile limit, wherein no exploration or leasing would be permitted. This sanctuary embraced a coastal area which featured the City of Santa Barbara as its approximate midpoint. Interior was well aware of this sanctuary and attendant history when it set in motion the advertisement which led to the 1968 lease sale. Sometime in 1965 the United States Geological Service (USGS) became alert to the significance of the fact that the Carpintería oil and gas field in the Channel extended under both state lands and federal lands. California had leased a tract of state land in the Channel for oil and gas production from the Carpintería field prior to November 1965. USGS believed that if state oil and gas production from the Carpintería field continued, drainage from the Carpintería field under federal land would occur thereby depriving the Federal Government and its potential lessees of revenues. Accordingly, Interior solicited bids for lease sale of Tract 298 (OCS-P-0166). This tract was directly east of plaintiffs’ Tract 401. Both Tract 298 and Tract 401 were located on portions of the Carpintería oil and gas field in the Channel. In December 1966, Tract 298 was awarded to a group consisting of the Phillips Petroleum Company, Cities Service Oil Company, and Continental Oil Company (the Phillips Group). Subsequently, the Phillips Group installed two drilling platforms on Tract 298 (known as Platforms Houchin and Hogan) both of which were producing gas and oil from the Ca-rpintería field by November 1969. In December 1966, BLM invited, by public notice, oil companies to indicate, without committing themselves, those tracts in the Channel which they might be interested in leasing. A press release described the procedures in this regard. This proposed federal leasing program in the Channel generated protests from various state-county-city (California) and other groups. These groups maintained that a federal leasing program would impinge on the state’s sanctuary area and would serve to encourage and/or require the state to lease sanctuary lands to prevent federal drainage of said state lands. Further, these groups argued that additional leases would mean additional drilling platforms which would mar the aesthetics of the ocean view from the shore. The protesting groups met with Interior officials on the matter. Thereafter, Interior decided that a 2-mile strip of federal land seaward of the state sanctuary land would not be leased, except for two tracts— Tract 401, plaintiffs’ tract, and Tract 402. Tract 402 was subsequently leased to a group composed of Union Oil Company of California, Mobil Oil Corporation, Gulf Oil Corporation, and Texaco, Inc. (the Union Oil Group). Tract 402 was situated directly west of plaintiffs’ Tract 401. Both Tract 402 and Tract 401 were located on a portion of the Dos Cuadras oil and gas field. Before embarking on a federal lease program in the Channel, Interior gave consideration to the visual impact (aesthetics) of above-water installations on the Channel lease tracts. Interior also prepared other studies while considering this lease program. In December 1967, Interior offered some 110 parcels of Channel land for general lease sale. A lease sale was held on February 6, 1968, in Los Angeles, California. As a result of this sale, leases were awarded on 71 parcels of land in the Channel for a total payment to the Federal Government of $602,719,261.60. Plaintiffs were successful bidders at the February lease sale for Tract 401, for which they paid the Federal Government $38,380,-032. A formal lease was executed by Interior and the plaintiffs on April 1, 1968. Platform Hillhouse After plaintiffs acquired the lease to Tract 401, they commenced exploration activities. They confirmed that the oil-bearing sands of the Dos Cuadras field extended under the northwestern portion of Tract 401. As indicated earlier, the Dos Cuadras field also extended under the northeastern portion of Tract 402 which the Union Oil Group leased as a result of the February 1968 sale. By November 1968 plaintiffs decided to construct a platform, called Hillhouse, on the western portion of Tract 401, from which to drill for and produce oil and gas from the Dos Cuadras oil and gas field. Plaintiffs signed a contract on February 11, 1969, with J. Ray McDermott, Inc. (McDer-mott) to construct Platform Hillhouse. This contract resulted from negotiations with McDermott by plaintiffs which ostensibly began in November 1968. On May 1, 1969, plaintiffs signed a drilling contract with Island Drilling, Inc. On January 24, 1969, plaintiffs submitted to the Pacific Regional Supervisor, USGS, a plan for development of the west side of Tract 401, including proposals for the construction and placement of Platform Hill-house. Because of the Union Oil blow out on January 28,1969, which will be discussed next, plaintiffs, on February 6, 1969, withdrew the plan of development mentioned above. The Union Oil Group, Union Oil was the operator for the Group, acquired Tract 402 at the February 6, 1968, sale. As indicated earlier, this Tract was directly east of and adjacent to plaintiffs’ Tract 402. Both Union Oil and plaintiffs were to tap the same oil field. On April 18, 1968, Union Oil applied to the Pacific Regional Supervisor, USGS, for permission to erect Platform A on the northeastern portion of Tract 402. Union Oil supplied the Regional Supervisor — the record does not indicate why— with supplemental information on April 29, 1969. The Pacific Regional Supervisor, USGS, granted final approval to Union Oil’s application on May 6, 1968. In September 1968 Union Oil erected Platform A on Tract 402. This platform was located 1,350 feet west of the boundary line between Union Oil’s Tract 402 and plaintiffs’ Tract 401. It was installed to produce oil and gas from the Dos Cuadras field. By January 26, 1969, Union Oil had completed three wells from Platform A and two additional wells were being drilled. On the morning of January 28, 1969, the fifth well being drilled from Platform A blew out. The blow out caused a massive oil spill in the Channel, killing birds and marine organisms, damaging beaches and seafront properties and restricting fishing and recreational activities in the Santa Barbara coastal area. See Union Oil Company of California v. Morton, supra, 512 F.2d at 746. The seepage of oil, polluting the Channel and adjacent coastline, continued into February 1969. The area from which oil seepage occurred extended from a point approximately 1,300 feet west of Union Oil’s Platform A to a point on plaintiffs’ Tract 401 approximately 2,600 feet east of Platform A. This blow out set in motion the chain of events which underscore this litigation. Following the Union Oil blow out, a series of investigations, reviews of existing procedures, and reconsiderations of the federal leasing program in the Channel took place. The atmosphere surrounding these efforts was clouded by clamor from many public and private groups and individuals who were opposed to the federal Channel leasing program. Indeed, bills were introduced in the Congress of the United States to terminate all drilling in the Channel. A federal sanctuary plan under which some 20 Channel leases, later expanded to cover 35 Channel leases, would be revoked and the tracts associated therewith placed in said sanctuary was the subject of bills introduced in the Congress. This plan, however, did not include plaintiffs’ Tract 401, Union Oil’s Tract 402, or the Phillips Group’s Tract 298. None of the legislative efforts spawned by the Union Oil blow out were successful. As a result of the Union Oil blow out, Interior suspended drilling and production operations on federal leased tracts in the Channel. Initially, Interior took steps directly related to the containment of the oil spill in the Channel area. Thereafter, Interior was concerned about assuring that future operations would not result in a recurrence of a Union Oil type blow out. On March 3, 1969, Interior allowed drilling and production from the Carpintería field on the Phillips Group’s Tract 298 to resume on a temporary basis. This authorization was made permanent on April 1, 1969. Of the investigations conducted as a result of the Union Oil blow out, the most prestigious was that conducted by the Du-Bridge Committee. The DuBridge Committee announced its report and recommendations on June 2, 1969, and suggested an order of priorities be established relative to Channel activity on federal-leased lands. The first priority recommended by the Committee was to control the oil seepage. The sixth, and final, priority recommended by the Committee was to deplete all Dos Cuadras Repetto reservoirs as efficiently and rapidly as possible consistent with safety- On June 9, 1969, Interior authorized Union Oil to drill nine wells from Platforms A and B. These nine wells were drilled, completed, and, with the exception of one well on which drilling was suspended by Union Oil itself, put into production during the months of June and July 1969, without incident. On April 18, 1969, plaintiffs submitted a revised plan of development of the west side of Tract 401. This revised plan was received by the Pacific Regional Office, USGS, on April 25, 1969. The revised plan was not inconsistent with any applicable rule, regulation or order of Interior. Plaintiffs’ revised plan located Platform Hill-house some 1,400 feet east of the boundary line of Union Oil’s Tract 402 and approximately 2,750 feet east of Union Oil’s Platform A. On April 24,1969, plaintiffs submitted an application to USGS requesting approval to install and maintain Platform Hillhouse on its Tract 401. This application was in accordance with the procedure required by 30 C.P.R. § 250.34(a) (1964). On April 30, 1969, plaintiffs applied to the Corps for a permit to install Platform Hillhouse in the Channel on Tract 401. This application was in full compliance with all applicable rules, regulations and orders of the Corps. Because their respective responsibilities overlapped to some degree, Interior and the Corps agreed that they would coordinate their OCSL actions, ostensibly to avoid duplication and inconsistent orders. It was agreed that the Corps would consider navigation and national security when acting on installation permits and Interior would cover all “general public interest matters” when authorizing development activity in the Channel. As implemented, the Corps processed installation permit applications after Interior had cleared tracts for lease development. Plaintiffs’ plan of development and their application to install Platform Hillhouse were under consideration by Interior from April 25, 1969, until August 15, 1969, when both were approved' by the Secretary of Interior, Walter J. Hickel. On August 25, 1969, the Corps began to process plaintiffs’ Platform Hillhouse installation permit. This process involved public hearings and generated public comment and input. It resulted in unsuccessful legal actions seeking restraining orders and injunctions barring granting of the installation permits. The Corps issued the permits to plaintiffs on November 7, 1969. Construction of Platform Hillhouse started on January 14, 1969, at the Kaiser Steel Company yards in Oakland, California. The platform was originally scheduled for completion on June 15,1969. However, this schedule was revised on February, 27, 1969, at which time it was estimated that the earliest date for completion of the platform was July 30, 1969. On April 21, 1969, plaintiffs met with McDermott, the platform contractor and Kaiser Steel. A revised platform delivery date of August 11, 1969, was established. At this meeting, the impact of the January 28, 1969, Union Oil blow out was discussed. The minutes of this meeting provided in pertinent part: 1. Since Union’s leak is still very much in evidence, Sun’s application to develop Tract 401 has met with unforeseen delays. 2. Sun is extremely confident that the USGS will approve our development plan, and the Corps of Engineers will permit the platform. 3. Secretary Hickel could veto a USGS recommended approval of our plan and cancel the lease, but this seems very unlikely. 4. A formal presentation to the USGS of our development plan is to be made April 25, 1969. An application to install Platform Hillhouse will be submitted at this time. We do not expect an answer from the USGS until about May 16. 5. Sun is trying to coordinate the installation of the platform with construction of onshore producing facilities. It will be necessary to have these facilities operational before drilling will be permitted. At this meeting, the participants also discussed the possibility of future platform delivery delay. Kaiser personnel recommended that, in any event, platform construction be completed without any delay or shut down, since “[s]hut down and resumption of work could be most costly.” According to Kaiser, the platform components could be stored until delivery was possible, and that by good planning storage costs could be held to a minimum. Between April 21, 1969, and June 17, 1969, construction work on Platform Hill-house continued. On June 17, 1969, plaintiffs advised McDermott that they would be unable to accept delivery of the platform in accordance with the revised schedule established on April 21, 1969. Thereafter, work on the platform components slowed down and, on July 18, 1969, all construction work on the platform ceased completely. After Interior’s approval of their permits on August 15, 1969, plaintiffs authorized McDermott to instruct Kaiser to resume construction work on the platform without delay. Construction work on the platform began again on September 2, 1969. On October 30, 1969, plaintiffs were advised that platform construction would be completed on November 10, 1969. On this record it is reasonable to assume that if construction work on the platform had not been suspended, the platform would have been available at the earliest on August 11, 1969. This was only 4 days before Secretary Hickel granted plaintiffs’ applications. However, on reading the minutes of the April 21, 1969, meeting, discussed above, it would not be unreasonable to assume a delivery date after August 15, 1969. Installation of Platform Hillhouse on Tract 401 began on November 21, 1969, and required some 65 days. Plaintiffs took possession of the platform on January 21, 1970. In order to prepare for oil and gas production, plaintiffs engaged in efforts to secure onshore facilities, a platform power supply, and a pipeline access from onshore to’the offshore platform. These efforts, to one degree or another, served to delay plaintiffs’ drilling preparations. Plaintiffs were ready to drill their first well from Platform Hillhouse on April 6, 1970. On May 18, 1970, plaintiffs received authorization from the Pacific Regional Supervisor to drill without the availability of pipeline facilities to shore. On May 20, 1970, the District Engineer advised plaintiffs that Platform Hillhouse, its rigs and its equipment had been successfully inspected and that plaintiffs had approval to commence drilling operations. On May 25, 1970, plaintiffs commenced drilling on the first well from Platform Hillhouse. On June 16,1970, plaintiffs’ first well was completed and ready to produce. On May 25, 1970, however, plaintiffs did not have available to them pipeline facilities for transmitting the oil and gas from platform to shore. On July 21, 1970, plaintiffs were able to resolve the shore to platform pipeline facility problem. On and after July 21, 1970, plaintiffs obtained oil and gas production from Platform Hillhouse. This. completed development of the west side of Tract 401 on which the Dos Cuadras oil and gas field was located. Platform Henry As indicated earlier, the east side of Tract 401 embraced the Carpintería oil and gas field. The Phillips Group had been draining this field under a federal lease since June 10, 1968. Unitization of plaintiffs’ Tract 401 with the Phillips Group’s Tract 298 was not technically feasible in order to develop fully the Carpintería field because the Phillips Group’s Platform Houchin could not obtain maximum ultimate recovery from this field. Unitization was a cooperative procedure whereby two or more lessees would unite in drilling and production endeavors. Accordingly, it was necessary for plaintiffs to install their own platform in order to develop the east side of Tract 401. On December 29, 1969, plaintiffs submitted their plan of development for the east side of Tract 401. On January 22, 1970, plaintiffs applied for a permit to install Platform Henry on the east side of Tract 401. Both submissions were sent to the Los Angeles Regional Office USGS, and the permit transmittal letter requested rapid approval because delays would result in drainage of the oil and gas in the field by the Phillips Group’s operations on Tract 298. As submitted, plaintiffs’ east side plan of development and application for a permit to install Platform Henry were not inconsistent with any rule, regulation, or order of Interior. By February 3, 1970, the Santa Barbara District Engineer and the Pacific Regional Supervisor, USGS, had recommended approval of plaintiffs’ plan application and Platform Henry’s permit. These recommendations were forwarded to the Washington office of USGS on or about February 3, 1970. Public hearings on Platform Henry were held on January 14,1971, in Santa Barbara, California. Shortly thereafter, Interior began to prepare a draft of an Environmental Statement on the proposed installations of Platform Henry in accordance with the procedures of the National Environmental Policy Act of 1969, 83 Stat. 852, 42 U.S.C. § 4331 (1970). The availability of the initial draft of the Environmental Statement was announced on May 11,1971, and public comment was invited and received. On August 23, 1971, a copy of the Final Environmental Statement was submitted to the Secretary, together with a recommendation from the Assistant Secretary of the Interior for Mineral Resources, that plaintiffs’ application and permit be granted. No official of the Interior recommended to the Secretary that plaintiffs’ application and permit for Platform Henry be denied on environmental or any other ground. On September 20,1971, Secretary of Interior, Rogers C. B. Morton, denied plaintiffs’ permit to install Platform Henry “because of overriding environmental conditions.” On November 3, 1972, more than a year after denial of plaintiffs’ permit application, and after commencement of this litigation, Secretary Morton issued a “Statement of Decision”, wherein he listed some six grounds in support of his denial of the Platform Henry permit request. Secretary Morton had not spelled out these grounds in his decision of September 20, 1971, denying the permit application. On September 29, 1975, plaintiffs submitted to the Los Angeles Regional Office, USGS, a plan of development for the east side of Tract 401, a request for a permit to install Platform Henry, and a request for approval to drill exploratory wells. On April 28, 1976, USGS, advised plaintiffs it could not approve the plan of development as submitted. It further advised plaintiffs that it could not approve drilling and platform installation requests together, but could approve, if separately submitted, drilling plans. On July 9, 1976 plaintiffs submitted to USGS a plan to drill an exploratory well (well No. 9) on the east side of Tract 401. In early August 1976, plaintiffs submitted an Oil Spill Contingency Plan to USGS. On August 23, 1976, plaintiffs applied for a permit to drill well No. 9 into the Carpinteria field. USGS issued such a permit to plaintiffs on September 9, 1976. On plaintiffs’ application, USGS issued a permit allowing plaintiffs to drill well No. 10 on the east side of Tract 401 on December 29,1976. The drilling of well No. 10 was completed in January 1977. The actions of the parties in 1975-1977, as related above, clearly indicate that they viewed the lease agreement between them as existing, valid, operative and enforceable. As of the date of final closing of proof in this case (February 3, 1977), no plan of development or application for a permit to install Platform Henry on the east side of Tract 401 had been approved by USGS. II Plaintiffs’ breach of lease contentions relative to Platforms Hillhouse and Henry are premised on the general proposition that: * * * neither party to the contract will do anything to prevent performance thereof by the other party or that will hinder or delay him in its performance * * * Wah Chang Corp. v. United States, 282 F.2d 728, 733, 151 Ct.Cl. 41, 49 (1960); see also 5 Williston, Contracts § 670 at 159 (3d ed. 1961). Specifically, as to Platform Hillhouse, plaintiffs claim that defendant unreasonably delayed them in their efforts to install said platform on the west side of Tract 401 and to produce oil and gas therefrom. See George A. Fuller Co. v. United States, 69 F.Supp. 409, 108 Ct.Cl. 70, 94-102 (1947); see also Lewis-Nicholson, Inc. v. United States, 550 F.2d 26, 30, 32, 213 Ct.Cl. 192, 200-01, 203-05 (1977). With respect to Platform Henry, plaintiffs challenge defendant’s denial to them of permission to install said platform on the east side of Tract 401 as unjustified. See Neely v. United States, 285 F.2d 438, 442, 152 Ct.Cl. 137, 145 (1961). The disputes between the parties center on whether the established facts fit the mold of case law which requires that defendant respond by way of breach of contract damages if it unreasonably delays a lessee in contract performance or if it unjustifiably prevents a lessee from performing under its contract. It is important, when considering the contentions of the parties, to bear in mind that the lease contract between the parties was entered into: Under, pursuant and subject to the terms and provisions of the * * * [OCSL Act], and to all lawful and reasonable regulations of the Secretary of the Interi- or * * * when not inconsistent with any express and specific provisions herein, which are made a part hereof * *. The circumstances relative to issuance of the lease in question, the milieu in which lease performance was to take place, and the environmental concerns implicit in the totality of the federal leasing program on OCSL cannot be overlooked in the consideration of the present claims. The actions of the Secretary, herein challenged, must be viewed in the light of the obligations, duties and responsibilities placed on him by the OCSL Act, the very Act which gave birth to the lease now in issue. Plaintiffs’ lease rights are not absolute and unqualified under the circumstances. However, the Secretary’s power and authority to obliterate and/or interfere with vested lease rights is not absolute. The Secretary would have to respond in damages for unbridled, unjustified and unreasonable interference with plaintiffs’ lease rights. See Union Oil Company of California v. Morton, supra. The crucial factual determinations to be reached herein are whether the actions of the Secretary and the actions of the Corps, were unreasonable and unjustified under the circumstances in which they were taken. Since a determination of whether defendant’s actions regarding Platform Hill-house constituted a breach of lease brings into consideration factors that are not involved in the determination of whether defendant’s actions with respect to Platform Henry constituted a breach of lease, the following discussion will deal separately with the claims associated with these platforms. Platform Hillhouse Plaintiffs put forth three separate delay claims covering the period April 25, 1969— July 21,1970, aggregating some 189 days of delay. April 25, 1969, was the date when plaintiffs’ revised plan of development and permit for installation of Platform Hill-house was received by USGS for approval. July 21, 1970, was the date when plaintiffs began producing oil and gas from Platform Hillhouse. First, plaintiffs maintain that the period from August 11, 1969, when the platform was scheduled to be completed, to November 10,1969, when the platform was actually completed (91 days), constitutes a period of unreasonable delay occasioned solely by the failure of Interior to promptly process, approve and issue the application and permit necessary for the construction and installation of Platform Hillhouse. Plaintiffs further maintain that the unreasonable delay of the Corps in processing their navigation permit required plaintiffs to install the platform in the winter season. Plaintiffs allege that during this winter season they were delayed 21 days by adverse weather conditions which would not have been encountered if the Corps had approved this permit more promptly. Accordingly, plaintiffs seek delay damages for 112 days resulting from events which occurred, or failed to occur, during the period April 25, 1969 — January 21, 1970. January 21, 1970, was the date when Platform Hillhouse was installed on Tract 401. Second, plaintiffs seek to recover delay damages for the period from April 6, 1970, when plaintiffs were ready to drill their first well from Platform Hillhouse, to May 18, 1970, when USGS granted approval to plaintiffs to commence drilling. Plaintiffs claim 42 days of delay. Third, and finally, plaintiffs seek to recover delay damages for the period from June 16, 1970, when plaintiffs’ first well on Platform Hillhouse was completed and ready to produce, to July 21, 1970, when plaintiffs began producing oil and gas from said platform. Plaintiffs claim 35 days of delay. a. The first delay claim period Upon receipt of plaintiffs’ plan of development and request for an installation permit on April 25, 1969, Interior began the process of review attendant thereto. On May 5, 1969, the Santa Barbara District Engineer, USGS recommended to the Pacific Regional Supervisor, USGS, that plaintiffs’ plan of development and application to install Platform Hillhouse be approved. The Pacific Regional Supervisor, in turn, recommended approval of plaintiffs’ plan and permit application on May 16, 1969, together with a request that a geologic clearance be processed without too much delay. On June 3, 1969, the Acting Oil and Gas Supervisor, Pacific Region, USGS, and the Regional Geologist, USGS, recommended approval of plaintiffs’ plan and permit application. The matter was then forwarded to the Washington office of USGS where, on June 30, 1969, the Director, USGS, recommended to the Secretary of the Interior, Walter J. Hickel, that both plaintiffs’ plan of development and installation permit be approved. As indicated earlier, the DuBridge Committee issued its report on June 2, 1969. One of its recommendations was that the Dos Cuadras Repetto reservoirs be drained as efficiently and rapidly as possible consistent with safety. Such draining would serve to relieve pressure in these reservoirs. On June 9, 1969, Interior authorized Union Oil to drill nine wells from Platforms A and B in order to drain said reservoirs. Eight of these wells were drilled and put into production during the months of June and July 1969 without incident. This activity by Union Oil undoubtedly supplied Interior with needed information although the record is most skimpy in this area. In any event, Interior requested plaintiffs to conduct a surface survey on their tract for bubbles. Plaintiffs did so on August 4, 1969, and reported the absence of any bubbles. During the second week of August 1969, plaintiffs were requested by Interior to further revise their plan of development. After meeting with Secretary Hickel on August 11, 1969, plaintiffs revised their plan of development. They submitted their revised plan of development to Interior on August 15, 1969, and approval was given that same day. Plaintiffs argue that this approval by Interior on August 15, 1969, of submissions received by Interior on April 25, 1969, was unreasonably long in duration. Plaintiffs suggest that approval should have been finalized when the Regional Supervisor recommended approval on May 16, 1969, pointing out that the Regional Supervisor had such final approval authority at the time the lease was entered into. However, this was before the Union Oil blow out. Such an argument has little surface appeal under the circumstances existing after the blow out. The blow out was a devastating event and required careful, prudent and cautious actions by Interior to control the oil spill first, and, second, to assure that such a blow out did not occur again. It is in this climate that the actions of Interior in processing plaintiffs’ application for plan and installation permit approval must be examined. It has been held that “[w]hat is a reasonable period of time for the government to do a particular act under the contract is entirely dependent upon the circumstances of the particular case.” Tri-Cor, Inc. v. United States, 458 F.2d 112, 131, 198 Ct.Cl. 187, 221 (1972). Plaintiffs can prevail on their delay claims only if they can establish that any such delay was unreasonable under the existing circumstances. Moreover, plaintiffs must also show that defendant’s approval delay was the primary cause of the delay in the installation of Platform Hillhouse. See L. L. Hall Constr. Co. v. United States, 379 F.2d 559, 563, 177 Ct.Cl. 870, 878 (1966). This is so because it would be of no avail to plaintiffs if the plan and permit application had been approved but construction of the platform not completed. In this situation, installation could not take place and plan and permit application approval lose significance. When plaintiffs’ plan of development and installation permit requests were received by USGS on April 25, 1969, the effects of the Union Oil blow out in the Santa Barbara Channel were still being felt. This blow out, as indicated before, involved severe and extensive environmental damage to the Channel and coastal area. Under the OCSL Act, 43 U.S.C. § 1334(a)(1) (1970), the Secretary was responsible for the administration of OCSL leases and was under a duty to protect the environment against waste and to conserve natural resources. See Gulf Oil Corp. v. Morton, 493 F.2d 141 (9th Cir. 1973) Accordingly, it was not only reasonable, but also the legal obligation of the Secretary to employ procedures different from those followed prior to the blow out to assure that such disasters would not occur. Following the blow out, plaintiffs’ plan of development and installation permit were subjected to review and study at various levels of USGS. This USGS review and study consumed some 68 days (April 25, 1969 — June 30, 1969). Under the circumstances of the blow out and the technical, scientific and environmental matters involved, 68 days is not considered unreasonable, per se. This multilevel USGS review process provided a reasonable means to ensure greater protection against the risk of future environmental harm. Its purpose was to make sure that installation of Platform Hillhouse would not have an adverse impact on the Channel environment. On this record, there is no evidence that USGS personnel were dilatory in performing their review and study duties relative to processing plaintiffs’ plan and permit submissions. Moreover, there is a presumption that public officials perform their duties in a proper manner. United States v. Chemical Foundation, Inc., 272 U.S. 1,14-15, 47 S.Ct. 1, 71 L.Ed. 131 (1926); Librach v. United States, 147 Ct.Cl. 605, 612 (1959). That presumption stands unrebutted on this record. Under the circumstances, the period from April 25, 1969, to June 30, 1969, cannot be considered to be an unreasonable period for purposes of USGS review, study and recommendations relative to plaintiffs’ plan and permit applications. USGS forwarded plaintiffs’ plan and permit applications, with favorable recommendations, on June 30, 1969, to Secretary Hickel. As indicated earlier, Union Oil had been permitted to drill some eight wells in the area during the period June — July 1969. These wells were completed without incident thereby generating a feeling that future drilling and oil production from the Dos Cuadras field could be accomplished in safety. It was reasonable for the Secretary to await the completion of Union Oil drilling in the Dos Cuadras field since this was the very same field on which Platform Hillhouse was to be installed. After Union Oil’s success in drilling into the Dos Cuadras field, a bubble test, performed by plaintiffs at defendant’s request, indicated that no oil or gas was seeping through fractures or fissures in the Dos Cuadras field. This was a confirmation that additional drilling by plaintiffs could be done safely. Thereafter, Secretary Hickel, after plaintiffs revised their plan as requested, approved said plan on August 15, 1969. The factual recitation above does not establish any unreasonable delay or actions on defendant’s part. Instead, the actions reflect a prudent and cautious effort to protect the Channel environment from any risk of harm. On this record, the, unrebutted presumption is that the Secretary performed his duties in a proper and responsible manner. See United States v. Chemical Foundation, Inc., supra; Librach v. United States, supra. On this record, and under the circumstances recited above, it must be concluded that defendant was not responsible for any unreasonable delay in the processing, review and approval of plaintiffs’ plan of development and installation permit request. The unique situation generated by the extraordinary Union Oil blow out and resulting oil spill dictated that defendant proceed with deliberate prudence and caution in approving the installation of another drilling platform in the very area which produced the disaster. It was reasonable for defendant to so proceed. At the time plaintiffs’ plan and permit request were approved on August 15, 1969, Platform Hillhouse had not been constructed. Accordingly, plaintiffs were not in a position to begin development of Tract 401 until their platform had been constructed and installed. Without more, this absence of a constructed platform renders any delay in plan and permit approval of little or no significance since such a delay would not delay the ultimate completion of the project. See Law v. United States, 195 Ct.Cl. 370, 385 (1971). However, plaintiffs respond that they directed their platform contractor to suspend work on the platform on June 17,1969, precisely because they had not received plan or permit approval and had no idea when such approval would be forthcoming. The question to be answered here is whether plaintiffs were reasonable in directing their platform contractor to suspend work on the platform. Plaintiffs maintain that it would have been unreasonable for them to continue platform construction in the light of the uncertainty as to when, if ever, their plan and permit submissions would be approved. However, the facts of record indicate that plaintiffs were unreasonable in this regard. Indeed, plaintiffs were not motivated by approval considerations when they authorized construction work on the platform to begin on January 14, 1969, before they even submitted their first plan of development and installation permit request. It is obvious that platform construction was not dependent on plan and/or permit ap-pro val. No provision of the lease agreement or relevant regulations covering lease operations required prior approval of Interi- or before constructing a platform, nor can the suspension of construction work on the platform be viewed as an effort to minimize damages should defendant fail to give approval. Under the lease plaintiffs had a vested right to install a platform. See Union Oil Company of California v. United States, supra, 512 F.2d at 750. Had defendant refused to grant this approval, plaintiffs would have been entitled to breach of contract damages, which would include incurred reasonable platform construction costs. See the discussion, infra, as to Platform Henry. Two other important facts bear on the reasonableness of plaintiffs’ suspension of platform construction work. First, defendant did not order or direct plaintiffs to suspend and halt platform construction work. It was a unilateral act on plaintiffs’ part, taken without consultation with and without a word to defendant. It was a business judgment exercised by plaintiffs. Second, and most important, the suspension and final work halt was taken against the recommendation of the platform contractor. The possibility of installation delay was given consideration by plaintiffs and their contractor in April 1969. The platform contractor advised plaintiffs that it would be less costly to furnish the platform and then store it while awaiting permission to install it, rather than suspend production thereof. Why the plaintiffs elected to ignore this advise is not revealed in the record. The record suggests, and of course is reinforced by but not influenced by hindsight, that plaintiffs did not act reasonably under the circumstances in suspending platform construction work on June 17, 1969. Had plaintiffs allowed platform construction work to continue, installation thereof would have blended rather nicely with the plan and permit approval given by defendant on August 15, 1969. Plaintiffs also proffer several other contentions which they allege manifest unreasonable actions by defendant. However, these contentions are subsumed by the determinations reached above that defendant did not unreasonably delay approval of plaintiffs’ plan and permit applications, and, in any event, plaintiffs’ actions in suspending construction work on the platform was the primary cause of the platform being completed on November 10, 1969, instead of mid-August 1969. For example, plaintiffs complain that defendant was unreasonable in not immediately implementing the DuBridge Committee Report recommendation that the Dos Cuadras Repetto reservoirs be depleted as efficiently and rapidly as possible consistent with safety. That report was issued on June 2, 1969. Defendant authorized Union Oil, on June 9, 1969, to drill wells from Platform A, which was already installed on its tract, in implementation of the Du-Bridge Committee recommendation. There was no unreasonable delay or action present. Since plaintiffs’ platform had not been constructed, or installed, plaintiffs were in no position to drill wells. Plaintiffs also argue that the Corps unreasonably delayed issuance to them of a permit to install Platform Hillhouse in the Channel. Plaintiffs’ reason that if the Corps had issued the permit more promptly, no later than August 15, 1969, they would not have had to install the platform during the winter season. Since the platform was installed during the winter season, some 21 working days were lost because of adverse weather conditions. Plaintiffs attribute these 21 days of delay to the Corps. Plaintiffs applied to the Corps for an installation permit on April 30, 1969. It is conceded that the Corps had the authority to require and issue such a permit before the platform could be installed in the Channel. Because of overlapping responsibilities, the Corps and Interior reached agreement that the Corps would be primarily responsible for navigation and national security aspects of permit authorization and Interior would be primarily responsible for environmental and other matters. As a result, it was agreed that the Corps would not process any installation permits until Interior had cleared a platform for installation. Under the circumstances, the action of the Corps in not immediately processing plaintiffs’ permit request was not unreasonable. Again, the blow out and its aftermath must be borne in mind. Accordingly, the Corps did not process plaintiffs’ permit request, as well as other lessee permit requests, until advised by Interior of its clearance of Tract 401 for platform installation. After Interior approved plaintiffs’ plan and installation permit application on August 15,1969, the Corps began to process plaintiffs’ permit from a navigational and national security point of view. The public notice associated with this process generated public hearings and law suits. As a result, the Corps was finally able to issue the permit to plaintiffs on November 7, 1969. While this date was approximately 6 months after plaintiffs had submitted their permit request, and nearly 3 months after Interior had cleared plaintiffs’ plan and authorized installation of Platform Hillhouse, it came 3 days before construction work on Platform Hillhouse was scheduled to be completed. Since the Corps issued the installation permit to plaintiffs before Platform Hillhouse was completed and ready for installation, the permit processing actions of the Corps resulted in no delay in the installation of Platform Hillhouse. See Law v. United States, supra, 195 Ct.Cl. at 385. Plaintiffs’ claim for delay damages covering actions and/or inactions of Interior and the Corps during the period April 25, 1969— January 21, 1970, aggregating 112 days, is not supported by the record in this case. b. The second delay claim period Plaintiffs were ready to drill their first well from Platform Hillhouse on April 6, 1970. However, USGS did not grant plaintiffs’ approval to commence drilling until May 18, 1970. Plaintiffs seek delay damages for this 42-day period on the ground defendant’s refusal to approve their drilling request on April 6, 1970, was unreasonable. On this record it is concluded that defendant’s actions in this regard were reasonable under the circumstances. USGS refused to authorize plaintiffs to commence drilling on April 6, 1970, because plaintiffs did not have available pipeline facilities from well head to shore through which oil production could flow. Plaintiffs are correct in pointing out that neither the OCSL Act nor implementing regulations precluded drilling unless pipeline access to shore was available. Plaintiffs argue from this fact that Interior thereby exceeded its authority in requiring such pipeline access as a precondition to drilling. As indicated earlier, the Secretary was under a duty and had a responsibility to protect the Channel environment during the course of the Federal lease program in the Channel. See Gulf Oil Corp. v. Morton, supra. Accordingly, in evaluating actions taken by the Secretary relative to Channel lease operations this duty and responsibility must be kept in mind. In the plan of development which plaintiffs submitted for approval, plaintiffs advised that they would not commence any drilling until a pipeline to shore was available in order to relieve any unexpected pressure they might encounter while drilling. Indeed, in their April 21, 1969, meeting with their platform contractor, plaintiffs advised it would be necessary to have onshore producing facilities operational before drilling will be permitted. The Secretary approved this plan of development which made the availability of pipeline facilities a precondition to drilling. Under the circumstances, it was not unreasonable for the Secretary to require plaintiffs to abide by their own plan. See Austin Co. v. United States, 314 F.2d 518, 520-21, 161 Ct.Cl. 76, 81, cert. denied, 375 U.S. 830, 84 S.Ct. 75,11 L.Ed.2d 62 (1963). After all, plaintiffs’ plan of development had been given careful consideration and found environmentally and technically safe. It would not be prudent to abandon part of that plan without further careful consideration. There was a safety feature associated with the pipeline precondition which Interior obviously could not ignore. If drilling produced a surge of oil for which no pipeline outlet was available, the pent-up pressure might result in further oil spills or seepage from below surface fractures and fissures. Plaintiffs recognized this possibility in their plan of development. Plaintiffs during this period sought to obtain pipeline to shore facilities. Defendant worked with plaintiffs in this regard. While not clearly set forth in the record, it is reasonable to assume that Interior gave careful consideration to plaintiffs’ request that it be allowed to deviate from their plan of development and drill before pipeline facilities were available. This required a determination that such drilling could be done safely without a possibility of pressure reaction. In allowing plaintiffs to drill without available pipeline facilities on May 18, 1970, defendant ostensibly made this determination on the basis of a thorough review of existing conditions. On the totality of the record, the actions of defendant during the period cannot be viewed as unreasonable. Plaintiffs have failed to carry their burden of proving by a preponderance of the evidence that defendant’s actions during the period April 6, 1970 — May 18, 1970, were unreasonable, unjustified or otherwise arbitrary. c. The third delay claim period The first well on Platform Hillhouse was completed and ready to produce on June 16, 1970. However, plaintiffs did not commence oil and gas production from Platform Hillhouse until July 21, 1970. Plaintiffs seek delay damages for this 35-day period on the ground that defendant’s failure to order cooperative development of Union Oil’s Tract 402 and plaintiffs’ Tract 401 on or before June 16, 1970, unreasonably delayed plaintiffs’ production efforts. Plaintiffs’ contentions, on this record, are found to be without merit. While plaintiffs were ready to produce oil and gas on June 16, 1970, no pipeline facilities to shore were available for transportation of said production. There were two alternatives open to plaintiffs relative to pipeline facilities to shore. First, they could construct their own pipeline from Platform Hillhouse to shore. However, this meant crossing state and county submerged lands, and the California State Lands Commission refused to act on plaintiffs’ request for permission to construct a pipeline across state lands, and the County of Santa Barbara refused to permit plaintiffs to build such a pipeline across county trust lands. Second, since Union Oil already had a pipeline running from their Platform A to shore, plaintiffs could construct a pipeline from Platform Hillhouse to Platform A and thereafter utilize Union Oil’s pipeline to shore facilities. Plaintiffs, therefore, were forced under the circumstances to concentrate on the second alternative. On March 19, 1970, Union Oil and plaintiffs ostensibly reached an agreement whereby Union Oil assigned 30 percent of its pipeline to shore facilities to plaintiffs. In anticipation of such use, plaintiffs completed construction on April 2, 1970, of a pipeline between Platform Hillhouse and Union Oil’s Platform A. However, this assignment agreement between Union Oil and plaintiffs was contingent on the State Lands Commission approving said assignment in accordance with the terms of the Commission’s right-of-way pipeline lease to Union Oil. By May 26, 1970, Union Oil had taken the position that it could not accept, in any event, production oil from plaintiffs’ Tract 401 for transportation to shore in the absence either of approval by the State Lands Commission and/or a special order from Interior. It is important to note that the second alternative available to plaintiffs also involved the State Lands Commission since Union Oil’s pipeline crossed state submerged lands, and that Union Oil’s pipeline to shore was subject to a right-of-way lease agreement between the state and Union Oil. More importantly, Union Oil’s agreement with the state required, in the eyes of Union Oil and the state, state approval for any assignment or use of these pipeline facilities to other parties. The state was not disposed, initially, to allow plaintiffs, by assignment or otherwise, to utilize Union Oil’s pipeline to shore for production purposes. Plaintiffs concede that the above impediments to oil and gas production existed. They contend, however, that defendant’s failure to issue a directive to Union Oil on June 16,1970, compelling Union Oil to carry plaintiffs’ production through Union Oil’s pipeline to shore primarily delayed its production efforts. In support of this contention plaintiffs stress that defendant w