THOMAS, Circuit Judge:
In this appeal, we consider whether federal jurisdiction exists over a lawsuit between two Montana corporations alleging state law claims arising from a dispute over lands held by the United States in trust for various Indian allottees. We conclude that federal jurisdiction does not extend to the claims, and we affirm the judgment of the district court.
Plaintiff-Appellant K2 America Corporation ("K2") appeals the dismissal for lack of subject matter jurisdiction of its action against Defendant-Appellee Roland Oil & Gas, LLC ("Roland"). K2 asserts tort, contract, and state statutory claims and seeks, among other remedies, a constructive trust and declaratory judgment over an oil and gas lease located on allotted land, wherein title to the land is held by the United States in trust for various Indian allottees.
In its complaint K2 alleges the following facts, which we take as true in reviewing a Rule 12(b)(1) motion to dismiss for lack of jurisdiction. Wolfe v. Strankman, 392 F.3d 358, 362 (9th Cir.2004).
K2, a Montana corporation, engages in exploration and production of oil and gas resources, and holds a number of leases in Montana. Roland is a Montana limited liability company in the same line of business.
From 2004 to 2008, K2 retained John Harper as a contract operator to assist the company in oil and gas development. Through his work, Harper became familiar with K2's business plans and prospective lease acquisitions, including its plans to pursue oil and gas leases in the "Kye Trout" area, comprising roughly 600 acres in Sections 5 and 6, Township 31 North, Range 5 West, Montana Principal Meridian ("Subject Leases"). A portion of the Subject Leases lies in allotted land, wherein title is held by the United States in trust for various Indian allottees, who are enrolled members of the Blackfeet Tribe. K2 calls this portion the "Allotment Lease."
K2 provided Harper information about the Subject Leases in order (as one might expect) to further its business interests. Harper had other designs, however: He formed Roland "for the very purpose of acquiring the Subject Leases." In doing so, Harper solicited capital and other assistance from K2's competitor, Robert Miller. Roland has already drilled two wells on the Subject Leases and plans to continue developing the leaseholds soon.
K2 sued Roland in federal district court, bringing claims for tortious interference with prospective economic advantage, misappropriation of trade secrets, conversion, civil conspiracy, and implied contract/unjust enrichment. K2 sought money damages; a constructive trust requiring Roland to assign its right, title, and interest in the Allotment Lease to K2; a declaration that K2 is the rightful owner of all right, title, and interest in the Allotment Lease; punitive or exemplary damages; and attorney's fees.
Roland answered and moved to dismiss K2's complaint for lack of subject matter jurisdiction. The district court granted dismissal, holding that "28 U.S.C. § 1360, the only primary basis of federal jurisdiction alleged, does not confer federal jurisdiction" and that the supplemental jurisdiction statute, 28 U.S.C. § 1367, does not
We review de novo a district court's dismissal of a complaint for lack of subject matter jurisdiction. Peabody Coal Co. v. Navajo Nation, 373 F.3d 945, 948 (9th Cir.2004).
Federal district courts are "courts of limited jurisdiction," possessing "only that power authorized by Constitution and statute." Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 552, 125 S.Ct. 2611, 162 L.Ed.2d 502 (2005) (internal quotation marks omitted). We "presume[] that a cause lies outside this limited jurisdiction, and the burden of establishing the contrary rests upon the party asserting jurisdiction." Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994) (citations omitted).
K2's jurisdictional arguments hinge on a single factual allegation: the status of the land associated with the Allotment Lease. Because that land is held in trust by the United States for Indian allottees, K2 contends that the federal courts have exclusive jurisdiction over actions concerning ownership of any interest in that land. Accordingly, K2 urges, the "complete preemption" exception applies to disputes involving Indian trust lands, such that its case arises under 28 U.S.C. § 1331.
As a preliminary matter, we note that in determining the existence of subject matter jurisdiction, a federal court is "not limited to the jurisdictional statutes identified in the complaint." Gerritsen v. de la Madrid Hurtado, 819 F.2d 1511, 1515 (9th Cir.1987). "If facts giving the court jurisdiction are set forth in the complaint, the provision conferring jurisdiction need not be specifically pleaded." Williams v. United States, 405 F.2d 951, 954 (9th Cir.1969). Thus, the district court could have looked beyond the statutes K2 pleaded, 28 U.S.C. §§ 1360(b) and 1367, and we will do so here. See Gerritsen, 819 F.2d at 1515.
In its complaint, K2 pleaded jurisdiction under 28 U.S.C. § 1360(b). The district court held that § 1360(b) does not grant federal jurisdiction, and we agree.
Through what is commonly known as "Public Law 280" ("P.L. 280"), Congress provided to certain states
(Emphasis added.)
The Supreme Court has explained that § 1360(b) "simply" reaffirmed "the existing reservation Indian-Federal Government relationship in all respects save the conferral of state-court jurisdiction to adjudicate private civil causes of action involving Indians." Bryan v. Itasca Cnty., 426 U.S. 373, 391, 96 S.Ct. 2102, 48 L.Ed.2d 710 (1976) (holding that a state could not impose a tax on reservation Indians absent congressional intent and that § 1360 did not confer the power to tax); see also Kirkwood v. Arenas, 243 F.2d 863, 865-66 (9th Cir.1957) ("[Section 1360(b) ] is entirely consistent with, and in effect is a reaffirmation of, the law as it stood prior to its enactment....").
The district court correctly concluded that § 1360(b) limits the exercise of state jurisdiction; it does not confer jurisdiction on federal courts. See, e.g., Frazier v. Turning Stone Casino, 254 F.Supp.2d 295, 304 (N.D.N.Y.2003) (noting that § 1360 concerns state court jurisdiction and does not support exercising federal question jurisdiction over a misappropriation action). Although P.L. 280 "necessarily preempts and reserves to the Federal government or the tribe jurisdiction not so granted," Santa Rosa Band of Indians v. Kings Cnty., 532 F.2d 655, 658-59 (9th Cir.1976), the law plainly did not confer subject matter jurisdiction upon federal courts.
Federal courts have original jurisdiction over "all civil actions arising under the Constitution, laws, or treaties of the United States." 28 U.S.C. § 1331. "For a case to `arise under' federal law, a plaintiff's well-pleaded complaint must establish either (1) that federal law creates the cause of action or (2) that the plaintiff's asserted right to relief depends on the resolution of a substantial question of federal law." Peabody Coal, 373 F.3d at 949 (citing Franchise Tax Bd. v. Constr. Laborers Vacation Trust, 463 U.S. 1, 27-28, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983)). Federal jurisdiction cannot hinge upon defenses or counterclaims, whether actual or anticipated. Vaden v. Discover Bank, 556 U.S. 49, 129 S.Ct. 1262, 1272, 173 L.Ed.2d 206 (2009).
K2 does not purport to bring a cause of action created by federal law; it asserts only state tort, contract, and statutory claims. Nevertheless, K2 maintains that, because 28 U.S.C. § 1360(b) "delineates the scope of preemptive federal jurisdiction over lands held in trust for the benefit of Indians," its claim does not require a federal statute to confer jurisdiction on federal courts. Rather, in K2's view, the complete preemption doctrine gives the district court subject matter jurisdiction under 28 U.S.C. § 1331.
The "complete preemption" doctrine "applies in select cases where the preemptive force of federal law is so `extraordinary' that it converts state common law claims into claims arising under federal law for purposes of jurisdiction." Holman v. Laulo-Rowe Agency, 994 F.2d 666, 668 (9th Cir.1993). "Once an area of state law has been completely preempted, any claim purportedly based on that pre-empted state law is considered, from its inception, a federal claim, and therefore arises under federal law." Caterpillar Inc. v. Williams, 482 U.S. 386, 393, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). Because plaintiffs can assert federal claims if they desire federal jurisdiction, complete preemption normally arises where a defendant removes a state-law complaint to federal court. Holman, 994 F.2d at 668 n. 2.
Relying on Oneida Indian Nation v. County of Oneida (Oneida I), 414 U.S. 661, 94 S.Ct. 772, 39 L.Ed.2d 73 (1974), K2 urges that complete preemption generally applies to "disputes involving trust lands." We disagree.
Oneida I involved an action by a tribe claiming that a 1795 cession of Indian land to the state of New York was invalid for lack of federal consent. See id. at 664-65, 94 S.Ct. 772. Characterizing the claim as "essentially a possessory action," id. at
But this case differs markedly from Oneida I, which "turned on the special historical relationship between Indian tribes and the Federal Government." Beneficial Nat'l Bank v. Anderson, 539 U.S. 1, 8 n. 4, 123 S.Ct. 2058, 156 L.Ed.2d 1 (2003). Neither K2 nor Roland is an Indian party. See id. ("[F]ederal courts have subject-matter jurisdiction to hear possessory land claims under state law brought by Indian tribes because of the uniquely federal `nature and source of the possessory rights of Indian tribes.'" (quoting Oneida I, 414 U.S. at 667, 94 S.Ct. 772) (emphasis added)); Cnty. of Oneida v. Oneida Indian Nation (Oneida II), 470 U.S. 226, 236, 105 S.Ct. 1245, 84 L.Ed.2d 169 (1985) ("Oneida I implicitly assumed that the Oneidas could bring a common-law action to vindicate their aboriginal rights."); Pit River Home & Agric. Coop. Ass'n v. United States, 30 F.3d 1088, 1097 (9th Cir.1994) (noting that the "nature and source of the possessory rights of Indian Tribes to aboriginal lands or lands conferred by treaty, statute, or other federal government action presents [a] federal question" (citing Oneida I and II) (emphasis added)); New York v. White, 528 F.2d 336, 339 (2d Cir.1975) (refusing to extend Oneida I to a non-Indian plaintiff); Heirs of Burat v. Bd. of Levee Comm'rs, 496 F.2d 1336, 1341 (5th Cir.1974) (same); 13D Charles Alan Wright, Arthur R. Miller, Edward H. Cooper, & Richard D. Freer, Federal Practice and Procedure § 3566, at 273 n. 23 (3d ed. 2008) ("The[Oneida I]
Given these dissimilarities between K2's case and Oneida I, we cannot recognize this as one of the "handful of `extraordinary' situations where even a well-pleaded state law complaint will be deemed to arise under federal law for jurisdictional purposes." Holman, 994 F.2d at 668.
Nor is federal jurisdiction available under an alternative theory of "arising under" jurisdiction (implicit in K2's briefing), namely, that by seeking an interest in a "specialized type of contract that is subject to extensive federal regulation," Peabody Coal, 373 F.3d at 951, K2's "right to relief necessarily depends on resolution of a substantial question of federal law," Franchise Tax Bd., 463 U.S. at 28, 103 S.Ct. 2841; Peabody Coal, 373 F.3d at 949.
K2 alludes to the "specific federal statutory and regulatory scheme governing the lease," citing 25 U.S.C. § 396 (governing leases of allotted lands for mining purposes) and 25 C.F.R. pt. 212 (governing oil and gas leases). In Peabody Coal, we reviewed precedents touching on whether the federal regulation and approval of a lease gives rise to a federal question sufficient for "arising under" jurisdiction. 373 F.3d at 949-52. There, a non-Indian corporation sued to enforce an arbitration award against the Navajo Nation, under a settlement agreement made between the parties setting royalty rates for coal mined pursuant to a commercial lease. Id. at 946. The Department of the Interior had approved the lease, and the corporation argued that the Secretary's approval of the lease amendments, together with the federal regulatory scheme governing such leases, raised an issue of federal law. Id. at 949. We recognized that oil and gas leases on tribal lands "are not mere contracts" but, instead, "`represent a very specialized subset of contracts' because of the very extensive federal regulatory scheme governing them." Id. at 951 (quoting Comstock Oil & Gas Inc. v. Ala. & Coushatta Indian Tribes, 261 F.3d 567, 574-75 (5th Cir.2001)); see also Comstock Oil & Gas, 261 F.3d at 574-75 ("[T]his extensive regulatory scheme demonstrates that tribal oil and gas leases represent a very specialized subset of contracts and, therefore, compels the conclusion that they belie characterization as routine contracts. This is a significant distinction."). That recognition did not rescue jurisdiction, however, because the corporation "[did] not allege any problem with the underlying leases or their amendments." Peabody Coal, 373 F.3d at 951.
The Supreme Court has cautioned, in the context of quiet title suits, that the requirement of an actual dispute about federal law is "`especially' important in `suit[s] involving rights to land acquired under a law of the United States,' because otherwise `every suit to establish title to land in the central and western states would so arise [under federal law], as all titles in those States are traceable back to those laws.'" Grable & Sons Metal Prods., Inc. v. Darue Eng'g & Mfg., 545 U.S. 308, 316 n. 3, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005) (alterations in original) (quoting Shulthis v. McDougal, 225 U.S. 561, 569-70, 32 S.Ct. 704, 56 L.Ed. 1205 (1912)); accord Virgin v. Cnty. of San Luis Obispo, 201 F.3d 1141, 1144 (9th Cir.2000) (per curiam). Mindful of that warning, we conclude that K2's claims do not require the resolution of a substantial federal question of law sufficient for jurisdiction under 28 U.S.C. § 1331.
The district court's order alluded to the possibility that K2 could sue under 25 U.S.C. § 345, but that provision does not apply here. Section 345 and its companion statute, 28 U.S.C. § 1353,
Federal subject matter jurisdiction does not exist over the present action. K2 stresses the federal government's "plenary authority over Indians and their lands," but presents no basis for concluding that this action lies within the "limited jurisdiction" of federal courts. See Kokkonen, 511 U.S. at 377, 114 S.Ct. 1673.
The district court properly dismissed this case for lack of subject matter jurisdiction. We need not — and do not — reach any other issues raised by the parties, including exhaustion of tribal remedies.
25 U.S.C. § 345. Section 345 grants district courts subject-matter jurisdiction over two types of cases: (1) "suits seeking the issuance of an allotment," and (2) "suits involving the interest and rights of the Indian in his allotment or patent after he has acquired it." Pinkham v. Lewiston Orchards Irrigation Dist., 862 F.2d 184, 186 (9th Cir. 1988) (internal quotation marks omitted).