496
Opinion of the Court
tions. See 25 CFR § 211.15(c) (1985). It was substantially lower, however, than the 121/2 percent of gross proceeds rate Congress established in 1977 as the minimum permissible royalty for coal mined on federal lands under the Mineral Leasing Act. See Pub. L. 94-377, § 6, 90 Stat. 1087, as amended, 30 U. S. C. § 207(a). For some years starting in the 1970's, to gain a more favorable return, the Tribe endeavored to renegotiate existing mineral leases with private les-sees, including Peabody. See App. 138-139, 143-144.
In March 1984, the Chairman of the Navajo Tribal Council wrote to the Secretary asking him to exercise his contractually conferred authority to adjust the royalty rate under Lease 8580. On June 18, 1984, the Director of the Bureau of Indian Affairs for the Navajo Area, acting pursuant to authority delegated by the Secretary, sent Peabody an opinion letter raising the rate to 20 percent of gross proceeds. Id., at 8-9.
Contesting the Area Director's rate determination, Peabody filed an administrative appeal in July 1984, pursuant to 25 CFR § 2.3(a) (1985). 46 Fed. Cl., at 222.2 The appeal was referred to the Deputy Assistant Secretary for Indian Affairs, John Fritz, then acting as both Commissioner of Indian Affairs and Assistant Secretary of Indian Affairs, 263 F. 3d, at 1328. In March 1985, Fritz permitted Peabody to supplement its brief and requested additional cost, revenue, and investment data. 46 Fed. Cl., at 222. He thereafter appeared ready to reject Peabody's appeal. Ibid.; App. 89-97 (undated draft letter). By June 1985, both Peabody and the Tribe anticipated that an announcement favorable to the Tribe was imminent. Id., at 98-99.3
2 As required by the regulations, see 25 CFR § 2.11 (1985), Peabody served its notice of appeal on the Tribe, which exercised its right to file a response, see § 2.12.
3 The regulations then in effect required the Deputy Assistant Secretary to "[r]ender a written decision on the appeal" or "[r]efer the appeal to the Board of Indian Appeals" (Board), "[w]ithin 30 days after all time for
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