498
Opinion of the Court
between the parties. Ibid.4 Secretary Hodel added, however, that the memorandum was "not intended as a determination of the merits of the arguments of the parties with respect to the issues which are subject to the appeal." Id., at 118.
The Tribe was not told of the Secretary's memorandum to Fritz, but learned that " 'someone from Washington' had urged a return to the bargaining table." 46 Fed. Cl., at 223; see App. 342-344. Facing "severe economic pressure," 263 F. 3d, at 1328; App. 355-356, the Tribe resumed negotiations with Peabody in August 1985, 46 Fed. Cl., at 223.
On September 23, 1985, the parties reached a tentative agreement on a package of amendments to Lease 8580. Ibid.5 They agreed to raise the royalty rate to 121/2 percent of monthly gross proceeds, and to make the new rate retroactive to February 1, 1984. App. 287. The 121/2 percent rate was at the time customary for leases to mine coal on federal lands and on Indian lands.6 The amendments acknowledged
4 The Deputy Assistant Secretary's draft opinion letter stated that the ruling "is based on the exercise of my discretionary authority and is final for the Department." App. 97. Had the letter issued, Peabody would not have been entitled to seek further review by the Board. See 25 CFR § 2.19(c)(2) (1985) (the Board may review decisions by the Commissioner of Indian Affairs only if the decision states that it "is based on interpretation of law"); see also supra, at 496 (Deputy Assistant Secretary was acting as the Commissioner of Indian Affairs). But even if the opinion letter had issued as drafted, Peabody could have asked Secretary Hodel to exercise his "authority to review any decision of any employee or employees of the Department." 43 CFR § 4.5(a)(2) (1985). The Secretary could have "render[ed] the final decision" himself, § 4.5(a)(1), or "direct[ed the Deputy Assistant Secretary] to reconsider [his] decision," § 4.5(a)(2).
5 The parties also agreed to raise the royalty rate under another lease not in issue here, which covered coal located within a former joint use area shared by the Navajo Nation and the Hopi Tribe. 46 Fed. Cl. 217, 224 (2000). Unlike Lease 8580, that lease did not contain a provision subjecting its rate to reasonable adjustment by the Secretary. Id., at 233.
6 Twelve and one-half percent is the minimum royalty rate set by Congress for leases to mine coal on federal lands, see 30 U. S. C. § 207(a), and is also the customary rate found in most such leases issued or readjusted after 1976, see Department of Interior, Minerals Management Serv., Min-
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