In the United States v. Southern Ute Tribe or Band of Indians case in 1970, the Supreme Court had to determine whether a statute passed by Congress in 1938 granted mineral rights to Native American tribes for lands that were no longer part of their reservations. The Southern Ute tribe argued that they retained these rights under the Act even after selling off parts of their reservation land. However, the government contended that once sold, all rights transferred to new owners including subsurface minerals like oil and gas. In a unanimous decision, Justice Hugo Black writing for court ruled against the tribe stating that nothing in congressional act suggested it intended to depart from established principles which generally provide when Indian tribal lands are sold any reserved mineral right is extinguished unless expressly reserved by treaty or statute.

In the dissenting opinion for United States v. Southern Ute Tribe or Band of Indians, Justice Blackmun argued that the majority's interpretation of the 1938 Act was incorrect and unfair to Native American tribes. He believed that Congress intended to give tribes full ownership rights over both surface and subsurface minerals when it passed this legislation, not just a limited right to use these resources as suggested by the majority ruling. The justice also criticized his colleagues for relying on legislative history rather than clear statutory language in reaching their decision, which he felt undermined tribal sovereignty and self-determination principles enshrined in federal law. Furthermore, he expressed concern about potential negative impacts on future land disputes involving Native American communities due to this precedent-setting case.