Alyeska Pipeline Service Co. v. United States

624 F.2d 1005, 224 Ct. Cl. 240, 1980 U.S. Ct. Cl. LEXIS 208
CourtUnited States Court of Claims
DecidedJune 18, 1980
DocketNo. 384-78
StatusPublished
Cited by25 cases

This text of 624 F.2d 1005 (Alyeska Pipeline Service Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alyeska Pipeline Service Co. v. United States, 624 F.2d 1005, 224 Ct. Cl. 240, 1980 U.S. Ct. Cl. LEXIS 208 (cc 1980).

Opinions

FRIEDMAN, Chief Judge,

delivered the opinion of the court:

The plaintiffs in this case are the Alyeska Pipeline Service Company and the oil companies that formed Alyeska to act as their agent in the construction, operation, and maintenance of the trans-Alaska oil pipeline.1 They seek a refund under one of two theories of all or part of a $12,253,730 fee paid in 1973 to the Department of the Interior reimbursing the government for its expenses incurred in processing the permit to build and operate the pipeline. The plaintiffs have moved for partial summary judgment on each of the two alternative claims before us, and the government has cross-moved for summary judgment on both claims. The government also seeks dismissal of the petition for lack of jurisdiction. We hold that we have jurisdiction and that the Secretary of the Interior lacked authority under applicable statutes and regulations to assess any part of this fee, and we grant the plaintiffs’ motion for summary judgment on their first claim.2

[244]*244I.

In 1969, the plaintiffs applied to the Secretary of the Interior, pursuant to section 28 of the Mineral Leasing Act of 1920, 30 U.S.C. § 185 (1970) (amended 1973), for a right of way for a pipeline to transport crude oil across Alaska from recently discovered oil fields on the North Slope. The granting of the right of way was delayed for several years because of litigation in opposition to the pipeline undertaken by a coalition of environmental groups. Initially, a district court blocked the right of way pending the preparation of an environmental impact statement pursuant to the National Environmental Policy Act of 1969, 42 U.S.C. § 4332 (1976). After such a statement was prepared, however, the court of appeals enjoined the issuance of the right-of-way permit because the proposed right of way would have violated width restrictions in section 28 of the Mineral Leasing Act. Wilderness Society v. Morton, 479 F.2d 842 (D.C. Cir.), cert. denied, 411 U.S. 917 (1973).

Shortly thereafter, Congress amended section 28 to remove the width restriction and reform generally the law pertaining to pipeline rights of way. Pub. L. No. 93-153, tit. I, 87 Stat. 576 (1973), codified in 30 U.S.C. § 185 (1976). In addition, Congress provided for the expedition of the trans-Alaska pipeline project by declaring that the environmental impact statement was satisfactory and limiting further judicial review of the Secretary’s actions with respect to the plaintiffs’ right of way. Trans-Alaska Pipeline Authorization Act, Pub. L. No. 93-153, tit. II, 87 Stat. 584 (1973), codified in 43 U.S.C. §§ 1651-1655 (1976). With the legal barriers to the construction of the pipeline thus removed, on January 23, 1974, the Secretary and the plaintiffs entered into an "Agreement and Grant of Right-of-Way for Trans-Alaska Pipeline.” The pipeline has been completed, and oil is now flowing through it.

The Secretary of the Interior first sought reimbursement from the plaintiffs of the Department’s costs in processing the plaintiffs’ application in an invoice dated August 15, [245]*2451972, for $9,088,500, covering "costs (or expenses) incurred from funds reprogrammed or appropriated for pre-permit investigative work pertaining to the proposed Trans-Alaska Pipeline System” through the end of fiscal year 1972. The plaintiffs did not pay any of this amount at this time.

After the amendment of the Mineral Leasing Act and pursuant to its provisions, the Secretary sent Alyeska another invoice on November 20, 1973, seeking reimbursement of all costs incurred through September 30, 1973, which totalled $12,253,730. Approximately 75 percent of this amount represented the cost of the environmental impact statement. The government admitted in its answer to the plaintiffs’ amended petition that the Department would not have issued the right of way to the plaintiffs if they had not paid the $12 million. The plaintiffs paid this amount, and the right-of-way agreement acknowledged the payment. The plaintiffs subsequently sought a refund of part of this amount and other fees from the Secretary, and, after his denial of their claim, filed this suit.

II.

The government has moved to dismiss the petition on the ground that we have no jurisdiction to entertain it. It contends that section 203(d) of the Trans-Alaska Pipeline Authorization Act, 43 U.S.C. § 1652(d), vests "exclusive jurisdiction over disputes such as the instant one in the United States District Courts.” Section 203(d) provides that

the actions of the Federal officers concerning the issuance of the necessary rights-of-way, permits, leases, and other authorizations for construction and initiai operation at full capacity of [the] pipeline system shall not be subject to judicial review under any law except that claims alleging the invalidity of this section may be brought within sixty days following November 16, 1973, and claims alleging that an action will deny rights under the Constitution of the United States, or that the action is beyond the scope of authority conferred by this chapter, may be brought within sixty days following the date of such action. A claim shall be barred unless a complaint is filed within the time specified. Any such complaint shall be filed in a United States district court, and such court [246]*246shall have exclusive jurisdiction to determine such proceeding in accordance with the procedures hereinafter provided [precedence on docket and direct review by Supreme Court], and no other court of the United States, of any State, territory, or possession of the United States, or the District of Columbia, shall have jurisdiction of any such claim whether in a proceeding instituted prior to or on or after November 16,1973.

The government asserts that the $12 million fee challenged here was "one of the conditions of issuance of the permit for the right of way” and thus "fall[s] squarely within the purview of this provision” as an action of a federal officer "concerning the issuance of the necessary rights-of-way.”

We disagree. The assessment of the fee covering the government’s cost of processing the permit cannot properly be viewed as a federal action "concerning the issuance of the necessary rights-of-way, permits . . . for construction and initial operation ... of [the] pipeline system.” As the legislative history discussed below indicates, the intent of section 203(d) was to limit litigation that would further delay construction of the pipeline. There is no reason why Congress would have wanted to preclude us from entertaining this suit, which could not have that effect of delaying construction.

When the Trans-Alaska Pipeline Authorization Act was enacted, the nation was in the midst of the energy crisis brought on by the Arab oil embargo, and Congress sought to gain access to Alaskan oil as rapidly as possible.

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Bluebook (online)
624 F.2d 1005, 224 Ct. Cl. 240, 1980 U.S. Ct. Cl. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alyeska-pipeline-service-co-v-united-states-cc-1980.