Appolo Fuels, Inc. v. United States

381 F.3d 1338, 2004 WL 1921231
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 7, 2004
Docket03-5088
StatusPublished
Cited by62 cases

This text of 381 F.3d 1338 (Appolo Fuels, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appolo Fuels, Inc. v. United States, 381 F.3d 1338, 2004 WL 1921231 (Fed. Cir. 2004).

Opinion

DYK, Circuit Judge.

Appellant Appolo Fuels, Inc. (“Appolo”) seeks recovery for both a permanent and a temporary regulatory taking of its surface mining leases. It claims that a permanent taking occurred when the Office of Surface Mining Reclamation and Enforcement (“OSM”) designated the lands subject to its leases as unsuitable for mining pursuant to 30 U.S.C. § 1272. Alternatively, Appolo seeks compensation for a temporary taking allegedly resulting from extraordinary delay in OSM’s decisionmak-ing process. The Court of Federal Claims granted summary judgment in favor of the government. Appolo Fuels, Inc. v. United States, 54 Fed. Cl. 717 (2002). We affirm.

BACKGROUND

Congress passed the Surface Mining Control and Reclamation Act of 1977 (“SMCRA” or the “Act”), Pub.L. No. 95-87, 91 Stat. 445 (codified at 30 U.S.C. § 1201 et seq.), to “establish a nationwide program to protect society and the environment from the adverse effects of surface coal mining operations.” 30 U.S.C. § 1202(a) (2000). The Supreme Court has upheld the constitutionality of the SMCRA. Hodel v. Va. Surface Mining & Reclamation Ass’n, Inc., 452 U.S. 264, 101 S.Ct. 2352, 69 L.Ed.2d 1 (1981).

Before the enactment of SMCRA, “many surface mining operations resulted] in disturbances of surface areas that ... destroyed] or diminish[ed] the utility of land,” among other things, “by causing erosion and landslides, by contributing to floods, by polluting the water, by destroying fish and wildlife habitats ... and by counteracting the governmental programs and efforts to conserve soil, water, and other natural resources.” 30 U.S.C. § 1201(c). In order to remedy the negative effects of surface mining, SMCRA established a permitting process. The Act required organizations to obtain a permit from the Secretary of the Interior or the relevant state authority before “engaging] in or carrying] out on lands within a State any surface coal mining operations.” 1 Id. § 1256(a). Standards were *1342 established governing the grant or denial of permits. Id. § 1265. SMCRA established the OSM in the Department of the Interior and gave it authority to administer the Act. Id. § 1211,.

SMCRA further provided that the Secretary of the Interior or the relevant state authority, depending on which entity is responsible for the enforcement of SMCRA in the particular region, had discretion “[u]pon petition pursuant to subsection (c) of this section, [to] designate an area as unsuitable for all or certain surface coal mining,” id. § 1272(a)(2), if such surface mining would, among other things, “affect renewable resource lands in which such operations could result in a substantial loss or reduction of long-range productivity of water supply,” id. § 1272(a)(3).

The process for designating an area as unsuitable for mining begins with the filing of a petition by “[a]ny person having an interest which is or may be adversely affected” by such mining. Id. § 1272(c). The regulatory authority must then hold “a public hearing in the locality of the affected area” within ten months of providing “appropriate public notice and publication of the date, time and location of such hearing.” Id. Finally, the regulatory authority must “[w]ithin sixty days after such hearing, issue and furnish ... a written decision regarding the petition, and the reasons therefore.” Id. This procedure is known as the “LUM” (lands unsuitable for mining) petition process. The statute thus contemplates that the LUM procedure will be completed approximately one year after giving public notice of the filing of the LUM petition (i.e., ten months plus sixty days). In Tennessee the SMCRA is implemented by the federal Department of the Interior, see supra note 1, and the Secretary of the Interior has “delegated to the Director of OSM the authority to make final decisions on land unsuitable petitions.” (J.A. at 185.)

Appolo is a Kentucky corporation that entered the mining business in 1972. During the late 1980s, Appolo became aware that its existing coal reserves would be exhausted by the mid 1990s, and it sought to acquire more lands on which to mine. Appolo particularly sought reserves in the Little Yellow Creek watershed (also known as the Fern Lake watershed), a 4,544-acre area situated on the Tennessee-Kentucky border within close proximity to its existing operations, 3,780 acres of which fell within Tennessee. The Tennessee portion of the Little Yellow Creek watershed included within its bounds Fern Lake, which served as the water supply for the city of Middlesboro, Kentucky. In 1989, more than a decade after the enactment of SMCRA, Appolo acquired lease 5A, providing mining rights in approximately 2,600 acres of land within the Yellow Creek watershed. Later that year, Appolo obtained further mining rights in the Little Yellow Creek watershed by acquiring lease 7A. Then in 1992, Appolo purchased 600 acres immediately surrounding Fern Lake in Tennessee.

On February 8, 1994, Appolo filed a SMCRA permit application with OSM to mine 214 acres on its leased land in the Tennessee part of the Little Yellow Creek watershed. Shortly thereafter, the City of Middlesboro, Kentucky, and the National Parks and Conservation Association filed a *1343 LUM petition with OSM, requesting that all 3,780 acres of land in the Tennessee portion of the Little Yellow Creek watershed (“the petition area”) be designated as lands unsuitable for mining. At the time the petition was filed, the only interests held by Appolo within the petition area were the portion of lease 5A in the Tennessee part of the Little Yellow Creek watershed and 367 acres of Appolo’s 600-acre fee-simple parcel surrounding Fern Lake. Subsequently on March 30, 1994, OSM notified Appolo that its permit application was “administratively complete” but, in accordance with 30 C.F.R. § 764.15, the application would be held in abeyance until the LUM petition was decided. (J.A. at 215.) The agency further explained that “if OSM reaches a decision to designate parts of the petition area as unsuitable for all or certain types of mining operations, your application could not be approved.” (J.A. at 215.) OSM proceeded with the LUM petition review process, which involved preparation of a petition evaluation document (“PED”) and an environmental impact statement (“EIS”) as required by the SMCRA, 30 U.S.C. § 1272(d), and the National Environmental Policy Act of 1969, 42 U.S.C. § 4332(2)(C) (2000).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

King v. United States
Federal Circuit, 2025
State ex rel. AWMS Water Solutions, L.L.C. v. Mertz
2024 Ohio 4451 (Ohio Court of Appeals, 2024)
State ex rel. Sahbra Farms, Inc. v. Streetsboro
2024 Ohio 2506 (Ohio Court of Appeals, 2024)
King v. United States
Federal Claims, 2023
640 Tenth, LP v. Newsom
California Court of Appeal, 2022
McCutchen v. United States
14 F.4th 1355 (Federal Circuit, 2021)
Taylor v. United States
959 F.3d 1081 (Federal Circuit, 2020)
Britton v. Keller
D. New Mexico, 2020
McCutchen v. United States
Federal Claims, 2019
Smyth v. Conservation Commission of Falmouth
119 N.E.3d 1188 (Massachusetts Appeals Court, 2019)
Minn. Sands, LLC v. Cnty. of Winona
917 N.W.2d 775 (Court of Appeals of Minnesota, 2018)
Love Terminal Partners, L.P. v. United States
889 F.3d 1331 (Federal Circuit, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
381 F.3d 1338, 2004 WL 1921231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appolo-fuels-inc-v-united-states-cafc-2004.