Ashley Creek Properties, LLC v. Timchak

649 F. Supp. 2d 1171
CourtDistrict Court, D. Idaho
DecidedJuly 23, 2009
DocketCase CV-08-0412-E-BLW
StatusPublished

This text of 649 F. Supp. 2d 1171 (Ashley Creek Properties, LLC v. Timchak) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ashley Creek Properties, LLC v. Timchak, 649 F. Supp. 2d 1171 (D. Idaho 2009).

Opinion

MEMORANDUM DECISION AND ORDER

B. LYNN WINMILL, Chief Judge.

INTRODUCTION

The Court has before it the federal defendants’s motion to dismiss (Docket No. 11), intervener-defendant Simplot’s motion to dismiss (Docket No. 10), and the federal defendants’s motion to strike (Docket No. 26). Because the Court only granted Simplot’s request for intervention as to remedy issues, the Court will not consider Simplot’s motion. For the reasons set forth below, the Court will grant the federal defendants’s motion to strike and their motion to dismiss.

FACTUAL BACKGROUND

Ashley Creek Properties, LLC (Ashley Creek) challenges the expansion of Simplot’s Smoky Canyon Mine located on federal land in southeast Idaho. Simplot sought approval from the Forest Service and the Bureau of Land Management (BLM) to expand the Smoky Canyon Mine in order to provide continued phosphate supply to its Pocatello fertilizer plant — the Don Plant. The federal defendants approved the expansion after completing an environmental impact statement (EIS) pursuant to the National Environmental Policy Act (NEPA) over objections by Ashley Creek and others that the mine would cause selenium pollution. 42 U.S.C. § 4332.

In a related case in this district, environmental groups are challenging the same federal action. See Case No. 4:08-cv-00388-MHW. There, Ashley Creek attempted to participate as an amicus party at the preliminary injunction stage, but the Court rejected that attempt. Greater Yellowstone Coalition v. Timchak, 2008 WL 4911410, at *7 (D. Idaho, Nov. 13, 2008). The Court denied the environmental group’s request for a preliminary injunction, but the Circuit recently remanded that denial for reconsideration of an additional issue regarding the injunction and expedited briefing on the merits. See Greater Yellowstone Coalition v. Timchak, 2008 WL 5101754 (D.Idaho, November 26, 2008); see also Case No. 4:08-cv-00388-MHW, at Docket Nos. 104, 129.

In the present case, Ashley Creek sets forth a single claim — not included in the environmental groups’s suit — that the federal defendants violated NEPA by failing to adequately consider sites in Vernal, Utah as an alternative source of phosphate. Complaint at ¶ 25. The complaint alleges that Ashley Creek’s principle, John D. Archer, developed many phosphate *1174 leases in southeast Idaho and still retains an interest in many Simplot mining leases. Id. at ¶ 14. According to the complaint, Ashley Creek, or its principles and representatives, have frequently visited the area surrounding proposed expansion of the Smoky Canyon Mine and kept informed about local environmental matters. Id. They have also attempted to prevent selenium pollution by contributing to an environmental group and promoting use of Utah phosphate. Id. Ashley Creek seeks an order declaring the EIS invalid and suspending approval of expansion of the Smoky Canyon Mine until completion of an adequate EIS. Id. at ¶ 25.

The federal defendants filed a motion to dismiss (Docket No. 11) pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) on grounds of stare decisis, issue preclusion, and lack of Article III and prudential standing. They analogize this case to a prior case where Ashley Creek lacked standing to challenge another phosphate mine in southeast Idaho. See Ashley Creek Phosphate Co. v. Norton, 420 F.3d 934, 939, 945 (9th Cir.2005). 3

In response, Ashley Creek filed the declaration of Elizabeth A. Williams (Docket No. 13). Williams is John D. Archer’s daughter. Declaration of Elizabeth A. Williams (Williams Declaration) at ¶ 1. She became manager of Ashley Creek and president of Ashley Creek’s parent company, Archer Investments Inc., when John D. Archer died on September 1, 2008, just days prior to when Ashley Creek filed the complaint in this case. Id. at ¶¶ 1-4. 4 After obtaining several phosphate leases in southeast Idaho, John D. Archer and his wife, Elizabeth B. Archer, transferred them to Alumet Co. in 1974. Id. at ¶¶ 5-6. The Archers, however, retained interests in royalties on the leases. Id. at ¶ 6, Exhibit A (addendum to the 1974 agreement transferring six federal and two non-federal leases).

In 1997, Alumet assigned its Idaho phosphate properties to Simplot. Id. at ¶ 8. A letter from Alumet to John D. Archer dated December 1997 confirms that the “sale preserves the requirement that Alumet keep track of all ore mined from the properties so that Alumet will pay to [John D. Archer] $0.50/ton on the second 20 million tons mined from the properties.” Id. at Exhibit D. “The Alumet agreement remains in effect[,]” and the “Archer interests in the Alumet agreement and subject leases are presently held by Archer Investments Inc., parent of Ashley Creek[.]” Id. at ¶ 9.

Williams alleges that John D. Archer believed, and she agrees, that selenium contamination was “reaching cumulative levels, ... which not only threatened permanent damage to the environment, but would shortly forestall further development of Idaho reserves in which his entities owned an interest.” Id. at ¶ 18. She also shares her father’s belief that shifting development to the selenium-free Vernal fields could postpone Idaho development until safe technologies are developed and could produce income to clean up Idaho sites. Id. at ¶ 19.

In reply, the federal defendants submitted a declaration asserting that the BLM has no record of either Ashley Creek or Archer Investments possessing any interest in the six federal leases to which *1175 Williams referred. See Declaration of Jerry L. Taylor (Taylor Declaration), Docket No. 23. The BLM’s records indicate that the BLM initially issued each of the six federal leases in 1969 or 1970 to either John D. Archer or Elizabeth B. Archer, and, most recently, the BLM approved reassignment of each federal lease from Alumet to Simplot during 1996 and 1997. Id. at ¶ 7, Exhibit 1. BLM records state that Simplot’s lease rights are subject to overriding royalty payments to Alumet of $0.50 per ton on five leases, and $0.20 per ton on one lease. Id. There is also a royalty payment of $0,025 per ton to the “Elizabeth Archer Eble Trust” for two of the six leases. Id.

Finally, the BLM’s records indicate that only one of the federal leases is located near the Smoky Canyon Mine. Id. ¶ 8.

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Bluebook (online)
649 F. Supp. 2d 1171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashley-creek-properties-llc-v-timchak-idd-2009.