Center for Public Integrity v. U.S. Department of Energy

234 F. Supp. 3d 65, 2017 WL 176268, 2017 U.S. Dist. LEXIS 29345
District Court, District of Columbia·Decided January 17, 2017·No. Civil Action No. 2015-1314·Published·Cited by 16 cases

Opinion

MEMORANDUM OPINION AND ORDER

Amit P. Mehta, United States District Judge

I. INTRODUCTION

Plaintiff Center for Public Integrity brought this Freedom of Information Act (“FOIA”) action against Defendant Department of Energy (“DOE”), seeking to compel disclosure of records concerning DOE’s investigation of Sandia Corporation (“Sandia”) and its lobbying activities. San- *71 dia is a government contractor that operates the Sandia National Laboratory, a government-owned nuclear laboratory overseen by DOE. In 2009, certain employees of Sandia and its parent company, Lockheed Martin Corporation, devised a plan to lobby federal officials to renew Sandia’s contract with DOE without competitive bidding. That plan, however, was developed and carried out with the use of taxpayer funds. DOE’s Office of Inspector General investigated Sandia’s actions and concluded that it had violated federal laws prohibiting the use of taxpayer dollars for lobbying activities. Sandia eventually reached a civil settlement with the U.S. Department of Justice.

In response to Plaintiffs FOIA request, DOE produced some records in full, some in part, and withheld others in their entirety under certain statutory exemptions. Plaintiff challenges Defendant’s reliance on those exemptions. Before the court are the parties’ cross-motions for summary judgment. Defendant contends that it properly withheld information under FOIA Exemptions 3, 4, 6, 7(C), 7(E), and 7(F), as that information consists of a combination of sensitive national security information, documents implicating personal privacy interests, as well as several confidential and legally privileged proprietary business documents. Plaintiff argues that Defendant’s withholding of responsive records is unjustified.

The Court finds Defendant properly withheld information under Exemptions 3, 7(E), and 7(F), as well as certain information under Exemptions 4, 6, and 7(C). However, the court also finds that Defendant has not properly justified withholding other information under Exemptions 4, 6, and 7(C). As to that information, the court will not order its disclosure at this time, but will give Defendant the opportunity to supplement its declarations. Accordingly, the court grants in part and denies in part Defendant’s Motions for Summary Judgment and denies in part Plaintiffs Motion for Summary Judgment.

II. BACKGROUND

A. DOE’s Investigation into Sandia Corporation’s Lobbying Activities

Sandia Corporation (“Sandia”), a wholly-owned subsidiary of Lockheed Martin Corporation, operates Sandia National Laboratory, which is' one of three government-owned national security nuclear laboratories falling under the auspices of the U.S. Department of Energy (“DOE”) and its sub-component, the National Nuclear Security Administration (“NNSA”). Sandia originally contracted with Defendant to operate the nuclear laboratory in 1993. See Def.’s Second Mot. for Partial Summ. J., ECF No. 26 [hereinafter NNSA Mot.], Ex. 1, ECF No. 26-1 [hereinafter Eanes Deck], ¶ 2; PL’s Opp’n to Def.’s Mots, for Summ. J., ECF No. 30 [hereinafter Pl.’s Opp’n], at 2. Sandia was annually paid $2 billion under the contract. PL’s Opp’n at 2.

Sandia’s contract with DOE was set to expire in 2012. In or around 2009, executives from both Lockheed Martin and San-dia formed an internal team tasked with formulating a lobbying strategy for obtaining a no-bid contract extension. Id. As part of its strategy, Sandia hired three lobbying consultants who worked closely with Lockheed and Sandia employees in order to, among other things, identify specific individuals—including government officials and members of Congress—to target in an effort to obtain the no-bid extension. Id.

At some point, these lobbying activities came to the attention of DOE’s Office of Inspector General (“OIG”). Following an investigation,.. OIG issued a report in November 2014, finding that Sandia had used taxpayer funds to engage in lobbying activ *72 ities in violation of federal law. Id. at 2-3; Def.’s First Partial Mot. for Summ. J., ECF No. 22 [hereinafter DOE Mot.], Ex. 2, ECF No. 22-2, at 7-35. On August 20, 2015, Sandia reached an agreement with the U.S. Department of Justice to pay $4,790,042 to resolve the alleged law violations. PL’s Opp’n at 3-4.

B. Plaintiffs FOIA Request

On November 12, 2014, Plaintiff Center for Public Integrity submitted a FOIA request to DOE, seeking:

• “A full copy of the Report of Investigation, the Final Report, the Closing Memo, the Referral Letter, and the Referral Memo for Department of Energy Office of Inspector General Investigation DOE/IG-0927;” and
• “All records in your custody or under your control that pertain to Department of Energy Office of Inspector General investigation DOE/IG-0927, including but not limited to letters, emails, memoranda, reports, appointment calendars, and telephone call logs and any related attachments, and dated up until the date you process this request.”

Pi’s Opp’n, Ex. 1, ECF No. 30-1, at 1.

OIG subsequently identified a total of 114 documents that were responsive to Plaintiffs FOIA,request, which it then reviewed for release. DOE Mot. at 3-4. Ultimately, OIG released 71 documents—27 documents in full, 44 with redactions—and withheld two documents in their entirety. Id. OIG invoked Exemptions 5, 6, and 7(C) to justify its various redactions and with-holdings. 1 Id.

Additionally, OIG forwarded 41 documents contained in the investigative file to the NNSA for its review prior to release. Id. NNSA, along with Sandia staff and other administrative agencies, reviewed and ultimately produced 39 documents with redactions. NNSA Mot. at 1-3. NNSA invoked FOIA Exemptions 3, 4, 6, 7(E), and 7(F) to justify the various redactions. Id. 2

After exhausting its administrative remedies, Plaintiff filed this action on August 13, 2015, Compl., ECF No. 1. The matter is now before the court on the parties’ cross-motions for summary judgment.

III. STANDARD OF REVIEW

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Center for Public Integrity v. U.S. Department of Energy, 234 F. Supp. 3d 65, 2017 WL 176268, 2017 U.S. Dist. LEXIS 29345 (D.D.C. 2017).

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