Cure Land, LLC v. United States Department of Agriculture

833 F.3d 1223, 82 ERC (BNA) 2235, 2016 U.S. App. LEXIS 14844, 2016 WL 4254932
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 12, 2016
Docket14-1415
StatusPublished
Cited by10 cases

This text of 833 F.3d 1223 (Cure Land, LLC v. United States Department of Agriculture) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cure Land, LLC v. United States Department of Agriculture, 833 F.3d 1223, 82 ERC (BNA) 2235, 2016 U.S. App. LEXIS 14844, 2016 WL 4254932 (10th Cir. 2016).

Opinion

EBEL, Circuit Judge.

This case concerns a rural water conservation program administered in part by Defendants-Appellees United States Department of Agriculture (“USDA”), the Secretary of the USDA, the Farm Service Agency (“FSA”), and the Administrator of the FSA (collectively, “the agency”). Plaintiffs-Appellants Cure Land, LLC, and Cure Land II, LLC (collectively “Cure Land”) contend that the agency’s handling of a proposed amendment to the conservation program ran afoul of the National Environmental Policy Act (“NEPA”), 42 U.S.C. §§ 4321-4370f, and the Administrative Procedures Act (“APA”), 5 U.S.C. §§ 701-706. The district court upheld the agency’s actions. We affirm.

I. BACKGROUND

Under the Colorado Republican River Conservation Reserve Enhancement Program (“the conservation program” or “the *1228 program”), enrolled cropland owners receive payments in exchange for committing to cease irrigation of their land. By removing marginal cropland from agricultural production, the program aims to achieve various local environmental benefits, including conserving groundwater, improving surface water quality, controlling erosion, and protecting wildlife. The conservation program is implemented and funded by the FSA and USDA in partnership with local and state entities, including, as relevant here, the Republican River Water Conservation District (“the District”).

The program originally authorized enrollment of up to 35,000 acres of cropland throughout the northeastern corner of Colorado. To participate, landowners — like Cure Land — that seek compensation for ceasing groundwater irrigation are required to cancel their well permits, seal their wells, and implement practices intended to restore their land to its natural state. 1 Landowners who retire wells adjacent to either of two river branches in the Republican River basin deemed critical for improving water quality and wildlife habitat receive extra incentive payments in addition to the base pay rate.

In 2007, the District proposed an amendment to the conservation program. In general, the amendment would expand the conservation program, increasing the enrollment area to 55,000 acres, adding two participating counties, increasing program funding, and authorizing incentive payments for land adjacent to a third critical river branch.

In addition, the amendment would create a so-called “target zone” within the original program boundaries. 2 In that zone, different rules would apply. First, although the zone is not adjacent to a critical river branch, landowners would be entitled to extra incentive payments for enrolled acres. Second, rather than retiring the wells on those acres, landowners could instead participate in the program by conveying their groundwater rights to the District, which would use the water to help satisfy Colorado’s obligations under the Republican River Compact Compliance Agreement (“the compact”).

The compact allocates water from the Republican River among the states of Colorado, Nebraska, and Kansas. As of 2007, Colorado was out of compliance with the compact’s streamflow requirements. To address the state’s noncompliance, the District planned to transport water pumped from the target zone through a pipeline and release it into the North Fork of the Republican River (“the North Fork”) just shy of the state border. Accordingly, in 2008, the District preemptively purchased groundwater rights from the predominant landowner in the target zone — Cure Land. 3 The District also began construction (since completed) on the pipeline.

The agency initially expressed concern over whether the target zone would serve the conservation program’s environmental goals, inasmuch as there was no guarantee the neighboring states receiving the groundwater would put it to an environmentally beneficial use. Nonetheless, in an October 2009 letter, the agency notified *1229 the District that it generally supported the amendment as a whole. As required by NEPA, the agency began preparing a supplemental environmental assessment of the program amendment.

While preparing the assessment, the agency encountered public opposition to the target zone in the form of emails, letters, phone calls, a signed petition, and formal comments on the circulated draft assessment. Local citizens and nearby water districts objected to the target zone because they believed it would inure solely to the benefit of Cure Land, who appeared poised to obtain a windfall by receiving program payments for ceasing to use water that it had already sold to the District for a large sum. Moreover, because the “conserved” water would not contribute to replenishment of the overdrawn aquifer underlying the Republican River basin, but rather would be pumped to neighboring states, opposing parties doubted that any local environmental or economic benefits would be realized.

ImNovember 2010, the agency published its supplemental environmental assessment of the proposed amendment. The assessment concluded that the proposed amendment would have no significant negative environmental impacts; instead, the resulting surface and groundwater savings would have overall beneficial long term effects on water resources, wildlife, and wildlife habitat in the region. The assessment acknowledged the public’s input regarding the alleged inequity and inefficacy of the target zone, but concluded that it raised issues beyond the scope of the assessment’s environmental inquiry. 4

At that point, the NEPA process stalled. The agency delayed issuing a formal finding of no significant impact (“FONSI”) while it considered how to handle the public opposition to the target zone. Finally, in April 2012, after considering various options, the agency issued a finding of no significant impact that applied only to the proposed amendment without the target zone.

The parties agree that the target zone component of the proposed amendment cannot proceed unless it is authorized by a FONSI. Cure Land expresses the concern that, without target zone eligibility, the cropland on which Cure Land sold groundwater rights to the District cannot be enrolled in the conservation program. With the NEPA process thus resolved against its interests, Cure Land brought this suit, contending that the agency’s decision not to include the target zone in the FONSI violates NEPA, 42 U.S.C. §§ 4321-4370Í, and the APA, 5 U.S.C. §§ 701-706. The district court entered judgment in favor of the agency. Cure Land now appeals.

II. DISCUSSION

A. NEPA’s Requirements

NEPA “declares a broad national commitment to protecting and promoting environmental quality.” Robertson v.

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833 F.3d 1223, 82 ERC (BNA) 2235, 2016 U.S. App. LEXIS 14844, 2016 WL 4254932, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cure-land-llc-v-united-states-department-of-agriculture-ca10-2016.