Greenpeace, Inc. v. State, Office of Management & Budget, Division of Governmental Coordination & Alaska Coastal Policy Council

79 P.3d 591, 160 Oil & Gas Rep. 295, 2003 Alas. LEXIS 119, 2003 WL 22351642
CourtAlaska Supreme Court
DecidedOctober 16, 2003
DocketS-10040
StatusPublished
Cited by3 cases

This text of 79 P.3d 591 (Greenpeace, Inc. v. State, Office of Management & Budget, Division of Governmental Coordination & Alaska Coastal Policy Council) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenpeace, Inc. v. State, Office of Management & Budget, Division of Governmental Coordination & Alaska Coastal Policy Council, 79 P.3d 591, 160 Oil & Gas Rep. 295, 2003 Alas. LEXIS 119, 2003 WL 22351642 (Ala. 2003).

Opinion

*592 OPINION

BRYNER, Justice.

I. INTRODUCTION

Greenpeace Inc. appeals a determination by the State of Alaska that the Northstar Project-a plan to develop an offshore oilfield in the Beaufort Sea near Prudhoe Bay-is consistent with the Alaska Coastal Management Program. Greenpeace challenges the state's consistency ruling on two legal grounds, arguing that it is deficient as a matter of law because it fails to conduct an analysis of the Northstar Project's cumulative impacts and because it improperly "phases" the project. We reject these arguments, holding that Alaska law did not require a formal cumulative impacts analysis and that the state's consistency review did not improperly treat Northstar as a phased project.

II. FACTS AND PROCEEDINGS

This appeal arises from a plan to develop Alaska's first offshore oil facility and subsea oil pipeline in the Northstar Unit, an oilfield in the Beaufort Sea near Prudhoe Bay 1 In 1995 British Petroleum Exploration (Alaska), Inc., bought four oil and gas leases in the Northstar Unit from another oil company and renegotiated the existing leases with the state 2 In March 1995 BP and the Department of Natural Resources reached an agreement, contingent on legislative approval, that gave BP better earnings potential but allowed the state to terminate the leases if BP failed to begin development in three years 3 The legislature passed a bill approving the arrangement, and Governor Knowles signed the bill into law in July 1996. 4

Because of the Northstar Project's magnitude, BP needed permits from at least four state agencies and five federal agencies. Under the Alaska Coastal Management Program (ACMP), 5 any project having impacts in a coastal area of Alaska and requiring multiple permits must undergo a comprehensive review to determine its consistency with Alaska's coastal management standards. 6 The Division of Governmental Coordination (DGC)-a division of the Governor's Office of Management and Budget-is responsible for conducting the review and issuing the consistency determination. 7 Under federal law, BP additionally needed to submit the project to the United States Army Corps of Engineers for an Environmental Impact Statement under the National Environmental Policy Act. To simplify this overall process, DGC and the Corps of Engineers coordinated their reviews of BP's Northstar development plan.

BP completed the first step in the North-star Project's ACMP review process by submitting a completed Coastal Project Questionnaire in October 1996 and a final project description in early 1997. DGC issued a letter initiating the consistency review in June 1998, soliciting public comment on the Northstar Project, which by then was described in detail in the Appendix to the Draft Environmental Impact Statement. Greenpeace submitted extensive comments on the project. In early 1999, DGC issued a Proposed Consistency Determination finding the Northstar Project to be consistent with the ACMP's standards. Greenpeace petitioned the Alaska Coastal Policy Council for review to determine whether the proposed consistency ruling fairly considered Greenpeace's comments. On February 4, 1999, immediately after the Council unanimously upheld the proposed consistency ruling, DGC issued its Final Consistency Determination.

Greenpeace appealed to the superior court. After extensive briefing, Superior Court Judge John Reese affirmed DGC's consistency determination.

*593 ireenpeace appeals the superior court's ruling.

III. DISCUSSION

Greenpeace frames two legal questions on appeal: (1) whether DGC violated the ACMP as a matter of law by failing to address the Northstar Project's cumulative impacts, and (2) whether DGC unlawfully phased North-star by allowing BP to commence the project with certain previously issued permits that received no ACMP review and by finding certain aspects of the project consistent with the ACMP despite a lack of adequate available information essential to the consistency determination.

A. Standard of Review

In reviewing ACMP consistency decisions to determine if the record supports the DGC's rulings, we usually apply a highly deferential standard, asking only if the agen-ey has taken a "hard look at the salient problems and has genuinely engaged in reasoned 8 But here, Greenpeace insists that its two points on appeal pose legal questions involving statutory and constitutional interpretation, so that we owe no deference to the agency and must use our independent judgment on review. We agree: neither of Greenpeace's points on appeal challenges the sufficiency of specific evidence or the reasonableness of the agency's findings on substantive grounds; both simply ask us to determine as a matter of law whether the DGC followed the procedural require-

ments for cumulative impacts analysis and phasing that, according to Greenpeace, are mandated by the law governing ACMP review. We use our independent judgment when deciding procedural issues involving legal interpretation. 9

B. Cumulative Impacts

Greenpeace first contends that the DGC's consistency determination is legally flawed because it fails to evaluate or analyze the Northstar Project's cumulative impacts. In advancing this argument, Greenpeace advocates the broad definition of cumulative impacts that federal agencies apply in preparing environmental impact statements under the National Environmental Policy Act (NEPA) 10 As Greenpeace describes it, this

commonly understood definition of cumulative impact is: the impact on the environment which results from the incremental impacts of the action when added to other past, present, and reasonably foreseeable fubure actions." 11

According to Greenpeace, Alaska law required the Northstar Project's consistency determination to include a formal discussion applying this definition of cumulative impacts.

BP and the DGC eschew NEPA's definition of cumulative impacts, maintaining that, "[als used in the [Alaska] statutes and cases, the concept of 'cumulative impacts' is better described as 'whole-project analysis' " As BP puts it, under Alaska law, "DGC is not required to assess the possible effects of *594 future development projects. DGC is required to undertake a whole-project analysis of a project under review, and it diligently completed such an assessment for North-star." In BP's view,

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79 P.3d 591, 160 Oil & Gas Rep. 295, 2003 Alas. LEXIS 119, 2003 WL 22351642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenpeace-inc-v-state-office-of-management-budget-division-of-alaska-2003.