Gulf Restoration Network, Inc. v. Ken Salazar

CourtCourt of Appeals for the Fifth Circuit
DecidedMay 30, 2012
Docket10-60414
StatusPublished

This text of Gulf Restoration Network, Inc. v. Ken Salazar (Gulf Restoration Network, Inc. v. Ken Salazar) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Restoration Network, Inc. v. Ken Salazar, (5th Cir. 2012).

Opinion

IN THE UNITED STATES COURT OF APPEALS United States Court of Appeals FOR THE FIFTH CIRCUIT Fifth Circuit

FILED May 30, 2012

No. 10-60411, consolidated with Case Numbers 10-60413, Lyle W. Cayce 10-60414, 10-60415, 10-60416 Clerk

GULF RESTORATION NETWORK, INC.; SIERRA CLUB, INC.,

Petitioners v.

KEN SALAZAR, Secretary of the Department of Interior; WILMA LEWIS, Assistant Secretary, Land and Minerals Management, Department of the Interior; MICHAEL R. BROMWICH, Director, Minerals Management Service, Department of the Interior,

Respondents

No. 10-60417, consolidated with Case Numbers 10-60468, 10-60475, 10-60483, 10-60488, 10-60489, 10-60491, 10-60496, 10-60499, 10-60500

CENTER FOR BIOLOGICAL DIVERSITY,

Petitioner v.

KEN SALAZAR, Secretary of the Department of Interior; MICHAEL R. BROMWICH, Director of the Minerals Management Service; MINERALS MANAGEMENT SERVICE,

Respondents Consolidated with 10-60490

CENTER FOR BIOLOGICAL DIVERSITY, SIERRA CLUB, INCORPORATED,

KEN SALAZAR, Secretary of the Department of Interior; MICHAEL R. BROMWICH, Director of the Minerals Management Service; MINERALS MANAGEMENT SERVICE,

Petitions for Review of Orders of the Department of Interior1

Before HIGGINBOTHAM, DENNIS, and PRADO, Circuit Judges. DENNIS, Circuit Judge: On April 20, 2010, BP’s Deepwater Horizon, an oil drilling rig on the outer continental shelf, 50 miles from Louisiana, exploded, causing a three-month long spill of 4.9 million barrels of oil into the Gulf of Mexico. Before and during the oil spill, the Department of the Interior (DOI)2 continued to process mineral

1 Oral argument was heard together in these cases and, because of the “overlapping issues presented . . . , we . . . consolidate them for disposition.” FG Hemisphere Assocs, LLC v. Republique du Congo, 455 F.3d 575, 580 (5th Cir. 2006). 2 The approvals were issued by the Mineral Management Service (MMS), a division of the DOI. In June 2010, MMS was redesignated the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE). See Secretarial Order No. 3302, U.S. Dep’t of the Interior, available at http://www.doi.gov/deepwaterhorizon/loader.cfm?cs Module=security/getfile&PageID=35872. BOEMRE was subsequently divided, on October 1, 2011, into the Bureau of Safety and Environmental Enforcement, the Bureau of Ocean Energy Management, and the Office of Natural Resources Revenue. See Reorganization of Title 30: Bureaus of Safety and Environmental Enforcement and Ocean Energy Management, 76 Fed. Reg. 64432 (Oct. 18, 2011). For simplicity, we will refer to the entity that approved the plans as the “DOI.”

2 Nos. 10-60411 et al.

lessees’ applications for approval of plans for exploration and development of new oil wells. The petitioners, the Sierra Club, the Gulf Restoration Network, and the Center for Biological Diversity (the Center), non-profit environmental protection organizations, filed petitions for judicial review in this court challenging sixteen DOI plan approvals, issued between March 29 and May 20, 2010, under the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. §§ 1331-1356a.3 Specifically, the petitioners argue that the DOI’s approvals of the plans violated both the OCSLA and the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. §§ 4321 et seq., because: (1) the DOI failed to consider the BP Deepwater Horizon disaster in approving further deepwater drilling; and (2) the DOI conducted an inadequate review of the plans under NEPA, because it incorrectly applied “categorical exclusions” (from the NEPA requirements of preparing environmental assessments or environmental impact statements) to those plans, which should not have been so excluded because they involved drilling in “relatively untested deep water,” “areas of high biological sensitivity,” “areas of high seismic risk or seismicity,” or “areas of hazardous natural bottom conditions.” As to the second argument, the Center emphasizes that the BP Deepwater Horizon disaster further shows the inherent inadequacy of the DOI’s environmental analyses underlying the categorical exclusions. The petitioners request that we vacate the DOI’s approvals of the sixteen plans and remand the plans to the DOI for further proceedings consistent with OCSLA and NEPA. We conclude that: (1) the petitioners’ OCSLA-based challenges are justiciable, except for four, which have become moot; (2) the DOI’s approval of the exploratory and development plans are subject to judicial review by this court under OCSLA, 43 U.S.C. § 1349(c)(2); (3) the petitioners’ failure to

3 Additionally, several of the companies which submitted the approved plans intervened and are also participating in this appeal.

3 Nos. 10-60411 et al. participate in the administrative proceedings related to the DOI’s approval of the plans as required by § 1349(c)(3) does not oust our jurisdiction because that participation requirement is a non-jurisdictional administrative exhaustion rule; but, (4) the petitioners have not shown sufficient justification for excusing them from that exhaustion requirement in this case. Accordingly, except for four of the petitioners’ petitions for judicial review that are dismissed as moot, the petitioners’ petitions for judicial review are dismissed because of their failure to participate in the administrative proceedings. I. BACKGROUND Congress declared it to be the policy of the United States that “the subsoil and seabed of the outer Continental Shelf [(OCS)] appertain to the United States and are subject to its jurisdiction, control, and power of disposition as provided in [OCSLA].” 43 U.S.C. § 1332(1). Further, the OCS “is a vital national resource reserve held by the Federal Government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs.” Id. § 1332(3). The DOI is authorized and required to “administer the provisions of [OCSLA] relating to the leasing of the [OCS]” for mineral exploration and development and to “prescribe such rules and regulations as may be necessary to carry out such provisions.” Id. § 1334(a). The DOI “is authorized to grant to the highest responsible qualified bidder or bidders by competitive bidding, under regulations promulgated in advance, any oil and gas lease on submerged lands of the [OCS].” Id. § 1337(a)(1). Under OCSLA, as amended in 1978, the development of an offshore oil well must be pursued by a lease purchaser or mineral lessee in four distinct administrative stages. See Sec’y of the Interior v. California, 464 U.S. 312, 336-37 (1984). The four stages are: “(1) formulation of a five year leasing plan by the Department of the Interior; (2) lease sales; (3) exploration by the lessees; (4)

4 Nos. 10-60411 et al. development and production. Each stage involves separate regulatory review that may, but need not, conclude in the transfer to lease purchasers of rights to conduct additional activities on the OCS. And each stage includes specific requirements for consultation with Congress, between federal agencies, or with the States.” Id. at 337. The present case involves only the third and fourth stages: exploration and development and production.

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