Gulf Restoration Network v. Jewell

161 F. Supp. 3d 1119, 2016 U.S. Dist. LEXIS 18231, 2016 WL 617461
CourtDistrict Court, S.D. Alabama
DecidedFebruary 16, 2016
DocketCIVIL ACTION NO. 15-00191-CB-C
StatusPublished
Cited by1 cases

This text of 161 F. Supp. 3d 1119 (Gulf Restoration Network v. Jewell) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Restoration Network v. Jewell, 161 F. Supp. 3d 1119, 2016 U.S. Dist. LEXIS 18231, 2016 WL 617461 (S.D. Ala. 2016).

Opinion

OPINION and ORDER

Charles R. Butler, Jr., Senior United States District Judge

This action arises from restoration efforts by federal and state agencies following the 2010 Deepwater Horizon Oil Spill in the Gulf of Mexico. Specifically, the Plaintiff challenges Defendants’ plan to use a portion of funds provided for early restoration of natural resources to partially fund a proposed lodge and conference center at Alabama’s Gulf State Park. The parties submitted the matter for resolution on cross motions for summary judgment and came before the Court for oral argument on January 26, 2016. (Docs. 46, 48, 51, & 52.) After careful consideration of the administrative record, the arguments of counsel, and the applicable law, the Court finds Plaintiff is entitled to relief on one of the causes of action asserted in the Second Amended Complaint (SAC).

Introduction

On April 10, 2010, the offshore drilling rig Deepwater Horizon operated by British Petroleum Exploration and Production, Inc. (BP) “exploded, caught fire and subsequently sank in the Gulf of Mexico, resulting in an unprecedented volume of oil and other discharges.” (AR 026319-20.) The oil spill was the largest in United States history, releasing millions of barrels over a period of 87 days and causing damage to natural resources in all five Gulf Coast states. (AR 026320.) “Affected natural resources include[d] ecologically, recreationally, and commercially important species and their nearshore and offshore habitats in the Gulf of Mexico and along the coastal areas of Alabama, Florida, [1123]*1123Louisiana, Mississippi, and Texas.” (Id.) Pursuant to the Oil Pollution Act of 1990 (OPA), the disaster triggered action by-state and federal agencies, known as “Trustees,” “to assess natural resource injuries and losses and to determine the actions required to compensate the public for those injuries and losses.” (AR 026320.) In April 2011, the Trustees entered an agreement with BP whereby BP agreed to make available $1 billion for early restoration of natural resources while the full injury assessment was ongoing. This challenge arises under the Oil Pollution Act (OPA), 33 U.S.C. §§ 2701, et seq., the National Environmental Protection Act (NEPA), 42 U.S.C. §§ 4321, et seq., and the Administrative Procedures Act (APA), 5 U.S.C. §§ 701-706. The narrow issue presented by the pleadings and administrative record in this case is whether the allocation of $58.5 million in BP early restoration funds to partially construct a lodge and conference center was properly arrived at applying the applicable OPA and NEPA statutes and their regulations, sufficient to withstand the narrow “arbitrary and capricious” standard of review under the APA.

The Parties

Gulf Restoration Network ■ (GRN) “is a non-profit membership corporation incorporated under the laws of the State of Louisiana. (SAC ¶ 15, Doc. 34.) GRN “has numerous members who live, work, and take advantage of the tremendous outdoor recreation opportunities in and around Gulf State Park.” (Id.) The Defendants are Federal and State Trustees designated pursuant to OPA to conduct a Natural Resources Damages Assessment and “develop a plan for the restoration, rehabilitation, replacement or acquisition of the equivalent, of natural resources under their trusteeship.” ' 33 U.S.C. § 2706(c)(1)(C) & (c)(2)(C). Sally Jewell is sued in her official capacity as Secretary of the United States Department of Interior. Dr. Kathryn Sullivan is sued in her official capacity as the Undersecretary of Commerce for Oceans and Atmosphere and Administrator of National Oceanic and Atmospheric Administration (NOAA). Gina McCarthy is sued in her official capacity as Administrator of the United States Environmental Protection Agency (EPA). Tom Vilsack is sued in his official capacity as Secretary of the United States Department of Agriculture (USDA). Gunter Guy Jr. is sued in his official capacity as the Commissioner of the Alabama Department of Conservation and Natural Resources.

The Legal Framework1

OPA

The Oil Pollution Act of 1990, 33 U.S.C. §§ 2701 et seq., was enacted in response to a series of oil spills, the most notorious of which was the 1989 grounding of the tanker Exxon Valdez in Prince William Sound, Alaska.2 United States v. Locke, 529 U.S. 89, 96, 120 S.Ct. 1135, 146 L.Ed.2d 69 (2000). The OPA was designed as a “comprehensive and far-reaching ap[1124]*1124proach to the problem of oil spills.” Among other things, it “sets up a federal system to clean up oil spills and compensate victims and establishes a national planning and response system to ensure effective and immediate removal of oil spill in U.S. waters.” 136 Cong. Rec. H6934 (1990) (statement of Rep. Lowey). In this regard, the statute “imposes liability (for both removal costs and damages) on parties responsible for an oil spill.” Locke, 529 U.S. at 101-02, 120 S.Ct. 1135. Damages are recovered by a trustee or trustees appointed, in this case, by the President and by the governors of the affected states. See 33 U.S.C. § 2706(a)-(b). The trustees are to assess damages to natural resources caused by the discharge of oil and “develop and implement a plan for the restoration, rehabilitation, replacement, or acquisition of the equivalent, of the natural resources under their trusteeship.” Id. § 2706 (c)(1) & (c)(2). The process of natural resource damage assessment (NRDA) is governed by regulations developed by NOAA. Gen. Elec. Co. v. U.S. Dept, of Commerce, 128 F.3d 767, 770-71 (Fed.Cir.1997); 15 C.F.R. § 990.10 et seq.

If the trustees determine that an oil discharge caused injury to natural resources and that restoration is required, they must “identiffy] a ‘reasonable range’ of restoration alternatives, evaluating them against several factors, including cost, potential success, risk of collateral injury, and public health and safety.” Gen. Elec., 128 F.3d at 770 (citing 15 C.F.R. § 990.53-990.54.) Next, the trustees develop a Draft Restoration Plan “setting forth the injury assessment procedures employed, the nature and extent of injuries resulting from the discharge, the restoration goals, the range of restoration alternatives considered, how the alternatives were evaluated, and which alternatives were chosen. Id. at 771 (citing 15 C.F.R. § 990.55(b)). After public notice and comment, the trustees adopt a Final Restoration Plan. Id. (citing 15 C.F.R. § 990.55(d)).

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Bluebook (online)
161 F. Supp. 3d 1119, 2016 U.S. Dist. LEXIS 18231, 2016 WL 617461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-restoration-network-v-jewell-alsd-2016.