Hayes v. United States Bureau of Indian Affairs

CourtDistrict Court, N.D. Oklahoma
DecidedMay 1, 2024
Docket4:16-cv-00615
StatusUnknown

This text of Hayes v. United States Bureau of Indian Affairs (Hayes v. United States Bureau of Indian Affairs) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. United States Bureau of Indian Affairs, (N.D. Okla. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA

DAVID P. HAYES, TRUSTEE FOR THE PAUL B. HAYES FAMILY TRUST, DATED APRIL 30, 2010,

Plaintiff,

v. 4:16-cv-00615-JAR-FHM

DEB HAALAND, in her official capacity as Secretary of the United States Department of the Interior, the UNITED STATES BUREAU OF INDIAN AFFAIRS, DARRYL LACOUNTE, in his official capacity as Director of the United States Bureau of Indian Affairs, WARRIOR EXPLORATION & PRODUCTION, LLC, and PERFORMANCE GROUP, LLC,

Defendants.

OPINION AND ORDER Jane A. Restani, Judge*: Before the court is an action brought by the Paul B. Hayes Family Trust, Dated April 30, 2010 (“Hayes”), against Deb Haaland, Darryl LaCounte, and the United States Bureau of Indian Affairs (collectively, “the government”) and Warrior Exploration & Production, LLC, and Performance Group, LLC (collectively, “non- federal defendants”). Previously, the court found that the defendant United States

* Jane A. Restani, Judge for the United States Court of International Trade, sitting by designation. Bureau of Indian Affairs (“BIA”) violated the National Environmental Policy Act (“NEPA”) when it failed to conduct site-specific analysis while preparing a Leasing Programmatic Environmental Assessment (“Leasing PEA”) and subsequent Finding

Of No Significant Impact (“FONSI”), and while retroactively approving two leases covered by the Leasing PEA and FONSI. Op. and Order, ECF No. 99 (Nov. 7, 2023); Hayes v. Haaland, 2023 WL 7360856 (N.D. Okla. Nov. 7, 2023) (“Hayes II”). Specifically, the court found the Leasing PEA and FONSI, and the two leases retroactively approved under the Leasing PEA and FONSI, to be arbitrary and capricious. Hayes II, at *12. Additionally, the court dismissed Hayes’ claim for common law trespass. Id.

The court instructed the parties to submit supplemental briefing on the appropriate remedy. Hayes II, at *11; Pl.’s Remedies Br., ECF No. 105 (Jan. 16, 2024) (“Hayes Remedy Br.”); Remedies Br. of Non-Federal Defs., ECF No. 107 (Feb. 12, 2024) (“Warrior Remedy Br.”); Federal Defs.’ Br. on Remedies, ECF No. 116 (Feb. 15, 2024) (“Gov. Remedy Br.”); Combined Reply Br., ECF No. 125 (Mar. 4, 2024) (“Hayes Remedy Reply Br.”); Surreply on Remedies, ECF No. 127 (Mar. 12, 2024) (“Gov.

Remedy Reply Br.”). The Osage Minerals Council (“OMC”) filed an Amicus Brief before the court. Amicus Br. of Osage Mineral Council, ECF No. 109 (Feb. 12, 2024) (“OMC Remedy Br.”).1

1 The OMC’s brief includes an argument that because the OMC is not a party to this case, the court cannot grant certain remedies that Hayes requested. OMC Remedy Br. at 15–17. As the court will not grant those remedies, the court does not reach this argument. For the reasons set forth below, the court finds that the appropriate remedy is to remand the approval of the Leasing PEA and the FONSI, as well as the decision to approve the two leases at issue here, to the BIA without vacatur. Further, the

court finds that an injunction is inappropriate. In addition to the briefing on remedy, Hayes filed a motion to reconsider the court’s dismissal of the claim for trespass. Pl.’s Mot. Recons. Ct.’s Dismissal of Pl.’s Claim for Trespass, ECF No. 106 (Jan. 19, 2024) (“Hayes MTR”). In its motion, Hayes argues “that this was essentially a bifurcated lawsuit,” and that the court should have waited to address the trespass claim until after the court decided the NEPA claim. Id. at 2–3. The court reconsiders the trespass claim here and finds that it is not ripe.

BACKGROUND Although the court presumes familiarity with the facts as set out in Hayes II, the court briefly summarizes the relevant history for ease of reference. Hayes is the owner of the surface rights to approximately 475 acres of land in Osage County. Pl.’s Opening Br. at 5, ECF No. 47 (Apr. 14, 2017). The subterranean rights of that land, however, are held in trust by the Osage Nation and managed by the Osage Agency

within the BIA. Act of June 28, 1906, Pub. L. No. 59-321, § 3, 34 Stat. 539, 543–44. In early 2012, the Osage Nation and Chaparral Energy, LLC (“Chaparral”) entered into an oil and gas mining lease (“Lease 22411”) for mineral rights located beneath the Hayes estate. Administrative Record at 577–79, ECF Nos. 31–42 (Mar. 15, 2017) (“AR”). Shortly thereafter, the Superintendent of the Osage Agency approved Lease 22411 without conducting a NEPA analysis. Id. In early January 2013, the Osage Nation and Chaparral entered into a second oil and gas mining lease (“Lease 22770”), for additional mineral rights beneath the Hayes estate. AR at 749– 51. The Superintendent of the Osage Agency approved Lease 22770, again without

conducting a NEPA analysis. Id. Shortly after the approvals of Leases 22411 and 22770, the BIA began two NEPA analyses: a leasing specific EIS (“Osage EIS”) and a Leasing PEA. AR at 241, 446. Neither the Osage EIS nor the Leasing PEA included site-specific analysis,2 as per the BIA, “the leasing action is solely administrative in nature and involves no ground disturbing activities, [thus] no impacts [will] occur . . . .” See AR at 245; see also Hayes Remedy Br., Ex. 2 at ES-1–2 (“Osage EIS”). Nonetheless, while the Osage

EIS and Leasing PEA were in progress, nine wells were produced on land covered by Lease 22411, and two were produced on land covered by Lease 22770. See AR at 660, 670. On November 26, 2014, the BIA completed the Leasing PEA and issued a FONSI. AR at 302, 306. On March 29, 2016, the court issued an opinion and order vacating Leases 22411 and 22770 due to the BIA’s failure to comply with NEPA. Hayes v. Chaparral

Energy, LLC, 180 F. Supp. 3d 902, 915 (N.D. Okla. 2016), rev’d and vacated as moot sub nom. Hayes v. Osage Minerals Council, 699 Fed. Appx. 799 (10th Cir. 2017) (“Hayes I”). Three months later, under 25 C.F.R. § 226.15(b) (2016), the BIA retroactively approved Leases 22411 and 22770 back to January 3, 2013, under the

2 Site-specific analysis refers to the agency’s consideration of the likely impacts of a project at a site-specific, as opposed to a project-wide, level. See New Mexico ex rel. Richardson v. BLM, 565 F.3d 683, 716–19 (10th Cir. 2009). Leasing PEA. AR at 699–700, 826–27. Despite the fact that eleven wells had already been drilled on Hayes’ land without site-specific analysis, these retroactive approvals contained no new NEPA analysis to supplement the Leasing PEA. See AR at 599,

676, 689. On September 30, 2016, Hayes filed the instant action, challenging the Leasing PEA and FONSI, the retroactive approvals of Leases 22411 and 22770, and other matters. Compl., ECF No. 2 (Sept. 30, 2016); Pl.’s First Am. Compl., ECF No. 19 (Nov. 15, 2016) (“Am. Compl.”). The court issued an opinion and order on November 7, 2023, declaring the Leasing PEA and FONSI, and the retroactive approvals of Leases 22411 and 22770, to be arbitrary and capricious. Hayes II, at *12. The court

requested supplemental briefing on remedies, which has concluded. Id., at *11. Now the court considers whether to vacate or remand the approval of the Leasing PEA, the FONSI, and the retroactive approvals of Leases 22411 and 22770, and whether an injunction is appropriate. JURISDICTION AND STANDARD OF REVIEW The court has jurisdiction over this matter under 28 U.S.C. § 1331 (2018), and

5 U.S.C. §§ 701–706 (2018) (the “APA”).

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