Impact Energy Resources, LLC v. Salazar

CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 5, 2012
Docket11-4043
StatusPublished

This text of Impact Energy Resources, LLC v. Salazar (Impact Energy Resources, LLC v. Salazar) 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.

Bluebook
Impact Energy Resources, LLC v. Salazar, (10th Cir. 2012).

Opinion

FILED United States Court of Appeals Tenth Circuit PUBLISH September 5, 2012 UNITED STATES COURT OF APPEALS Elisabeth A. Shumaker Clerk of Court TENTH CIRCUIT

IMPACT ENERGY RESOURCES, LLC; PEAK ROYALTY HOLDINGS, LLC; QUESTAR EXPLORATION AND PRODUCTION COMPANY; UINTAH COUNTY; CARBON COUNTY; DUCHESNE COUNTY,

Plaintiffs–Appellants,

v.

KEN SALAZAR, in his official capacity as Secretary of the Department of the Interior; UNITED STATES DEPARTMENT OF THE INTERIOR; KENT HOFFMAN, in his official capacity as Deputy State Director for Nos. 11-4043 & 11-4057 Minerals, Utah Bureau of Land Management of the Department of the Interior; UNITED STATES BUREAU OF LAND MANAGEMENT, Utah State Office,

Defendants–Appellees.

NATIONAL PARKS CONSERVATION ASSOCIATION; NATIONAL TRUST FOR HISTORIC PRESERVATION; SOUTHERN UTAH WILDERNESS ALLIANCE; NATURAL RESOURCES DEFENSE COUNCIL; WILDERNESS SOCIETY; SIERRA CLUB; UTAH RIVERS COUNCIL; GREAT OLD BROADS FOR WILDERNESS; GRAND CANYON TRUST,

Defendants–Intervenors– Appellees.

RED ROCK FORESTS,

Defendant–Intervenor,

------------------------------

WESTERN ENERGY ALLIANCE,

Amicus Curiae.

Appeal from the United States District Court for the District of Utah (D.C. No. : 2:09-CV-00435-DB)

Michael L. Beatty, Beatty & Wozniak, P.C. Denver, Colorado, and Mark Ward, Utah Association of Counties, Murray, Utah, (Robert S. Thompson, III, Beatty & Wozniak, P.C., Denver, Colorado, on the briefs) for the Plaintiffs-Appellants.

Robin Cooley, Earthjustice, Denver, Colorado (Steven Bloch and David Garbett, Southern Utah Wilderness Alliance on the briefs), for the Defendants-Intervenors- Appellees.

Vivian H.W. Wang, United States Department of Justice, Environment & Natural Resources Division, Washington, D.C., (Ignacio S. Moreno, Assistant Attorney General, David C. Shilton, Tyler Welti, and Charles R. Scott, United States Department of Justice, on the brief) for Defendants-Appellees.

Kent Holsinger and Laura L. Chartrand, Holsinger Law, LLC, Denver, Colorado, filed a brief for Amicus Curiae Western Energy Alliance on behalf of Plaintiffs-Appellants.

Before LUCERO, SEYMOUR, and TYMKOVICH, Circuit Judges.

-2- PER CURIAM.

Appellants in this case are companies that submitted high bids on certain oil and

gas leases at a Bureau of Land Management (“BLM”) auction (collectively, the “Energy

Companies”). After the auction but before the leases were issued, newly appointed

Secretary of the Interior Ken Salazar decided not to lease the parcels at issue. Salazar

announced his decision at a February 4, 2009, press conference and memorialized his

determination in a February 6 memorandum to the BLM’s Utah State Director. On

February 12, 2009, a subordinate BLM official mailed letters to the high bidders

indicating that the leases would not be issued. Exactly ninety days later, the Energy

Companies filed suit challenging the Secretary’s authority to withdraw the leases. The

district court dismissed their suit as time-barred under the Mineral Leasing Act (“MLA”),

which provides that “[n]o action contesting a decision of the Secretary involving any oil

and gas lease shall be maintained unless such action is commenced or taken within ninety

days after the final decision of the Secretary relating to such matter.” 30 U.S.C. § 226-2.

A majority of the panel agrees with the district court that the Secretary’s final

decision in this matter occurred no later than February 6, and thus, the suit is time-barred.

As explained in their separate concurrences, however, the panel majority would employ

somewhat differing analyses in reaching this result. Judge Lucero would hold that under

the plain text of the MLA, the Secretary’s decision was final on February 6 regardless of

whether plaintiffs’ claims under the Administrative Procedure Act (“APA”) had accrued

-3- at that time. Judge Seymour would hold that the word “final” bears the same meaning in

the phrase “final decision of the Secretary,” 30 U.S.C. § 226-2, as it does in the phrase

“final agency action” under the APA, 5 U.S.C. § 704, and that final agency action

occurred no later than February 6. Judge Tymkovich agrees with Judge Seymour’s

conclusion that final agency action is necessary, but disagrees with the majority’s

conclusion that the suit is time-barred as explained in his dissent.

The panel majority also agrees with the district court that the Energy Companies

are not entitled to equitable tolling in this matter. The BLM notified the high bidders just

six days after the Secretary made his decision. And the government notified the Energy

Companies of its position that February 6 was the operative date during agency

proceedings. Although the Energy Companies had time to prepare their claims before the

limitations period expired, they gambled that a court would accept their proffered

limitations theory. Equitable tolling is not required under these circumstances.

Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I

On November 4, 2008, the BLM announced that it would hold a competitive

auction of oil and gas leases on certain federal lands in Utah. The auction was scheduled

for December 19, 2008. The National Park Service objected to the decision to lease

many of the parcels, and after consulting with that agency, the BLM revised its auction to

include 132 rather than 241 parcels as originally planned.

Several environmental organizations, including intervenor Southern Utah

-4- Wilderness Alliance (“SUWA”), filed administrative protests of the proposed lease sales.

The notice of auction informed potential bidders that the BLM could not actually issue

any leases until such protests were resolved. It stated that protested leases would

nonetheless be auctioned and that the high bidder would be refunded any monies paid in

the event that a parcel was withdrawn as a result of an administrative protest. Shortly

before the scheduled auction, SUWA and other conservation groups filed suit in the D.C.

District Court seeking to halt the planned sale. See S. Utah Wilderness Alliance v.

Allred, 2009 U.S. Dist. LEXIS 30664, at *4 (D.D.C. Jan. 17, 2009) (unpublished).

On December 19, 2008, the auction went forward as planned and the BLM

accepted bids on 116 lease parcels. The Energy Companies were recognized as high

bidders for several of these parcels—thirty-six of which are located in counties that were

also parties to this action below. Subsequently, the BLM recognized the appropriate high

bidders and accepted payment for the parcels, with the express caveat that the leases

could not actually be issued until all protests were resolved.

On January 17, 2009, the D.C. District Court granted a temporary restraining order

prohibiting the BLM from issuing leases on 77 parcels, including those for which the

appellants were the highest bidders. See S. Utah Wilderness Alliance, 2009 U.S. Dist.

LEXIS 30664, at *9. It found that the environmental groups were likely to succeed on

their claims under the National Environmental Policy Act (“NEPA”) because the

government did not conduct a proper air quality analysis.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bowen v. City of New York
476 U.S. 467 (Supreme Court, 1986)
Irwin v. Department of Veterans Affairs
498 U.S. 89 (Supreme Court, 1991)
Friends of the Bow v. Thompson
124 F.3d 1210 (Tenth Circuit, 1997)
Sterlin v. Biomune Systems
154 F.3d 1191 (Tenth Circuit, 1998)
Servants of the Paraclete v. Does
204 F.3d 1005 (Tenth Circuit, 2000)
Proctor & Gamble Co. v. Haugen
222 F.3d 1262 (Tenth Circuit, 2000)
Clymore v. United States
245 F.3d 1195 (Tenth Circuit, 2001)
Robinson v. Golder
443 F.3d 718 (Tenth Circuit, 2006)
Pfannenstiel v. Merrill Lynch Pierce
477 F.3d 1155 (Tenth Circuit, 2007)
Governor of Kansas v. Kempthorne
516 F.3d 833 (Tenth Circuit, 2008)
Sydnes v. United States
523 F.3d 1179 (Tenth Circuit, 2008)
Poche v. JOUBRAN
644 F.3d 1105 (Tenth Circuit, 2011)
Geosearch, Inc. v. Hodel
801 F.2d 1250 (Tenth Circuit, 1986)
Gardner v. Federal Communications Commission
530 F.2d 1086 (D.C. Circuit, 1976)
Turner v. Watt
566 F. Supp. 87 (D. Utah, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
Impact Energy Resources, LLC v. Salazar, Counsel Stack Legal Research, https://law.counselstack.com/opinion/impact-energy-resources-llc-v-salazar-ca10-2012.