Kingman Reef Atoll Investments, LLC v. United States Department of Interior

195 F. Supp. 2d 1178, 54 ERC (BNA) 1871, 2002 U.S. Dist. LEXIS 7085, 2002 WL 649413
District Court, D. Hawaii·Decided March 22, 2002·No. CIVIL NO. 01-00122 SOM-LEK·Published·Cited by 2 cases

Opinion

*1181 ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS AND DENYING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT MOLLWAY, District Judge.

I. INTRODUCTION.

Kingman Reef is a small island located approximately 900 miles south of Hawaii. In January 2001, the Department of the Interior signed Order No. 8223 establishing a National Wildlife Refuge (“Refuge”) at Kingman Reef. Plaintiffs, contending that Order No. 3223 violates the National Environmental Policy Act (“NEPA”) and the Administrative Procedures Act (the “APA”), seek declaratory and injunctive relief prohibiting its enforcement.

Two motions are before the court. Defendants (collectively the “government”) move to dismiss Plaintiffs’ claims or, in the alternative, move for summary judgment, on the grounds that (1) Plaintiffs lack standing, (2) the FWS fully complied with NEPA, and (3) Plaintiffs are asserting ownership over Kingman Reef, which the court lacks subject matter jurisdiction to consider. Plaintiffs move for summary judgment on the grounds that the government’s designation of Kingman Reef as a Refuge violated NEPA and the APA, exceeded the government’s statutory authority, and violated Plaintiffs’ procedural due process rights. Because Plaintiffs lack standing to pursue their claims, the government’s motion to dismiss is GRANTED, and Plaintiffs’ motion for summary judgment is DENIED as moot.

II. BACKGROUND FACTS.

Kingman Reef was first discovered in 1798 by Captain Edmund Fanning, and rediscovered by Captain W.E. Kingman in 1853. Sheppard Decl. Exhs. E, F. 1 King-man Reef was claimed in 1860 by the U.S. Guano Company under the Guano Islands Act. Sheppard Decl. Exhs. F, G, P. In 1922, Lorrin A. Thurston annexed King-man Reef in the name of the United States for his employer, the Island of Palmyra Copra Company. Compl. ¶ 22; Sheppard Decl. Exhs. F, J, P. The Island of Palmyra Copra Company was apparently run by the Fullard Leo family (the “Fullard-Leos”). Compl. 22; Sheppard Decl. Ex. H. The Island of Palmyra Copra Company wrote a letter to the Secretary of State on July 15, 1922, advising the Secretary of its annexation. Sheppard Decl. Ex. J. The State Department acknowledged receipt of that letter in September 1922. Sheppard Decl. Ex. K. In 1933, the State Department concluded that the United States had no valid claim to Kingman Reef arising under the Guano Islands Act. Sheppard Decl. Exhs. F, P. Nevertheless, in 1934, President Franklin D. Roosevelt signed an Executive Order placing Kingman Reef under the control and jurisdiction of the United States Navy. Sheppard Decl. Exhs. E, F.

In 1937 and 1938, the Fullard-Leos wrote letters to Congress and the Navy in which they seemed to acknowledge that Kingman Reef was owned by the United States. They requested compensation for the cost of having annexed Kingman Reef. Sheppard Decl. Exhs. L, M. In 1938, the Navy stated that the Fullard Leos had no interest in Kingman Reef, as Kingman Reef had been claimed as a bonded guano island by the U.S. Guano Company in 1860 and was under the control and jurisdiction of the Navy. Sheppard Decl. Ex. O.

*1182 Kingman' Reef remained under the Navy’s jurisdiction from 1984 until August 2000. A.R. Ex. 33; Sheppard Decl. Ex. Q. In August 2000, Kingman Reef was determined to be “excess” to Department of Defense requirements, and administrative jurisdiction of Kingman Reef was transferred to the Department of the Interior (the “DOI”). Id. The government claims that Kingman Reef is owned by the United States, while Plaintiffs claim that it is owned by Plaintiff Kingman Reef Atoll Investments, L.L.C. (“KRAI”). Plaintiffs claim that Kingman Reef was never purchased, or taken by eminent domain, from the Fullard-Leos. A.R. Ex. 33. Plaintiffs assert that the Fullard Leos owned and held title to Kingman Reef from 1922 until November 17, 2000, when the Fullard Leos transferred title to KRAI. Compl. ¶ 5. Plaintiffs say that the Navy and the DOI have administered Kingman Reef in a manner consistent with Fullard Leo ownership of Kingman Reef. A.R. Ex. 34.

On December 11, 2000, Defendant United States Fish & Wildlife Service (the “FWS”) issued a draft Environmental Assessment (“EA”) for a proposal to establish a Refuge at Kingman Reef. Sheppard Decl. Ex. D. The draft EA evaluated the environmental effects of not establishing a Refuge (the No-Action alternative) and of establishing a Refuge. Id. The FWS invited public review and comments for thirty days, and received comments both supporting and opposing the establishment of a Refuge. Sheppard Decl. Ex. B. On January 17, 2001, the FWS issued a Finding of No Significant Impact (“FONSI”), determining that the establishment of a Refuge at Kingman Reef was “not a major federal action that will significantly affect the quality of the human environment.” Id. Accordingly, the FWS determined that it was not required to prepare an Environmental Impact Statement (“EIS”). Id. In its FONSI, the FWS noted that a private entity claimed ownership of Kingman Reef, but determined that the claim was not legally valid. Id. On January 18, 2001, the Secretary of the Interior signed Order No. 3223 establishing the Kingman Reef National Wildlife Refuge, to be administered by the Director of the FWS. Sheppard Decl. Ex. A. The Refuge was established ‘To protect the natural character, including the fish, wildlife, plants, coral reef communities, and other resources of Kingman Reef and all reefs surrounding Kingman Reef.” Id.

On February 16, 2001, Plaintiffs sued for injunctive relief, seeking a declaration that the government’s FONSI and Order No. 3223 are inadequate and in violation of NEPA and the APA. Plaintiffs seek to prohibit the government from further implementation of Order No. 3223. Plaintiffs also seek to vacate Order No. 3223, to have the government perform an EIS, and to have the government otherwise comply with NEPA and the APA. On December 18, 2001, the government moved to dismiss or, in the alternative, for summary judgment. Plaintiffs filed their motion for summary judgment on January 7, 2002.

III. STANDARD OF REVIEW.

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Kingman Reef Atoll Investments, LLC v. United States Department of Interior, 195 F. Supp. 2d 1178, 54 ERC (BNA) 1871, 2002 U.S. Dist. LEXIS 7085, 2002 WL 649413 (D. Haw. 2002).

195 F. Supp. 2d 1178 (Kingman Reef Atoll Investments, LLC v. United States Department of Interior) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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