Montana Wildlife Federation v. Bernhardt

District Court, D. Montana·Decided July 5, 2022·No. 4:18-cv-00069·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA GREAT FALLS DIVISION

MONTANA WILDLIFE FEDERATION,

et al., CV-18-69-GF-BMM

Plaintiffs,

ORDER vs.

DAVID BERNHARDT, in his official capacity as Secretary of the Interior, et al.,

Defendants,

WESTERN ENERGY ALLIANCE, et al.,

Defendant-Intervenors.

INTRODUCTION Montana Wildlife Federation, Wilderness Society, National Audubon Society, National Wildlife Federation, and Montana Audubon (collectively “Plaintiffs”) sued then-Secretary of the Interior Ryan Zinke, Montana Bureau of Land Management Deputy State Director Donato Judice, the U.S. Bureau of Land Management, and the U.S. Department of the Interior (collectively, “Federal Defendants”) challenging the BLM’s issuance of the 2018 Instruction Memorandum on Greater Sage Grouse conservation and subsequent oil and gas leasing decisions. The States of Wyoming and Montana, Western Energy Alliance, Anschutz

Exploration Corporation, Peak Powder River Acquisitions, LLC, and R&R Royalty, Ltd., have intervened. The Court granted Anschutz Exploration Corporation’s (“AEC”) motion to intervene in Phase Three (Doc. 305) but denied AEC’s motion

to intervene in the appeal of the Phase One summary judgment order. (Doc. 185.) The Ninth Circuit reversed this Court’s decision denying AEC’s intervention in the Phase One Appeal. (Doc. 339.) The Court will amend its August 24, 2020 order denying AEC’s intervention to allow AEC leave to intervene in the appeal of the

Phase One summary judgment order for the reasons discussed in Part I of this decision. Chesapeake Exploration, LLC, (“Chesapeake”) and Continental Resources,

Inc., (“Continental”) have moved to intervene in the Phase Two appeal and Phase Three. (Doc. 347.) The Court will grant Chesapeake and Continental’s motion to intervene for the reasons discussed in Part II of this decision. Also pending before the Court are motions to dismiss or sever the Phase Three

lease claims filed by Western Energy Alliance, the State of Wyoming, and Federal Defendants. (Docs. 268, 270, & 272.) The Court heard oral argument on these motions on September 16, 2021. To evaluate these motions, the Court required the

administrative records for the Phase Three leasing decisions. (See Doc. 328.) The Court received the last of the administrative records for those leasing decisions on April 29, 2022. The Court has determined that the motions to dismiss or sever should

be denied for the reasons discussed in Part III of this decision. BACKGROUND Plaintiffs challenge the Bureau of Land Management’s (“BLM”) issuance of

the 2018 Instruction Memorandum on Greater Sage Grouse conservation (“2018 IM”) and subsequent oil and gas leasing decisions. The Court explained the background of this case in depth in the Phase One and Two summary judgment orders. (Docs. 147 at 1-13; 335 at 1-3.) The Court will assume familiarity with the

prior decisions and will summarize only the outcome of those decisions here. The Court vacated the 2018 IM and three lease sales in Montana and Wyoming for violating Federal Land Policy and Management Act (“FLPMA”) in

the Phase One order. (Id. at 32.) The 2018 IM directed BLM staff to disregard BLM’s 2015 Resource Management Plans’ (“2015 Plans”) prioritization requirements for fluid mineral leasing in Sage Grouse habitat. BLM-IM026-001071 (Instruction Memorandum 2018-026 (Dec. 27, 2017)). The 2018 IM stated that

prioritization would apply only where a “backlog” of leasing requests exists. Id. The Court determined that the direction to apply leasing prioritization only where a backlog of leasing proposals exists violated FLPMA because “[t]he 2015 Plans do

not say that BLM will prioritize non-Sage Grouse habitat in some of its decisions. The backlog limitation provides for precisely that result.” (Id. at 21 (emphasis added)).

The Court also determined that the 2018 IM unreasonably misconstrued the purpose of the 2015 Plans’ prioritization requirement and rendered “the prioritization requirement into a mere procedural hurdle.” (Doc. 147 at 23-24.) Such

an interpretation conflicts with U.S. Fish and Wildlife Service’s (“FWS”) understanding of the requirement when it declined to list the Sage Grouse under the Endangered Species Act (“ESA”). (Id.) The 2018 IM asserted that “BLM does not need to lease and develop outside of [Sage Grouse] habitat management areas before

considering any leasing and development within [Sage Grouse] habitat.” BLM- IM026-001071 (Instruction Memorandum 2018-026 (Dec. 27, 2017)). The 2018 IM thus ignored the goals of prioritization—to refrain from listing the Greater Sage

Grouse under the ESA—by failing to “further limit future surface disturbance and encourage new development in areas that would not conflict with” Sage Grouse habitat. WY072017. The Court determined that the three lease sales at issue in Phase One also

violated FLPMA for failing to properly implement the 2015 Plans’ priority requirement. (Doc. 147 at 30-31.) The Court pointed to the Wyoming lease sale’s direct reliance on the 2018 IM, and the BLM’s statements in the Montana lease sales

indicating that it did not apply the prioritization criteria. (Id. at 26-27.) The Court also determined that BLM’s failure to apply the prioritization requirement violated FLPMA regardless of whether the agency purported to follow the 2016 IM or the

2018 IM. (Id. at 27.) Phase Two consisted of the five remaining lease sales listed in Plaintiffs’ First Amended Complaint: the December 2017, March 2018, and June 2018 Nevada lease

sales, and the December 2017 and March 2018 Wyoming lease sales. (Doc. 19 at ¶¶ 68-82.) The Court determined that those lease sales also violated FLPMA for failing to properly implement the 2015 Plans’ priority requirement. Phase Three consists of six Montana and Wyoming lease sales that were added

in Plaintiffs’ Second Amended and Supplemental Complaint: The lease sales at issue are March and December 2019 Montana lease sales, February, September and December 2019 Wyoming lease sales, and the December 2020 Wyoming lease sale.

(Doc. 263.) LEGAL STANDARD Intervention and Required Parties FRCP 19(a)(2) states that if “a person has not been joined as required, the

court must order that the person be made a party.” Fed. R. Civ. P. 19(a)(2). The issue of a party’s alleged indispensability “is sufficiently important that it can be raised at any stage of the proceedings—even sua sponte.” Provident Tradesmens Bank &

Trust Co. v. Patterson, 390 U.S. 102, 111 (1968). No precise formula exists for determining whether a nonparty should be joined under FRCP 19(a). EEOC v. Peabody W. Coal Co., 610 F.3d 1070, 1081 (9th Cir. 2010). Facts and circumstances

of each case heavily influence whether a nonparty should be joined. Id. FRCP 24 states as follows:

(a) Intervention of Right.

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