Native Village of Point Hope v. Sally Jewell

CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 22, 2014
Docket12-35287
StatusPublished

This text of Native Village of Point Hope v. Sally Jewell (Native Village of Point Hope v. Sally Jewell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Native Village of Point Hope v. Sally Jewell, (9th Cir. 2014).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

NATIVE VILLAGE OF POINT HOPE; No. 12-35287 INUPIAT COMMUNITY OF THE ARCTIC SLOPE; ALASKA WILDERNESS D.C. No. LEAGUE; CENTER FOR BIOLOGICAL 1:08-cv-00004- DIVERSITY; NATIONAL AUDUBON RRB SOCIETY; NATURAL RESOURCES DEFENSE COUNCIL; NORTHERN ALASKA ENVIRONMENTAL CENTER; OPINION OCEANA; PACIFIC ENVIRONMENT; RESISTING ENVIRONMENTAL DESTRUCTION ON INDIGENOUS LANDS, A PROJECT OF THE INDIGENOUS ENVIRONMENTAL NETWORK (REDOIL); SIERRA CLUB; THE WILDERNESS SOCIETY; WORLD WILDLIFE FUND; DEFENDERS OF WILDLIFE, Plaintiffs-Appellants,

v.

SALLY JEWELL, Secretary of the Interior; BUREAU OF OCEAN ENERGY MANAGEMENT; TOMMY BEAUDREAU, Director of the Bureau of Ocean Energy Management, Defendants-Appellees, 2 NATIVE VILLAGE OF POINT HOPE V. JEWELL

SHELL GULF OF MEXICO, INC.; CONOCOPHILLIPS COMPANY; STATE OF ALASKA; STATOIL USA E&P, INC., Intervenor-Defendants- Appellees.

Appeal from the United States District Court for the District of Alaska Ralph R. Beistline, Chief District Judge, Presiding

Argued and Submitted March 5, 2013—Seattle, Washington

Filed January 22, 2014

Before: Ferdinand F. Fernandez, William A. Fletcher, and Johnnie B. Rawlinson, Circuit Judges.

Opinion by Judge W. Fletcher; Partial Concurrence and Partial Dissent by Judge Rawlinson NATIVE VILLAGE OF POINT HOPE V. JEWELL 3

SUMMARY*

Environmental Law

The panel reversed the district court’s summary judgment entered in favor of federal defendants in an action challenging the government’s environmental impact statements analyzing the environmental effects of proposed leases for oil and gas development in the Chukchi Sea off the northwest coast of Alaska.

The panel held that the Final Environmental Impact Statement and Supplemental Environmental Impact Statement prepared by the federal defendants properly took account of incomplete or unavailable information. The panel held, however, that the reliance in the Final Environmental Impact Statement on a one billion barrel estimate of total economically recoverable oil was arbitrary and capricious. The panel remanded for further proceedings.

Judge Rawlinson concurred in part and dissented in part. Judge Rawlinson agreed with most of the majority opinion, but she did not agree that the federal Bureau of Ocean Energy Management, Regulation and Enforcement acted arbitrarily in selecting one billion barrels of oil as the benchmark for analyzing the environmental affects of the proposed leases.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. 4 NATIVE VILLAGE OF POINT HOPE V. JEWELL

COUNSEL

Erik Clifford Grafe (argued), Earthjustice, Anchorage, Alaska; Eric Paul Jorgensen, Earthjustice, Juneau, Alaska, for Plaintiffs-Appellants.

David C. Shilton (argued), United States Department of Justice, Washington, D.C., for Defendants-Appellees.

Kyle W. Parker (argued), Crowell & Moring LLP, Anchorage, Alaska; Jeffrey Wayne Leppo and Ryan P. Steen, Stoel Rives, LLP, Seattle, Washington; Ken Diemer and Rebecca Kruse, Office of Alaska Attorney General, Anchorage, Alaska; and James Leik, Perkins Coie LLP, Anchorage, Alaska, for Intervenor-Defendants-Appellees.

OPINION

W. FLETCHER, Circuit Judge:

The Bureau of Ocean Energy Management (“BOEM”)1 of the Department of the Interior has sought to lease “excellent prospects” for oil and gas development in the Chukchi Sea off the northwest coast of Alaska. The parcels available for lease are cumulatively known as Lease Sale 193. Pursuant to the National Environmental Policy Act (“NEPA”), BOEM prepared a Final Environmental Impact Statement (“FEIS”) analyzing the environmental effects of the proposed leases.

1 Earlier incarnations of the agency have been the Minerals Management Service and the Bureau of Ocean Energy Management, Regulation and Enforcement. For simplicity, we refer to the agency, including its earlier incarnations, as BOEM. NATIVE VILLAGE OF POINT HOPE V. JEWELL 5

BOEM based its environmental analysis on the assumption that if oil development actually occurs, one billion barrels of oil will be economically recoverable.

Plaintiffs argued in the district court that BOEM abused its discretion by failing to account for essential missing information in the FEIS. Plaintiffs also argued that BOEM’s estimate of one billion barrels is arbitrary and capricious. They contended that the potential economically recoverable oil from the lease sale is far higher than one billion barrels, and that BOEM had not given an adequate explanation for using its lower estimate. The district court initially rejected the FEIS for failing to account for the missing information. After remand, BOEM prepared a Supplemental EIS (“SEIS”) addressing the missing information. Based on the FEIS and SEIS, the district court granted summary judgment to defendants.

We largely agree with the district court that the agency did not abuse its discretion in its analysis of the missing information. However, we agree with plaintiffs that the agency’s estimate of one billion barrels was chosen arbitrarily, and that this arbitrary decision meant that the agency based its decision on inadequate information about the amount of oil to be produced pursuant to the lease sale.

I. Background

The Chukchi Sea is a southern arm of the Arctic Ocean between Alaska and Russia. The Sea contains a wide variety of animals, including bowhead whales, polar bears, pacific walrus, seals, fish, and birds. Some of these animals provide subsistence for native Inupiat communities along the Alaskan coast. Some of the animals are listed under the Endangered 6 NATIVE VILLAGE OF POINT HOPE V. JEWELL

Species Act (“ESA”) as endangered or threatened. Five exploratory wells were drilled in the Sea between 1989 and 1991. They had “positive shows” but did not lead to commercial production.

The Outer Continental Shelf Lands Act (“OCSLA”) prescribes four steps the federal government must take in order to pursue offshore oil and gas development: “‘(1) formulation of a five year leasing plan by the Department of the Interior; (2) lease sales; (3) exploration by the lessees; [and] (4) development and production.’” Edwardsen v. U.S. Dep’t of the Interior, 268 F.3d 781, 784 (9th Cir. 2001) (quoting Sec’y of the Interior v. California, 464 U.S. 312, 337 (1984)). At the “lease sale” stage, the Secretary of the Interior selects the parcels that will be offered for lease, accepts bids from parties, and collects funds from parties with winning bids. The Department of the Interior must review and approve specific exploration and development plans before winning bidders can “proceed with full exploration, development, or production” of oil or gas. Sec’y of the Interior, 464 U.S. at 339. However, successful bidders have the right to undertake “ancillary activities” in the field such as geological and geophysical surveys and studies that “model potential oil and hazardous substance spills.” 30 C.F.R. § 550.207.

A. NEPA

NEPA “protect[s] the environment by requiring that federal agencies carefully weigh environmental considerations and consider potential alternatives to the proposed action before the government launches any major federal action.” Barnes v. U.S. Dep’t of Transp.,

Related

Mora-Meraz v. Thomas
601 F.3d 933 (Ninth Circuit, 2010)
Secretary of the Interior v. California
464 U.S. 312 (Supreme Court, 1984)
Department of Transportation v. Public Citizen
541 U.S. 752 (Supreme Court, 2004)
Tribal Village Of Akutan v. Hodel
869 F.2d 1185 (Ninth Circuit, 1989)
Barnes v. United States Department of Transportation
655 F.3d 1124 (Ninth Circuit, 2011)
Edwardsen v. U.S. Dept. of Interior
268 F.3d 781 (Ninth Circuit, 2001)
The Lands Council v. McNair
537 F.3d 981 (Ninth Circuit, 2008)
Northern Alaska Environmental Center v. Kempthorne
457 F.3d 969 (Ninth Circuit, 2006)
Friends of Yosemite Valley v. Norton
348 F.3d 789 (Ninth Circuit, 2003)
California v. Watt
683 F.2d 1253 (Ninth Circuit, 1982)
Tribal Village of Akutan v. Hodel
869 F.2d 1185 (Ninth Circuit, 1988)

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Native Village of Point Hope v. Sally Jewell, Counsel Stack Legal Research, https://law.counselstack.com/opinion/native-village-of-point-hope-v-sally-jewell-ca9-2014.