Paul Manygoats v. Thomas S. Kleppe, and Exxon Corporation, Intervenor-Appellee

558 F.2d 556, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20576, 24 Fed. R. Serv. 2d 74, 10 ERC (BNA) 1361, 1977 U.S. App. LEXIS 12896, 10 ERC 1361
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 17, 1977
Docket77-1001
StatusPublished
Cited by67 cases

This text of 558 F.2d 556 (Paul Manygoats v. Thomas S. Kleppe, and Exxon Corporation, Intervenor-Appellee) 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
Paul Manygoats v. Thomas S. Kleppe, and Exxon Corporation, Intervenor-Appellee, 558 F.2d 556, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20576, 24 Fed. R. Serv. 2d 74, 10 ERC (BNA) 1361, 1977 U.S. App. LEXIS 12896, 10 ERC 1361 (10th Cir. 1977).

Opinion

BREITENSTEIN, Circuit Judge.

Seventeen members of the Navajo Tribe of Indians seek to enjoin the performance of an agreement whereby the Navajo Tribe granted to intervenor Exxon Corporation the right to explore for, and mine, uranium on tribal lands. Defendant Secretary of the Interior approved the agreement. Plaintiffs base their claim on the asserted inadequacy of the Environmental Impact Statement, EIS, required by the National Environmental Policy Act, NEPA, 42 U.S.C. § 4321 et seq. They appeal from the denial of a preliminary injunction and the later dismissal of the action for nonjoinder of an indispensable party, the Navajo Tribe. We affirm the denial of the preliminary injunction and reverse the dismissal of the action.

In January, 1974, the Navajo Tribal Council, upon the unanimous recommendation of its Advisory Council, approved the agreement by a vote of 46-2. Section 396a, 25 U.S.C., requires that the Secretary approve leases for mining on unallotted lands within an Indian reservation. Section 415, 25 U.S.C., imposes a similar requirement on leases for the development of natural resources.

An EIS is required when major federal action significantly affects the human environment, 42 U.S.C. § 4332(2)(C). The requirement applies to leases of Indian lands. Davis v. Morton, 10 Cir., 469 F.2d 593, 597-598. The Bureau of Indian Affairs, BIA, prepared an EIS pertaining to the agreement in question and the Secretary considered it in making his decision to approve the agreement.

Appellees argue that we should not reach the EIS issue because the action may not be sustained in the absence of the Tribe. Neither the United States, which holds the tribal lands in trust for the Indians, nor the Navajo Tribe, may be sued without its consent. Cherokee Nation v. State of Oklahoma, 10 Cir., 461 F.2d 674, 681, cert. denied, 409 U.S. 1039, 93 S.Ct. 521, 34 L.Ed.2d 489; see also McClanahan v. Arizona State Tax Commission, 411 U.S. 164, 168-169, 93 S.Ct. 1257, 36 L.Ed.2d 129. Because of its immunity from suit the Na *558 vajo Tribe may not be made an involuntary party to the action. We must consider the indispensability question because of its importance to the power of the court to proceed with the action.

Rule 19, F.R.Civ.P., covers joinder of parties. Under Subsection (a) a court must first determine whether an absent party has sufficient interest in the action to make it a necessary party within stated criteria. The financial and other benefits to the Tribe under the Exxon agreement give the Tribe sufficient interest to satisfy the requirements of Subsection (a)(2)(i). Plaintiffs say that those requirements are not determinative because the Secretary adequately represents the Tribe. Plaintiffs rely primarily on Heckman v. United States, 224 U.S. 413, 444-445, 32 S.Ct. 424, 56 L.Ed. 820. The Supreme Court there held that Indian grantees of land were not indispensable parties in a suit by the United States to cancel conveyances. The Court said that the Indians were adequately represented by their guardian, the United States.

In the instant case the duties and responsibilities of the Secretary may conflict with the interests of the Tribe. The Secretary must act in accord with the obligations imposed by NEPA. In acting upon the Navajo-Exxon agreement the Secretary, to further the national objectives declared by NEPA, must have and consider an EIS. The national interest is not necessarily coincidental with the interest of the Tribe in the benefits which the Exxon agreement provides. When there is a conflict between the interest of the United States and the interest of Indians, representation of the Indians by the United States is not adequate. See State of New Mexico v. Aamodt, 10 Cir., 537 F.2d 1102, 1106, cert. denied, 429 U.S. 1121, 97 S.Ct. 1157, 51 L.Ed.2d 572.

A finding that the Tribe is a necessary party under Rule 19(a) does not complete the inquiry. When it is determined that a party is necessary, a decision must then be made whether he is an indispensable party whose absence requires the dismissal of the suit under Rule 19(b). See Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 108-109, 88 S.Ct. 733, 19 L.Ed.2d 936. The Rule 19(b) test is “whether in equity and good conscience the action should proceed.” See Wright v. First National Bank of Altus, Oklahoma, 10 Cir., 483 F.2d 73, 75.

In their assertion of indispensability, the appellees rely on Tewa Tesuque v. Morton, 10 Cir., 498 F.2d 240, cert. denied, 420 U.S. 962, 95 S.Ct. 1353, 43 L.Ed.2d 440. In that case Indian plaintiffs sought the cancellation of a lease by the Tribe to a development company. An earlier case, Davis v. Morton, 10 Cir., 469 F.2d 593, related to the same lease. In Davis non-Indians attacked the lease because of the failure of federal officials to obtain the impact statement required by NEPA. We held that leases of Indian lands were covered by NEPA. Davis did not present or discuss indispensability of the Tribe.

From the facts stated in the Tewa Te-suque opinion it appears that the plaintiffs sought the cancellation of the lease because of the lack of an environmental impact statement. The court said, 498 F.2d at 243, that the failure to file an impact statement was rendered moot by Davis and went on to affirm the trial court's dismissal of the action on the ground that the Tribe was an indispensable party. In so holding the court discussed, 498 F.2d at 242-243, the four factors mentioned in Rule 19(b) and rejected each as a ground for permitting the action to proceed in the absence of the Tribe.

In Tewa Tesuque the attack was on the lease and the action sought cancellation. In the instant case the attack is on the adequacy of the impact statement which the Secretary must consider before approving or rejecting the Navajo-Exxon agreement. The plaintiffs seek relief from the consequences of action based on the inadequate EIS. A holding that the EIS is inadequate does not necessarily result in prejudice to the Tribe. The only result will be a new EIS for consideration by the Secretary.

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Bluebook (online)
558 F.2d 556, 7 Envtl. L. Rep. (Envtl. Law Inst.) 20576, 24 Fed. R. Serv. 2d 74, 10 ERC (BNA) 1361, 1977 U.S. App. LEXIS 12896, 10 ERC 1361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-manygoats-v-thomas-s-kleppe-and-exxon-corporation-ca10-1977.