Southern Utah Wilderness Alliance v. Palma

707 F.3d 1143, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20009, 2013 WL 71780, 2013 U.S. App. LEXIS 464
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 8, 2013
Docket11-4094
StatusPublished
Cited by92 cases

This text of 707 F.3d 1143 (Southern Utah Wilderness Alliance v. Palma) 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
Southern Utah Wilderness Alliance v. Palma, 707 F.3d 1143, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20009, 2013 WL 71780, 2013 U.S. App. LEXIS 464 (10th Cir. 2013).

Opinion

SEYMOUR, Circuit Judge.

Several environmental groups 1 (collectively referred to as “SUWA”) challenge decisions made by the Bureau of Land Management (“BLM”) and the Interior Board of Land Appeals (“IBLA”). At issue is the legality of thirty-nine oil and gas leases in Southern Utah, owned by Kirk- *1147 wood Oil and Gas, LLC and William C. Kirkwood (collectively “Kirkwood”). In the 1980s, Kirkwood applied to have its oil and gas leases converted to combined hydrocarbon leases, which would allow Kirk-wood to extract oil from tar sands. To date, BLM has never accepted or rejected Kirkwood’s applications. Between 2006 and 2008, BLM and IBLA issued several decisions declaring that the underlying oil and gas leases were “suspended” pending review of the conversion applications. SUWA alleges BLM and IBLA violated the Mineral Leasing Act and other federal laws by retroactively deeming these thirty-nine leases to be suspended, thereby avoiding expiration of the leases according to their terms. The district court held SUWA did not have standing to bring its claims and dismissed the suit for lack of subject matter jurisdiction.

We have jurisdiction under 28 U.S.C. § 1291. Although the district court misapplied the law in important respects with regard to standing, as we explain below, we ultimately hold that this action is not ripe for review. Accordingly, we affirm the district court’s dismissal of the action for lack of subject matter jurisdiction.

I.

A. Statutory And Regulatory Background

“Tar sands are loosely defined as any sedimentary rock impregnated with heavy, viscous crude oil that cannot be recovered by conventional techniques but rather requires an external energy source (e.g., heat) to mobilize the oil.” SuppApp. at 33. Areas with substantial tar sands are also likely to have oil and gas.

The Combined Hydrocarbon Leasing Act of 1981, Pub.L. No. 97-78, 95 Stat. 1070, was enacted to encourage the production of oil from tar sand deposits in the United States. The Act amended the Mineral Leasing Act and authorized the Secretary of the Interior to issue combined hydrocarbon leases (“CHLs”) in areas that contain substantial deposits of tar sands and have been designated as “Special Tar Sand Areas” (“STSAs”). See 30 U.S.C. §§ 181, 226; 43 C.F.R. § 3140.0-5(c). 2 A CHL allows the lease owner to extract oil from tar sands, as well as oil and gas from traditional deposits. See 43 C.F.R. § 3140.0-5(a).

Under the Combined Hydrocarbon Leasing Act, owners of traditional oil and gas leases in STSAs could convert their leases into CHLs. 30 U.S.C. § 226(n). An oil and gas lease was eligible for conversion into a CHL if it was issued prior to November 16, 1981 and was located in an STSA. Id. § 226(n)(l)(A). Only the owner of the lease could submit the application for conversion. 43 C.F.R. § 3140.2-2. The owner of an eligible lease had a two year window — until November 15, 1983 — to submit an application to the Utah State Office of BLM. 30 U.S.C. § 226(n)(l)(A); 43 C.F.R. § 3140.3-1. The application required, inter alia, a “plan of operations” for development. 30 U.S.C. § 226(n)(l)(A); 43 C.F.R. § 3140.2-3(a).

As provided by BLM regulations in effect at the time:

Upon determination that the plan of operations is complete, the supervisor shall notify the authorized officer who shall then suspend the term of the Federal oil and gas lease(s) as of the date that the complete plan was filed until the plan is finally approved or rejected. Only the term of the oil and gas lease shall be *1148 suspended, not any operation and production requirements thereunder.

43 C.F.R. § 3140.2 — 3(g)(1) (1982), 47 Fed. Reg. 22,474, 22,480 (May 24, 1982). 3 Federal oil and gas leases are generally issued for a primary term of ten years, 30 U.S.C. § 226(e), and the suspension prevents the lease term from expiring while the conversion application is pending. See 43 C.F.R. § 3103.4^4(b) (“[N]o lease shall be deemed to expire during any suspension.”). 4 The Combined Hydrocarbon Leasing Act mandates that “The Secretary shall act upon a proposed plan of operations within fifteen months of its submittal.” 30 U.S.C. § 226(n)(l)(B).

If the plan of operations is found acceptable and is approved, the oil and gas lease is converted into a CHL with a new effective start date and a new ten-year term. 43 C.F.R. §§ 3140.4-1, 3140.4-2, 3140.5. If the application is rejected, then the lease suspension is lifted. Id. § 3140.2-3(g)(1) (the lease term shall be suspended “until the plan is finally approved or rejected”). Thereafter, the original oil and gas lease remains valid until the expiration of its term, which is extended by the duration of the suspension. See id. § 3103.4-4(b) (“The term of any lease shall be extended by adding thereto the period of the suspension.... ”); cf. 30 U.S.C. § 226(n)(2) (“Except as provided in this section, nothing in the Combined Hydrocarbon Leasing Act of 1981 shall be construed to diminish or increase the rights of any lessee under any oil and gas lease issued prior to November 16,1981.”). 5

The STSAs at issue here are the Circle Cliffs STSA and the Tar Sand Triangle STSA. See 45 Fed.Reg. 76,801 (Nov. 20, 1980). Both of these STSAs are located in Southern Utah. The Tar Sand Triangle STSA is an area comprising approximately 230 square miles.

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707 F.3d 1143, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20009, 2013 WL 71780, 2013 U.S. App. LEXIS 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-utah-wilderness-alliance-v-palma-ca10-2013.