Standing Rock Sioux Tribe v. U.S. Army Corps of Eng'rs
This text of 282 F. Supp. 3d 91 (Standing Rock Sioux Tribe v. U.S. Army Corps of Eng'rs) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Under Allied-Signal, the severity of an agency's errors below turns on "the extent of doubt whether [it] chose correctly."
*98
1. Highly Controversial
The prior Opinion found that the Corps had failed to fully consider "the degree to which [DAPL's] effects on the quality of the human environment are likely to be highly controversial." Standing Rock III,
The Court recognizes that the "lack of a reasoned explanation is a serious failing in an agency's decision, because it leaves the Court in doubt as to whether the agency chose correctly in making its decision." AARP v. United States Equal Employment Opportunity Comm'n,
Correcting this flaw does not require that Defendants begin anew, but only that they better articulate their reasoning below. Courts have declined to grant vacatur in similar circumstances, finding that agencies should instead be "afford[ed] a reasonable opportunity to ... provide a reasoned explanation" of their choices. See Am. Radio Relay League, Inc. v. FCC,
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Under Allied-Signal, the severity of an agency's errors below turns on "the extent of doubt whether [it] chose correctly."
*98
1. Highly Controversial
The prior Opinion found that the Corps had failed to fully consider "the degree to which [DAPL's] effects on the quality of the human environment are likely to be highly controversial." Standing Rock III,
The Court recognizes that the "lack of a reasoned explanation is a serious failing in an agency's decision, because it leaves the Court in doubt as to whether the agency chose correctly in making its decision." AARP v. United States Equal Employment Opportunity Comm'n,
Correcting this flaw does not require that Defendants begin anew, but only that they better articulate their reasoning below. Courts have declined to grant vacatur in similar circumstances, finding that agencies should instead be "afford[ed] a reasonable opportunity to ... provide a reasoned explanation" of their choices. See Am. Radio Relay League, Inc. v. FCC,
2. Fishing and Hunting
The second deficiency identified in the prior Opinion was the Corps' neglecting to properly assess the impact of an oil spill on fish and game-two resources protected by the Tribes' treaty rights. Standing Rock III,
On this issue, Defendants' task on remand is a narrow one. As the Court previously noted, the agency did not "wholly ignore the consequences of a possible oil spill" on the Tribes' treaty rights. Standing Rock III,
Here, the record shows that the agency is well situated to conduct such an inquiry. It has already gathered information regarding Lake Oahe's fish and wildlife, and it has conducted a lengthy analysis of the possible toxicity arising from various spill scenarios. See Standing Rock III,
3. Environmental Justice
The last issue concerns the environmental-justice impacts of the Lake Oahe crossing. The Tribes challenged the selection of that site over an alternative location upstream of Bismarck, North Dakota, arguing that the Corps had failed to properly analyze whether the current placement of the pipeline could disproportionately affect low-income, minority communities. See ECF 117-19 (SRST MSJ). The Court agreed. It held that the Corps' "cursory" analysis did not "reasonably support the conclusion that the [Standing Rock Sioux] Tribe will not be disproportionately affected by an oil spill in terms of adverse human health or environmental effects." Standing Rock III,
Characterizing the Corps' environmental-justice assessment as "fatally flawed," Tribes Brief at 22, Plaintiffs contend that a valid analysis would "inevitably conclude" that the pipeline disproportionately affects Native American and low-income populations, and thus would "yield a different outcome on the core question of whether an EIS is required." Id. at 23. Defendants, of course, disagree, rejoining that "given the low risk of an oil spill, it is unlikely that ... a different buffer and environmental justice analysis" will yield a new result on remand. See Corps Brief at 10.
Although it is a closer call than the first two issues, the Court concludes that the flaws in the Corps' environmental-justice analysis do not support vacatur. The agency's action was not, in this case, so lacking as to cast serious doubt on its decision to issue an EA. The prior Opinion explicitly stated that the Corps "need not necessarily have addressed" each concern raised by the Tribes, but only that it must "offer more than a bare-bones conclusion that Standing Rock would not be disproportionately *101harmed by a spill." Standing Rock III,
Indeed, contrary to the Tribes' statement that a finding of a disproportionate impact would necessitate an EIS, the relevant agency guidance expressly contemplates the use of an EA to address such concerns. See ECF No. 117-19 (CEQ, Environmental Justice Guidance Under the National Environmental Policy Act, Dec. 10, 1997) at 15 ("Where a potential environmental justice issue has been identified by an agency, the agency should state clearly in the EIS or EA whether, in light of all the facts and circumstances, a disproportionately high and adverse human health or environmental impact on ... Indian tribe[s] is likely to result from the proposed action.") (emphasis added). As a result, even if Defendants did conclude on remand that a crossing at the Lake Oahe site may disproportionately affect minority or tribal populations, such an outcome would not compel the Corps to alter its prior decision to issue an EA and FONSI.
Additionally, multiple aspects of the record suggest that the Corps is likely to justify issuing an EA, rather than completing an EIS. First, as with the hunting-and-fishing analysis, the minimal risk of an oil spill under Lake Oahe reduces the likelihood that the project will have a significant impact on the surrounding communities. See Sierra Club,
Second, the impact of any such spill, if it were to occur, is in part mitigated by the relocation of the Standing Rock water-intake structure. The new structure is situated approximately 50 miles further downstream from the Lake Oahe crossing than the old site, and it is outside even the furthest radius suggested by Standing Rock as appropriate for evaluating the environmental-justice impacts of the pipeline. See Standing Rock III,
Finally, the Corps' already-conducted assessment of the alternative pipeline route through Bismarck increases the likelihood that the agency will find that DAPL's environmental-justice impacts do *102not require an EIS. Under NEPA, the consideration of such alternative routes is relevant to the Corps' environmental-justice review on remand, as the statute requires only that the agency "grapple[ ] with the disparate impacts of the various possible pipeline routes." SierraClub,
As the prior Opinion discussed, the alternative Bismarck crossing would pass much closer to a drinking-water intake than the Lake Oahe location does. See Standing Rock III,
In reaching this decision, however, the Court does not seek to minimize the importance of the Tribes' environmental-justice concerns. The purpose of this analysis under NEPA is to ensure that the government properly accounts for the "interrelated cultural, social, occupational, historical, or economic factors that may amplify the natural and physical environmental effects" of agency actions. See CEQ Guidance at 9. There is no doubt that our nation's history is replete with examples of Native American tribes bearing the brunt of government action. See ECF No. 270-1 (Brief of Amici Curiae Great Plains Tribal Chairmen's Association, et al .) at 6-8. And Chairman Archambault is eloquent on why the Tribes believe that this pipeline embodies another transgression. See Archambault Decl., ¶¶ 12-20. Yet the Court's role here is not to determine the wisdom of agency action or to opine on its substantive effects. See Robertson,
* * *
In cases in which the agency's reasoning is "so crippled as to be unlawful," vacatur is generally the appropriate remedy. See Radio-Television News Directors Ass'n v. FCC,
B. Disruptive Consequences
The second consideration in determining whether to remand without vacatur is "the disruptive consequences of an interim change that may itself be changed." Allied-Signal,
1. Direct Disruption
Defendants and their amici spend much of their briefing spelling out what they believe are potentially dire economic consequences of vacatur. Dakota Access, for example, asserts that if the pipeline is paused, North Dakota's oil producers will face severe costs and delays. See DA Brief at 14; ECF No. 279 (Amici Curiae Brief of American Fuel and Petrochemical Manufacturers) at 6 (stating that "direct financial impact" of taking DAPL out of service "would be staggering"). The company contends that other pipelines, refineries, and downstream users of the oil currently transported in DAPL would also "suffer greatly" and would be forced into "emergency arrangements" to compensate for the shutdown. See DA Brief at 14. The impact of vacatur, Dakota Access posits, would place in peril the jobs of all those currently involved in DAPL's operations and would prevent Dakota Access from being able to perform the contracts it has entered into with producers. Id. at 18.
*104Defendants assert that such a halt in pipeline operations would also deprive state and local governments of millions of dollars in tax revenue and would undermine new industries that support DAPL operations. See Brief of American Fuel Manufacturers, et al. at 8, 10. Finally, Defendants argue that these effects would be passed on to consumers, claiming that the disruptive market effects of vacatur would have "significant ripple effects." DA Brief at 15. In total, Dakota Access declares that issuing vacatur in this case would incur costs of hundreds of millions of dollars. Id. at 18.
The Tribes contest both the accuracy and the relevance of Defendants' economic concerns. As to the former, Plaintiffs have submitted declarations asserting that "DAPL revenues" are likely "substantially less than indicated" by Defendants and stating that a DAPL shutdown "will not result in the severe disruptions claimed by the Corps and Dakota Access." ECF No. 272-5 (Declaration of Ian Goodman), ¶¶ 41, 43. They therefore argue that the company's claims "regarding loss of revenues and other potential impacts of a DAPL shutdown should not be relied upon to determine the likely impacts" of vacatur. Id., ¶ 41. As to the latter, the Tribes question whether "financial impacts" carry "much or even any weight" when evaluating the second Allied-Signal factor in NEPA cases. See Tribes' Brief at 25.
As an initial matter, the Court rejects Plaintiffs' suggestion that it should wholly disregard the potential for financial disruption. Although this perspective has been suggested in at least one district court decision, see Ctr. for Food Safety v. Vilsack,
That the Court will consider Defendant's allegations of financial harm does not, however, mean that it will necessarily give determinative effect to such claims. Defendants' cri de coeur over lost profits and industrial inconvenience is not fully convincing. Such is the nature of doing business, especially in an area fraught with bureaucracy and litigation. Dakota Access began pumping oil into the pipeline with full knowledge that Plaintiffs were contesting the easement allowing them to do so. By nonetheless proceeding with its venture, the company assumed some risk of economic disruption. See ECF No. 259-2 (Declaration of David Murk), ¶ 8 (stating that impact of vacatur would not have been severe "had DAPL not begun operations in June 2017").
There is, moreover, some cause for skepticism regarding Dakota Access's predictions of economic devastation. This is not the first time the company has staked out this position-it previously claimed that delays in the pipeline would have disastrous *105economic effects. During the first preliminary-injunction briefing, the company warned that contracts for DAPL could be canceled if it was not able to start delivering oil by January 1, 2017. See ECF No. 22-1 (Declaration of Joey Mahmoud, Aug. 18, 2016), ¶¶ 69-70. Yet the pipeline did not come on line until June, and no apparent calamity ensued. See ECF 277-12 (Second Declaration of Lee Hanse), ¶ 4 (stating that "no contracts have been renegotiated or terminated"). The Court thus cannot conclude that, in the case of a halt in DAPL operations, the company would have no alternative option.
The empirical basis for Defendants' assertion that vacatur would have catastrophic economic effects is, additionally, sharply contested by the Tribes. See Goodman Decl., ¶¶ 43-48, 75 (asserting that impacts to energy systems and market due to vacatur would likely be "small to very small"). Indeed, it is unclear from the current record how much oil is even flowing through the pipeline at this time. Compare id., ¶¶ 19-25 (stating that DAPL appears to be operating at partial capacity) with DA Brief at 13 (claiming that DAPL carries equivalent of 500,000 barrels per day) with DA Reply at 6 (citing figure of 300,000 barrels per day). The parties ask the Court to wade into this war of the crude-oil experts. Yet, because it declines to rely heavily on economic impact as a justification for issuing vacatur, the Court need not resolve this factual dispute. See Pub. Employees for Envtl. Responsibility,
Beyond the data, there are broader concerns with Defendants' economic claims. Dakota Access and its amici focus almost exclusively on the financial and industrial implications of a temporary DAPL shutdown. In doing so, they address the "potentially disruptive effects of vacatur as if they occur in a vacuum," thus giving short shrift to the "potentially disruptive effects that could flow from remand without vacatur." Friends of the Capital Crescent Trail v. Fed. Transit Admin.,
This economic myopia ignores the fact that the possible effects of an oil spill on the Tribes' treaty rights and communities were at the center of this Court's prior Opinion. See Standing Rock III,
The Court notes, moreover, that denying vacatur on the basis of alleged economic harm risks creating undesirable incentives for future agency actions. If projections of financial distress are sufficient to prevent vacatur, the Court fears that agencies and third parties may choose to devote as many resources as early as possible to a challenged project-and then claim disruption in light of such investments. Such a strategy is contrary to the purpose of NEPA, which seeks to ensure that the government "looks before it leaps." ECF No. 269-1 (Brief of Amici Curiae of Law Professors and Practitioners) at 5. Finding that vacatur's alleged financial harms are dispositive under the second prong of Allied-Signal may encourage agencies to instead act first and ask later. In sum, although the Court concludes that there is likely to be some economic disruption from vacatur, this factor does not weigh heavily in Defendants' favor under the Allied-Signal test.
2. Alternative Transport
In addition to asserting that vacatur would have devastating economic effects, Defendants also argue that such a remedy would not, in fact, ameliorate Plaintiffs' concerns during the remand period. Dakota Access contends that, if vacatur is granted, the oil currently flowing through the pipeline will be re-routed onto trains. See DA Brief at 15-16. The company states that this form of transport involves a greater risk of accidents and thus argues that vacatur would put the Tribes in more environmental peril than the current status quo.
In considering the transport question, both parties acknowledge that this Circuit has "previously remanded without vacatur ... if vacating 'would at least temporarily defeat ... the enhanced protection of the environmental values covered by [the statute at issue].' " Ctr. for Biological Diversity v. Envtl. Prot. Agency,
Yet this is not such a case. On this record, Defendants have failed to persuade the Court that transport by train is significantly more dangerous than allowing oil to continue to flow beneath Lake Oahe. The record contains no concrete figures or substantiated studies regarding the risks presented by rail transportation versus DAPL's Lake Oahe crossing. Instead, the Court is left with vague projections such as Defendants' assertion that vacatur "could result in at least some portion" of the oil being moved via train and their broad claim that rail transport "poses a higher accident risk" than the use of pipelines. See Corps Brief at 13 (emphasis added). These forecasts do little to assure the Court that vacatur would in fact put the environment in any greater peril. See Pub. Employees for Envtl. Responsibility,
What is clear is that accidents and spills, however they may occur, have the potential to wreak havoc on nearby communities and ecosystems. The effects that concern the Court today are not general environmental ones throughout the Midwest, but those that may result from this pipeline in this location at Lake Oahe. Those are the impacts that the Court found were insufficiently addressed by the Corps, and those are the impacts that Plaintiffs fear during the remand period. For this reason, and because the Court does not find that alternative modes of transport required by vacatur, if any, will necessarily increase the risk of an oil spill, it rejects this argument against vacatur.
3. Other Considerations
The Corps also attempts to argue that vacatur here would "have greater disruptive consequences than in the typical NEPA case" because the pipeline has already been completed. See Corps Brief at 12. The agency contends that vacatur is the standard remedy in NEPA cases only when it would affect the "prospective application of rules or agency actions," rather than situations in which the challenged outcome has already gone into effect.
The Tribes have the better of this dispute. Although construction is complete and oil is flowing, Plaintiffs are not asking for the pipeline itself, or for any existing infrastructure, to be dismantled.
Finally, the Corps' assertions regarding the timing of the remand process are also relevant to analyzing the disruption in this case. The agency now states that it anticipates completing its independent review and analysis of the remand issues by April 2018, which is several months after its initial estimate. See ECF No. 281 (Notice of Revised Schedule); Corps Brief at 1. This timeline aids both parties' positions with respect to the impact of vacatur. On one hand, the multiple-month period of review increases the risk that a spill will occur prior to the new analysis and thus strengthens the Tribes' assertion that such an incident could occur during the remand process. On the other hand, this timing also supports Defendants' position that vacatur would have severe disruptive effects. To vacate the easement during the remand process would stop oil from flowing under Lake Oahe for at least six months-an interruption that could cause significant harms to numerous people and entities. The remand period thus supports both sides' arguments regarding the real-world impact of the Court's choice today, but does not dictate the outcome either way.
The second prong of Allied-Signal, consequently, does not counsel strongly in favor of remand without vacatur. It is undeniable that stopping the flow of oil beneath Lake Oahe will have some disruptive effect, but all the considerations on this prong tip only narrowly in favor of Defendants. Because the Court has concluded that the Corps' errors are likely to be cured under the first prong, it need not define the precise scale of the potential disruption. This is because in circumstances in which the first prong of Allied-Signal supports remand without vacatur, the second prong "is only barely relevant." Fox Television Stations, Inc. v. FCC,
C. Other Relief
In their briefing the Tribes request that, if the Court declines to vacate, it instead impose a series of conditions on the continued operation of DAPL under Lake Oahe. Defendants, in their response, do not address the merits of these proposed remedies; rather, they assert only that the Court lacks jurisdiction to enter such an order. See Corps Brief at 4. This is not so. A reviewing court may craft relief as equity requires.
*109W. Oil & Gas Ass'n v. EPA,
Because Defendants should have an opportunity to express their views on the substance of Plaintiffs' requests, the Court will permit abbreviated further briefing on this issue.
IV. Conclusion
In light of the "serious possibility" that the Corps will be able to substantiate its prior conclusions, the Court finds that vacatur is not the appropriate remedy in this case. That determination does not, however, excuse Defendants from giving serious consideration to the errors identified in this Court's prior Opinion. Compliance with NEPA cannot be reduced to a bureaucratic formality, and the Court expects the Corps not to treat remand as an exercise in filling out the proper paperwork post hoc. After the agency's further work on remand, the parties may well disagree over the sufficiency of its conclusion. If and when such a dispute arises, they will again have the opportunity to address whether Defendants have in fact fulfilled their statutory obligations.
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