State v. Bureau of Land Mgmt.

286 F. Supp. 3d 1054
CourtDistrict Court, N.D. California
DecidedFebruary 22, 2018
DocketCase Nos. 17–cv–07186–WHO; 17–cv–07187–WHO
StatusPublished
Cited by19 cases

This text of 286 F. Supp. 3d 1054 (State v. Bureau of Land Mgmt.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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State v. Bureau of Land Mgmt., 286 F. Supp. 3d 1054 (N.D. Cal. 2018).

Opinion

William H. Orrick, United States District Judge

INTRODUCTION

This case addresses the burden a federal agency bears when it seeks to suspend a federal regulation for further analysis. Plaintiffs, the States of California and New Mexico, bring this action for a preliminary injunction enjoining the United States Bureau of Land Management ("BLM"), Katherine S. Macgregor, Acting Assistant Secretary for Land and Minerals Management, and Ryan Zinke, Secretary of the Interior, from instituting a rule suspending or delaying the requirements of the Waste Prevention, Production Subject to Royalties, and Resource Conservation Rule. A coalition of 17 conservation and tribal citizen groups separately brought suit for a preliminary injunction against Zinke, the BLM, and the United States Department of the Interior seeking the same preliminary injunction. These two cases have been consolidated for review.

The States of North Dakota and Texas, along with three industry groups, the Western Energy Alliance ("WEA"), Independent Petroleum Association of America ("IPAA"), and American Petroleum Institute ("API"), have moved to intervene in these consolidated actions in opposition to the preliminary injunction. The BLM and the States of North Dakota and Texas have also moved to transfer venue of this case to the District of Wyoming, where a case challenging the underlying rule is pending.1

*1058First, I deny the motion to change venue. As discussed below, the legal issues concerning the Waste Prevention Rule in the District of Wyoming go to the substance of that regulation; this lawsuit addresses the BLM's alleged procedural failure to justify a different rule, the Suspension Rule. The legal issues are distinct. In light of plaintiffs' choice of forum, venue is appropriate here.

Second, I grant Plaintiffs' motion for a preliminary injunction. The BLM's reasoning behind the Suspension Rule is untethered to evidence contradicting the reasons for implementing the Waste Prevention Rule, and so plaintiffs are likely to prevail on the merits. They have shown irreparable injury caused by the waste of publicly owned natural gas, increased air pollution and associated health impacts, and exacerbated climate impacts. Plaintiffs are entitled to a preliminary injunction on this record.

BACKGROUND

On November 18, 2016, after three years of development, the BLM published the final version of its regulations intended "to reduce waste of natural gas from venting, flaring, and leaks during oil and natural gas production activities on onshore Federal and Indian (other than Osage Tribe) leases." See " Waste Prevention, Production Subject to Royalties, and Resource Conservation: Final Rule," 81 Fed. Reg. 83,008 (Nov. 18, 2016) ("Waste Prevention Rule"). The Waste Prevention Rule became effective on January 17, 2017, with many of its requirements to be phased in over time up until January 17, 2018.

In November of 2016, two industry groups, the Western Energy Alliance and the Independent Petroleum Association of America, as well as the states of Wyoming and Montana, separately filed lawsuits challenging the Waste Prevention Rule and seeking a preliminary injunction in the U.S. District Court for the District of Wyoming. See W. Energy All. v. Zinke , No. 16-cv-0280 (D. Wyo. filed Nov. 15, 2016); Wyoming v. U.S. Dep't of Interior , No. 16-cv-0285 (D. Wyo. filed Nov. 18, 2016). The two cases were consolidated, and the states of California and New Mexico, as well as a coalition of environmental groups, including all but one of the plaintiffs in this action, intervened in the lawsuits on the side of the government. The States of North Dakota and Texas intervened on the side of the petitioners. On January 16, 2017, the court denied the motions for preliminary injunction. See Wyoming v. U.S. Dep't of Interior , Nos. 16-cv-0285, 16-cv-0280, 2017 WL 161428 (D. Wyo. Jan. 16, 2017).

On March 28, 2017, President Trump issued an Executive Order requiring the Secretary of the Interior to review the Waste Prevention Rule. Exec. Order No. 13,783, 82 Fed. Reg. 16,093, § 7(b) (Mar. 28, 2017). BLM reviewed the rule and drafted a proposed Revision Rule rescinding certain provisions of the Waste Prevention Rule and substantially revising others. BLM published the proposed rule in the Federal Register today, after conclusion of its review by the Office of Information and Regulatory Affairs. See " Waste Prevention, Production Subject to Royalties, and Resource Conservation: Rescission or Revision of Certain Requirements," 83 Fed. Reg. 7924 (proposed Feb. 22, 2018).

In the interim, BLM developed a rule to delay for one year the effective date of the provisions of the Waste Prevention Rule that had not yet become operative and *1059suspend for one year the effectiveness of certain provisions already in effect ("Suspension Rule").2 82 Fed. Reg. 58,050, 58,051 (Dec. 8, 2017). BLM published the proposed Suspension Rule on October 5, 2017, and on December 8, 2017, published the final Suspension Rule. See 82 Fed. Reg. 46,458, 58,050. It took effect on January 8, 2018. The rule temporarily suspended or delayed certain requirements at the heart of the pending Wyoming litigation.

Plaintiffs in this action filed suit challenging the Suspension Rule on December 18, 2017, and moving for a preliminary injunction. California v. BLM , No. 17-cv-07186 (N.D. Cal. filed Dec. 19, 2017); Sierra Club v. Zinke , No. 17-cv-07187 (N.D. Cal. filed Dec. 19, 2017). On December 29, 2017, the court in the Wyoming cases stayed those cases in light of the Suspension Rule and BLM's continued efforts to revise the Waste Prevention Rule, as well as the present lawsuits, which raise procedural challenges to the Suspension Rule and seek to reinstate the Waste Prevention Rule. Wyoming , Nos. 16-cv-0280, 16-cv-0285 (D. Wyo. Dec. 29, 2017) [Dkt. Nos. 184, 189]. In that decision, the court explained that "it is fair to say those actions are inextricably intertwined with the cases before this Court and with the ultimate rules to be enforced." Id. at 4.

LEGAL STANDARD

I. Transfer of Venue

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286 F. Supp. 3d 1054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bureau-of-land-mgmt-cand-2018.