Taylor Energy Co. v. United States Department of the Interior, Bureau of Ocean Energy Management

271 F. Supp. 3d 73
CourtDistrict Court, District of Columbia
DecidedSeptember 21, 2017
DocketCivil Action No. 2016-0388
StatusPublished
Cited by12 cases

This text of 271 F. Supp. 3d 73 (Taylor Energy Co. v. United States Department of the Interior, Bureau of Ocean Energy Management) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor Energy Co. v. United States Department of the Interior, Bureau of Ocean Energy Management, 271 F. Supp. 3d 73 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

BERYL A. HOWELL, Chief Judge

■ The plaintiff, Taylor Energy Company, LLC, a Louisiana limited liability company that has been engaged in the exploration, development, and production of oil and gas in the Gulf of Mexico, Compl. ¶ 4, ECF No. 1, initiated this action against the United States Department of the Interior (“DOI”), DOI’s components, the Bureau of Ocean Energy Management (“BOEM”) and Bureau of Safety and Environmental Enforcement (“BSEE”), the Department of Homeland Security (“DHS”), and DHS’s component, the United States Coast Guard (“USCG”), pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552. The plaintiff challenges the defendants’ responses to a FÓIA request seeking records that formed the basis for statements posted on BSEE’s website concerning the *79 plaintiff’s response to an incident on the plaintiffs former oil .platform in the Gulf of Mexico, about-which, incident the plaintiff is engaged in ongoing litigation with the United States Government. Pending before the Court are the defendants’ motion for summary judgment and the plaintiffs cross-motion for summary judgment. See generally Defs.’ Mot. Summ, J. (“Defs,’ Mot.”), ECF No. 32; Pl.’s Cross-Mot. Summ. J. (“Pl.’s Cross-Mot.”), ECF No. 34. For .the reasons set out below, the defendants’ motion is granted, .and the plaintiffs motion is denied.

I. BACKGROUND

Summarized below, is the factual background underlying the plaintiffs FOIA request and review of the defendants’ responses to the FOIA request.

A. 2004 INCIDENT AT PLAINTIFF’S OIL PLATFORM

The plaintiff submitted a FOIA request in August 2015 for agency records regarding statements that BSEE posted on its website three months earlier, in May 2015, concerning the plaintiffs ongoing response to a 2004 incident that had occurred at the plaintiffs former oil platform, called “MC20,” in the Gulf of Mexico. Defs.’ Mot., Attach. 1, Defs.’ Stmt, of Material Facts (“Defs.’ SMF”) 1HM-2, ECF No. 32-1; id., Attach. 2, Deck of Sean R. Gajewski, Attorney, Coast Guard Judge Advocate General’s Office of Claims and Litigation (“USCG Deck”), Ex. A, ECF No. 32-2. The plaintiff was considered the “responsible party” in the incident, which “result[ed] .from damage to the oil production platform and 26 connected wells during Hurricane Ivan.” Defs.’ Mot., Attach. 4, Deck of Karen Miller, Chief, FOIA/Rec-ords Office, Gulf of Mexico Region (“GOMR”), BSEE (“BSEE Deck”), Ex. A at 7, ECF No. 32-4. The plaintiff has since collaborated with the defendant agencies, each of which has jurisdiction over the response to the events at MC20. See id. Together, the plaintiff, BSEE, BORM, and USCG have “worked continuously” under a Unified'Command (“UC”) to prevent and control the discharge, improve the effectiveness of containment around the leaking oil, and mitigate environmental impacts.” Id, ,

In the years since the spill, the plaintiff has been involved in the site clearance and decommissioning of the MC20 “A” platform and twenty-five wells that were buried in 2004 as a result of a massive mudslide during Hurricane Ivan. 1 See Reply Supp. Defs.’ Mot. Summ J. & Defs.’ Opp’n Pk’s Cross-Mot. Summ. J; & (“Defs.’ Reply”), Attach. 3, Suppl. Deck of Karen Miller, Chief, FOIA/Records Office, GOMR (“BSEE Suppl.. Deck”) ¶16, ECF No. 37-3; To cover the costs of site clearance and decommissioning, the'plaintiff,-in 2008, put $666,000,000 into trust, with an agreement that “allocated specific amounts of money from the trust to be used to reimburse Taylor Energy for expenses incurred in the decommissioning of the MC-20 site, including the plugging, and abandonment of wells.” Id. ¶¶ 16-17. In 2014, sixteen wells remained unplugged and $433,000,000 remained in the trust fund. *80 Id. At that time, the plaintiff “submitted a ■departure request from intervention well and decommissioning requirements at 30 G.F.R. §§ 250.1710-250.1717” covering the sixteen wells that had not yet been plugged because the wells had “little or no potential to flow, and ... it was technically infeasible to drill any additional wells.” Id. ¶ 18.

After submitting the departure request, the plaintiff asked BSEE to “consider returning some or all of the remaining trust fund money to Taylor.” Id. ¶ 19. BSEE sought legal counsel from the Department of Justice (“DOJ”) in connection with the plaintiffs request and to respond to DOJ’s request for information from BSEE “in the context of this attorney-client relationship,” BSEE drafted a seven-page April 3, 2015 memorandum that was used by BOEM, BSEE, and the agencies’ lawyers. Id. IT 20; Defs.’ Reply, Attach. 2, Suppl. Deck of Natasha Alcantara, FOIA Officer, BOEM (“BOEM Suppl. Dec!.”) ¶ 11, ECF No. 37-2. In particular, BSEE’s Regional Director, GOMR, Lars Herbst, drafted the memorandum with help from DOI’s Office of the Solicitor (“SOL”). BSEE Suppl. Decl. ¶ 21. “[I]n its final form,” the memorandum, entitled “Taylor Energy Company LLC, Mississippi Canyon Block .20— BSEE’s Considferations for Revision of Taylor Energy’s Trust Agreement,” was approved by BSEE Director Brian Salerno “to inform discussions between BSEE and DOJ,” and “Director Salerno’s Office sent this memorandum to DOJ on April ■ 3, 2015.” Id. ¶¶ 16, 21.

Later in April, BOEM officials received a “BSEE memorandum dated April 3, 2015,” 'with the same author, Mr. Herbst, and title as the aforementioned memorandum, that had been sent by “an attorney in [SOL] in order to inform BOEM’s feedback on [a] draft 20-point document” addressing the plaintiffs requests. BOEM Suppl. Deck ¶¶ 6, 11-12, Ex. A. On May 11, 2015, BSEE sent the plaintiff “a final decision denying Taylor’s departure request.” BSEE Suppl. Deck ¶22, Ex. D. “Shortly thereafter, Taylor was informed that trust funds would not be returned at that time.” Id. ¶ 22. A few months later, on January 4, 2016, the plaintiff sued the United States in the Court of Federal Claims for breach of the trust agreement and for breach of “its obligation of good faith and fair dealing by refusing to direct release to Taylor of the funds remaining in the trust account.” See BSEE Suppl. Deck ¶23 (citing Taylor Energy Co. v. U.S., 1:16-cv-12). 2

B. PLAINTIFF’S FOIA REQUEST

Around the time of BSEE’s denial of the plaintiffs departure request, in May of 2015, BSEE posted material on- its website concerning the incident at MC20, including a “Joint DOI-USCG Statement” pertaining to the “Taylor Energy/Mississippi Canyon 20 (MC20) Oil Discharge,” and links to two documents named “Taylor Energy Oil Discharge at MC 20 Site and Ongoing Response Efforts” and “Taylor Energy U.S. Coast Guard Fact Sheet.” Comph ¶ 20; BSEE Deck, Ex. A. After learning of these online materials, the plaintiff filed identical FOIA requests with BSEE, BOEM and USCG, on August 3 and 4, 2015. USCG Deck, Ex. A; Defs.’ Mot., Attach. 3, Deck of Natasha Alcantara, FOIA Officer, BOEM, Ex. A (“BOEM Deck”), ECF No.

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271 F. Supp. 3d 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-energy-co-v-united-states-department-of-the-interior-bureau-of-dcd-2017.