Theodore Roosevelt Conservation Partnership v. Kempthorne

District Court, District of Columbia·Decided March 31, 2009·No. Civil Action No. 2007-1486·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

THEODORE ROOSEVELT) CONSERVATION PARTNERSHIP )

)

Plaintiff, )

)

v. ) Civ. Action No. 07-01486 (RJL)

)

KEN SALAZAR, UNITED STATES ) BUREAU OF LAND ) MANAGEMENT, )

)

Defendants )

)

v. )

)

ANADARKO PETROLEUM ) CORPORATION, WARREN ) RESOURCES, INC., DOUBLE ) EAGLE PETROLUEM, CO., ) and STATE OF WYOMING, )

)

Intervenor Defendants. )

AND

NATURAL RESOURCES DEFENSE ) COUNCIL, BIODIVERSITY ) CONSERVATION ALLIANCE, ) WYOMING OUTDOOR COUNCIL, ) WESTERN WATERSHEDS PROJECT, ) WYOMING WILDERNESS ) ASSOCIATION, )

)

Plaintiffs, )

)

v. ) Civ. Action No. 07-1709 (RJL)

)

KEN SALAZAR, U.S. DEPARTMENT) OF THE INTERIOR, U.S. BUREAU ) OF LAND MANAGEMENT, )

)

Defendants. )

)

v. )

)

STATE OF WYOMING, ANADARKO ) PETROLEUM CORPORATION, ) WARREN RESOURCES, INC., ) DOUBLE EAGLE PETROLEUM CO., )

)

Intervenor Defendants. )

s-t

MEMORANDUM OPINION

(March ~ I , 2009)

[#43, #47, #50, #53 (07-cv-01486); #50, #59, #60, #64 (07-cv-1709)]

These two cases involve challenges to the government's decision to grant drilling permits in the Atlantic Rim area of Wyoming. The Theodore Roosevelt Conservation Partnership (TRCP) brought one of these actions in 2007 against the Secretary of the Interior,! the Department of the Interior, and the Bureau of Land Management (BLM), challenging the granting of drilling permits as "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law" under the Administrative Procedure Act, 5 U.S.C. § 706(2)(A), and thus in violation of the Federal Land Policy Management Act (FLPMA), 43 U.S.C. §§ 1702 et seq., and the National Environmental Policy Act

lPursuant to Federal Rule of Civil Procedure 25(d), if a public officer named as a party to an action in his official capacity ceases to hold office, the court will automatically substitute that officer's successor. Accordingly, the Court substitutes Ken Salazar for Dirk Kempthome.

(NEPA), 42 U.S.C. §§ 4321 et seq. Five additional plaintiffs-Natural Resources Defense Council, Biodiversity Conservation Alliance, Wyoming Outdoor Council, Western Watershed Project, and Wyoming Wilderness Association (NRDC plaintiffs)-brought a separate lawsuit later in 2007, alleging that the government violated NEPA when it granted these drilling permits. 2 The three operator companies who received the permits-Andarko Petroleum Corporation, Warren Resources, Inc., and Double Eagle Petroleum Co.-and the State of Wyoming intervened in both cases in support of the BLM decision. Each of the parties has filed a summary judgment motion. After considering the parties' submissions, caselaw, and the record, the Court DENIES the plaintiffs' summary judgment motions and GRANTS the summary judgment motions filed by the federal defendants, the operator-intervenors, and the State of Wyoming.

BACKGROUNDJ

BLM issued drilling permits after approving a Record of Decision (ROD) for the Atlantic Rim Natural Gas Field Development Project. This project manages more than 270,000 acres of publicly and privately owned land in south-central Wyoming, which is the home to many species of big game and a dense population of sage grouse. This area is also rich in oil and natural gas deposits and has been under development since the

2Although this Court denied a motion to consolidate the two above-captioned cases, the Court has decided to issue one opinion for both cases in light of their common factual issues. See Fed. R. Civ. P. 42.

3For additional background, see this Court's earlier decision denying NRDC plaintiffs motion for a preliminary injunction: NRDC v. Kempthorne, 525 F. Supp. 2d 115, 117-19 (D.D.C. 2007).

1950s.4 Indeed, the land now provides more than 5% of Wyoming's total gas production. NRDC v. Kempthorne, 525 F. Supp. 2d 115, 117 (D.D.C. 2007) (ruling on a preliminary injunction).

BLM's evaluation and approval of the Atlantic Rim project was the culmination of seven years of study. In May 2001, oil and gas companies, which ultimately included Anadarko Petroleum, Warren Resources, and Double Eagle Petroleum, notified BLM that they wanted to explore and potentially develop more than 3,880 natural gas wells in the Atlantic Rim area. Id. BLM released a draft environmental impact statement in December 2005,5 in which it analyzed in detail the environmental effects of three alternative proposals. (See Draft Environmental Impact Statement for the Atlantic Rim Natural Gas Field Development Project, Carbon County, Wyoming (DEIS), Dec. 2005 (AR 1436).) Under Alternative A, existing wells would have continued to operate but additional drilling would be rejected. (FEIS at ES-2 (AR 2089).) Under Alternative B, BLM would have accepted the companies' proposals for additional drilling, but the project would have been developed in three phases over the course of twenty years, with the first developed over a six-to-seven-year period. (DEIS at 2-2 (AR 1489); DEIS at 5-3

4In 2001, before the disputed BLM action, 116 natural gas wells were in the area. (Final Environmental Impact Statement for the Atlantic Rim Natural Gas Field Development Project, Carbon County, Wyoming (FEIS), Nov. 2006 at ES-l (AR 2088).)

5NEP A requires all federal agencies to prepare and circulate for public review and comment an "Environmental Impact Statement" for federal action that will "significantly affect[] the quality of the human environment." 42 U.S.C. § 4332(C).

(AR 1445).) Under Alternative C, BLM would have accepted the companies' proposals for additional drilling, but would have employed special protection measures to limit surface disturbance, such as reducing road density and allowing fewer areas of disturbance. (FEIS at ES-2 (AR 2089).)

After the initial comment period, BLM released a final environmental impact statement in December 2006, in which BLM selected a fourth alternative, Alternative D. Under this alternative, approximately 2,000 new wells would be drilled, but the amount of surface disturbance at any given time would be limited to less than 7,600 acres, which is 2.8% of the total project area. (See FEIS at ES-l to ES-3 (AR 2088-90).) Indeed, Alternative D's "objective ... is to minimize surface disturbance while optimizing natural gas recovery." (Id. at 2-7 (AR 2155).) The final impact statement deferred evaluation of environmental impacts for site-specific drilling projects until the specific proposals were received. NRDC, 525 F. Supp. 2d at 117 n.4.

BLM received comments on the final environmental impact statement and responded to them in the ROD, which was published in March 2007. 6 (Record of Decision, Environmental Impact Statement for the Atlantic Rim Natural Gas Field Development Project (ROD), Carbon County, Wyoming, Mar. 2007 (AR 4791).)

6The plaintiffs appealed BLM's Rule of Decision and Final Environmental Impact Statement to the Interior Board of Land Appeals. NRDC, 525 F. Supp. 2d at 118. The Interior Board of Land Appeals denied that appeal on September 5, 2007. Id. NRDC plaintiffs lost the appeal before the BIA and lost their Motion for a Preliminary Injunction to halt further development before this Court in November 2007. See id. at 117.

According to the ROD, the final project is expected to produce 1,350 billion cubic feet of natural gas over its 30-50 year life span, which is enough gas to heat 19.3 million homes for one year. (ROD at 11 (AR 4806).) Indeed, BLM itself acknowledged the development it was authorizing would "adversely impact certain resource values and limit opportunities for other uses in the short-term," but noted "the long-term goal is to return these lands to a condition approximate to that which existed before developments." (Id. at 4 (AR 4799).)

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