Tribal Village of Akutan v. Hodel

869 F.2d 1185
Court of Appeals for the Ninth Circuit·Decided October 5, 1988·No. Nos. 88-3610, 88-3703, 88-3729·Published·Cited by 26 cases

Opinion

KOZINSKI, Circuit Judge:

The Tribal Village of Akutan and two other tribal villages, the Trustees for Alaska and twelve other environmental organizations, and the State of Alaska and seven organizations concerned with the preservation of Alaska's fisheries (Alaska), appeal the district court’s grant of summary judgment in favor of the Secretary of the Interior, the Department of the Interior, the National Marine Fisheries Service and nineteen intervenors (Secretary). Appellants have sued to enjoin the Secretary from conducting Lease Sale 92 in the North Aleutian Basin (also referred to as Bristol Bay) on the grounds that the Secretary has failed to comply with the National Environmental Policy Act (NEPA), 42 U.S.C. §§ 4321-4361 (1982 & Supp. IV 1986), the Endangered Species Act, (ESA), 16 U.S.C. §§ 1531-1543 (1982 & Supp. IV 1986), and the Outer Continental Shelf Lands Act, (OCSLA) 43 U.S.C. §§ 1331-1356 (1982 & Supp. Ill 1985).

I. Facts

The development and operation of offshore oil wells is controlled by OCSLA, which establishes a national policy of making the outer continental shelf “available for expeditious and orderly development, subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs.” 43 U.S.C. § 1332(3). The Act establishes four distinct stages in the administrative process: (1) formulation of a five-year leasing plan by the Secretary; (2) lease sales; (3) exploration by the lessees; and (4) development and production. Secretary of the Interior v. California, 464 U.S. 312, 337, 104 S.Ct. 656, 669, 78 L.Ed.2d 496 (1984); Village of False Pass v. Clark, 733 F.2d 605, 608 (9th Cir.1984). “Each stage involves separate regulatory review that may, but need not, conclude in the transfer to lease purchasers of rights to conduct additional activities on the OCS [outer continental shelf].” Secretary of the Interior v. California, 464 U.S. at 337, 104 S.Ct. at 669.

During the first stage of OCSLA, the Secretary prepares a Five-Year OCS Oil and Gas Lease-Sale Schedule. 43 U.S.C. § 1344. The Secretary must request comments from federal agencies and governors of affected states before submitting the proposed program of lease sales to the President and Congress. Id. at § 1344(c)-(d).

In the second stage, the Secretary conducts lease sales of tracts on the outer continental shelf. Before soliciting bids and awarding leases, the Secretary must comply with a detailed combination of investigating, consulting and reporting requirements. Most significantly, the Secretary’s review of environmental consequences must meet both NEPA standards, Village of False Pass, 733 F.2d at 609 (interpreting 43 U.S.C. § 1346(a)(1)), and ESA requirements, id. (while not mentioned in OCSLA, ESA “applies of its own force and effect”). Under OCSLA, the Secretary must also consult with the governor of any affected state, see, e.g., 43 U.S.C. §§ 1344(b)(3), 1345(a), and accept the governor’s recommendations if the Secretary believes they strike a reasonable balance between the national interest and the well-being of the citizens of the affected state. Id. at § 1345(c).

After the lease sale has been completed, the highest qualified bidder is granted a lease which entitles him to conduct limited preliminary activities such as geophysical surveys. However, “by purchasing a lease, lessees acquire no right to do anything more. Under the plain language of [1188] OCSLA, the purchase of a lease entails no right to proceed with full exploration, development, or production ...; the lessee acquires only a priority in submitting plans to conduct these activities.” Secretary of the Interior v. California, 464 U.S. at 339, 104 S.Ct. at 670.

Prior to embarking on the third stage of the OCSLA process — exploration of the lease sale area — a lessee must submit an exploration plan and an environmental report, which are subject to further review. There is yet another round of review before the lessor may enter into the final stage — development and production of oil. “If [the lessee’s] plans, when ultimately submitted, are disapproved, no further exploration or development is permitted.” Id. This four-level review process gives the Secretary a “continuing opportunity for making informed adjustments” to the process of developing offshore oil wells in order to ensure all activities are conducted in an environmentally sound manner. Village of False Pass, 733 F.2d at 616 (quoting Sierra Club v. Morton, 510 F.2d 813, 828 (5th Cir.1975)).

In November 1974, the Secretary began studying the possibility of leasing tracts for oil and gas production in the North Aleutian Basin off the southwest coast of Alaska. This region is important economically and ecologically. The fisheries of the North Aleutian Basin are “among the most productive in the world,” Alaska Outer Continental Shelf Region, Minerals Management Service, U.S. Dep’t of the Interior, 1 Final Environmental Impact Statement, North Aleutian Basin Sale 92 III-C-1 (1985) [hereinafter cited as FEIS], important both for commercial and sport fishing. The area is also the home of endangered species of marine mammals and birds. Eighty percent of the current eastern population of Pacific gray whales migrates through the Bristol Bay’s Unimak Pass during the spring and fall.

After twice canceling plans for lease sales in the bay at Alaska’s request, the Secretary submitted a five-year oil and gas leasing schedule in 1982 which proposed the lease sale of all 32.5 million acres of the North Aleutian Bay. This lease sale, denominated Lease Sale 92, was scheduled for April 1985. In March 1984, in response to concerns expressed by the Governor of Alaska, the Secretary restricted leasing to the southwest corner of the region by deleting nearly 83 percent of the acreage from the sale.

The Secretary then proceeded to follow the statutory prelease process: He solicited resource reports from federal and state agencies; solicited comments from the oil industry, governmental agencies, environmental groups and the general public; prepared both a draft and final environmental impact statement as required by NEPA; obtained biological opinions from the Fish and Wildlife Service and the National Marine Fisheries Service, as required by ESA; conducted public hearings; and consulted at length with the Governor of Alaska and other state officials.

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Tribal Village of Akutan v. Hodel, 869 F.2d 1185 (9th Cir. 1988).

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