United States v. FMC Corp.

531 F.3d 813, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20154, 66 ERC (BNA) 2089, 2008 U.S. App. LEXIS 13556, 2008 WL 2552262
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 27, 2008
Docket06-35429
StatusPublished
Cited by23 cases

This text of 531 F.3d 813 (United States v. FMC Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. FMC Corp., 531 F.3d 813, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20154, 66 ERC (BNA) 2089, 2008 U.S. App. LEXIS 13556, 2008 WL 2552262 (9th Cir. 2008).

Opinion

GRABER, Circuit Judge:

In the late 1990s, Plaintiff United States and Intervenor Shoshone-Bannock Tribes (“the Tribes”) approached Defendant FMC Corporation, a mining company operating in Idaho, about potential violations of federal and tribal environmental laws. FMC reached an agreement with each party. FMC agreed to pay the Tribes $1.5 million per year in lieu of applying for certain tribal permits. Concerning federal law, FMC and the United States entered into a detailed agreement (“Consent Decree”), which they presented to the federal district court for approval. The district court approved the Consent Decree, and we affirmed. United States v. Shoshone-Bannock Tribes (FMC Corp.), 229 F.3d 1161 (9th Cir.2000) (unpublished disposition).

In 2001, FMC ceased some of its mining operations, stopped making its annual payments to the Tribes, and refused to apply for certain tribal permits. After negotiations between the Tribes and FMC failed, the Tribes sought enforcement of the Consent Decree in district court. The district court held that the Tribes could enforce the Consent Decree as third-party beneficiaries and that the Consent Decree required FMC to apply for tribal permits. FMC appealed. We hold that the Tribes lack standing to enforce the Consent Decree and, therefore, vacate the district court’s orders and remand with instructions to dismiss the action.

FACTUAL AND PROCEDURAL HISTORY

Until late 2001, FMC produced phosphorous at a plant near Pocatello, Idaho. The plant is located on land within the Tribes’ Reservation, but FMC owns the land in fee. FMC stored the waste generated by the plant in ponds on its property.

In 1997, the United States Environmental Protection Agency (“EPA”) contacted FMC to express its concern that FMC was violating federal environmental laws, including the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901-6992k. After negotiations in which the Tribes participated, FMC and the United States reached an agreement. In 1998, the United States filed suit in federal district court arid, at the same time, presented to the court a consent decree embodying the government’s agreement with FMC. The district court allowed the Tribes to intervene and present objections, but the court ultimately approved the Consent Decree. The Tribes appealed, and we affirmed. FMC Corp., 229 F.3d 1161.

The Consent Decree and its appendices comprise nearly 100 pages and set forth detailed requirements, duties, and rights. Paragraph 1 defines many terms, but also contains a catchall provision that, “[ujnless otherwise expressly provided herein, terms used in this Consent Decree or its Attachments that are defined in RCRA, or in regulations promulgated under RCRA, shall have the meaning assigned to them in RCRA or in such regulations.” (Citations *816 omitted.) The terms “parties,” “Tribe,” 1 and “person” are relevant to this appeal. The Consent Decree defines “parties” as “the United States (Plaintiff) and FMC Corporation (Defendant).” The Consent Decree defines “Tribe” as “the Shoshone-Bannock Tribe residing on the Fort Hall reservation near Pocatello, Idaho.” Nowhere in the text of the Consent Decree is the term “person” defined.

The Tribes are mentioned in many places in the Consent Decree. For example, FMC must notify the Tribes before a change in the plant’s ownership; the Tribes are entitled to access the plant for certain purposes, including observation, monitoring, and investigation; FMC may “obtain splits of any samples taken by the United States, EPA, the Tribe, or their representatives”; and the Tribes are to receive copies of technical reports, data, and documentation “upon request.”

Tribal permits are mentioned in paragraphs 8 and 76:

8. Permits: Where any portion of the Work requires a federal, state, or tribal permit or approval, Defendant shall submit timely and complete applications and take all other actions necessary to obtain all such permits or approvals.
76. This Consent Decree shall not be construed as a ruling or determination of any issue related to any federal, state, tribal, or local permit, if required in order to implement this Consent Decree or required in order to continue or alter operations of the FMC Pocatello Plant (including but not limited to construction, operation, or closure permits required under RCRA), and the Defendant shall remain subject to all such permitting requirements. The Defendant shall be responsible for obtaining any federal, state, or local permit(s) for any activity at the FMC Pocatello Plant, including those necessary for the performance of the work required by this Consent Decree.

Paragraph 77 contains a statement about rights and causes of action:

77. Nothing in this Consent Decree is intended either to create any rights in or grant any cause of action to any person not a party to this Consent Decree, or to release or waive any claim, cause of action, demand, or defense in law or equity that any party to this Consent Decree may have against any person(s) or entity not a party to this Consent Decree.

Paragraphs 55-59 set forth mandatory dispute resolution procedures that must be followed before either party may invoke the district court’s jurisdiction. Paragraph 55 states that the “procedures may be invoked by either party.” (Emphasis added.)

Paragraphs 84 and 85 make explicit the district court’s continuing jurisdiction:

84. This Court retains jurisdiction over both the subject matter of this Consent Decree and the Defendant for the duration of the performance of the terms and provisions of this Consent Decree, including its Attachments, for the purpose of enabling any of the Parties to apply to the Court at any time for such further order, direction, and relief as may be necessary or appropriate for the construction or modification of this Consent Decree, or to effectuate or en *817 force compliance with its terms, or to resolve disputes in accordance with Section XVI [¶¶ 55-59] (Dispute Resolution) hereof.
85. The parties retain the right to seek to enforce the terms of this Consent Decree and take any action authorized by federal or state law not inconsistent with the terms of this Consent Decree to achieve or maintain compliance with the terms and conditions of this Consent Decree or otherwise.

Around the same time as the United States-FMC negotiations over federal environmental laws were underway, the Tribes told FMC that tribal law required FMC to obtain certain tribal permits. FMC settled the tribal permit dispute by agreeing to pay the Tribes a fee of $1.5 million per year, beginning in 1998. FMC paid the fee each year from 1998 through 2001.

The dispute now before us arose when FMC discontinued its operations at the plant in December 2001 and, thereafter, refused to pay the annual $1.5 million fee. The Tribes and FMC disagreed as to whether their agreement required payments to continue after the plant shut down, and negotiations ensued.

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Bluebook (online)
531 F.3d 813, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20154, 66 ERC (BNA) 2089, 2008 U.S. App. LEXIS 13556, 2008 WL 2552262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-fmc-corp-ca9-2008.