W. Org. Councils v. Bernhardt
This text of 362 F. Supp. 3d 900 (W. Org. Councils v. Bernhardt) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Donald W. Molloy, District Judge
In August 2018, Plaintiff Western Organization of Resource Councils ("Western") sued various officials within the Department of the Interior ("Defendants"), challenging the establishment and operation of the Royalty Policy Committee ("Royalty Committee" or "Committee") under the Federal Advisory Committee Act ("FACA"). The Secretary of the Interior established the Royalty Committee to provide advice on issues related to the leasing of energy and mineral resources on Federal and Indian lands. (Doc. 25 at 15.) According to Western, "Rather than pursue its task with the full and transparent participation of [the public], the Committee operates in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal." (First Amend. Compl., Doc. 14 at ¶ 2.) Defendants seek to dismiss Western's complaint pursuant to Rule 12(b)(1) and (b)(6) of the Federal Rules of Civil Procedure. (Doc. 24.) Western seeks to preliminarily enjoin Committee operations, including activities conducted by its subcommittees and working groups. (Doc. 17.) Argument was heard on the pending motions on January 16, 2019.
As explained further below, Defendants' motion to dismiss is granted as to Counts 3 and 4 but denied as to Counts 1 and 2. Western's request for a preliminary injunction is denied.
BACKGROUND
I. FACA
"Congress passed FACA in 1972 to address whether and to what extent committees, *905boards, and councils should be maintained to advise Executive Branch officers and agencies." Cummock v. Gore ,
Congress struck a balance between these concerns, by preserving the advisory committee mechanism for informing policy decisions, while ensuring "that new advisory committees be established only when essential and that their number be minimized; that they be terminated when they have outlived their usefulness; that their creation, operation, and duration be subject to uniform standards and procedures; that Congress and the public remain apprised of their existence, activities, and cost; and that their work be exclusively advisory in nature."
FACA outlines a number of requirements governing the creation and operation of such "advisory committees." See 5 U.S.C. App. II § 3(2). For instance, membership must be "fairly balanced in terms of the points of view represented and the functions to be performed" and a committee's advice must reflect its "independent judgment" without inappropriate influences from the appointing authority or special interests.
II. Royalty Committee
The Royalty Committee was first established in 2004, with a mandate to "review and comment on revenue management and other mineral-related policies" stemming from Federal and Indian mineral leases.
- Seven officials from the Department of the Interior;
- Up to six representatives of governors of states that receive at least $ 10,000,000 annually in royalty revenues from federal leases;
- Up to four representatives of Indian Tribes that are subject to laws relating to mineral development;
- Up to six representatives of various mineral and/or energy stakeholders; and
- Up to four members representing academic and public interest groups.
*906(Royalty Committee Charter, Ex. R, Doc. 18-18 at ¶ 12.) It is administered by the Office of Natural Resources Revenue. (Id. at ¶ 6.)
To date, the Committee has held four meetings, see
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Donald W. Molloy, District Judge
In August 2018, Plaintiff Western Organization of Resource Councils ("Western") sued various officials within the Department of the Interior ("Defendants"), challenging the establishment and operation of the Royalty Policy Committee ("Royalty Committee" or "Committee") under the Federal Advisory Committee Act ("FACA"). The Secretary of the Interior established the Royalty Committee to provide advice on issues related to the leasing of energy and mineral resources on Federal and Indian lands. (Doc. 25 at 15.) According to Western, "Rather than pursue its task with the full and transparent participation of [the public], the Committee operates in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal." (First Amend. Compl., Doc. 14 at ¶ 2.) Defendants seek to dismiss Western's complaint pursuant to Rule 12(b)(1) and (b)(6) of the Federal Rules of Civil Procedure. (Doc. 24.) Western seeks to preliminarily enjoin Committee operations, including activities conducted by its subcommittees and working groups. (Doc. 17.) Argument was heard on the pending motions on January 16, 2019.
As explained further below, Defendants' motion to dismiss is granted as to Counts 3 and 4 but denied as to Counts 1 and 2. Western's request for a preliminary injunction is denied.
BACKGROUND
I. FACA
"Congress passed FACA in 1972 to address whether and to what extent committees, *905boards, and councils should be maintained to advise Executive Branch officers and agencies." Cummock v. Gore ,
Congress struck a balance between these concerns, by preserving the advisory committee mechanism for informing policy decisions, while ensuring "that new advisory committees be established only when essential and that their number be minimized; that they be terminated when they have outlived their usefulness; that their creation, operation, and duration be subject to uniform standards and procedures; that Congress and the public remain apprised of their existence, activities, and cost; and that their work be exclusively advisory in nature."
FACA outlines a number of requirements governing the creation and operation of such "advisory committees." See 5 U.S.C. App. II § 3(2). For instance, membership must be "fairly balanced in terms of the points of view represented and the functions to be performed" and a committee's advice must reflect its "independent judgment" without inappropriate influences from the appointing authority or special interests.
II. Royalty Committee
The Royalty Committee was first established in 2004, with a mandate to "review and comment on revenue management and other mineral-related policies" stemming from Federal and Indian mineral leases.
- Seven officials from the Department of the Interior;
- Up to six representatives of governors of states that receive at least $ 10,000,000 annually in royalty revenues from federal leases;
- Up to four representatives of Indian Tribes that are subject to laws relating to mineral development;
- Up to six representatives of various mineral and/or energy stakeholders; and
- Up to four members representing academic and public interest groups.
*906(Royalty Committee Charter, Ex. R, Doc. 18-18 at ¶ 12.) It is administered by the Office of Natural Resources Revenue. (Id. at ¶ 6.)
To date, the Committee has held four meetings, see
The next Committee meeting was scheduled for January 31, 2019, but that meeting has since been cancelled due to the lapse in appropriations. (See Schindler Decl., Doc. 35-1 at ¶ 5.) Additionally, all members of the Committee were told that no "[Committee]-related work should occur during the shutdown, including any informal collaboration among non-federal members of the Committee." (Id. ) All subcommittee meetings were also cancelled for the duration of the shutdown. (Id. at ¶ 3.) However, Western has pointed to news articles indicating certain leasing work was to continue despite the shutdown, (see Doc. 36 at 4 (citing "Trump Administration Working on Arctic Oil Leases Despite Shutdown," Reuters (Jan. 9, 2019) ) ), raising some question as to continued operations.
III. The Present Case
Western is a Montana-based organization self-described as "a regional network of grassroots community organizations," that seeks "to build sustainable environmental and economic communities that balance economic growth with public health and stewardship of land, water, and air resources." (Doc. 14 at ¶ 17.) In its original complaint, Western named as defendants the Department of the Interior; the Bureau of Land Management; Ryan Zinke, Secretary of the Interior; Vincent DeVito, Counselor for Energy Policy to the Secretary of the Interior; and Brian Steed, Deputy Director of Policy and Programs for the Bureau of Land Management. (Doc. 1.) Western alleges that the Royalty Commission was established in violation of FACA (Count 1) and that its operation violates FACA's requirement that it: (1) provide public notice of its meetings and publicly disseminate its materials (Count 2); (2) ensure that its membership be "fairly balanced" (Count 3); and (3) exercise independent judgment without inappropriate influences from special interests (Count 4).
On November 2, 2018, Defendants moved to dismiss Western's original complaint, arguing that (1) Western lacked standing, (2) Counts 3 and 4 are non-justiciable, and (3) Counts 1 and 2 fail to state a claim. (Doc. 12.) On November 23, 2018, Western filed its First Amended Complaint, replacing Defendant DeVito with Scott Angelle, Director of the Bureau of Safety & Environmental Enforcement. (Doc. 14); see also Fed. R. Civ. P. 25(d). Although Western added factual information, the First Amended Complaint contains the same four claims as the original complaint. In light of Western's amended pleading, Defendants' motion to dismiss, (Doc. 12), was denied subject to renewal, (Doc. 15).
On November 28, 2018, Western filed a motion for preliminary injunction, asking the Court to enjoin any further Committee and subcommittee meetings and operations-specifically the one scheduled for January 31, 2019-until Defendants comply with FACA's implementing regulations. (Doc. 17.) On December 17, 2018, Defendants filed a renewed motion to dismiss combined with their response to Western's motion. (Doc. 24.) The grounds for dismissal were substantially the same as those argued in Defendants' previous *907motion. (Compare Doc. 13 with Doc. 25.) On January 10, Defendants unsuccessfully sought to stay proceedings in light of the lapse in appropriations. (Doc. 34.) In that filing, Defendants indicated that the January 31 Committee meeting was cancelled, and other Committee operations were suspended during the lapse. (Doc. 35.) Western argues, however, that certain subcommittee and working group work is slated to continue. (See Doc. 36.)
SUMMARY CONCLUSION
The parties take a fundamentally different view of the nature of FACA. Western's allegations, and the basis for its pending motion, rest on the principle purpose behind its enactment: the requirement that advisory committee work be both efficient and transparent. Defendants, on the other hand, base their arguments on the minimum required to comply with the text of the Act. While the dichotomy of these approaches is not dispositive, it highlights a troubling trend within the current administration's view of governing and the rule of law.
The survival of the majority of Western's claims depends on whether or not the Bureau of Land Management's ("BLM") implementing regulations under 43 C.F.R. subpart 1784 apply to the Royalty Committee. Because they do not, and FACA alone does not provide an adequate basis for judicial review, all but two of Western's claims are dismissed as non-justiciable under the Administrative Procedure Act ("APA").
ANALYSIS
Because a court must assess its subject-matter jurisdiction with respect to a claim before ruling on the merits, see Ruhrgas AG v. Marathon Oil Co. ,
I. Dismissal
A. Legal Standards
1. Rule 12(b)(1)
A Rule 12(b)(1) motion challenges a federal court's jurisdiction over the subject matter of the complaint. The motion may be brought on either facial or factual grounds. Safe Air for Everyone v. Meyer ,
2. Rule 12(b)(6)
A motion under Rule 12(b)(6) challenges the sufficiency of the plaintiff's pleadings. To survive a Rule 12(b)(6) motion to dismiss for failure to state a claim upon which relief can be granted, a plaintiff's complaint must allege "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly ,
B. Standing (Counts 1, 3, and 4)
Defendants first argue that Western has not met its burden of establishing Article III standing with respect to three of its claims.2 To have standing, "[t]he plaintiff must have (1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision." Spokeo, Inc. v. Robins , --- U.S. ----,
Western brings this action "on its own behalf," (Doc. 14 at ¶ 19), and "on behalf of its members," (id. at ¶ 23). Accordingly, it must establish standing "as a representative of its members" (associational standing) or "in its own right" (organizational standing). Smith v. Pac. Properties & Dev't Corp. ,
To establish organizational standing, a plaintiff must satisfy the same test used to assess "standing in the context of an individual plaintiff." La Asociacion de Trabajadores de Lake Forest v. City of Lake Forest (Lake Forest) ,
In evaluating Western's claims under a "procedural injury" framework, the Court must determine "(1) whether [FACA] was established to protect [Western's] concrete interests (as opposed to purely procedural rights), and if so, (2) whether the specific procedural violations alleged in the case actually harm, or present a material risk of harm to, such interests." Robins v. Spokeo, Inc. (Spokeo II) ,
"In determining whether an intangible harm constitutes injury in fact, both history and the judgment of Congress play important roles." Spokeo ,
Guided by Congress's judgment and prior judicial decisions under FACA, it is reasonable to conclude that the FACA procedures at issue in this case were crafted to protect the public's concrete interest in the unbiased and productive establishment and operation of advisory committees. See Pub. Citizen ,
Thus, the next question is whether Western has alleged FACA violations "that actually harm, or at least that actually create a material risk of harm to, this concrete interest." Spokeo II ,
That said, Western's informational and functional injury arguments do not contribute to a finding of standing. Western argues injury exists because it has been denied information about the Committee's composition and membership. In doing so, Western relies on BLM regulation
C. Justiciability (Counts 3 and 4)
Defendants argue that Counts 3 and 4 are non-justiciable because they cover matters that have been "committed to agency discretion" under the APA. Judicial review is unavailable under the APA where "statutes preclude judicial review" or "agency action is committed to agency discretion by law."
Count 3 of the First Amended Complaint alleges that the Committee is not "fairly balanced in terms of the points of view represented and the functions to be performed by the advisory committee." (Doc. 14 at ¶ 110 (quoting 5 U.S.C. App. II § 5(b)(2) ).) Count 4 claims that the Committee lacks "appropriate provisions to assure that the advice and recommendations of the advisory committee will not be inappropriately influenced by the appointing authority or any special interest." (Id. at ¶ 113 (quoting 5 U.S.C. App. II § 5(b)(3) ).) Defendants argue that "[b]ecause FACA provides no meaningful standards for assessing whether [they] have complied with these provisions, the Court lacks jurisdiction over these two claims." (Doc. 25 at 31.) The question is whether the "particular statutes contain sufficiently definite standards for [courts] to apply to allow for judicial review." Ctr. for Policy Analysis on Trade & Health (CPATH) v. Office of U.S. Trade Representative ,
*9111. Count Three: Section 5(b)(2) - Fair Membership Balance
In CPATH , the Ninth Circuit examined the composition of the Industry Trade Committees, which were required under the Trade Act to "be representative of all industry, labor, agricultural, or service interests (including small business interests) in the sector or functional areas concerned."
Following CPATH , Western can only succeed if it shows that some authority other than FACA provides a sufficient standard for review. To do so, Western relies on the BLM regulations under Title 43, subpart 1784 of the Code of Federal Regulations. The Tenth Circuit has held that the Department's implementing regulations for resource advisory committees,
As argued by Western, there are a number of potentially applicable regulations that govern BLM advisory committees. See
While these regulations could potentially provide sufficient standards for assessing the "fairly balanced" requirement under § 5(b)(2), they only apply to advisory committees *912created to address "matters relating to public lands and resources under the administrative jurisdiction of the [BLM]."
2. Count Four: Section 5(b)(3) - Inappropriate Influence
Defendants further argue that the reasoning under § 5(b)(2) compels the same non-justiciable result for "inappropriately influenced" claims under § 5(b)(3), citing Physicians Comm. for Responsible Medicine v. Vilsack ,
Accordingly, Counts 3 and 4 are dismissed as nonjusticiable.
D. Failure to State a Claim
Finally, Defendants unsuccessfully argue that Counts 1 and 2 should be dismissed for failure to state a claim under Rule 12(b)(6).
1. Count One: Establishment of the Committee
FACA requires that, before an agency head establishes an advisory committee, he or she must determine "as a matter of formal record, ... with timely notice published in the Federal Register," that the committee "is in the public interest in connection with the performance of duties imposed on that agency by law." 5 U.S.C. App. II § 9(a)(2). Additionally, FACA's implementing regulations require that an advisory committee "may be established only when it is essential to the conduct of agency business and when the information to be obtained is not already available through another advisory committee or source within the Federal Government."
Defendants insist Western fails to state a claim because the Secretary is merely required to certify the necessity of the committee, not justify it. In 2004, then-Secretary Gale Norton certified "that the Royalty Policy Committee is in the public interest in connection with the performance of duties imposed on the Department of the Interior."
Western argues that a conclusory certification sentence does not meet the agency's duty under the APA to "examine the relevant data and articulate a satisfactory explanation for its action[,] including a rational connection between the facts found and the choice made." Defenders of Wildlife v. Zinke ,
2. Count Two: Public Meetings and Records
Pursuant to FACA, advisory committees have an obligation to provide notice of meetings, make available records and materials, and permit public participation in meetings. 5 U.S.C. App. II § 10. Defendants challenge Western's application of this "openness" standard to subcommittees and working groups. Generally, there is no open meeting requirement for subcommittees or working groups. See
Western first alleges that the Committee is required to open subcommittee and working group meetings and disclose their materials in light of the BLM's advisory committee regulations, subpart 1784. But, as discussed above, the Committee does not fall under the BLM's regulations.
Western further argues that subcommittee and working group records are subject to public review because the Royalty Committee adopts their proposals without further deliberation.
Western further cites the Department's Manual, which extends the provisions of FACA "to subcommittees and subgroups of advisory committees established or utilized by the Department." (308 DM 2.11, Ex. Q, Doc. 18-17 at 8.) In response, Defendants argue that the Department's "manuals do not carry the force of law and are not binding." Nat'l Mining Ass'n v. Zinke ,
*9141.2(B), Doc. 31-2 at 1), and arguing the Manual consists of agency regulations. Ultimately, Defendants' cursory dismissal of the Department Manual is unpersuasive given the explicit language of FACA, which states that agencies are to "establish uniform administrative guidelines and management controls for advisory committees established by the agency." 5 U.S.C. App. II § 8(a).
E. Conclusion
Based on the foregoing, Counts 3 and 4 are dismissed as non-justiciable under the APA; however, Counts 1 and 2 survive. As a result, consideration of Western's motion for preliminary injunctive relief is limited to the success, harms, and equities related to the surviving counts.
II. Preliminary Injunction
"Preliminary injunctions are an 'extreme remedy never awarded as of right.' " Garcia v. Google, Inc. ,
Here, Western asks that Defendants be enjoined from convening any meetings of the Committee or its subcommittees "until they comply with FACA and its implementing regulations by (1) noticing and opening to the public the [Committee]'s subcommittee and working group meetings; (2) releasing to the public mandatory ethics disclosures and material prepared for or by the [Committee]'s subcommittees and working groups; and (3) fairly balancing the [Committee] to include representation of [Western]'s interests." (Doc. 18 at 13.) Based on the analysis above, the only claims that could provide a basis for relief involve the establishment of the Committee and the provision of all Committee (and subcommittee and working group) materials as well as open access to and notice of all meetings. The January 31 Committee meeting has been cancelled, (Doc. 35), and the status of other Committee or subcommittee operations is unclear, (Doc. 36). Ultimately, Western fails to meet its burden of showing irreparable harm in the absence of an injunction.
A. Success on the Merits
"The first factor under Winter is the most important-likely success on the merits." Garcia ,
An advisory committee must provide "timely notice" of its meetings to the public, 5 U.S.C. App. II § 10(a)(2), and must allow interested persons to "attend, appear before, or file statements with the committee,"
Western's motion is based on the argument that "the Committee's subcommittee and working group meetings have not been disclosed or open to the public, and the Department has not released materials prepared for or by these bodies." (Doc. 18 at 24.) However, most of Western's brief, (Doc. 18 at 28-30), is based on the application of the regulations outlined in subpart 1784, which do not apply here. Rather, Western's only potential path to success is to show either "a subcommittee makes recommendations directly to a Federal officer or agency, or ... its recommendations will be adopted by the parent advisory committee without further deliberations by the parent advisory committee."
B. Irreparable Harm
A plaintiff is required to show "that irreparable injury is likely in the absence of an injunction." Winter , 555 U.S. at 22,
Given that the only remaining claims are Counts 1 and 2, the only harm at issue is participation in and access to materials from the Committee as well as its subcommittees and working groups. Because it is unclear that these groups will continue to operate during the lapse, it is difficult to ascertain harm. That absence of information *916also makes it difficult to say that Western has not been provided with the relevant documentation for a specific meeting. Lawyers' Comm. for Civil Rights Under Law v. Presidential Advisory Comm'n on Election Integrity ,
[t]here may be other documents that could, in theory, further facilitate this public debate, ... based on the information presently available, it appears that the principal documents have or will be disclosed, and the public and Plaintiff will have a substantial opportunity to debate and provide input with respect to the work of the Commission. Accordingly, the harm that would flow from the failure to disclose additional materials, prior to the [relevant] meeting, is at this time too speculative to warrant injunctive relief.
Lawyers' Comm. for Civil Rights Under Law ,
Western conceded at oral argument that it has been able to participate in Committee meetings and provide feedback on proposals made by subcommittees and working groups to the larger Committee. While there may be a question as to whether Western should have access to more materials related to the operation of subcommittees and working groups, its current ability to participate in the process indicates it will not be irreparably harmed by continued operations.
C. Balance of Equities and Public Interest
In the absence of irreparable harm and in light of Western's undisputed ability to presently participate in Committee work, neither the equities nor the public interest favors an injunction.
CONCLUSION
Based on the foregoing, IT IS ORDERED that Defendants' motion to dismiss (Doc. 24) is GRANTED as to Counts 3 and 4 and DENIED as to Counts 1 and 2. Western's motion for preliminary injunctive relief (Doc. 17) is DENIED.
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