Yellowstone to Uintas Connection v. Bolling

CourtDistrict Court, D. Idaho
DecidedMarch 8, 2021
Docket4:20-cv-00192
StatusUnknown

This text of Yellowstone to Uintas Connection v. Bolling (Yellowstone to Uintas Connection v. Bolling) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yellowstone to Uintas Connection v. Bolling, (D. Idaho 2021).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

YELLOWSTONE TO UINTAS Case No. 4:20-cv-00192-DCN CONNECTION, and ALLIANCE FOR THE WILD ROCKIES, MEMORANDUM DECISION AND ORDER Plaintiffs,

v.

MEL BOLLING, Forest Supervisor Caribou-Targhee National Forest; NORA RASURE, Regional Forester for Intermountain Region, UNITED STATES FOREST SERVICE, an agency of the U.S. Department of Agriculture, and the UNITED STATES ARMY CORPS OF ENGINEERS,

Defendants, and

LOWER VALLEY ENERGY, INC., and STATE OF WYOMING,

Defendant-Intervenors.

I. INTRODUCTION Pending before the Court are Defendants’ first Motion to Dismiss (Dkt. 23) and renewed Motion to Dismiss (Dkt. 36). On February 4, 2021, the Court held oral argument and took the motions under advisement. Upon review, and for the reasons set forth below, the Court DENIES the first motion as MOOT and DENIES the second motion on its merits. II. BACKGROUND This lawsuit involves the proposed installation of a natural gas pipeline stretching from Afton, Wyoming, to Montpelier, Idaho. To provide natural gas to the residents of the

Afton and Star Valley, Wyoming area, Lower Valley Energy, Inc. (“LVE”) has proposed to construct, operate, and maintain a 12-inch or less diameter high pressure natural gas pipeline, referred to as the Crow Creek Pipeline project, connecting a receiving facility in Afton with a Williams Gas Company interstate trunk line located south of Montpelier, Idaho. In addition to the pipeline itself and the utility corridor, there will be above-ground

facilities such as valves and staging areas. The proposed pipeline would traverse the Caribou-Targhee National Forest. In their Amended Complaint, Plaintiffs challenge the United States Forest Service’s (the “Forest Service”) and the United States Army Corps of Engineers’ (the “Army”) approvals of the natural gas pipeline proposed by LVE. Plaintiffs are non-profit public

interest organizations dedicated to protecting aspects of the environment. Counts One through Six of the Amended Complaint were included in the Complaint. Those counts challenge the Forest Service’s environmental impact statement and record of decision approving the construction, operation, and maintenance of the pipeline across national forest service lands. Plaintiffs allege that the Forest Service’s approval violates a variety of

environmental statutes, including the National Environmental Policy Act and the Endangered Species Act. The Amended Complaint includes a new seventh claim as well. That claim challenges the Forest Service and Army’s authorization of certain portions of the project under Nationwide Permit 12 (“NWP 12”). Plaintiffs allege that the agencies’ authorizations are invalid because the United States District Court for the District of Montana issued a preliminary injunction to that effect, and because there is no other valid permit for the

portions of the pipeline. In May 2020, LVE sought a service area determination and waiver of the Natural Gas Act (“NGA”) pursuant to 15 U.S.C. § 717f(f) from the Federal Energy Regulatory Commission (“FERC”). See generally Dkt. 36-3.1 Ultimately, in July 2020, FERC granted LVE a service area determination, determined that LVE was a local distribution company,

and granted LVE a waiver of the rules and regulations under the NGA. Id. at 5–6. These concepts and FERC’s order are discussed more fully below. In April 2020, shortly before LVE sought the determination and waiver, Plaintiffs initiated this action.2 Dkt. 1. After receiving an extension, and in lieu of filing an answer, Defendants filed a motion to dismiss this case for lack of subject matter jurisdiction. Dkt.

23. Plaintiffs filed a response in opposition. Dkt. 25. Defendants filed a reply. Dkt 26. Pursuant to the Court’s Order adopting the parties’ litigation plan (Dkt. 18), however, Plaintiffs then filed their Amended Complaint on September 11, 2020 (Dkt. 27). Therefore, Defendants correctly conceded at the hearing that their first motion to dismiss became moot

1 The order is also available in the Federal Energy Guidelines: FERC Reports. Lower Valley Energy, Inc., 172 FERC ¶ 62,013 (2020).

2 Although the parties did not raise this issue, the Court notes that the local distribution determination came after this case was initiated. It was, therefore, arguable that this case, as originally pleaded, should have been filed in the court of appeals. However, both parties relied on FERC’s order. And more critically, Defendants did not argue that it was improper for the Court to assess FERC’s order in coming to its determination. Ultimately, when FERC’s order, the timing of the Amended Complaint, and the rules of law explained in this Order are considered, this case must remain before this Court. upon Plaintiffs’ filing of their Amended Complaint. Ramirez v. Cty. of San Bernardino, 806 F.3d 1002, 1008 (9th Cir. 2015) (stating that an “amended complaint supersedes the original, the latter being treated thereafter as non-existent” (cleaned up)).

In response to the Amended Complaint, Defendants filed a renewed motion to dismiss instead of an answer. Dkt 36. Defendants’ renewed motion largely consolidates their prior briefing on the NGA issue. They contend that the NGA divests this Court of subject-matter jurisdiction and that a United States Court of Appeals has original and exclusive jurisdiction over this case. They also add a short argument regarding whether

Plaintiffs may challenge Defendants’ reliance on NWP 12 in this case. The Court held a hearing on the matter on February 4, 2021. The issue is now ripe for adjudication. III. LEGAL STANDARD A federal court may not entertain an action over which it has no jurisdiction. A motion to dismiss under Federal Rule of Civil Procedure 12(b)(1) challenges a court’s

subject-matter jurisdiction. A lack of jurisdiction is presumed unless the party asserting jurisdiction establishes that it exists. See Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). If the court determines that it does not have subject-matter jurisdiction, it must dismiss the claim. Fed. R. Civ. P. 12(h)(3). IV. DISCUSSION

The parties agree that if the jurisdictional section of the NGA, 15 U.S.C. § 717r(d)(1), applied in this case, this Court would not have jurisdiction since that statute would provide one of the United States Courts of Appeals with “original and exclusive jurisdiction.” See Dkt. 39, at 2. The main issue before the Court is whether § 717r(d)(1) indeed applies in this case. In short, the answer is it does not apply to this case because FERC has designated LVE a local distributor, and therefore LVE and its proposed pipeline are not subject to § 717r(d)(1). The text of the NGA, the NGA’s legislative history, a

plentitude of caselaw, and FERC’s order in this case all support this conclusion. The Court addresses this issue first and then addresses Defendants’ arguments related to count seven. A. Jurisdiction Under the NGA District courts have general federal question jurisdiction under 28 U.S.C. § 1331. Therefore, the default rule is that persons seeking review of agency action go first to district

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