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729 F.3d 967
9th Cir.
2013
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Background

  • Drakes Bay seeks a new 10-year SUP under §124 despite its expiration in 2012.
  • Section 124 authorizes, but does not require, the Secretary to issue an extension, with a notwithstanding clause.
  • Point Reyes Wilderness Act designated wilderness and created a framework for potential wilderness; some lands carry California rights.
  • Drakes Estero’s 40-year Reservation of Use and Occupancy (RUO) expired 11/30/2012; sale to Drakes Bay followed with knowledge of expiration.
  • NAS/DEIS process evaluated environmental tradeoffs; NAS found substantial uncertainty in scientific data.
  • Secretary let the permit expire, citing wilderness policy and legal constraints, and district court denied injunctive relief; on appeal, court reviews statutory interpretation and NEPA compliance.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether §124’s notwithstanding clause allows review of the Secretary’s discretionary decision Drakes Bay argues §124 bars review of discretion due to “notwithstanding” Negates barriers but permits review for legal mandates Court can review for legal mandates, not the ultimate discretion
Whether the Secretary violated NEPA or its procedures Drakes Bay asserts NEPA required comprehensive EIS and procedural compliance EIS was prepared and any flaws were harmless or non-prejudicial NEPA compliance deemed adequate; any errors non-prejudicial or harmless
Whether the Secretary correctly construed Section 124 and did not rely on misinterpretation of wilderness law Drakes Bay contends §124 overrides but relies on misinterpretation of wilderness acts Secretary’s decision balanced policy with §124 authority Court upholds Secretary’s interpretation as within §124 authority
Whether the decision to let the permit expire was arbitrary or capricious under APA Decision grounded in misinterpretation of wilderness act, improper factors Decision grounded in policy and expert judgment; supported by record Held not arbitrary or capricious under APA; deference to agency

Key Cases Cited

  • Ness Inv. Corp. v. U.S. Dep’t of Agric., Forest Serv., 512 F.2d 706 (9th Cir.1975) (review for abuse of discretion when legal mandates exist)
  • Shannon v. United States, 512 U.S. 573 (1994) (legislative history cannot override statutory text; not a basis to constrain statute)
  • Novak v. United States, 476 F.3d 1041 (9th Cir.2007) (notwithstanding clause sweep aside conflicting laws; interpretive framework)
  • Confederated Salish and Kootenai Tribes v. United States, 343 F.3d 1193 (9th Cir.2003) (statutory review limits when agency has discretion under law)
  • FCC v. Fox Television Stations, 556 U.S. 502 (2009) (agency decisions must be discernible though not always perfectly clear)
  • Douglas County v. Babbitt, 944 F.2d 758 (9th Cir.1995) (NEPA analysis and environmental protections context)
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Case Details

Case Name: Drakes Bay Oyster Company v. Sally Jewell
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Sep 3, 2013
Citations: 729 F.3d 967; 2013 WL 4712736; 43 Envtl. L. Rep. (Envtl. Law Inst.) 20204; 747 F.3d 1073; 2013 U.S. App. LEXIS 18248; 13-15227
Docket Number: 13-15227
Court Abbreviation: 9th Cir.
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    Drakes Bay Oyster Company v. Sally Jewell, 729 F.3d 967