Minard Run Oil Co. v. United States Forest Service
670 F.3d 236
| 3rd Cir. | 2011Background
- Allegheny National Forest (ANF) surface is federal, but most mineral rights are privately owned; mineral owners have a right to reasonable surface use to drill, historically under a cooperative 60‑day notice framework leading to a Notice to Proceed (NTP).
- From 1980, the Service and mineral rights owners followed Minard Run I’s 60‑day advance notice and negotiated terms via NTPs documenting agreements; this cooperative approach allowed drilling without NEPA analysis.
- A settlement with environmental groups redirected policy to suspend NTP issuance pending a forest‑wide NEPA analysis (EIS), effectively delaying new drilling for several years.
- In 2009, settlements and a Marten Statement announced a moratorium on new drilling except for 54 grandfathered NTPs, and the Service warned that further drilling without an NTP could carry penalties.
- The district court granted a preliminary injunction reinstating the 60‑day framework and holding that NEPA analysis was not required before issuing NTPs; defendants appeal, arguing lack of final agency action and inappropriate injunction.
- The Third Circuit affirms, concluding the Marten Statement and Settlement are final agency action and that NEPA/APA challenges to the policy are properly reviewable while reinstating the prior cooperative framework.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether NTP issuance is a major NEPA action | Minard Run Oil | Forest Service | No NEPA required before NTPs; not major action. |
| Whether Settlement/Marten Rulemaking required APA notice | Minard Run Oil | Forest Service | Settlement and Marten Rulemaking are substantive rules needing notice and comment. |
| Whether Marten Statement constitutes final agency action | Minard Run Oil | Forest Service | Yes, final agency action for purposes of review. |
Key Cases Cited
- Minard Run Oil Co. v. U.S. Forest Service, 2009 WL 4937785 (W.D. Pa. 2009) (district court decisions cited; not official reporter)
- Duncan Energy Co. v. U.S. Forest Service, 50 F.3d 584 (8th Cir. 1995) (limits of Service authority over mineral rights)
- Sierra Club v. Penfold, 857 F.2d 1307 (9th Cir. 1988) (NEPA action requirements for agency decisions)
- Abbott Labs. v. Gardner, 387 U.S. 136 (1967) (final agency action and immediate impact standards)
- Corrigan v. University of Medicine & Dentistry of N.J., 347 F.3d 57 (3d Cir. 2003) (finality considerations for agency action)