577 F.Supp.3d 1266
W.D. Okla.2021Background:
- After McGirt v. Oklahoma recognized that the Muscogee (Creek) Reservation was not disestablished, OSMRE concluded Oklahoma could no longer administer SMCRA Title V (regulatory) or Title IV (reclamation) programs on lands within the Creek Reservation.
- OSMRE notified Oklahoma by April 2, 2021 letters that OSMRE would assume SMCRA authority within the reservation, published a Federal Register notice, and later withheld/denied related federal grant funds.
- Oklahoma sued, seeking a preliminary injunction and alleging (1) declaratory relief that SMCRA allows Oklahoma jurisdiction over surface coal mining on the reservation, (2–3,5) APA and SMCRA claims that OSMRE’s decision and notices were arbitrary, capricious, or procedurally defective, and (4) that funding denials were arbitrary.
- SMCRA defines a State program to exclude "Indian lands," permits tribes to be treated like states for tribal programs, and provides for federal programs where no state/tribal program applies; OSMRE regulations designate OSMRE as regulatory authority on Indian lands.
- The court held Oklahoma failed to show likelihood of success on the merits: SMCRA’s text and regulations preclude state administration on Indian lands, several claims were untimely under SMCRA’s 60‑day review provision, and the funding decisions were not arbitrary or capricious.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SMCRA allows Oklahoma to regulate surface coal mining on Creek Reservation | McGirt limited to criminal jurisdiction; SMCRA does not bar state regulation absent tribal program | SMCRA’s definitions exclude Indian lands from State programs; OSMRE must be regulatory authority on Indian lands | Court: SMCRA’s plain text and regs preclude state jurisdiction; OSMRE properly assumed authority |
| Whether OSMRE’s April 2 decision and Federal Register notice were arbitrary/capricious or procedurally defective | Decision was unlawful and procedurally invalid; reliance interests should weigh against change | Decision reflected statutory command after McGirt; notice conveyed final action; SMCRA governed procedure | Court: Counts alleging arbitrary/procedural defects are untimely under SMCRA 60‑day jurisdictional limit and meritless |
| Whether OSMRE’s denial/withholding of federal grant funds was arbitrary/capricious | Funding denials were arbitrary and failed to account for Oklahoma’s reliance | Funding denials followed SMCRA because Oklahoma cannot fund an unauthorized program on Indian lands | Court: Funding decisions were not arbitrary or capricious; OSMRE provided reasoned explanation |
| Whether equitable defenses (e.g., Sherrill) prevent OSMRE from applying SMCRA as written | Long reliance and disruption justify equitable relief against federal enforcement | Federal statute and plain text control; equities cannot override statutory command | Court: Equitable doctrines do not overcome SMCRA’s clear statutory text; McGirt forecloses reliance-based undermining of federal statutes |
Key Cases Cited
- McGirt v. Oklahoma, 140 S. Ct. 2452 (Supreme Court) (held Creek Reservation was not disestablished and noted civil statutes may be triggered)
- Hodel v. Virginia Surface Min. & Reclamation Ass'n, Inc., 452 U.S. 264 (Supreme Court) (Secretary of the Interior administers SMCRA)
- United States v. Navajo Nation, 556 U.S. 287 (Supreme Court) (describing SMCRA as a comprehensive statute regulating surface coal mining)
- Bragg v. West Virginia Coal Ass'n, 248 F.3d 275 (4th Cir.) (SMCRA provides for either State or federal regulation, not both)
- State of Mont. v. Clark, 749 F.2d 740 (D.C. Cir.) (Act denies states power to administer funds on Indian lands)
- Cayuga Nation v. Tanner, 6 F.4th 361 (2d Cir.) (statutory interpretation governs; equitable defenses like Sherrill do not displace clear statutory preemption)
- City of Sherrill v. Oneida Indian Nation of N.Y., 544 U.S. 197 (Supreme Court) (articulated equitable defenses based on long lapse and disruptive remedy, discussed but distinguished)