DEFENDERS OF WILDLIFE, CENTER FOR BIOLOGICAL DIVERSITY, NATURAL RESOURCES DEFENSE COUNCIL, Petitioners, versus BUREAU OF OCEAN ENERGY MANAGEMENT, UNITED STATES DEPARTMENT OF THE INTERIOR, SECRETARY, DEPARTMENT OF THE INTERIOR, DIRECTOR, BUREAU OF OCEAN ENERGY MANAGEMENT, REGULATION AND ENFORCEMENT, Respondents, SHELL GULF OF MEXICO, INC., AMERICAN PETROLEUM INSTITUTE, STATE OF LOUISIANA, LOUISIANA DEPARTMENT OF NATURAL RESOURCES, STATE OF ALABAMA, GOVERNOR and the STATE OF MISSISSIPPI, Intervenors.
No. 11-12598
United States Court of Appeals, Eleventh Circuit
June 22, 2012
Agency No. S-7444; [PUBLISH]
GULF RESTORATION NETWORK, INC., FLORIDA WILDLIFE FEDERATION, SIERRA CLUB, INC., Petitioners, versus BUREAU OF OCEAN ENERGY MANAGEMENT, REGULATION AND ENFORCEMENT, SECRETARY OF THE DEPARTMENT OF INTERIOR, Respondents, SHELL GULF OF MEXICO INC., AMERICAN PETROLEUM INSTITUTE, STATE OF LOUISIANA, LOUISIANA DEPARTMENT OF NATURAL RESOURCES, STATE OF ALABAMA, GOVERNOR and the STATE OF MISSISSIPPI, Intervenors.
No. 11-12599
United States Court of Appeals, Eleventh Circuit
June 22, 2012
Agency No. S-7444
Petitions for Review of a Decision of the Department of the Interior
(June 22, 2012)
DUBINA, Chief Judge:
This case concerns a challenge to an exploratory drilling plan under the Outer Continental Shelf Lands Act (“OCSLA”).
I. Background
(A) Agency Proceedings
OCSLA governs federal offshore oil and gas leasing, exploration, and development, and gives the Secretary of the Interior authority over the administration of offshore leasing.
A leaseholder must submit an exploration plan for approval by BOEM. See
(1) Compliance with NEPA
NEPA requires all federal agencies to prepare an environmental assessment (“EA”) and EIS on the environmental effects of proposed federal agency actions. See
BOEM applies NEPA procedures using a tiered process encouraged by the Council on Environmental Quality‘s (“CEQ”) regulations implementing NEPA. The CEQ regulations seek to avoid repetitive discussions and urge that:
Whenever a broad environmental impact statement has been prepared (such as a program or policy statement) and a subsequent statement or environmental assessment is then prepared on an action included within the entire program or policy (such as a site specific action) the subsequent statement or environmental assessment need only summarize the issues discussed in the broader statement and incorporate discussions from the broader statement by reference and shall concentrate on the issues specific to the subsequent action.
In response to the April 2010 Deepwater Horizon disaster,2 BOEM commenced the process to prepare a supplemental EIS for the remaining lease sales in the Gulf under the 2007-2012 Multisale. See 75 Fed. Reg. 69,122-01 (Nov. 10, 2010). The final supplemental EIS was issued on January 20, 2012. 77 Fed. Reg. 2,991-02 (Jan. 20, 2012). BOEM concluded that “[n]o substantial new information, with the exception of archaeological resources [related to historic shipwrecks], was found that would alter the impact conclusions as presented in the Multisale EIS and the 2009-2012 Supplemental EIS. . . .” BOEM, Gulf of Mexico OCS Oil and Gas Lease: 2012, Final Supplemental Environmental Impact Statement, Vol. I at x (Jan. 2012).
Prior to the Deepwater Horizon disaster, BOEM generally did not prepare EA‘s when approving exploration plans in the Western and Central Gulf of Mexico under leases studied in previous EIS‘s. After the spill, the Director of BOEM instructed the agency to restrict its use of categorical exclusions for
(2) Compliance with ESA
The ESA requires federal agencies to ensure that their actions are “not likely to jeopardize the continued existence of any endangered species or threatened species.”
BOEM consulted with NMFS and FWS in 2007 regarding Gulf of Mexico lease sales under the 2007-2012 Multisale program. NMFS issued an opinion concluding that exploration, development, and production was not likely to jeopardize threatened or endangered species. FWS issued a similar memorandum. In September 2010, BOEM requested to reinitiate consultation with NMFS and FWS to consider new information as a result of the Deepwater Horizon disaster, and that consultation is ongoing.
(B) Procedural History
On March 31, 2011, BOEM deemed the Shell EP submitted. BOEM conducted a review of whether the Shell EP significantly affected the quality of the environment, considering impacts of Shell‘s proposed effect on the environment from routine operations and unexpected accidents. Appendix A of the EA analyzes risks, characteristics, and impacts of possible major spills in light of information from the Deepwater Horizon disaster. Appendix B presents a detailed “Catastrophic Spill Event Analysis” on all relevant resources in the Gulf of Mexico, based on the 2010 Deepwater Horizon spill and 1979 Ixtoc spill.
II. Standard of Review
We review a decision to approve an exploration plan “solely on the record made before the Secretary . . . [and] findings of the Secretary, if supported by substantial evidence on the record considered as a whole, shall be conclusive.”
III. Analysis
(A) NEPA Claim
BOEM conducted an EA for the Shell EP to determine whether the proposed activity would significantly affect the environment and found that an EIS was unnecessary. Petitioners argue that the EA is only a general summary of the environmental impact of the Shell EP and fails to include site-specific information. Thus, Petitioners insist, BOEM‘s decision not to prepare an EIS and its subsequent FONSI is a violation of NEPA. Yet, Petitioners simply cannot overcome our extremely deferential “arbitrary or capricious” standard of review. See Miccosukee, 566 F.3d at 1264.
(1) Site-specific Analysis
Before concluding that an EIS is unnecessary, the agency must “accurately identif[y] the relevant environmental concern” and take a “hard look” at the problem. Hill v. Boy, 144 F.3d 1446, 1450 (11th Cir. 1998) (quoting Coal. on Sensible Transp., Inc. v. Dole, 826 F.2d 60, 66–67 (D.C. Cir. 1987)). If a FONSI
Next, Petitioners argue that BOEM failed to include a site-specific analysis of potential catastrophic spills and underestimated the likelihood of a spill. To the
Additionally, Petitioners claim that BOEM‘s failure to evaluate its worst case discharge spill of 405,000 barrels of oil per day was a violation of NEPA. Yet BOEM is not required to base its NEPA analysis on a worst case scenario. See Robertson v. Methow Valley Citizens Council, 490 U.S. 332, 354–355, 109 S. Ct. 1835, 1848 (1989) (finding that NEPA does not require a “worst-case” analysis). Similarly, NEPA does not require a “worst case discharge” analysis. Thus, we conclude that BOEM‘s reliance on analysis based on a lower spill rate, which it determined to be more likely than the worst case discharge, was not arbitrary or capricious or in violation of NEPA.
(2) BOEM‘s Methodology
(3) Environmental Impacts of the Deepwater Horizon Disaster
Petitioners argue that preparation of an EIS might provide additional information on the Deepwater Horizon disaster, and that the agency cannot move forward until additional information is gathered, but fail to realize that complete
(4) BOEM‘s Reliance on Prior EIS‘s
The purpose of OCSLA is the “expedited exploration and development of the Outer Continental Shelf in order to achieve national economic and energy policy goals, assure national security, reduce dependence on foreign sources, and maintain a favorable balance of payments in world trade.”
(B) ESA Claim
We next turn to Petitioners’ claim that BOEM‘s request to reinitiate consultation conceded the inadequacy of prior consultations and effectively barred BOEM from approving the Shell EP until consultation was complete. If a federal agency determines that a proposed action will likely affect a species protected under the ESA, it must consult with either NMFS or FWS. See
Section 7(a)(2) of the ESA requires BOEM to insure that its action “is not likely to jeopardize” any endangered or threatened species or destroy or adversely
There is no precedent in our circuit to support Petitioners’ argument that BOEM‘s choice to reinitiate consultation with NMFS and FWS automatically renders the former biological opinions invalid.4 The biological opinions of NMFS
V. Conclusion
For the reasons stated above, we conclude that BOEM‘s decision to approve the Shell EP was not arbitrary or capricious and instead reflects the agency‘s balance of environmental concerns with the expeditious and orderly exploration of resources in the Gulf of Mexico.
PETITION FOR REVIEW DENIED.
Notes
. . . (b) If new information reveals effects of the action that may affect listed species or critical habitat in a manner or to an extent not previously considered;
(c) If the identified action is subsequently modified in a manner that causes an affect to the listed species or critical habitat that was not considered in the biological opinion . . . .
After initiation of consultation required under subsection (a) (2) of this section, the Federal agency and the permit or license applicant shall not make any irreversible or irretrievable commitment of resources with respect to the agency action which has the effect of foreclosing the formulation or implementation of any reasonable and prudent alternative measures which would not violate subsection (a) (2) of this section.
