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Drakes Bay Oyster Company v. Sally Jewell
747 F.3d 1073
9th Cir.
2013
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Docket

*4 MсKEOWN, Circuit Judge: appeal, This pits which oyster farm, lovers and well-known “foodies” against aligned environmentalists with the federal government, generated has consid- erable attention in the San Francisco Bay Before: M. MARGARET McKEOWN area.1 Drakes Bay Oyster Company WATFORD, and PAUL J. Judges, (“Drakes Circuit Bay”) challenges *5 MARBLEY, and ALGENON L. District discretionary Interior’s decision to Judge.* let Drakes Bay’s permit for commercial farming expire according to its

ORDER terms. permit, The which farming allowed Seashore, within Point Reyes National 3, The opinion September 2013, filed on set to lapse in November 2012. Drakes appearing hereby is Bay requested an extension pursuant to a An amended. opinion amended is filed Congressional enactment that provided, in concurrently with this order. relevant part, any “notwithstanding other amendments, With these Judge provision law, of the of the Inte- deny McKeown voted the petition for rior is authorized to special issue a use rehearing en Judge banc and Marbley so permit with the same terms and conditions recommends. Judge voted to Watford as the existing Depart- authorization.” petition. the grant Act, ment the Interior Appropriations Amicus Curiae Catherine Rucker’s re- 111-88, § No. Pub.L. 123 Stat. judicial for quest notice support of her (2009) (“Section 124”). the After Sec- opposing petition brief rehearing for retary permit, declined extend the banc is en DENIED. Bay sought a preliminary injunc- The full court has tion, been arguing advised Secretary’s decision for petition rehearing en banc and no violated authorization in Section tp judge has requested a vote on whether Policy Act Environmental National. * Algenon Now, The Marbley, Honorable racy L. Organic, District Marin and the Alliance Judge for the U.S. District Court for the Agriculture For Local Sustainable filed an Ohio, Southern by designa- District of sitting support amici curiae Bay. brief tion. The Environmental Action of West Committee panel Marin, 1. The appreciates briefing the amicus National Parks Conservation Associa- by supporters filed tion, of both sides. Alice Wa- Council, Natural Resources Defense ters, Bay Oyster Tómales Company, Hayes Seashore, Save Our and the of Na- Coalition Grill, Street eration, the California Farm Bureau Fed- tional Park Service Retirees filed amici Bureau, County the Marin Farm support curiae parties. brief in of the federal Bureau, Sonoma County Farm Democ- Food deny- order fore, court’s the district and affirm seq., et

(“NEPA”), 42 U.S.C. injunction. preliminary a ing regulations. federal various wheth- to consider jurisdiction haveWe Background “constitutional, Secretary violated er the Reyes National legal man- Seashore The or other regulatory I. Point statutory, restrictions,” Corp. v. Inv. Ness or dates Point Congress established Serv., 512 F.2d Agr., Forest Dep’t U.S. (“Point Reyes”) in 1962 Seashore National (9th Cir.1975), agree with and we 706, 715 pur- preserve, to save and “in order is court the district recreation, benefit, in- public poses any such viola- proving likely to succeed diminishing sea- portion spiration, 124, Con- Through Section here. tions remains States that shore of United authorized, require, but did not 13, 1962, gress Sept. Act of undeveloped.” permit. Secretary to extend 87-657, 538. The 76 Stat. Pub.L. No. deny an exten- grant decision County, left the Califor- in Marin area located discretion, without to the biodiversity. sion nia, exceptional and exhibits mandatory Estero, considerations. imposing to Drakes Reyes is home he was clearly understood bays. of estuarial series he did not permit; to issue authorized for Point enabling legislation of his discretion misinterpret scope adminis- Secretary of the Interior gave In an to inform effort Section under direct- authority over the area and trative decision, Secretary undertook his waters, lands, other acquire him to ed review, believed he although he NEPA the seashore. and interests within property Nonetheless, to do so. obligated was not 3(a), at 539-40. §at 76 Stat. Id. *6 in the review errors NEPA any asserted the conveyed to of California the State harmless. were and sub- of the tide “all United States Point other lands” within merged the sub- Congress committed lands Because rights to Reyes, reserving certain minerals to his decision of the stance fish to reserving right the to itself and discretion, making “the cannot review we 2604-2605, Stat. 1965 Cal. Californians. by agency.” the judgment of an informed § 1-3. the Secre- permit lapse, the letting Id. In importance the

tary emphasized Act of Wilderness impact of the de- environmental long-term areas 1976, designated certain Congress Estero, is located Drakes which cision on under seashore as “wilderness” within the designated potential as wilder- in area No. Act of 1964. Pub.L. the Wilderness that, when He also underscored ness. Aсt 94-544, Stat. 2515. Wilderness property Bay purchased Drakes Preser- “established National Wilderness 2005, eyes open to the federally it did so with wide composed be System vation pre- acquired from its as by Congress fact designated owned areas ” 1131(a). just § sev- expire owner was set 16 U.S.C. decessor areas.’ ‘wilderness later, Drakes for the years 2012. to “be administered en areas are Such judgments people American enjoyment the value disagreement with use and unim- legitimate leave by is not as will them such manner made as enjoyment the decision. future use and paired to set aside basis on which have, wilderness, for the determine, provide so as to we we as Once preser- areas any statutory [and] of these protection not violate Secretary did character.” Id. wilderness to intercede vation their mandate, province it not our excep- subject statutory We, Accordingly, there- discretionary decision. in his existing that, tions and private rights, the Act “[a]ny permit for continued use will provides that “there shall be no commer- be issued in accordance with National Park enterprise cial ... within wilderness Service regulations in [“NPS”] effect at 1133(c). area.” 16 U.S.C. the time .the expires.” reservation In late 2004, Bay agreed purchase The Point desig- Wilderness Act assets of the Oyster Johnson Company. areas, other including nated Drakes Este- The RUO was transferred along with the ro, “potential wilderness.” Pub.L. No. purchase. The RUO ended on forty-year 94-544, Congress 90 Stat. 2515. consid- November 2012. designating ered Drakes Estero as “wil- derness,” but declined so. legis- to do purchased farm, When it history lative reflects took Bay was well aware that the reservation into account the Department of the Interi- expire would and received multiple position or’s commercial farm- confirmations of this limitation. The ac- ing operations taking place in quisition documents specifically referenced Estero, as well as California’s reserved “that certain Reservation of Possession rights special use permits relating to 10/12/1972, Lease dated by entered into zone, pastoral rendered the area “in- Seller and the National Park Service.” In consistent with wilderness” the time. January the National Park Service 94-1680, (1976), No. H.R.Rep. at 5-6 re- wrote to Kevin Lunny, an owner of Drakes printed in 1976 Bay, U.S.C.C.A.N. highlighting “the poten- issue of the Congress specified separate legislation tial wilderness designation.” The Park “potential wilderness additions” in Lunny Service told that wanted to make Point Reyes “shall ... designated be wil- sure he was aware of the Depart- Interior by “publication derness” in the Federal legal ment’s position “[b]efore [he] closed Register of a notice by Secretary of on purchase” escrow of Johnson’s the Interior that all thereon prohibit- uses The Park farm. accordingly Service sent ed Act ... Wilderness have Lunny a memorandum from Depart- ceased.” Act of Oct. Pub.L. No. Notably, ment’s Solicitor. the Solicitor 94-567, 3,§ 90 Stat. 2692. disagreed with the proposition previously expressed in the House Report accompa- *7 Bay Oyster Company’s Opеra- II. DRakes nying Reyes the Point Act Wilderness tions California’s retained fishing and mineral Oyster farming long has a history in rights were inconsistent with wilderness Estero, to the dating designation. concluded, 1930s. The Solicitor “the Charles Johnson Oys- started the Johnson Park is Service mandated the Wilder- Company ter in Act, Drakes Estero in the ness the Point Reyes Wilderness Act 1950s. His farm was in operation Management and its Policies to convert a parcel on five-acre of land on the potential wilderness, shore Oys- i.e. the Johnson of the Congress estero when created the Company ter tract and the adjoining Este- Reyes 1972, Point National ro, Seashore. In to wilderness status as soon as the non Johnson sold his five acres to the conforming United use can be eliminated.” States, electing to a forty-year 2005, retain res- the Park March Service reiterated (“RUO”). ervation of occupancy use and guidance its regarding the Drakes provided that, The RUO “[u]pon expiration purchase property. the Johnson It spe- term, reserved special permit a use cifically Lunny, “Regarding informed may be issued for the continued occupancy 2012 expiration date potential and the wil- property for derness, herein review, described legal based on our no new added.) purposes.” (Emphasis It permits added will be after that issued date.” Point any location other than tion to De- 124 and the III. Section Seashore; any- nor shall Reyes National cision prece- be cited thing in this section 2009, later, in years Several any management potеntial for dent of the Interi- addressed the Seashore. wilderness outside Bay a new authority to issue Drakes or’s The House Conference 2932. 123 Stat. legislation. appropriations permit language the final Report reflected proposed committee appropriations Senate to is- Secretary discretion “provid[ed] the Secretary to is- requiring provision a Cong. special permit-” use sue for an additional permit use special sue a 28, (daily ed. H11871-06 October Rec. Cong. 111th H.R. years. ten added). 2009) (emphasis (as Senate, 120(a) July reported In- 2009) Secretary “the refer- (providing that Section 124 report The NAS existing authoriza- enced, extend the in Drakes terior shall Mariculture “Shellfish added). ”) Seashore, The Senate (emphasis Estero, ... tion National mandate, and amended rejected California,” light this prepared Secretary “is provide expiration language approach of the of “the rather permit, help to issue” “to permit, authorized in order date” of the Cong. Rec. required to do so. re- than issues raised with clarify the scientific 2009). S9769-03, (daily Sept. ed. S9773 shellfish mariculture activities gard to the report highlight- in Drakes Estero.” The provides: enacted law as “limited scientific litera- that there was ed November expiration on Prior to and that there was ture” available evidence Oyster Compa- Bay the Drakes 2012 of negative and oyster farming had both Occupancy of Use and ny’s Reservation environment. The on the positive effects (“ex- special permit use and assоciated “The ultimate decision report explained: authorization”) within isting farming in prohibit shellfish at Point Sea- Estero National necessarily requires value Drakes Estero shore, notwithstanding provi- other be in- and tradeoffs can judgments law, Interior sion formed, resolved, by science.” but special per- use to issue authorized letters to the conditions sent the same terms mit that he authorization, July requesting exercise except as existing as the issue a herein, authority under years of 10 his Section period provided Provided, Park Service staff met permit extension. from November discuss a draft Lunny soon after to authorization is sub- with such extended That process. a NEPA complete schedule to payments annual the United ject to through the Ser- Department, of The Park on the fair value States based market *8 vice, to formally began prepare property for the then use of the Federal the (“EIS”) Impact The Environmental Statement of such renewal. Secre- duration public the and engage in an effort “to take into recom- tary shall consideration continuing com- Academy of the effects of the the evaluate National mendations within the national sea- operation to mercial Report pertaining [“NAS”] Sciences the decision of “to inform mariculture in Point Na- shore” and shellfish permit use should modifying any special a new before whether Seashore tional Bay Oyster Company extended be issued.” Drakes and conditions of the terms Permit, 65,373 Fed.Reg. Nothing Special this section in Usе authorization. 2010).2 (Oct. 22, any applica- be construed have shall EIS, require compliance with 124 did not Department stated that Section 2. In the final the Park The Service issued EIS vice draft to let the expire according to (“DEIS”) public for comment Septem- in its terms. explained that He his decision ber com- was submitted “based on matters law policy,” and draft, criticizing ments much of the along including “explicit the terms of the 1972 with quality complaint.3 Congress conveyance a data Oyster from Johnson Com- expressed relating “concerns pany the validi- to the United States” and “the poli- ty of the underlying science the DEIS” cies of NPS concerning commercial use and “directed] therefore National within a unit System National Park Academy data, of Sciences to assess the and nonconforming uses within potential analysis, and conclusions in the wilderness, DEIS in or designated as well specif- order to ensure there ais solid scientific ic legislation wilderness for foundation the Final Environmental National Seashore.” He recognized that Impact expected Statement in mid-2012.” 124 “grant[ed] Section the authority [him] 112-381, (Dec. Rep. H.R. No. SUP,” Conf. at 1057 to issue a new but elected to effec- 15, 2011), reprinted U.S.C.C.A.N. tuate Park policies Service and the princi- 605, 788. ples he discerned legislation. wilderness report NAS released its August decision, In his recog- report 2012. The noted several instances nized the “scientific uncertainty” and “lack where the DEIS “lack[ed] assessment of of consensus in the record regarding the uncertainty the level of with precise associated nature scope and of the impacts scientific information on which conclusions Bay’s] [Drakes operations have” on were based.” But the report concluded wilderness other and resources. General- that the available research did not admit of ly, he found the impact statements certainty: supported proposition letting permit expire

The scientific literature on “would in long-term Este- result ro impacts is not extensive and beneficial research on the to the estero’s natural potential impacts of shellfish environment.” But explained mariculture he on sparser.... the Estero is even draft and Con- final EIS were “not material to sequently, for most of the legal resource cate- policy provide factors that gories the committee found decision, that there is the central basis” for his though high moderate or level of uncertainty they “helpful” were they informed impact associated assessments him regarding “complexities, subtle- the DEIS. ties, and uncertainties of this matter.” He disclaimed reliance on “the data that was EIS, The final issued on November flawed,” asserted to be noted that his responded to the NAS review. The decision was on “based the incompatibility EIS revised the definitions of intensity of commercial activities in wilderness.” habitats, impacts wildlife and wildlife assumptions clarified those underlying decision, In accordance with his the Sec- conclusions, and added discussion retary Park directed the Service to publish uncertainty of scientific data. a notice in Register the Federal announc- issued his decision ing on No- the conversion of Drakes Estero from 29, 2012, directing vember potential Park Ser- designated wilderness. This *9 provision gave because that procedures NEPA the Secre- of NEPA.” The reiterat- tary position authorization to the ed make deci- this in his decision. “notwithstanding any sion provision other of Nevertheless, law.” the “deter- 3. quality complaint Drakes data is not helpful that it mined is to generally appeal. follow the before us in this 1082 subject of question novo the viewing the de Bay sued Drakes followed.

litigation APA). under the We jurisdiction matter declaratory judgment seeking a Secretary, the jurisdiction to review whether do have the Administra- violated that his decision any legal mandate con- (“APA”), Secretary violated 5 U.S.C. Act tive Procedure 124 elsewhere. How- in tained Section an order seq., § 551 et court ever, agree with the district a ten- we to issue new direct the Park Service the Secre- jurisdiction to review an order we lack and, alternatively, year permit, discretionary decision tary’s ultimate for a new deci- remanding vacating and permit. a new whether to issue preliminary Bay moved for sion. op- having to cease its to avoid injunction argues that we government suit, given as it had been pending erations to review of jurisdiction lack from property its ninety days to remove 124, because, under Section Bay’s claims the estero. “committed to Secretary’s decision was that it did court determined The district 5 by law.” U.S.C. agenсy discretion to review the Secre- jurisdiction have not 701(a)(2). to the exception This narrow statutory con- “the tary’s decision because agency of judicial of review presumption and complete discretion” text affords APA “if the stat applies under the action ‘no provides 124 Court “Section no that a court would have ute drawn so ap- for the Court meaningful standard’ against which meaningful standard the Decision not to issue ply reviewing exercise of discretion.” judge agency’s pro- went on to a New The court SUP.” 470 105 Chaney, v. U.S. Heckler for denial: “the an alternate rationale vide (1985); see also L.Ed.2d S.Ct. Plaintiffs can not find that Court does Doe, 592, 599, 108 486 U.S. v. Webster a Sec- likelihood ‍‌​​‌​‌‌‌‌​​‌‌​​‌‌​‌‌​​‌​​‌​​​​​​​​​​​‌​‌‌‌​‌‌‌​​‍of success under show a (1988) (charac L.Ed.2d 632 S.Ct. 706(2) [arbitrary, capricious, tion standard for circumstances terizing exception as discretion, or otherwise not an abuse of (internal apply”) is “no law to where there Fi- APA].” accordance with law under omitted). and citation quotation marks balance, nally, “[o]n court held that of the substance or result But even where of both combining requirement fully agency’s to an is committed decision interest more equities public and the discretion, jurisdiction court has “a federal not find these broadly, the Court does of agency action for abuse dis to review granting pre- weigh favor of elements abuse of discre alleged cretion when the liminary injunction.”4 agency tion involves violation constitutional, statutory, regulatory or oth Analysis Ness legal mandates or restrictions.” er Scope cir F.2d аt such Corp., Inv. 715. I. and the Jurisdiction “Notwithstanding” cumstances, only ju lacks a federal court Clause alleged an abuse risdiction to review matter, we address As a threshold making “the regarding discretion disagree we jurisdiction. point, On this Id. judgment by agency.” informed Oregon court. See part with district Serv., Here, secre- Corp., “[t]he in Ness Inv. Forest Natural Desert Ass’n v. U.S. (9th Cir.2006) (re- ‘authorized,’ required, to issue” tary is n. 1 465 F.3d argument, Bay's briefing we need not defer granted full panel A motions injunction pending necessarily expedited emergency panel’s motion for an to the motion legal ques Houser, appeal are serious "because there United States decision. sharp hardships tips 1986). tions and balance (9th Cir. the benefit of ly appellants' favor.” With *10 and permit, statutory there are “no re- strictions on the Secretary’s exercise of discretion, strictions or precise definitions then prescribing jurisdiction we have to qualifications” for issuance. compliance Id. Conse- review with those limits. quently may only we review whether the The Secretary’s decision is also Secretary legal followed whatever restric- subject applicable to procedural con to applied decision-making tions his pro- “[Wjhen straints. two capa statutes are parties agree cess. The the Ness co-existence, ble of it duty is the applies, framework disagree but wheth- on regard courts ... to each as effective.” restrictions,” id., er any “mandates or ex- Mancari, Morton v. 535, 551, 417 U.S. Bay interprets ist. Drakes Section (1974). S.Ct. Thus, L.Ed.2d 290 NEPA, regulations and various federal as jurisdiction we have to consider the appli imposing legal restrictions on the Secre- cability of NEPA and procedures other tary, but it require- contends that these that do not conflict with the authorization only ments to apply deny a decision to an in Section 124. extension, not to granting a decision Procedural constraints that do not con- Secretary extension. The contends that flict with the authorization apply would “notwithstanding” clause of Section the Secretary’s decision regardless 124 sweeps away any statutes regula- and granted whether he permit. denied the might tions that apply per- otherwise ato reject We Drakes Bay’s anomalous posi- application. mit Neither side it quite has tion that had “unfettered right. authority permit,” to issue the while his general matter,

aAs “notwith deny “discretion to Bay] [Drakes a [per- standing” nullify clauses conflicting provi mit] [was] bounded NEPA and other Novak, sions of applicable law. See United Bay States v. points law.” to the Cir.2007) (en fact that says Section 124 that “notwith- banc) (“The standing any law, Supreme provision other Court has indicated Secretary of as a the Interior is general proposition authorized to statutory a special permit,” issue use rather ‘notwithstanding’ than clauses broadly sweep that he is laws.”). authorized to “issue or deny” potentially aside conflicting Be one. From language, fore Congress passed Section the De extrapolates that Section 124 “was enacted partment’s Solicitor had issued a series of to make it easy permit.” to issue the opinions holding Act, that the Wilderness statute does not dictate a one-way such Act, the Point Wilderness and Park Indeed, ratchet. if Congress- had so want- management Service policies legally pro ed to make it easy or automatic for Drakes any hibited extension permit. Sec Bay, rejected one why wonders the pro- tion 124’s “notwithstanding” trumps clause posal simply that would have required the purports law prohibit or pre Secretary to permit. issue a new clude the extending from from, legislation away ultimate was a move permit, such a law as would “conflict” toward, not favored result. Section 124’s authorization. may Thus we review whether the Secretary misunder A natural reading of the authorization authority stood his permit to issue a issue a implies authorization related closely question of whether he one, issue we see no reason to inter- mistakenly interpreted statutory other pret “notwithstanding” ap- clause as provisions placing legal restriction on plying to one outcome but not the other. authority. his government As the itself ac See Salish and Kootenai Confederated knowledges, if States, Section 124 provides re Tribes United

1084 Cir.2003) the dissent’s recitation accuracy of of (interpreting

1196-97 Act, history of the 1976 legislative power both the of to mean “authorized” word congressional citation to the Secre- the dissent’s request for deny or a grant to tribe). designating of support for a in trust statements tary to take land in 1976 do part appro- of as wilderness еnacted Drakes Estero 124 was Section that granting reliably Congress Secre- legislation, not reflect priations act, providing without tary authority to 124 of the dissent’s Section enacted that view on Congress’s Bay’s operations statement were that Drakes view the other. way one or converting decision to “not an ‘obstacle’ at Dissent to wilderness status.” Estero into this to read effort position would rewrite 1097. The dissent’s prefer- a provision appropriations short something to like “notwithstand the clause is unavail- ence for issuance oys that policy view ing Department’s so attempt to do ing, as is the dissent’s incompatible with wil farming can be ter history from decades legislative based on cites The dissent designation.” derness misunderstands earlier. The dissent text, legisla or even the nothing from the history of the legislative significance 1976, support this history, of Section Act of which tive Wilderness Bay at Even Drakes did interpretation. the notion focuses on far oyster farming urge go as desirable us to this position time viewed this argue designation. with wilderness and consistent afield.5 Here, merely grants where Section legislative histo

The dissent stacks action, the “notwith- authority to take an another, over ry from one enactment targets “poten- laws that standing” clause decades, 124 itself does not when Section authority. tially with that conflict[ ]” materials have the link. “Extrinsic make Novak, at 1046. the De- Given only to statutory interpretation a role that wilder- opinions in 2005 partment’s on the they light shed a reliable the extent any exercise оf legislation prevented ness understanding of Legislature’s enacting the not- authority permit, to extend ambiguous terms.” Exxon Mo otherwise clear func- Servs., Inc., withstanding clause has a Corp. Allapattah bil convey prior legislation 2611, tion—to 162 L.Ed.2d 125 S.Ct. U.S. added). legal a barrier.6 (2005) not be deemed Regardless should (emphasis "[cjontinued breaking point. history "[U]ne- tive conclusion that 5. The dissent's beliefs, are not approvals, and desires oyster fully nacted operation farm is consistent Act,” Dep’t Consumer laws.” Puerto Rico Wilderness Dissent with the Affairs Corp., U.S. Bay v. Isla Petroleum given particularly puzzling that Drakes (1988). 1350, 99 L.Ed.2d 582 108 S.Ct. designation argued that wilderness itself Drakes Estero was not oys- possible while the regardless commercial activities continued. meaningful ter farm's function is 6. This Moreover, variety of Park Service conflicting actually prevented there are whether laws question management issuing permit, ques- criteria that inform the from negative, kinds of activities are "consistent” in the of what the dissent would answer tion simply designation under the Wilder- we have no with wilderness Dissent at but which Department's pass reliance on decades- on here. ness Act. The dissent's occasion position "potential con- legislative pronouncements legal [] about raised a old flict!],” Novak, (emphasis 476 F.3d at 1046 proposition for the Johnson farm added), authority, regarding Department’s to foreclose the Section 124 was intended "notwithstanding clause” made clear considering department’s and the his from not an provisions of law” were regard that "other policies with to Drakes own impediment. legisla- even the most liberal use of stretches *12 “ Cir.2011). Rather, The dissent confuses actual or potential ‘serious questions go legal impediments Secretary’s to the au- ing to the merits’ a and hardship balance thority policy with considerations tips sharply plaintiff toward the can might lead the not to extend support injunction, issuance of an assum Bay’s permit. Drakes Section 124 does ing the other two elements of the Winter prescribe considerations on which the test are also met.” Id. at 1132. We re Secretary may may not rely, says view for abuse of discretion the district nothing about the criteria for wilderness court’s determination that Bay did designation says nothing about not meet its burden under this test. FTC oyster farming whether is consistent with Products, Inc., v. Natural 362 Enforma designation. Supreme wilderness As the (9th 1204, 1211-12 Cir.2004). F.3d admonished, Court has “courts have no Bay contends that Secretary authority to principle gleaned enforce a misinterpreted authority his under Section solely from legislative history that has no 124 in that he mistakenly believed that statutory point.” reference Shannon v. granting permit extension would violate States, 573, 584, United 512 U.S. 114 laws, other that he failed to comply with (1994) (inter- S.Ct. 129 L.Ed.2d 459 NEPA, and that he to comply failed nal quotation marks and 'alteration omit- federal rulemaking procedures. According ted). Had to express wanted Bay, to Drakes these errors render the Secretary view on whether should Secretary’s “arbitrary, decision capricious, consider the Department’s policies on wil- discretiоn, an abuse of or otherwise not in criteria, derness or other it would have accordance with law.” 5 U.S.C. not, said so.7 It did gave but rather 706(2)(A). Here, the likelihood of suc- Secretary the discretion to decide. cess on the merits of these claims is too We now turn to consideration óf the remote to justify the extraordinary remedy Secretary’s decision. of a preliminary injunction. light In of our merits, conclusion about the we address Preliminary Injunction II. Not Warrant- only in passing the remaining preliminary ed injunction factors. seeking preliminary injunc tion, Bay must establish “that [it] A. Likelihood of Success on the Mer- likely merits, is to succeed on the that [it] ITS likely is irreparable suffer harm in Import 1. The 124 Section relief, absence of preliminary that the bal decision did not violate favor, ance of equities tips in [its] any statutory mandate, particularly the injunction public interest.” provision gave him Council, grant Inc., discretion Winter Natural Res. Def. permit 7, 20, despite any prior conflicting U.S. 172 L.Ed.2d S.Ct. (2008). key law. The portion of Section 124 pro- We have held that a “likeli hood” of per.se success is not .an vides “Prior to the expiration absolute follows: requirement. Alliance on the Wild Rock November 2012 of the Drakes Cottrell, ies v. Oyster Company’s Reservation of Use and 1131-32 Indeed, only that Con- culture in Point National Seashore consideration be- gress addressed in modifying any Section was that fore terms and conditions of "[t]he shall take into (Emphasis consideration the extended authorization.” add- ed.) Academy recommendations of the permit Natiоnal As modification of the is not at here, Report pertaining Sciences provision to shellfish mari- issue this is not relevant. applicable wil- would “violate” per- permit use special associated

Occupancy and authorization”) to Drakes According legislation. within derness (“existing mit National 124 authorized the Section Bay, because Drakes Estero provi- other Seashore, notwithstanding “notwith- Secretary to extend Interior is law, law,” sion of standing any provision other *13 per- use special to issue rely- authorized ... from Secretary “prohibit[ed] was Secretary on put the ...” mit. Section as a reason of other law ing on a violation by other hamstrung notice that was not he justify permit denial.” exten- permit he determine law should Bay’s reading of the decision Drakes him The section left appropriate. sion whole, as a the deci- Taken not tenable. the values and wilderness free to consider Secretary explicitly that the sion reflects underlying a commer- interests competing extending permit the recognized aside as a in an area set operation cial legally was not lawful and that he would be natural seashore. by other laws. constrained juris- have that we question narrow .The permit let the Secretary elected to . The the is whether diction to review law, “violating” any as not to avoid expire authority under Section misinterpreted his but because the Secre- Bay posits, Drakes no doubt that the 124. The record leaves con- competing and tary weighed balanced no. answer is and the value the environment cerns about Secretary explained, “SEC. theAs weight to give He chose to aquaculture. of authority and discretion grants me the legisla- underlying wilderness 'policies Bay] special per- a new use [Drakes issue tion, of taking into account consideration mit, me to do so.” it does not direct but impacts: “In addition environmental understanding this Secretary repeated Environmental considering [Drafted decision, throughout multiple times and Final Environmen- Impact Statement that Section 124 “does noting, example, Statement], gave great weight I Impact tal my a result or constrain discre- not dictate public policy, particularly to- matters of matter,” “grants that it me tion in this and act policy inherent in the 1976 public authority issue a new SUP.” Drakes Estero Congress of that identified Bay’s view that Drakes (Emphasis ‍‌​​‌​‌‌‌‌​​‌‌​​‌‌​‌‌​​‌​​‌​​​​​​​​​​​‌​‌‌‌​‌‌‌​​‍add- potential wilderness.” on a misinter- violated Section rests ed). provision misappre- of that and a pretation Bay single seizes on a sen Drakes reasoning. Secretary’s hension of summary reasons as evidence tence in a Bay argues that the statute first extending the Secretary thought easy” “make it to issue the was intended to above, specific ... wilder ap- permit this would “violate permit. explained As we is n wishful beginning since the stat- At of the proach thinking, legislation.” ness n Indeed, kind. says nothing decision, ute summary includes one sen man- whether to Congress that, isolation, first considered raises an am tence read backed off date issuance of the but [Drakes “The continuation biguity: ultimately left the deci- approach policies violate the Bay] operation would In the discretion. sion to within concerning commercial use NPS end, more than let nothing did Park System a unit of the National Secretary know his hands were nonconforming potential uses within tied. wilderness, specific as well as designated legislation for Point Na wilderness that the Secre- Bay argues next added). (Emphasis extending tional Seashore.” tary erroneously concluded However, reading impacts the sentence in context ficial to .the estero’s natural envi- decision, full is obvious the Secre- ronment.” tary erroneously did not consider himself Bay suggests that refer by any provision legis- bound wilderness encing even the Congressional “intent” or decision, reviewing agency’s lation. policies underlying the Point Wil uphold we must even “a decision of less derness Act runs afoul of Section 124. But clarity” long than ideal so agency’s as “the as Drakes itself acknowledges, the path may reasonably be discerned.” FCC natural, “most reading” common-sense Stations, v. Fox Television 556 U.S. the notwithstanding clause is “notwith 513-14, 129 S.Ct. 173 L.Ed.2d 738 standing any law that would otherwise le (2009) (internal omitted). quotation marks gally preclude issuance of a [special use

The policy reliance on con- permit], the Secretary has authority the to siderations and Congressional intent is evi- issue SUP.” It is abundantly clear that throughout dent the Recounting decision. Secretary the recognized authority his un legal the factual and background, for ex- der Section 124 and did not beliеve he was ample, Secretary the cited the House of legally by any bound deny statute to the Representatives report committee accom- permit. policy But the that underlies the Act, panying the Point Wilderness 1976 Act and legislation other wilderness which stated: just expression is that —an public policy. of established,

As is well it is the intention expressions These “legally pre neither that those designated lands and waters legally extension, clude” nor mandate and potential wilderness additions will be they are not “other provision[s] of law” wilderness, essentially managed as to swept that are by aside Section 124’s “not the extent possible, with efforts to stead- withstanding” clause. Statements in com ily continue to remove all obstacles to reports carry mittee do not the force of the eventual conversion of these lands law. Vigil, See Lincoln v. 508 U.S. and waters to wilderness status. 192-93, 113 S.Ct. 124 L.Ed.2d 101 (1993). H.R.Rep. “Congress’s No. 94-1680 at ‘authoritative state text, statutory ment is the legisla U.S.C.C.A.N. 5593 at 5595. The not the ” history.’ tive report returned to this committee in Chamber Commerce his of of — conclusion, U.S.-, U.S. v. explaining Whiting, that: 131 S.Ct. 1968, 1980, (2011) (quot- 179 L.Ed.2d 1031 My Congress’s decision honors direction Mobil, ing Exxon 545 U.S. at “steadily continue to remove all obsta- 2611). S.Ct. cles to the eventual conversion of these

lands and waters to wilderness status” Secretary’s incorporation pol- precious and thus ensures that these underlying icies legislation, wilderness preserved resources are for the enjoy- Congressional expressed intent as generations ment of future of the Ameri- report, House committee was a matter of public, can for whom Point Na- his discretion. The noted cor- tional Seashore was created. rectly that 124 ... pre- “SEC. does not expressed decision, As his his choice my scribe the factors on which I must base was consistent with the draft and final “provides decision.” Section 124 the court impact way environmental statements that to second-guess weight pri- no “support proposition ority assigned” removal to be to these factors. Ctr. Bay’s] Dole, commercial operations Safety [Drakes Auto (D.C.Cir.1988) long-term the estero would result in (concluding agen- bene- fishing mineral fornia’s retained for enforce- deny petition cy decision to Although gov- rights. where the renewable ment was not past, in the adopted Interior this view no standards regulations provided erning review). posi- deemed that Department has since choice was judicial to enable Act itself inaccurate. The tion Wilderness Secretary’s make.8 mineral or provides that retained nowhere Statutory Bay’s Other 2. Drakes designa- wilderness fishing rights preclude Arguments likely Bay Drakes is not to succeed tion.9 Secretary’s current theory on its 124 affords no basis for As Section en- permit’s expiration position Secre the substance us review —that designation despite re- decision, measuring ables wilderness have no stick tary’s we fishing rights Bay’s vari tained mineral and judge Drakes against which to —amount- “legal error.” Secretary’s policy de ed to ous claims mistaken. To the extent termination was that wilder- Bay also believes Secretary’s decision can be evaluated light designation improper ness statutory requirements cited against farming community” re- the “historic unlikely Bay, However, a Drakes Estero. mains on showing the was arbi prevail decision establishing *15 legislation to the amendment capricious, an abuse of discre trary and the specifically authorizes tion, any or in violation law. property to lease used for Park Service dairying pur- Secretary “agricultural, ranching, or Bay argues that the Drakes 10, 1978, Act Pub.L. No. directing poses.” that Drakes of Nov. violated the law wilderness, 95-625, § The 92 Stat. 3487. designated as be- Estero be Secretary’s these uses possible was not decision considered designation cause such a “compatible activity” a within a wilderness light Act of Cali- under the Wilderness agency oyster farming inconsistent with position the “re tinued 8. The dissent's poli has not in Department’s lied on factors which and the wilderness criteria consider,” to Dissent at is not tended it Secretary’s removing The decision that cies. supported by Under the deferen the record. Congress's earlier ex the farm would further standard, arbitrary capricious up we and tial moving pressed goal of toward wilderness expla agency action for which a rational hold designation his au was rational and within agency given, particularly where the nation is thority under Section 124. sphere expertise.” "acted within the of its Kempthorne, McFarland v. Notably, takes the the State of California (9th Cir.2008). Secretary’s decision rights, including position that its retained the general "Congrеss’s direction” to on relied fish, right constitutional do not cover state designation. "obstacles” to wilderness remove aquaculture. The California Act bans commercial While the Wilderness "brief, rejected Game criticized and Fish and "subject enterprise within wilderness areas general, conclusory” communications it and 1133(c), rights,” § existing private 16 U.S.C. suggested oys- decades earlier that made policies whether wilder Park Service inform "right by the to fish” ter farm was covered designation appropriate in the first is ness present, has issued reservation. At the state Contrary character instance. ization, to the dissent's Bay for its water bottom leases to Drakes legislation did not invoke a the 1976 operations, made clear commercial but has judgment compa crystal pass and on the ball past 2012 "is that the use of those leases oyster farming tibility in Drakes Estero expressly contingent upon Bay’s] [Drakes thirty plus years with wilderness some later compliance grant with the 1972 reservation expire. when the reservation of use would and, any special expiration, with use Indeed, after its things change. Secretary, draw "may permit” government the federal ing agency expertise amassed in on 1970s, issue in its discretion.” concluded that con decades since Bay “major action[],” has not demonstrated area. Drakes Federal but rather is any a violates re- how such determination inaction implicate that does not NEPA. Secretary’s authority. on the striction Bay responds Drakes “major that the term act, Federal actions” includes failures to note, Bay charges a Drakes On related 1508.18, C.F.R. and that NEPA applies that, recounting statutory history, concerning decisions whether to a issue Secretary stating erred in permit.10 permit amendment did not him to issue leases for mariculture. Drakes Here, decision to let “agricul- effort to itself into an shoehorn Bay’s permit expire according to tural purpose” unavailing. Congress effectively its terms “denied” Bay Secretary’s leasing authority limited the to a permit. have held that “if We a federal 318(b) Act, “lands” Section of the 1978 permit prerequisite is a for project “lands, waters, rather than to the and sub- impact environment, adverse on the issu- 318(a) merged lands” described Section permit ance of that major does constitute of the same It statute. Id. is reasonable to federal, Kantor, Ramsey action.” this meaningful assume distinction is Cir.1996) (emphasis for Secretary reasonable to state that added). But we have never held failure to Act did not authorize mariculture leas- grant permit standard, to the same Even if misinterpreted es. good for reason. If agencies were re- law, plainly earlier he this understood that quired produce every they EIS time Section 124 did him authorize to issue license, system denied someone a mariculture. grind would to a halt. Our case law makes sum, neither violated clear that every denial of a request to statutory mandate nor did misappre- he “major act is a Federal action.” We have authority hend his under the various stat- *16 held, for example, that no EIS was re- by Bay. raised utes Drakes quired government when the federal de- request nied a regulatory to exercise its Compliance 3. NEPA with authority to stop program killing a state’s applicability We next address the Andrus, wildlife. State Alaska v. 591 Secretary’s of NEPA to the decision. Un 537, (9th Cir.1979). F.2d 541 NEPA, agency required der an is pre to Bay suggested Drakes at ar oral pare impact an environmental statement (“EIS”) gument Secretary’s decision dif “major for signifi Federal actions typical fers from inaction because it effect cantly affecting quality of the human 4332(2)(C). change quo, namely, § 42 ed a the status environment.” U.S.C. The cessation government urges operations that its decision to of commercial Bay’s permit expire let Drakes a previously is not had been authorized. areWe Bay argues agency Drakes that we cannot con- ment which the alone is to authorized ” government's argument sider the inaction make and it has not made.’ v. which Louis Secretary rely because the did not on that Labor, Dep’t U.S. 419 F.3d 977-78 position disagree. in his decision. We "The (9th Cir.2005) (quoting Chenery Corp., v. SEC Chenery rationale I behind Court’s refus- 80, 88, 318 U.S. 63 S.Ct. 87 L.Ed. 626 accept justifications agency al to belated (1943)) added). (emphasis "policy The or previously during action not asserted judgment" call here was the sub- agency’s proceedings apply own does not grant per- stantive decision whether to Chenery premised this case. I was on the considering mit. We are not constrained policy that courts should not substitute their arguments concerning applicability judgment agency for that of the when re- NEPA. viewing policy judg- a ‘determination of 1090 ESA, the environ- “protects tion under the to allow the the decision

skeptical kind of human im- exactly ment from forty years, and expire after designed that- is to foreclose.” pacts NEPA designating Drakes move toward thus to Id. at 1507.11 wilderness, major action Estero as quality affecting “significantly argued also that re ap- to which NEPA human environment” oyster implicates farm NEPA moval of the 4332(2)(C). pur- § “The plies. 42 U.S.C. it environmental con because has “adverse ‘provide a mechanism of NEPA is pose the final EIS did sequences.” Although the environment improve to enhance or might removal cause certain note ” damage.’ irreparable further prevent harms, as noise associated short-term such Babbitt, County v. Douglas heavy machinery needed remove Cir.1995) (9th Legal (quoting Pacific structures, relatively such Andrus, Foundation “signifi minor harms do not themselves Cir.1981)). cantly the environment in such a affeet[ ]” way implicate as to NEPA. U.S.C. essentially an Secretary’s decision is 4332(2)(C). :.. We are '“reluctant effort, conservation which environmental tac make NEPA more of obstructionist past. in the For triggered has not NEPA protection prevent' tic to environmental County, we held example, Douglas may already Doug than it have become.” to critical habitat apply NEPA did not (internal County, quo F.3d at 1508 las Endangered Species designation under the omitted). marks tation (“ESA”) “an action that Act because was interference with the prevented] human Ultimately, need not resolve whether we “because the ESA environment” and' because, required compliance NEPA fur- NEPA without demand- goals thers the was, even if it conducted an EIS;” (emphasis ing an Id. at adequate process NEPA review added). removing Because claimed deficiencies are without conse- restoring toward the “natu- step farm is quence. produced government ral, physical environment” and EIS, untouched lengthy which the consid- subsequent human interfer- prevent Although would “helpful.” ered and found Estero, the Secretary acknowledges compliance ence id. *17 County persuasive of is reasoning Douglas perfect, with NEPA was less than Drakes Bay unlikely showing to allow that Secretary’s here. The decision succeed designa- prejudicial. errors were Relief is permit expire, just like Bay argument positive 11. Drakes noted at oral effects asserted. See Sierra Club v. Froehlke, 205, recognized split (5th we a circuit on the have 816 F.2d 211 n. 3 Cir. question significant ef 1987) of "whether (major project Army federal water of beneficial trigger EIS” and con fects alone would an Engineers); Corps Nat’l Fed'n of v. Wildlife requiring cluded in dicta that an EIS in those Marsh, 767, (11th Cir.1983) F.2d 783 721 was "consistent with the circumstances (construction lake); of man-made Envtl. Def. weight authority and has the virtue of circuit Marsh, 983, (5th Fund v. 651 F.2d 993 Cir. reflecting plain language of the stat 1981) (major navigational project); ‍‌​​‌​‌‌‌‌​​‌‌​​‌‌​‌‌​​‌​​‌​​​​​​​​​​​‌​‌‌‌​‌‌‌​​‍see also Locke, Society v. ute.” Humane U.S. Council, Herrington, Natural Inc. v. Res. Def. 1040, (9th Cir.2010) (citing 1056 n. 9 F.3d cases) (D.C.Cir.1985) (address added). (emphasis authority cited The ing energy-efficiency standards for household however, here, persuasive is not because none appliances noting in dicta that "both ben of those cases addressed environmental con eficial and adverse effects on the environment efforts. instead dealt servation The cases meaning significant be within the can major projects federal construction with NEPA”). applied which NEPA in order to evaluate the only “prejudi- under the APA opportunity fully available denied air its 706; error.” 5 see also Nat’l critique, specifically cial U.S.C. regard to conclu- Home Builders v. Ass’n regarding sions the “soundscape” of the Defenders of Wildlife, 551 U.S. 127 S.Ct. Nothing estero.12 in the suggests record (2007) (“In 168 L.Ed.2d 467 administrative Bay prejudiced Drakes was by any law, litiga- as in federal civil and criminal shortcomings in the final soundscape data. rule.”) (in- tion, there is a harmless error Bay Secretary Drakes sent the its scienti- quotation ternal marks and citation omit- critique fic before he issued his decision. ted). Secretary specifically referenced that communication and stated that he did not Bay points Drakes to “technical” viola tions, rely on Secretary’s the “data that was specifically, the failure to asserted to be publish thirty days the EIS more than flawed.” The was well aware of he made his decision before Secre specific topics controversies on the tary’s framing the extension denial in the Bay criticizes and his state- form of a Decision Memorandum rather unambiguous they ment was did not Bay than Record of Decision. Drakes carry weight in his decision. Drakes prejudice has shown no from these claimed suggestion that the Secretary could not violations. Grp. See Nat’l Forest Pres. v. have made the informed decision that (9th Cir.1973) (de Butz, 408, 412 485 F.2d NEPA requires resolving without all con- clining timing to reverse where NEPA and troversies about the data is unsound. requirements strictly EIS were not fol NEPA requires only that an EIS “con- the agency lowed but “did consider envi reasonably thorough a] discussion of tain! ronmental factors” and the “sterile exer significant aspects probable en- forcing agency cise” of to reconsider consequences.” vironmental Seattle Au- purpose”); “would serve no useful see also Espy, dubon Soc. v. 998 F.2d O’Neill, City of Sausalito Cir.1993) (internal quotation marks and ci- (9th Cir.2004) (declining to reverse omitted). Bay tation likely is not on based violation of deadline for ESA showing to succeed in that the final EIS biological assessment where no harm was inadequate, assuming was even NEPA shown). compliance required. Bay puts considerable Register 4. Federal Notice stock in its claims that the final EIS was light based on flawed science and that the ab determination to let thirty-day period sence of the comment expire, directed previous brought 12. Drakes had submitted criti- to the attention. soundscape analysis, cisms about the and re- report emphasized NAS that the scientific lit- seals, impacts lated on harbor *18 in its data simply erature on Drakes Estero was “not quality complaint regarding the draft EIS. impact extensive” and that research on the of Although Bay Drakes did not raise the issue oyster farming sparser.” was "even The take- briefs, argument objected in its at oral it away impact was that assessments for the adequately respond the did not to soundscape and harbor "consid- seals were expert general, comments to the DEIS. In “on high uncertainty.” ered to have a level of arguments appeal, by party not raised in its responded critique final the EIS to NAS and opening brief are deemed waived.” Smith v. disputes. par- also addressed the scientific Marsh, (9th Cir.1999). 194 F.3d ticular, strength it added "a discussion on the Regardless, response we conclude the to the underlying of the scientific data” to address adequate. Congressionally- DEIS was the NAS's concerns about scientific uncer- report mandated NAS that criticized elements tainty. DEIS, including subjects, of the on these Rockies, at 1132. The district “publish to in Park Service the National that, Bay although the notice announc- court found Drakes sat- Register the Federal prong Drakes Estero from harm irreparable the conversion of isfied the ing designated wilderness.” the potential injunction analysis, neither preliminary subsequently that the Bay argues Drakes in equities the were its public interest nor Drakes notice was false because published party, is a government favor. When (un- commercial activities Bay’s continued Nken v. merge. these last two factors the decision allowed 90-day period der the Holder, 418, 435, 556 U.S. 129 S.Ct. wrap up operations) California’s (2009). L.Ed.2d 550 Our review rights pre- mineral fishing retained discretion, abuse of findings court’s is for Bay status. Drakes also cluded wilderness none here. and we see that the notice was issued viola- argues reasonably The district court found rulemaking regulations. tion of formal public weigh interest does not favor Bay standing challenge lacks injunctive public relief. The benefits of the notice. Its claimed publication wil- enjoyment protected both from the Secretary’s injury arises from the decision oysters, and of local and the court derness expire, designation not the to let its weigh upon found no basis which to these Bay notice. Drakes cannot continue tip This factor does not respective values. permit, regardless without a operations its Bay. to Drakes designated. dis- of how the estero We Bay that Drakes Recognizing that it agree position with Drakes quest prelimi for a bears the burden its necessary “it standing has because will be nary injunction, the court’s consideration the unlawful notice in order for to vacate reason equitable of other factors was also Bay’s] injuries ultimately to be [Drakes Bay purchased able. Drakes Bay Because Drakes is not redressed.” disclosure, knowing full farm with notice, injured by may challenge it not occupancy reservation of use and was set falsity purported the notice’s or the Secre- expire in 2012. The re tary’s compliance rulemaking proce- that it peatedly company warned the did dures.13 permit. Although plan not to issue new Weighing Equities B. prospect closing down business is hardship, only a serious reasonable Bay is not entitled to a Bay could have had at expectation injunction preliminary only because it the outset was that such a closure was question failed to raise a serious about the very likely, if re decision, not certain. Closure but also because possibility mained a distinct even after the equities has not shown that the balance weighs passage favor. Section 124. Drakes ar- its Alliance the Wild Bay argues through appropriate ... 13. To the extent that Drakes could be restored addition, Secretary's decision was somehow tainted management although actions.” In pub- the instruction that the Park Service general regulations require rulemaking for notice, challenge lish the still fails because terminations, 1.5(b), C.F.R. certain use in accordance with the instruction was specific legislation of 1976 more section because, law. The notice was not as we false provided that to wilderness would conversion above, explained Drakes Estero could be des- "upon publication in the Feder- be automatic ignated despite re- "wilderness” California's *19 Register Secretary al of a notice of the rights. presence tempo- served Nor is the prohibited by Interior that all uses thereon rary non-wilderness conditions an obstacle ... have ceased.” 90 the Wilderness Act permits policy because Park Service a wilder- Stat. 2692. designation ness when "wilderness character Bay’s permit request court that it had “ev- based gued primarily to the district on hope” for extension. But ery reason to very misinterpretation same of the “ ‘anticipate[ pro forma parties ] when Reyes Point Act Congress Wilderness applications, they in be- permitting result’ result, thought it had overridden. As a I ‘largely responsible for their own come likely prevail think Drakes to is on its ” Army Corps harm.’ Club v. U.S. Sierra claim that the decision is arbi- Cir.2011) 978, Eng’rs, 645 F.3d trary, in capricious, otherwise not accor- Mineta, 1104, (quoting Davis v. 706(2)(A). § dance with law. See 5 U.S.C. (10th Cir.2002)). see no reason We preliminary injunction Because the other finding that the com- to disturb the court’s favor, weigh factors also in Drakes message” to pany’s “refusal hear injunctive relief preserving quo the status weighing against factor it. equitable granted should have been here. Affirmed. I

WATFORD, Judge, dissenting: Circuit that, majority by enacting states explain why To I think the Interior De- 124, “Congress nothing § did more than (and partment Secretary) later the misin- let the know his hands were not Act, terpreted Reyes the Point Wilderness I Maj. op. Congress, tied.” at 1086. think fairly detailed discussion of the Act’s “notwithstanding” by including the clause legislative history necessary. §in more than that. intended to do leading up passage The events of the to override the particular, sought Reyes in begin Point Wilderness Act misinterpre- Department of Interior’s Congress when authorized creation of the Act, Reyes tation of the Point Wilderness Reyes ap- Point National Seashore and (1976). 94-544, Pub.L. No. 90 Stat. 2515 propriated acquisition funds for land with- concluded, Department had designated boundaries. Seashore’s Act of a special barred issuance 13, 1962, 87-657, Sept. Act of Pub.L. No. authorizing operation continued use (1962). of that part pro- 76 Stat. 538 As Bay Oyster Company’s oyster of Drakes cess, the State of California con- thought Congress farm. The veyed ownership submerged lands by designating had “mandated” that result within the and coastal tidelands Seashore’s Estero, farm is where government. boundaries to the federal located, a “potential wilderness addi- 9, 1965, 983, 1,§ July See Act of ch. Act. tion” Wilderness Cal. Stat. 2604. Those lands includ- clear, legislative history The Act’s makes conveyance however, mandate, ed Drakes Estero. The re- by divining such fishing rights, served certain mineral and Department simply misinterpreted for, provisions “prospect Act’s and misconstrued Con- which allowed State gress’s Department’s intent. The misin- mine, deposits from and remove [mineral] terpretation of the Point Wilderness lands,” people to the and “reserved § Congress Act to enact 124 in prompted in the waters right the state the fish view, my by including 2009. In a notwith- 2-3, §§ underlying the lands.” Id. standing clause in at- At Cal. Stat. at 2605. the time tempted supersede Department’s conveyance, oyster farming was al- State’s interpretation erroneous of the Act. ready a well-established fixture Drakes Estero, here, dating roots back to the challenged

In the 2012 decision nonetheless denied Drakes 1930s. *20 why 1973, plained detail neither the State’s In the President recommended 10,600 fishing rights acres within reserved mineral and nor the preserve Congress oyster precluded designation. Seashore as “wil- farm such a Reyes the Point National derness,” advocating desig- terms of the Wilder- Estero’s under the No one Drakes 88-577, 1964, Pub.L. No. suggested ness Act of nation as wilderness (1964). 3(c), Members oyster 78 Stat. farm needed to be removed before congressional delegatiоn id. California’s the area could become wilderness. See woefully 324-33, 344-61; inad- found that recommendation H.R. H.R. thereafter introduced equate, al., and soon Designate To Certain Lands in the et Seashore, bills in the House and Senate identical National Califor- larger far areas of the Sea- designating Hearing Sub- nia as Wilderness: Before House, as wilderness. Con- shore comm. on Nat’l Parks and Recreation of Comm, Burton introduced H.R. gressman John the H. on Interior and Insular (1975); Senate, in the Cong. 94th (1976) Affairs, Cong. 94th [hereinafter Tunney introduced S. Senator John ], Hearing prepared House statements of (1975). H.R. 8002 is the bill Cong. 94th Eaton, Duddleson, Jim William Ms. J. eventually became the Point Raye-Page, Boerger. and Frank C. Wilderness Act. The comments from received H.R. originally proposed,

As 8002 and S. advocating those who were Este- designated have more than would designation ro’s as wilderness stressed a thirty-eight thousand acres as wilderness. oyster common theme: farm was designation within that Included preexisting a beneficial use that be should Estero, as well as most of notwithstanding allowed to continue submerged lands and other coastal tide- designation area’s as wilderness. For ex- conveyed by lands California 1965. The ample, representative from the Wilder- sponsors of H.R. 8002 and S. were Society ness stated: ‘Within Drakes Este- oyster well aware of the farm in Drakes activity, ro the culture which is They Estero. nonetheless included lease, under has a minimal environmental Estero within the wilderness des- and visual intrusion. Its continuation is ignation they because did view the permissible pre-existing as non-conform- incompatible operations farm’s with the ing use and is not a deterrent for inclusion Commenting area’s wilderness status. on federally submerged owned lands of bill, Tunney the Senate Senator left no Estero in wilderness.” House Hear- score, declaring, doubt on that “Estab- ing, prepared Raye- statement of Ms. private rights lished of landowners and Page, at The Chairman of the Golden respected leaseholders will continue to be National Gate Recreation Area Citizens’ protected. existing agricultural Advisory oys- noted that Commission aquacultural uses can continue.” Wil- ter-farming operations “presently carried Sys- derness Additions —National Park prior on within the seashore existed to its Hearings tem: on Subcomm. Before park establishment as a and have since Comm, Parks and Recreation the S. on by pub- been considered desirable both the Affairs, Cong. Interior and Insular 94th park managers.” Hearing, lic and Senate (1976) Hearing Senate [hereinafter ]. at 361. He therefore recommended that specific provision be made to allow such During hearings on H.R. 8002 and S. civic, environmental, operations “to continue various and con- unrestrained groups supported designation.” servation Drakes Este- wilderness Id. Others ob- served, designation They echoing ro’s as wilderness. the comments of Senator ex- *21 only party opposed designating proposed House and Sen- Tunney, that Estero as wilderness was the De- for that. See already provided ate bills first, partment of the Interior. At Hearing, prеpared statement House position took the that none of (“H.R. Duddleson, at 3-4 J. William submerged lands and coastal tidelands operation use and would allow continued in conveyed by California 1965 could be Company at Drakes Oyster Johnson’s wilderness, designated because the as Estero, non-conforming a pre-existing as fishing rights State’s reserved mineral (“S. use.”); at 357 Hearing, Senate were “inconsistent with wilderness.” opera- use and allow the continued would Hearing, Kyi, letter from John As- House Company in Oyster tion of Johnson’s Interior, Secretary at sistant of the Estero.”). assembly- A local state Department’s When the view came under way: succinctly up summed it this man by argued attack those who “Finally, everyone I concerned believe in rights any State’s reserved were not operation oyster continued supports the wilderness, see, way e.g., inconsistent with as a non-con- farming Drakes Estero 327-28, Hearing, Depart- Senate Hearing, at 356. forming use.” Senate backpedaled. proposed placing ment It expressed by speakers— The view these subject most of the lands to the State’s operation of the that continued rights legislative reserved into a new clas- fully compatible with Drakes farm was “potential wilderness addi- sification— designation as wilderness —was Estero’s developed tion”—which had connec- wild-eyed firmly notion. It was not some proposals. tion with similar wilderness in the text of the Act grounded Wilderness id, 11-12; Hearing, at letter See House generally Act bans commercial itself. The Kyi, Assistant from John areas, but entеrprise Interior, within wilderness designation at 1. That was intend- “subject existing private rights.” does so encompass ed to “lands which are essen- 1133(c). character, Bay’s prede- § tially 16 U.S.C. of wilderness but retain cessor, structures, Oyster Company, nonconforming activi- the Johnson had sufficient ties, rights pre- as to private uses or so existing private rights the form of wa- immediate wilderness classification.” clude leases issued California that ter-bottom (1976). 94-1357, at 3 S.Rep. No. passage both the pre-dated Wilder- the Point ness Act and creation of subject Four to the State’s re- areas generally National Seashore. The Act also the coastal rights served were at issue: the use of motorboats within wil- prohibits Estero, tidelands, Limantour Abbotts La- id, areas, but the derness see original goon, and Drakes Estero. may continued use of Agriculture all four designated of H.R. 8002 version when, here, as such use has motorboats wilderness, just wil- potential as areas Id “already become established.” spirit additions. But derness 1133(d)(1). there To the extent Burton, Congressman compromise, Act’s ambiguity provisions, these agreed to amend the sponsor of H.R. legislative history makes clear that potential Con- by designating bill those areas as wilderness-preser- additions, gress believed the new than as wil- wilderness rather system Hearing, prepared vation would not affect the econom- derness. See House Burton, enterprises at 2. In arrangements Rep. ic of business statement of John so, all areas existing private rights doing and estab- he made clear that four “becаuse potential wilder- permitted being designated are to continue.” were lished uses (1963). 88-109, due to California’s reserved at 2 ness additions S.Rep. No. *22 fishing rights. Congress expressed See id. He and no one in ever mineral and that, wilderness,’ ‘potential contrary, noted “[a]s that view. To the as discussed designated areas would be as wilder- above, these Congress all indications are that ceeds ness when State [sic] oyster beneficial, pre- viewed the farm as a effective rights these United States.” Id. existing fully use whose continuation was added). amended, (emphasis As so H.R. compatible with wilderness status. Reyes 8002 was enacted as the Point Wil- Act in 1976. II

derness Shortly Fast forward now to 2005. be- mind, background With that in we can Bay’s purchase oyster fore Drakes of the legal now turn to the issue at the of heart closed, farm the Park Service reiterated appeal, this which is how to construe that, analysis legal its view based on a § 124. performed by Department, the Interior no Everyone appears agree permits authorizing oyster farming new in Park Service’s conclusion 2005 that Drakes Estero could be issued. The De- legally prohibited was from granting partment’s legal analysis concluded—bi- Bay special permit prompted a use zarrely, given legislative history re- Congress § Congress to enact 124. If all counted designating above—that had wanted to do “let the Secretary Estero a potential as wilderness tied,” know his hands were not as the addition the Point Wilderness asserts, majority § 124 simply could have Act, Congress had “mandated” elimination stated, does, as it that “the of oyster of the farm. The nev- the Interior is authorized to issue a special anything er identified text of the Act permit....” 30, 2009, use Act of Oct. view; to support only pas- it cited 111-88, § Pub.L. No. 123 Stat. sage Report accompany- from the House 2932. But Congress went further and ing passage H.R. 8002. But that “is in no clause, a notwithstanding added so that statute,” way anchored in the text of the reads, the statute as enacted “notwith- States, Shannon v. United 512 U.S. law, standing any provision other of 583-84, 114 S.Ct. 129 L.Ed.2d 459 Secretary of the Interior is authorized to (1994), provides support and thus no for (em- special permit_” issue use Id. Department’s interpretation of the Act. added). phasis Our task is to determine terms, however, Even taken on its own what effect intended the notwith- passage Report from the House does standing clause have. support Department’s interpreta- backdrop Given the historical against passage tion. The states in full: “As is enacted, which 124 was I think Congress established,

well it is the intention that intended the clause to override the Interi- designated those lands and waters po- Department’s misinterpretation of the tential wilderness additions will be essen- Reading Wilderness Act. tially wilderness, managed as to the extent clause that fashion is consistent with the possible, with steadily continue efforts way typically courts have construed not- to remove all obstacles to the eventual withstanding Supreme clauses. The Court conversion these lands and waters to has held that use such a clause wilderness H.R.Rep. status.” No. 94- (1976), “clearly signals the drafter’s intentiоn that at 3 1976 U.S.C.C.A.N. 5593 added). provisions (emphasis ‘notwithstanding’ ‍‌​​‌​‌‌‌‌​​‌‌​​‌‌​‌‌​​‌​​‌​​​​​​​​​​​‌​‌‌‌​‌‌‌​​‍at 5595 But sec- farm was conflicting provisions not an “obstacle” to Drakes tion override status, Estero’s conversion to wilderness other section.” Alpine Ridge Cisneros v. statute, 10, 18, pretation controlling its de 113 S.Ct. 508 U.S. Grp., (1993). arbitrary, capricious, will be deemed And we have said cision L.Ed.2d 572 is to function of such clauses or otherwise not accordance law. that the basic EPA, any poten “supersede” Everyone aside” and See Air “sweep Safe (9th Cir.2007) (in 1088, 1091, States v. tially conflicting laws. United (9th Cir.2007) Novak, 1041, 1046 volving interpretation erroneous Idaho, (en banc); Fund Student Loan implementation plan state that had the *23 of Educ., law). 272 F.3d Dep’t Thus, Inc. U.S. force of and effect federal Cir.2001). (9th notwithstanding A clause, notwithstanding even without the laws that were targets clause often those would make no sense to assume that Con for the action “legal sticking point” the gress Secretary authorized the to base his to authorize. Miccosuk Congress intends misinterpretation decision on a of the Army Fla. v. U.S. ee Tribe Indians Reyes Act. Point Wilderness With of of 1289, 1301 n. 19 Corps Eng’rs, 619 F.3d clause, adopting any such construction of Cir.2010). entirely § 124 be indefensible. would case, conflicting actually no laws this (and closer) admittedly The second Secretary issuing from prevented question Secretary is whether the in fact Bay. opera- to Drakes Continued based his on the misinterpretation decision oyster fully farm is consistent tion of Congress of the Act that intended to over- Act, and the farm’s with the Wilderness § by enacting majority ride 124. The to existence is therefоre not an “obstacle” suggests Secretary based his de- converting Drakes Estero to wilderness Depart- the Interior cision instead on by Reyes as directed the Point Wil- status Maj. op. see at 1084- policies, ment’s own Instead, Act. it was the Interior derness n.5, 8,n. but I do not think the 85 & misinterpretation Department’s denying the Secretary’s written decision proved Act that Reyes Point Wilderness permit supports that view. The Secre- I think “legal sticking point” be the here. tary’s gave “great states that he decision reading notwithstanding the best weight” public poli- to what he called “the Congress clause is that meant to “over- cy Congress inherent in the 1976 act of aside,” (“sweep “supersede”) ride” potential Drakes Estero as that identified law it enact- misinterpretation of the when that Act Secretary wilderness.” The read Alpine Ridge Grp., § 124. at ed U.S. Congress’s intention that all expressing as Novak, 1898; at 113 S.Ct. Drakes Estero converting “obstacles” to Fund, 1046; at Student Loan to wilderness status should be removed. erroneously oyster But he deemed (“DBOC’s farm to such an obstacle be far, you accept If what I have said so only use operations commercial are the only questions two remain. The first is Drakes Este- preventing the conversion of having Congress, whether overridden wilderness”), because he designated ro to Department’s misinterpretation oyster erroneously assumed that Act, Reyes nonetheless Point Wilderness “prohibit- operation farm’s continued Secretary rely on that authorized the That in turn by ed the Wilderness Act.” denying misinterpretation as а basis for erroneously— again led him to any I cannot see permit. conclude— that his decision to eliminate § why construe 124 in reason we would Congress’s intent “effectuate[d]” farm Administrative that fashion. Under the in the Point Wilderness (APA), expressed agency Act if an bases Procedure inter Act. legally on a erroneous its decision precisely give regard agency’s are the same errors of due to an

These exercise of interpretation the Interior De- statutory sphere expertise. discretion within its They in 2005. partment Maj. made back are n. I op. See 8. But am not precisely prompted same errors that arguing here decision § 124 in Congress place. to enact the first faulty must be set aside because it reflects And, view, my they precisely are the weighing permissible policy factors. Congress attempted super- same errors authority We would have no to second inserting notwithstanding sede guess a decision of that order. What I am Contrary majority’s instead, clause. to the asser- saying, is that 124’s notwith- tion, authority rely had no standing precluded clause on misinterpretation “Congress’s this basing very from his decision on the misin- expressed goal” earlier because the not- terpretation of the Wilderness withstanding clause eliminated such Act that A intended to override. *24 authority. Maj. op. See n. normally 1088 8. arbitrary decision will be deemed capricious agency if an “has relied on majority What does the offer in re- factors which has not it intended sponse analysis? to this Some hand wav- to consider.” Motor Vehicle Ass’n v. Mfrs. sure, ing, nothing to be but sub- Co., State Farm Mut. Auto. Ins. 463 U.S. tellingly, majority stance. Most never 29, 43, 77 S.Ct. L.Ed.2d 443 attempts argue the Interior De- (1983). That, unfortunately, just is what partment’s interpretation of the Point did. Reyes Wilderness Act was correct. Nor short, could it make that I argument Bay with a would hold that Drakes straight given likely face is legisla- prevail the Act’s clear on the merits of its APA history, majority Secretary’s tive which claim. The misinterpretation never at- address, Act, tempts much of the Point less refute. The Wilderness and his majority explanation thus has no mistaken view that denying permit for Con- gress’s intent, request Congress’s inclusion of the effectuated notwithstanding were decision, §in clause 124 other than I “fundamental” to rendering the one have his offered: that it “arbitrary, capricious, was included to the decision override or oth- Department’s misinterpretation of the erwise not accordance with law.” Safe (inter- Point Reyes Everyone, Act. Air majority Wilderness The 488 F.3d at 1101 omitted). claims that nal quotation the clause “has a func- marks clear convey tion—to prior legislation Ill

should not be legal deemed a barrier” to permit Maj. issuance. op. See at 1084-85. majority, Like the I will not spend much But that reading of the supports my clause time addressing remaining preliminary position because the did treat injunction harm, irreparable bal factors — “prior legislation” namely, the Point equities, ance of the public and the inter — “legal Wilderness Act—as a barri- est. See Winter v. Natural Res. Def. permit er” to I argued, issuance. As have Council, Inc., 7, 20, 555 U.S. 129 S.Ct. exactly is what notwithstanding (2008). 172 L.Ed.2d 249 Considered to prohibit. clause was intended to gether, tip those factors in Drakes favor. majority also claims that I have not accorded the decision the def- Bay irreparable inju- will suffer erence is owed under arbitrary ry to its real-property rights business and capricious standard, which requires injunction us to if a preliminary erroneously is Holder, 418, 435, See, v. 556 U.S. S.Ct. Corp. Land e.g., Sundance denied. Ass’n, (2009) (when & Loan 173 L.Ed.2d 550 the United Cmty. First Fed. Sav. (9th Cir.1988); Passage Am. party, equities public F.2d is a and the States Commc’ns, Inc., 750 v. Cass Corp. Media merge), equities interest and the strongly Cir.1985). 1470, 1474 The loss of Bay. favor Drakes many representing ongoing “an business its and the livelihood of

years of effort irreparable harm.” constitutes

[owners] Distribs., Inc. v. Beverage

Roso-Lino Co., 124, 125- Bottling

Coca-Cola curiam). (2d Cir.1984) (per equities

The balance of favors HARO; Balentine; Patricia John G. Bay. majority concludes otherwise McNutt; Troy Hall, Jack it ac- Bay that Drakes knew when noting Plaintiffs-Appellees, its quired farm Maj. op. at 1092-93. expire would in 2012. consideration. But that is not the relevant SEBELIUS, Secretary of the Kathleen Rather, controlling consideration Department of Health United States from will suffer that the harm Services, Defendant-Ap- and Human *25 in- preliminary the erroneous denial of a pellant. junction outweighs gov- .the harm the far from an erroneous ernment will suffer No. 11-16606. Alliance grant of such relief. See Appeals, United States Court of Cottrell, 1127, F.3d Rockies v. Wild Ninth Circuit. (9th Cir.2011); Scotts Co. v. Unit- 1137-38 (4th F.3d Corp., Indus. ed Argued Dec. 2012. Cir.2002); Hosp. Supply Corp. Am. Feb. 2013. Submitted Ltd., Hosp. Prods. Roso-Lino, Cir.1986); 749 F.2d at 126. Sept. Filed 2013. only suffer modest government will Amended ‍‌​​‌​‌‌‌‌​​‌‌​​‌‌​‌‌​​‌​​‌​​​​​​​​​​​‌​‌‌‌​‌‌‌​​‍Jan. oyster farming’s eighty-year if histo- harm longer. bit

ry in the Estero continues a injunction is errone- preliminary

But if a denied,

ously business will destroyed. That is all Drakes

be that the balance

must show to demonstrate equities tips in its favor here.

Finally, public interest favors nei- observed, court

ther side. As the district judges equipped weigh are ill

federal consequences of

the adverse environmental injunction against

denying preliminary relief, granting such consequences

or the relative interests access Bay’s oysters opposed to unen- equities It

cumbered wilderness. ease, Nken v. carry day in this see

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
Citation: 747 F.3d 1073
Docket Number: 13-15227
Court Abbreviation: 9th Cir.
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