McAlpine v. United StatesMcAlpine v. United States
The last paragraph of the Discussion section has been revised to correct a typographical error.
The revised opinion is attached for your convenience.
Very truly yours,
Patrick Fisher, Clerk
Susie Tidwell
Deputy Clerk
encl.
Before BRORBY, LOGAN, and HENRY, Circuit Judges.
HENRY, Circuit Judge.
Johnnie Louis McAlpine appeals from the district court‘s grant of the
I. BACKGROUND
A. Factual and Procedural History
Mr. McAlpine is an enrolled member of the Osage Tribe who purchased two parcels of land in Woodson and Neosho counties in southeastern Kansas in 1988. On January 18, 1990, Mr. McAlpine filed a formal request asking the Secretary of the Interior to take his land into trust status under the authority of the 1871 annual appropriations act for the Indian Department, 16 U.S. Stat. 544, Ch. 120 (1871). On February 9, 1990, the
Mr. McAlpine first appealed this decision to the BIA‘s Muskogee, Oklahoma Area Director. On March 21, 1990, the Area Director concurred with the Superintendent‘s decision, finding that the appropriate statutory authority for analyzing trust land acquisitions is § 5 of the Indian Reorganization Act (IRA) of 1934,
Mr. McAlpine initiated the present action pro se, seeking to compel the Secretary
B. Statutory and Regulatory Framework
Congress passed the IRA in 1934 to end the allotment policy initiated in 1887 under the General Allotment Act of 1887, ch. 119, 24 Stat. 388, which had opened tribal lands for individual ownership--both Indian and non-Indian. See Felix S. Cohen, Handbook of Federal Indian Law 130-32, 147 (Rennard Strickland et al. eds., 1982). The purpоses of the IRA was “to rehabilitate the Indian‘s economic life and to give him a chance to develop the initiative destroyed by a century of oppression and paternalism.” Mescalero Apache Tribe v. Jones, 411 U.S. 145, 152 (1973) (quoting H.R.Rep. No. 1804, 73d Cong., 2d Sess., 6 (1934)). To facilitate this purpose, the IRA, among other things, prohibited any further transfer of Indian lands outside of the tribes and provided the
The Secretary of the Interior is hereby authorized, in his discretion, to acquire through purchase, relinquishment, gift, exchange, or assignment, any interest in lands, water rights, or surface rights to lands, within or without existing reservations, including trust or otherwise restricted allotments whether the allottee be living or deceased, for the purpose of providing land for Indians.
. . .
Title to any lands or rights acquired pursuant to [the various sections] of this title shall be taken in the name of the United States in trust for the Indian tribe or individual Indian fоr which the land is acquired, and such lands or rights shall be exempt from State and local taxation.
Section 5 of the IRA is implemented by the BIA in its regulations concerning “land acquisitions” located at
(a) The existence of statutory authority for the acquisition and any limitations contained in such authority;
(b) The need of the individual Indian or the tribe for additional land;
(c) The purpose for which the land will be used;
(d) If the land is to be acquired for an individual Indian, the amount of trust or restricted land already owned by or for that individual and the degree to which he needs assistance in handling his affairs,
(e) If the land is to be acquired is in unrestricted fee status, the impact on the State and its political subdivisions resulting from the removal of the
land from the tax rolls; (f) Jurisdictional problems and potential conflicts of land use which may arise; and
(g) If the land to be acquired is in fee status, whether the Bureau of Indian Affairs is equipped to discharge the additional responsibilities resulting from the acquisition of the land in trust status.
In the event that the Secretary determines that a request should be denied, the regulations require the Secretary to inform the applicant as to the reasons in writing and notify him or her of the right to appeal this decision to the IBIA. See
II. DISCUSSION
A. Reviewability Under the APA
The district court, relying on the Eleventh Circuit‘s decision in Florida Department of Business Regulation v. United States Depаrtment of the Interior, 768 F.2d 1248 (11th Cir. 1985), determined that the Secretary‘s decision under § 5 of the IRA as to whether to acquire land in trust is a discretionary act not reviewable under the judicial review provisions of the APA,
The APA provides that any “person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof.”
In interpreting the distinction between these two exceptions, the Court has explained that the “former applies when Congress has expressed an intent to preclude judicial review. The latter applies in different circumstances; even where Congress has not affirmatively precluded review, review is not to be had if the statute is drаwn so that a court would have no meaningful standard against which to judge the agency‘s exercise of discretion.” Heckler v. Chaney, 470 U.S. 821, 830 (1985). In the present case, the statutory language does not expressly preclude judicial review. Furthermore, neither
Section 701(a)(2) excepts from judicial review only a very narrow range of agency decisions. See Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 410 (1971); Kenai Oil & Gas, Inc. v. Dept. of the Interior, 671 F.2d 383, 386 (10th Cir. 1982). According to the Supreme Court, the “committed to agency discretion” exception “is a very narrow exception,” Citizens to Preserve Overton Park, 401 U.S. at 410 (quoting S.Rep. No. 752, 79th Cong., 1st Sess., 26 (1945)), and the legislative history of the APA “indicates that it is applicable in those rare instances where ‘statutes are drawn in such broad terms that in a given case there is no law to apply,‘” Id. There is “no law to apply” where “the statute is drawn so that a court would have no meaningful standard against which to judge the agency‘s exercise of discretion.” Heckler, 470 U.S. at 830.
Furthermore, while the determination of whether there is “law to apply” often focuses on the controlling statute, we have previously recognized that the “law to apply” can also be derived from the agency‘s regulations where the agency is acting pursuant to those regulations. See Thomas Brooks Chartered v. Burnett, 920 F.2d 634, 642 (10th Cir. 1990) (“The failure of an agency to follow its own regulations is challengeable under the APA.“) (citing Service v. Dulles, 354 U.S. 363 (1957)); Community Action of Laramie, Inc. v. Bowen, 866 F.2d 347, 352 (10th Cir. 1989) (“Bеcause a valid legislative rule or substantive federal regulation is binding to the same extent as a statute [citation omitted], [the agency‘s] failure to follow its own regulations likewise may be challenged under the
The Eleventh Circuit is the only other federal appellate court to decide whether a party may seek judicial review of the Secretary‘s decisions regarding trust land acquisitions.4 In Florida Department of Business Regulation, several state agencies challenged the decision of the Secretary to acquire a tract of land in trust for the benefit of the Seminole Tribe of Florida. 768 F.2d at 1250. After determining that the IRA itself provided no specific limits on the discretion of the Secretary to acquire land, the court then examined the state agencies’ contention that the “law to apply” could be found in the factors listed in the BIA‘s regulations at
[T]he factors, although they are guides for thе exercise of the Secretary‘s discretion, are not “law” that a reviewing court can apply. The regulation does not purport to state how the agency should balance these factors in a particular case, or what weight to assign to each factor. Nor does it mandate that the Secretary not acquire lands located in particular areas, or limit the size of acquisitions. The factors listed in the regulation are not the kind of legal principles courts are familiar with applying to a particular case.
On the basis of this reasoning, the Eleventh Circuit--after holding that the Quiet Title Act,
The Eleventh Circuit‘s unreviewability holding in Florida Department of Business Regulation is not persuasive for twо principal reasons. First, we hold there is “law to apply” in this case. Even assuming that the statutory language contained in § 5 of the IRA does not provide “law to apply” in this case, we hold that the regulatory factors for evaluating trust land acquisition requests at
Second, the Eleventh Circuit‘s holding is unpersuasive because the Secretary‘s decision regarding trust land acquisitions is the type of administrative agency action over which the federal courts have traditionally exercised reviewing authority under the APA. As stated above, the APA embodies a “basic presumption of judicial review.” Abbott Labs, 387 U.S. at 140. This court has held in several cases challenging the Secretary of the Interior‘s disсretion to approve oil and gas communitization agreements involving Indian mineral interests that judicial review of the Secretary‘s decision is available under the APA. See Woods Petroleum Corp. v. Department of the Interior, 47 F.3d 1032 (10th Cir.) (en banc), cert. denied sub nom. Spottedwolf v. Woods Petroleum Corp., 116 S. Ct. 54 (1995); Cheyenne-Arapaho Tribes v. United States, 966 F.2d 583 (10th Cir. 1992), cert. denied sub nom. Woods Petroleum Corp. v. Cheyenne-Arapaho Tribes of Oklahoma, 507 U.S. 1003 (1993); Cotton Petroleum Corp. v. Department of the Interior, 870 F.2d 1515 (10th Cir. 1989). These oil and gas cases, a substantial corpus of law in our circuit, are analogous to the case at hand. In Woods Petroleum, for instance, we
Finally, we note that the agency action in this case is not within the narrow category of administrative decisions that courts have typically found to be unreviewable under
Because we hold that the regulatory factors contained at
B. Review of the Secretary‘s Decision
Despite the district court‘s dismissal of Mr. McAlpine‘s claim for lack of subject matter jurisdiction, the court alternatively explained that even if review were available, such claim would fail on the merits. After citing the seven regulatory factors contained at
All of the remaining factors were considered by the BIA and the Board of Indian Appeals and found wanting. In his response to the government‘s motion, McAlpinе cites general principles of Indian law, but provides no justification or need for the acquisition of trusteeship, no discussion of the impact upon the State of Kansas and local government, and no discussion of potential administrative or jurisdictional problems. Given this absence of any justification for accepting land in trust, the BIA and the Board of Indian Appeals acted properly in denying McAlpine‘s request.
The proper standard for reviewing an agency‘s discretionary action, such as the Secretаry‘s decision in this case, is to determine whether the agency acted in a manner that was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with
Prior to arriving in federal court, Mr. McAlpine‘s claim proceeded through three levels of administrative review within the Department of the Interior. At the initial level, the Superintendent of the Osage Agency in Pawhuska, Oklahoma denied Mr. McAlpine‘s request, finding (1) that the 1871 appropriations act cited by Mr. McAlpine as statutory authority did not apply to the two tracts of land because they were not part of the diminished Osage reservation in Kansas; (2) that there was no justifiable reason to place the land in trust status; (3) that Mr. McAlpine failed to demonstrate a need to place the land in trust status; (4) that there was no impelling need for the land to be taken off the local tax rolls; and (5) that because the land was located outside the present Osage reservation in Oklahoma, the BIA office in Pawhuska was not equipped to discharge the
On appeal of this decision, the BIA‘s Area Director upheld the Superintendent‘s denial of Mr. McAlpine‘s request. The Area Director noted that “[o]ur review of your application for trust acquisition and appeal took into consideration the factors listed in
Finally, on appeal to the IBIA, the Board affirmed the denial of Mr. McAlpine‘s request. In doing so, the IBIA reiterated the findings of both the Superintendent and the Area Director and concluded that the decision had been made in accordance with the factors set forth in
The administrative record in this case demonstrates that the agency properly considered the relevant regulatory factors then in effect in denying Mr. McAlpine‘s request. Both the Superintendent and Area Director considered the proposed use of the land and determined that there was no justification for placing the land in trust status and
III. CONCLUSION
For the foregoing reasons, we hold that the district court did have subject matter jurisdiction to review the Secretary‘s decision to deny Mr. McAlpine‘s request to take his land into trust status. In applying the appropriate standard of review under the APA, we conclude that the Secretary‘s denial of Mr. McAlpine‘s request was not arbitrary, capricious, or an abuse of discretion. Accordingly, we AFFIRM the judgment of the district court.