Pit River Tribe v. Bureau of Land ManagementPit River Tribe v. Bureau of Land Management
Case Information
UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA PIT RIVER TRIBE; NATIVE No. 2:19-cv-02483-JAM-AC COALITION FOR MEDICINE LAKE
HIGHLANDS DEFENSE; MOUNT
SHASTA BIOREGIONAL ECOLOGY
CENTER; and QUALITY ORDER DENYING FEDERAL ENVIRONMENT, DEFENDANT’S MOTION TO DISMISS
AND GRANTING IN PART AND DENYING Plaintiffs, IN PAR T CALPINE’S MOTION TO DISMISS
v.
BUREAU OF LAND MANAGEMENT;
UNITED STATES DEPARTMENT OF
THE INTERIOR; CALPINE
CORPORATION; and CPN
TELEPHONE FLAT, INC.,
Defendants.
This matter is before the Court on the Bureau of Land Management’s (“BLM” or “Federal Defendant”) and Calpine Corporation’s (“Calpine” or “Corporate Defendant”) (collectively “Defendants”) Motions to Dismiss. Fed. Def.’s Mot. to Dismiss, ECF No. 64; Corp. Def.’s Mot. to Dismiss, ECF No. 67. Plaintiffs filed an opposition, ECF No. 75, to which Defendants replied, ECF No. 76, 77. After cons ideration of the parties’ written arguments on the motions and relevant legal authority, the Court DENIES Federal Defendant’s Motion to Dismiss and GRANTS in part and DENIES in part Calpine’s Motion to Dismiss . [1]
I. FACTUAL ALLEGATIONS AND PROCEDURAL BACKGROUND Plaintiffs include the Pit River Tribe and several regional nonprofit organizations with an interest in the Medicine Lake Highlands area (collectively “Pit River” or “Plaintiffs”). First Amended Compl. (“FAC”) ¶¶ 7-11, ECF No. 63. Defendant BLM is an agency within the United States Department of Interior charged with managing certain lands and natural resources owned by the federal government. FAC ¶ 12. Plaintiffs challenge the continued existence of federal Geothermal Resources Lease No. CA12372, issued by BLM pursuant to their statutory authority under the Geothermal S team Act (“GSA”), which is currently held by Defendant Calpine Corporation. FAC ¶ 1. Plaintiffs also challenge the continuance of the BLM-managed Glass Mountain Unit, which Calpine operates and exclusively leases. Id.
This action is the latest in a series of suits brought by
Pit River concerning the area. See Pit River Tribe v. U.S.
Forest Serv. (“Pit River I”) ,
In a separate 1998 administrative action, BLM continued
twenty-six unproven geothermal leases within the Glass Mountain
Unit for an additional forty years based on one productive lease
in the Unit, Lease CA12372. Pit River Tribe v. Bureau of Land
Mgmt.,
Plaintiffs now challenge the continuing validity of Lease CA12372 and the Glass Mountain Unit. See generally FAC. Specifically, Plaintiffs allege that GSA § 1005(g)- (h) and BLM’s current “production extension” regulations impose ongoing requirements on lessees that Calpine has failed to satisfy, mandating termination. FAC ¶¶ 24-36, 55-64, 78-80. Relatedly, they also claim that the Glass Mountain Unit Agreement, GSA § 1017 and the implementing regulations, require BLM to ensure the Unit is administered in the public interest, including through diligent exploration, development and production. FAC ¶¶ 37-54, 65-77, 81-83. Plaintiffs claim BLM is obligated to terminate the Lease and Unit as these requirements have not been satisfied. FAC ¶¶ 78-83. Plaintiffs have brought both claims under § 70 6(1) of the APA which requires the court to “compel agency action unlawfully withheld or unreasonably delayed.” 5 U.S.C. § 706(1).
II. OPINION
A. Legal Standard
Under Rule 12(b)(1), a motion to dismiss for lack of
subject matter jurisdiction will be granted if the complaint, on
its face, fails to allege facts sufficient to establish subject
matter jurisdiction. Savage v. Glendale Union High Sch., 343
F.3d 1036, 1039 n.2 (9th Cir. 2003). When a party brings a
motion to dismiss under Rule 12(b)(1), the plaintiff bears the
burden to prove jurisdiction exists. Sopack v. N. Mountain
Helicopter Serv.,
A Rule 12(b)(6) motion challenges the complaint as not
alleging sufficient facts to state a claim for relief. Fed. R.
Civ. P. 12(b)(6). “To survive a motion to dismiss [under
12(b)(6)], a complaint must contain sufficient factual matter,
accepted as true, to state a claim to relief that is plausible
on its face.” Ashcroft v. Iqbal,
B. Analysis
1. Zone of Interest
To assert a claim under the APA, a plaintiff must be
“adversely affected or aggrieved by agency action within the
m eaning of a relevant statute.” 5 U.S.C. § 702. To satisfy
this requirement, the plaintiff “must assert an interest
‘arguably within the zone of interest to be protected by the
statute or constitutional guarantee in question.’” Nev. Land
Action Ass’n v. U.S. Forest Serv.,
Defendants argue that Plaintiffs ’ claims fall outside the zone of interest of the GSA and therefore they do not have a cause of action under the APA. See Fed. Def.’s Mot. at 8.
Defendants claim that Plaintiffs ’ first cause of action falls
outside the zone of interest of § 1005(a) as this Court
previously found that Plaintiffs ’ environmental, cultural,
spiritual and aesthetic interest and injuries do not fall within
the zone of interest for BLM’s nondiscretionary duties under
§ 1005(a). Fed. Def.’s Mot. at 8-10. In Pit River II,
Plaintiffs ’ claimed that BLM violated the GSA by failing to
terminate and unlawfully continuing twenty-six unproven leases.
Pit River II,
0956-JAM-JFM,
The Court disagrees. Plaintiffs in this case are not challenging the Lease extension under § 1005(a). Rather, Plaintiffs allege that BLM’s current production ex tension regulation, 43 C.F.R § 3207.15, which implements the diligent effort obligations of GSA sections § 1005(g)-(h), imposes ongoing requirements on lessees, that the lessee here has failed to satisfy those requirements making BLM obligated to terminate the Lease. FAC ¶¶ 24-36, 55-64, 78-80. Specifically, § 1005(g) states that any lease on which actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for five years and so long thereafter as geothermal steam is produced or utilized in commercial quantities. 30 U.S.C. § 1005(g) (emphasis added). 1005(h) states that produced or utilized in commercial quantities means the completion of a well producing geothermal steam in commercial quantities and wells capable of producing geothermal steam in commercial quantities so long as the Secretary determines that diligent efforts are being made toward the utilization of the geothermal steam. Id. § 1005(h) (emphasis added).
1005(g)-(h) therefore requires when as here, a Lease is
allegedly not actually producing geothermal steam, that diligent
efforts are being made toward the utilization. Thus, one of the
interests arguably to be protected by 1005(g)-(h) is ensuring
that leases are being productively used so that public lands are
not indefinitely tied up by idling leases. Cf. Nat’l Credit
Union Admin. v. First Nat. Bank & Trust Co.,
Relatedly, Plaintiffs allege that the Glass Mountain Unit Agreement and 30 U.S.C. § 1017, implemented through the unit agreement regulations 43 C.F.R Part 3280, require BLM to ensure that the Unit is administered in the public interest, including through diligent exploration, development and production. FAC ¶¶ 37-54, 65-77, 81-83. Plaintiffs allege that the unit operator has failed to satisfy these requirements and BLM is, therefore, legally obligated to terminate the Unit. Id. The language of § 1017 indicates a congressional purpose to benefit Plaintiffs as members of the public with an interest in this land. For these reasons the Court finds that both of Plaintiffs claims fall within the zone of interest.
2. Res Judicata
Claim preclusion bars a later claim where there is: (1) an
identity of claims; (2) a final judgment on the merits; and
(3) privity between the parties. Tahoe-Sierra Pres. Council,
Inc. v. Tahoe Reg ’l Planning Agency,
Defendants argue that Plaintiffs ’ suit is claim precluded as they allege many of the same facts regarding lease productivity and unit formation as they did in their first amended complaint in Pit River II. Fed. Def.’s Mot. at 12. Defendants argue that the suits arise out of the same transaction nucleus of facts, namely BLM’s geothermal lease administration practices and unit formation and maintenance. Id. Additionally, Defendants argue that Plaintiffs second cause of action is barred because it is the same claim they brought in Pit River II – failure to terminate the Glass Mountain Unit. Id. at 13.
In Fund for Animal, plaintiffs challenged the bison
management practices of the federal government in Yellowstone.
Fund for Animals, Inc. v. Lujan,
Similarly, here Plaintiffs challenge different governmental
conduct than was at issue in Pit River II. In Pit River II,
Plaintiffs challenged a decision document issued by BLM
extending twenty-six nonproducing leases in the Glass Mountain
Unit. Pit River II,
In Pit River II, Plaintiffs also claimed that BLM
unlawfully failed to terminate or eliminate those twenty-six
leases from the Glass Mountain Unit Agreement and unlawfully
failed to contract the Unit to include only Lease 12372. First
Amended Complaint, ¶¶ 107(a)-(b), Tribe v. Bureau of Land Mgmt.,
No. 2:04-CV-0956-JAM-JFM,
3. 706(1) Claim
The APA provides relief for an agency’s failure to act in § 706(1): “The reviewing court shall … compel agency action
unlawfully withheld or unreasonably delayed.” 5 U.S.C. § 706(1).
To state a claim under 706(1), a plaintiff must assert “ that an
agency failed to take a discrete action that it is required to
ta ke.” Norton v. S. Utah Wilderness All.,
Defendants argue that Plaintiffs have failed to bring a
claim under 706(1) because they have not identified any legal
duty of BLM’s t o perform a discrete action. See Fed. Def.’s
Mot. at 14. The Court disagrees. Plaintiffs rely on 43 C.F.R §
3207.15 which states that where, as here, there has never been
any actual production on the Lease the lessee “ must demonstrate
on an annual basis that [they] are making diligent efforts
toward utilization of the resource,” 43 C .F.R 3207.15(c)
(emphasis added), and that production extension will continue
only as long as those diligent efforts are being demonstrated.
Id. § 3207.15(g). Further, it provides that “BLM will terminate
your lease unless you meet the conditions set forth in 3212.15
or 3213.19.” Id. (emphasis added). These regulations provide a
“specific, unequivocal command” to take “discrete agency action”
namely, terminate the Lease unless diligent efforts are made, or
other conditions met. Calpine contends that these regulations
do not apply, as the current regulations did not govern BLM’s
decision to extend their lease. Corp. Def.’s Mot. at 8. But
Plaintiffs claim is not about BLM’s decision to extend the
lease. FAC ¶¶ 2, 79. Instead, it is about the ongoing
diligence requirements of the current regulations which Calpine
elected to have govern their lease. Pit River Tribe v. U.S.
Forest Serv.,
Similarly, Plaintiffs have alleged in their second claim that the Glass Mountain Unit Agreement requires the Unit operator to continue diligent exploration through timely drilling under an approved plan and that failure to comply shall result in automatic termination of the agreement. FAC ¶¶ 66-67. Additionally, they point to 43 C.F.R. § 3284.3 which states that “if the unit operator does not drill a well designed to produce or utilize geothermal resources in commercial quantities within the timeframe specified in the unit agreement … BLM will deem the unit agreement void as though it was never in effect.” 43 C.F.R. § 3284.3 (emphasis added). Plaintiffs allege that these requirements have not been met mandating termination of the Unit. FAC ¶¶ 68-77, 81-83. Again, this provides a specific unequivocal command to take a discrete agency action – terminate the Unit when there has n’t been diligent exploration. See Norton, 542 at 69 (suggesting an agency may be bound by something other than a rule or regulation where there is a clear indication of a binding commitment to the terms). Because both claims allege a legal duty to perform a discrete agency action and a failure to perform that action, the Court finds Plaintiffs have stated a claim under 706(1).
4. Statute of Limitations
Title 28 United States Code, section 2401(a) provides a
six-year statute of limitations to civil action commenced
against the United States. 28 U.S.C. § 2401(a). This
limitation applies to cases brought under the APA. Hells Canyon
Pres. Council v. United States Forest Serv.,
Defendants argue that Plaintiff s’ claims are barred by the six- year statute of limitations because “all the events that purportedly give rise to Plaintiff’s claims occurred in the 1980’s and 1990’s.” Fed Def.’s Mot. at 15. Plaintiffs contend that because they allege Defendants haven’t co mplied with their ongoing duty to act under the GSA, the statute of limitations does not bar their claims as “BLM’s ongoing failure to satisfy its legal obligations under the GSA accrues continually until the agency complies with the law.” Pl.’s Opp’n at 27.
The Court agrees with Plaintiffs, that the statute of
limitations does not bar their claims. Plaintiffs allege
that BLM has an ongoing obligation to ensure diligent
efforts are being made on the Lease and the Unit and that
BLM is not currently fulfilling this obligation. Plaintiffs
seek an order from the Court that they do so. FAC ¶¶ 78-83.
Each day that BLM fails to ensure compliance with the
diligent effort requirements constitutes a single, discrete
violation of the statute. See Padres Hacia Una Vida Mejor
v. Jackson, No. 1:11-CV-1094 AWI DLB,
5. Prayers for Relief Against Calpine
The APA provides no right of action against a non-federal
party. See 5 U.S.C. § 702. Non-federal parties, however, may
be named as defendants in APA actions for the “sole purpose of
making it possible to accord complete relief between those who
are already parties” under the Federal Rules of Civil Procedure
Rule 19, joinder of indispensable parties. Nat’l Wildlife Fed’n
v. Epsy,
Calpine requests the Court dismiss Plaintiffs ’ First and
Fifth prayer for relief against Calpine as Plaintiffs only basis
for naming Calpine as a defendant is under Rule 19. Corp.
Def.’s Mot. at 11 -15. Plaintiffs ’ First prayer for relief
re quests this Court “[d]eclare that Calpine is not in compliance
with the requirements of the Geothermal Steam Act, its
implementing regulations, the Lease, and the Unit Agreement and
that such violations continue to this day.” FAC at 18.
Plaintiffs ’ Fifth prayer for relief requests this Court to
“[e]njoin any further activity in reliance on the Lease or Unit
Agreement.” Id. Because the First prayer for relief seeks
affirmative declaratory relief against Calpine, it is dismissed.
See Whittlestone Inc. v. Handi-Craft Co.,
III. ORDER For the reasons set forth above, the Court DENIES Federal Defendant’s Motion to Dismiss and GRANTS in part and DENIES in part Calpine’s Motion to Dismiss.
IT IS SO ORDERED.
Dated: January 11, 2021
Notes
[1] This motion was determined to be suitable for decision without oral argument. E.D. Cal. L.R. 230(g). The hearing was scheduled for October 13, 2020.