PUBLIC LANDS COUNCIL, a non-profit membership organization on behalf of its members; National Cattleman‘s Association, a non-profit membership organization on behalf of its members; American Sheep Industry Association, a non-profit membership organization on behalf of its members; American Farm Bureau Federation, a non-profit membership organization on behalf of its members; Association of National Grasslands, a non-profit membership organization on behalf of its members, Plaintiffs-Appellees, v. Bruce BABBITT, United States Department of the Interior Secretary, in his official capacity; Michael Dombeck, Acting Director, U.S. Bureau of Land Management, in his official capacity; Interior Department; Bureau of Land Management, Defendants-Appellants. The Arizona and New Mexico Coalition of Counties for Stable Economic Growth; New Mexico Public Lands Council; Bert Smith-Ox Ranch; Desert Livestock Producers; Alameda Corporation and Oscar S. Wyatt, Jr., Amici Curiae.
No. 96-8083.
United States Court of Appeals, Tenth Circuit.
Feb. 8, 1999.
167 F.3d 1287 | 1999 CJ C.A.R. 1313
Constance E. Brooks, C.E. Brooks & Associates, P.C., Denver, Colorado (Diane Vaksdal Smith and Michael B. Marinovich, C.E. Brooks & Associates, P.C., Denver, Colorado, and Calvin E. Ragsdale, Marty & Ragsdale, Green River, Wyoming, with her on the brief), appearing for Plaintiff-Appellee.
Before SEYMOUR, Chief Judge, PORFILIO, and TACHA, Circuit Judges.
ORDER ON REHEARING
The Secretary has petitioned the court for rehearing, requesting that it delete the highlighted portion of the following sentence as unnecessary to the court‘s holding and incorrect as a matter of law: “Congress intended that once the Secretary established a grazing district under the TGA, the primary use of that land should be grazing unless the Secretary withdraws the land from grazing use in accordance with the withdrawal provisions of FLPMA. See
Upon consideration, the court grants the limited petition for rehearing and orders the highlighted portion of the sentence removed from the court‘s opinion so that the sentence will read: “Congress intended that once the Secretary established a grazing district under the TGA, the primary use of that land should be grazing.” An amended copy of the court‘s opinion is attached to this order.
SEYMOUR, Chief Judge.
1 The question before us on this appeal is whether the Secretary of the Interior acted within his authority under the Taylor Grazing Act of 1934(TGA),
2 The Secretary appeals the district court‘s order enjoining enforcement of the aforementioned regulations, asserting that the new rules do not conflict with the governing statutes and that the reviewing courts must therefore defer to the Secretary‘s rulemaking authority. For the reasons stated below, we reverse the district court‘s order holding invalid the permitted use rule, the range improvements rule, and the mandatory qualifications rule, and we affirm the district court‘s order holding invalid the conservation use rule.
3 * BACKGROUND
A. The Controlling Statutes
4 Our review of the challenged 1995 grazing regulations is set against the backdrop of Congress’ enacted policy regarding administration of the public lands. The Secretary of the Interior, through the BLM, manages approximately 170 million acres of public rangelands throughout the western United States as guided and constrained by the TGA, FLPMA, and PRIA. We therefore begin with an overview of those statutes.
1. The Taylor Grazing Act
5 Until 1934, the federal government left unregulated the administration of millions of acres of unappropriated public lands in the western states, including Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. In response to damage to the public rangelands caused by decades of unregulated livestock grazing, Congress enacted the Taylor Grazing Act, establishing a threefold legislative goal: to regulate the occupancy and use of the federal lands, to preserve the land and its resources from injury due to overgrazing, and “to provide for the orderly use, improvement, and development of the range.”
6 In order to accomplish these purposes, Congress provided for the issuance of grazing permits under the supervision of the Secretary of the Interior, authorizing the Secretary to identify lands “chiefly valuable for grazing and raising forage crops,”
7 In addition, Congress granted the Secretary broad discretionary authority to balance the interests of those who wish to use the government‘s land against the need to protect the land from injury. The TGA commands the Secretary to “make such rules and regulations and establish such service, enter into such cooperative agreements, and do any and all things necessary to accomplish the purposes” of the Act.
2. The Federal Land Policy and Management Act
9 Enacted in 1976, FLPMA represents Congress’ express recognition that in over forty years of land management under the TGA, the BLM had failed adequately to protect and enhance the federal lands. See
10 In order to manage the lands in accordance with the principles of multiple use and sustained yield, FLPMA requires land use planning:
11 The Secretary shall, with public involvement and consistent with the terms and conditions of this Act, develop, maintain, and, when appropriate, revise land use plans which provide by tracts or areas for the use of the public lands. Land use plans shall be developed for the public lands regardless of whether such lands previously have been classified, withdrawn, or set aside, or otherwise designated for one or more uses.
12
3. The Public Rangelands Improvement Act of 1978
14 Congress enacted PRIA in 1978. Among its purposes was to reaffirm “a national policy and commitment to: ... manage, maintain, and improve the condition of the public rangelands so that they become as productive as feasible for all rangeland values.”
B. The 1995 Regulations
15 The 1995 grazing regulations made a number of changes to the administration of the then-existing federal grazing program.1 We address below only those regulations held invalid by the district court.
1. Permitted Use Rule
16 As part of the scheme for issuing grazing permits and determining grazing levels, the rangeland management rules in effect prior to 1995 employed the term “grazing preference” to mean “the total number of animal unit months [AUMs] of livestock grazing on public lands apportioned and attached to base property owned or controlled by the permittee or lessee.”
17 The 1995 regulations redefined the term “grazing preference” to mean “a superior or priority position against others for the purpose of receiving a grazing permit or lease,” which is “attached to base property owned or controlled by the permittee or lessee.”
2. Range Improvements Rule
18 Prior to 1995, BLM‘s regulations provided that title to many range improvements constructed under cooperative agreements upon application and approval by the Secretary, including fences, wells and pipelines, was “shared by the United States and cooperator(s) in proportion to the actual amount of the respective contribution to the initial construction.”
19 Under the 1995 regulations, the government prospectively asserts title to “permanent” range improvements, such as fences, wells, reservoirs, pipelines, and stock tanks, and “non-structural” improvements such as seeding, spraying, and chaining, authorized after August 21, 1995.
3. Qualifications Rule
20 Under the previous regulations, in addition to owning or controlling base property used in a livestock operation, permit applicants were required to “be engaged in the livestock business.”
4. Conservation Use Rule
21 The 1995 regulations added “conservation use” as a permissible use of a grazing permit. See
22 As under the old rules, the 1995 regulations provide that BLM can temporarily suspend grazing for conservation reasons. See
C. PLC‘s Challenge
23 Soon after the Secretary‘s proposed regulations took effect on August 21, 1995, PLC filed suit in the United States District Court for the District of Wyoming, challenging the facial validity of several of the new regulations. PLC later substituted a petition for review, seeking declaratory and injunctive relief on the same grounds stated in its complaint. PLC challenged most of the regulations on the grounds that the Secretary had exceeded his statutory authority, lacked a reasoned basis for departing from previous rules, or had failed to provide adequate responses to public comments. PLC also challenged two of the new regulations on constitutional grounds and asserted that the Final Environmental Impact Statement violated the National Environmental Policy Act,
24 On June 13, 1996, the district court entered an Order on Petition for Review, holding in favor of PLC on four of the challenged regulations. See Public Lands Council v. Department of Interior, 929 F.Supp. 1436 (D.Wyo.1996). The district court characterized the permitted use rule as ending longstanding recognition of grazing preferences adjudicated following enactment of the TGA, thereby depriving permittees of their statutory “right” to graze predictable numbers of stock. As such, the court held the permitted use rule violates the TGA‘s mandate that “grazing privileges recognized and acknowledged shall be adequately safeguarded.” Id. at 1440-41. In addition, the district court interpreted the TGA to require that range improvements be owned by the permittees who construct them, and held that the 1995 range improvements regulation violates this requirement. See id. at 1442-43. Finally, the district court held that eliminating the requirement that permit applicants be engaged in the livestock business violates the TGA‘s mandate that preference be given to such persons, see id. at 1444-45; and that the Secretary exceeded his authority under the TGA and FLPMA and lacked a reasoned basis in authorizing BLM to issue “conservation use” permits, see id. at 1443-44. The district court held in favor of the government on the remaining challenges to other parts of the new regulations, and the PLC does not contest these rulings on appeal.
D. Standard of Review
25 We review de novo a district court‘s decision regarding an agency action. See Santa Fe Energy Prod. Co. v. McCutcheon, 90 F.3d 409, 413 (10th Cir.1996) (standard of review of agency action identical in both district and appellate court; “[o]nce appealed, the district court‘s decision is afforded no particular deference“).
26 Our role as a reviewing court addressing PLC‘s facial challenge to the 1995 regulations is well established. Under
27 Our review is also guided by the principles governing judicial review of agency action set forth in Chevron U.S.A., Inc. v. Natural Resources Defense Council, 467 U.S. 837, 842-43 (1984).
28 In determining whether an administrative regulation permissibly construes the statute that an agency is charged with enforcing, our inquiry is shaped by the specificity of the Congressional enactment:
29 “First, always, is the question whether Congress has directly spoken to the precise question at issue. If the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress. If, however, the court determines Congress has not directly addressed the precise question at issue, the court does not simply impose its own construction on the statute, as would be necessary in the absence of an administrative interpretation. Rather, if the statute is silent or ambiguous with respect to the specific issue, the question for the court is whether the agency‘s answer is based on a permissible construction of the statute.”
30 Quivira Mining Co. v. Nuclear Regulatory Comm‘n, 866 F.2d 1246, 1249 (10th Cir.1989) (quoting Chevron, 467 U.S. at 842-43).
31 Even under Chevron‘s second step, however, “an agency‘s interpretation of a statute is not entitled to deference when it goes beyond the meaning that the statute can bear.” MCI Telecomm. Corp. v. AT & T, 512 U.S. 218, 229 (1994); see Southern Ute Indian Tribe v. Amoco Prod. Co., 119 F.3d 816, 835 (10th Cir.1997) (“Even under the deference mandated by Chevron, ‘legislative regulations are [not] given controlling weight [if] they are arbitrary, capricious, or manifestly contrary to the statute.’ “) (alterations in original) (quoting Chevron, 467 U.S. at 844), aff‘d en banc on other grounds, 151 F.3d 1251 (10th Cir.1998). “[N]o deference is warranted if the interpretation is inconsistent with the legislative intent reflected in the language and structure of the statute or if there are other compelling indications that it is wrong.” Mountain Side Mobile Estates Partnership v. Secretary of Housing & Urban Dev., 56 F.3d 1243, 1248 (10th Cir.1995) (citation omitted).
32 With this standard of review in mind, we turn to an examination of the regulations invalidated by the district court. In doing so, we note at the outset that Congress and the various Secretaries of the Interior have developed over the last sixty years a somewhat complicated regulatory scheme governing the federal lands. Yet this complicated scheme stems from a simple premise: the lands at issue here belong to the United States government; the issuance of grazing permits “shall not create any right, title, interest, or estate in or to the lands.”
II. THE PERMITTED USE RULE
33 Upon examining the relevant statutes, regulations, and the record, we are persuaded the permitted use rule comports with the authority granted the Secretary of the Interior under the TGA and FLPMA and demands our deference under Chevron.
34 In invalidating the permitted use rule, the district court held that the Secretary‘s decision to change the definition of “grazing preference” and to add the concept of “permitted use,” whereby the terms and conditions specified in all grazing permits are determined in accordance with land use plans, ended the prior practice of “recognizing” the grazing preferences allocated following the TGA‘s passage in 1934. According to the district court, this failure to recognize the original grazing adjudications eliminated an important “right” granted by the TGA—the right to graze predictable numbers of stock from permit to permit. In eliminating this “right,” the Secretary necessarily failed to “adequately safeguard[ ]” it as required by the TGA. The dissent adopts this characterization of the TGA and the existing regulations. An examination of the controlling statutes in light of the relevant regulations developed over the years to implement them, however, reveals that the permitted use rule neither conflicts with an unambiguously statutory command nor eliminates any long-recognized right accorded permittees to graze predictable numbers of stock.
35 To place the 1995 permitted use rule in context, and to respond to the dissent‘s erroneous characterization of the regulatory scheme that obtained under the TGA and FLPMA prior to 1995, we begin with a discussion of earlier versions of BLM‘s regulations governing issuance of grazing permits. We follow with an analysis of the changes posed by the permitted use rule. We then explain how a close reading of the statutory language of the TGA and FLPMA mandates our ultimate conclusion that the Secretary of the Interior acted within his authority in issuing the permitted use rule.
A. The Regulatory Scheme
1. The Federal Range Code2
36 After enactment of the TGA in 1934, the Secretary of the Interior began the process of establishing grazing districts, issuing permits, and granting leases. At the time of the TGA‘s passage, the number of qualifying applicants far exceeded the amount of grazing land available to accommodate them. Therefore, the Department of the Interior (DOI) instituted a detailed adjudication process, guided by a set of priorities articulated in section three of the TGA, to determine which applicants would receive grazing permits. First priority in the issuance of permits went to applicants who owned land or water, i.e., “base property,” in or near a grazing district, who were dependent on the public lands for grazing, who had used their land or water for livestock operations in connection with the public lands in the five years preceding the TGA‘s enactment, and whose land or water was situated so as to require the use of public rangeland for “economic” livestock operations. See DIVISION OF GRAZING, U.S. DEP‘T OF THE INTERIOR, FEDERAL RANGE CODE, §§ 2(g)-(h), 4(a), 6(b)(1) (1938). Once the Secretary issued a favorable grazing decision regarding an individual applicant, the applicant received a ten-year permit which specified the maximum number of livestock, measured in AUMs, that the permittee was entitled to place in a grazing district.
