Lead Opinion
ORDER AND JUDGMENT
Plaintiffs-Appellants Sierra Club, Inc., Clean Energy Future Oklahoma, and East Texas Sub Regional Planning Commission (“Appellants”) sued Defendants-Appellees United States Army Corps of Engineers, Thomas Bostick in his official capacity as Commanding General and Chief of Engineers of the U.S. Army Corps of Engineers, and three other Corps members in their official capacities — Michael Walsh, Michael Teague, and Christopher Saliese — (collectively, “Corps”)
I
The Corps has the authority tо issue individual and general permits authorizing the discharge of dredged or fill material into the waters of the United States. See 33 U.S.C. § 1344(a), (e). The Corps’s regulations set forth the policies and procedures required for the Corps to issue general nationwide permits (“NWPs”). In February 2012, the Corps reissued NWP 12, an NWP that allows, inter alia, “the construction, maintenance, or repair of utility lines.” Aplt.App. at 264 (77 Fed. Reg. 10,271, issued Feb. 21, 2012).
Also in February 2012, TransCanada announced plans to construct the Gulf Coast Pipeline — a 485-mile oil pipeline that was designed to run from Cushing, Oklahoma to oil refineries along the Gulf Coast near Port Arthur, Texas. The Gulf
Appellants sued the Corps in the United States District Court for the Western District of Oklahoma, challenging the validity of the Corps’s reissuance of NWP 12 and the Corps’s verification that the Gulf Coast Pipeline could proceed under it. Appellants alleged that these actions violated NEPA, the CWA, and the APA in several respects. They moved for a preliminary injunction, seeking to enjoin the Corps’s verifications. The verifications would permit construction of the Gulf Coast Pipeline to commence; it was expected to start in August 2012. Following a hearing, the district court denied Appellants’ motion for a preliminary injunction. The district court determined that Appellants did not have a likelihood of success on the merits and that the other equitable factors did not favor granting the injunction. This interlocutory appeal followed.
II
A
We review the “grant or denial of a preliminary injunction for an abuse of discretion.” Davis v. Mineta,
A party seeking a preliminary injunction must prove that all four of the equitable factors weigh in its favor: specifically, prove that “(1) it is substantially likely to succeed on the merits; (2) it will suffer irreparable injury if the injunction is denied; (3) its threatened injury outweighs the injury the opposing party will suffer under the injunction; and (4) the injunction would not be adverse to the public interest.” Beltronics USA, Inc. v. Midwest Inventory Distrib., LLC,
B
Our analysis begins and ends with the third preliminary injunction factor — that is, whether Appellants’ “threatened injury outweighs the injury the opposing party will suffer under the injunction,” Awad,
The district court determined that the balance of harms favors Appellees. Specifically, it found that the harm an injunction would cause TransCanada was significant — by the time of the August 2012 hearing, TransCanada had spent in excess of $500 million on the pipeline and it was “undisputed that further delay w[ould] cost hundreds of thousands of dollars each day.” Aplt.App. at 2001 (Dist. Ct. Order, dated Aug. 5, 2012). Moreover, the district court noted that Appellants did not suggest that “they ha[d] the ability to post a bond to cover any of the irretrievable loss should they ultimately lose.” Id. Weighing on the other side of the scale were the environmental harms of concern to Appellants. The district court was not impressed by the magnitude of these harms. Specifically, it stated, “In essence, this is all over a loss of waters of the United States of less than one acre ... over the entire distance of the pipeline,” and that Appellants “have failed to show that this project will have more than a minimal impact on the environment.” Id. at 2002-03. In sum, the court ruled that Appellants had failed to carry their burden of showing that the balance of harms factor tipped in their favor.
Instead, Appellants focus principally on their view of the environmental harms that would flow from construction of the Gulf Coast Pipeline, and they attempt to minimize the harms an injunction would impose on Appellees. For example, relying on the Environmental Impact Statement prepared for the Keystone XL Pipeline, Appellants argue that environmental harms from the Gulf Coast Pipeline include “harm to soils, surface water and groundwater, wetlands, vegetation, wildlife, fisheries, land use, recreation and special interest areas, visual areas, air quality and noise and the significant rise of pipeline spills.” Aplt. Opening Br. at 53. On the other hand, with respect to the harm an injunction would inflict on Appellees, Appellants maintain that financial harm, as a general matter, cannot weigh at all, see id. at 53 (“Economic harm is not irreparable and does not provide an adequate basis for denying injunctive relief.”), and that the specific financial harm of TransCanada should not be accorded appreciable weight because it was “self-inflicted,” see id. at 54 (“TransCanada’s injuries are ‘self-inflicted’ and it assumed the risk that it would not receive its permits as soon as expected.”).
However, as an initial matter, Appellants’ assertion that injunctive relief can
In their attempt to minimize the harms a preliminary injunction would inflict on Appellees, Appellants endeavor to challenge the district court’s reasoning. Aftеr acknowledging that the district court found that TransCanada had already spent over $500 million on the Gulf Coast Pipeline and that the injunction (if implemented) would cost TransCanada significant sums, Appellants have suggested that the district court erred because it “failed to note that Trans-Canada spent these funds and entered into contracts [to build the Gulf Coast Pipeline] before receiving Corps approval.”
As we discuss below, there is some support in judicial decisions in our circuit and elsewhere for the notion that “self-inflicted” harm should not be accorded weight in the balance of harms. However, Appellants do not direct us to any cases that would cause us on these facts to disregard TransCanada’s financial harms as “self-inflicted.” Apрellants principally rely on Davis, where, in assessing the balance of harms, we concluded that much of the financial harm to the state defendants— who opposed the injunction — which was caused by their entry into certain contracts, should not be accorded appreciable weight because it was “self-inflicted.” See
In other words, defendants’ harm-inducing contractual conduct was disregarded as “self-inflicted” in Davis (at least primarily) because it was knowingly predicated upon the federal agency defendant’s improper or wrongful conduct in predetermining its environmental decisions, and not simply because the conduct occurred prior to the federal agency’s environmental decisions. In support of this reading of Davis, it is noteworthy that the only case that Davis cites in support of its “self-inflicted” holding is a decision (in an unrelated commercial context) by the Third Circuit that fоcused on the wrongfulness vel non of the conduct claimed to have produced the financial harm at issue in deciding whether to disregard that harm as “self-serving.” See Pappan Enters., Inc. v. Hardee’s Food Sys., Inc.,
Viewed in this light, Davis is inapposite; there is no suggestion of similar misconduct by TransCanada and the Corps here. In particular, Appellants do not argue that TransCanada entered into contractual arrangements prior to the Corps’s approval of the Gulf Coast Pipeline with the expectation that the approval would be “a pro forma result” — that is, the product of the Corps’s improper predetermination or prejudgment of the relevant issues. Cf. Silverton Snowmobile Club v. U.S. Forest Serv.,
Appellants also support their “self-inflicted” argument with the Eighth Circuit’s decision in Sierra Club v. U.S. Army Corps of Eng’rs,
Consequently, we are essentially left with an argument by Appellants that involves a recitation of the various harms falling on each side of the scale. In our view, such an argument amounts to a tacit request for us to balance the harms anew. This, we will not do. Our focus is properly on whether the district court’s balancing of harms manifested an abuse of discretion; simply pointing to evidence in the record that would support a different balancing of the harms is not good enough. See Winnebago Tribe of Neb. v. Stovall,
In other words, when reviewing a district court’s balancing of the harms for an abuse of discretion, our charge is only to determine whether the balancing that the district court performed was within the range of permissible choices, not whether our own balancing would lead to a different result. See Re/Max N. Cent., Inc. v. Cook, 272 F.3d 424, 429 (7th Cir.2001) (“The question for us is whether the judge exceeded the bounds of permissible choice [in granting or denying a preliminary injunction], not what we would have done if we had been in his shoes.”) (quoting Wis. Music Network, Inc. v. Muzak Ltd. P’ship,
Thus, Appellants have woefully failed to carry their burden of demonstrating how the district court’s balancing of harms amounted to an abuse of its discretion. That said, in any event, our review of the record suggests that the district court’s balancing was well within the bounds of its discretion. The district court concluded that the environmental harm was “minimal”
Second, as for the district court’s finding that “this is all over a loss of waters of the United States of less than one acre ... over the entire distance of the pipeline,” id at 2002, we reference the Corps’s analysis of the Gulf Coast Pipeline that demonstrated the total permanent loss of waters over the entire length of the pipeline would be 0.68 acres and any other water losses would be temporary. See id at 1728 (noting that 0.63 acres of water will be permanently lost in the Galveston district); id at 1783 (correcting an error in thе Tulsa district’s original approval letter and noting that 0.05 acres of permanent water loss will occur in the Tulsa district); id at 1821 (noting that there will be no permanent water loss in the Fort Worth district). Thus, there was clear support in the record for these two key district court findings. In sum, because “the district court made specific [factual] findings to support its conclusion [regarding the balance of harms], none of which rises to the level of clear error[,][t]he court was ... well within the bounds of its discretion.” Stovall,
In conclusion, we reiterate that injunc-tive relief is an extraordinary remedy; a district court should only provide such relief when a party’s right to it is clear. See Winter,
Ill
For the foregоing reasons, we AFFIRM the district court’s denial of Appellants’ request for a preliminary injunction.
Notes
This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Federal Rule of Appellate Procedure 32.1 and Tenth Circuit Rule 32.1.
. TransCanada Corp., TransCanada Keystone Pipeline LP, (collectively, "TransCanada”), Interstate Natural Gas Association, American Gas Association, Association of Oil Pipe Lines, American Petroleum Institute, and Utility Water Act Group are Intervenors-Appellees in this suit. Because they filed a joint brief with the Corps, our references to “Appellees,” for purposes of this appeal, include both the Corps and Intervenors-Appellees.
. The parties do not dispute that the harm to TransCanada — which was permitted to intervene as of right and without conditions, pursuant to Federal Rule of Civil Procedure 24(a)(2) — is properly taken into account when considering the balance of hаrms. Accordingly, we need not definitively opine here on whether such consideration is proper. Arguably, we have previously intimated as much. See Wilderness Workshop,
. We note that, although succinct, the district court's findings were sufficient to allow for meaningful appellate review. Federal Rule of Civil Procedure 52(a) requires a district court, when granting or denying an interlocutory injunction, to make findings of fact and conclusions of law "sufficient to make possible meaningful appellate review.” FTC v. Kuykendall,
Although the sufficiency of the district court’s findings was not raised by either party, we were constrained to inquire regarding the matter, to satisfy ourselves that there is an adequate basis for our review. See Prairie Band of Potawatomi Indians v. Pierce,
. Appellants also state that the district court erred because it "failed to recognize that TransCanada could mitigate its harm by working on other portions of the project while an injunction prohibited construction in aquatic areas.” Aplt. Opening Br. at 12. However, Appellants make no effort to develop this contention of error; they do not mention it again in their briefing. Accordingly, we decline to consider it. See, e.g., Bronson v. Swensen,
. As Appellants note, the Supreme Court has stated that if environmental harm is ‘‘sufficiently likely, ... the balance of harms will usually favor the issuance of an injunction to protect the environment.” Vill. of Gambell,
Dissenting Opinion
dissenting.
In my view, the only prong of the test for injunctive relief that the district court analyzed in sufficient detail to permit meaningful appellate review was the Appellants’ likelihood of success on the merits. Because I believe that the district court’s analysis of Appellant’s likelihоod of success on the merits was flawed, and that the record is insufficient to allow the court to affirm on any other basis, I would remand this case to the district court. Therefore, I respectfully dissent.
I
Appellants contend that the district court erred by concluding that they were not likely to succeed on the merits of their claim. Because it affirms on alternate grounds, the majority does not discuss these arguments, which form the bulk of the issues argued on appeal. As set forth below, I believe that Appellants have shown a likelihood of success on their claims that the failure to conduct an Environmental Assessment or an Environmental Impact Statement for the Gulf Coast
A
NEPA requires federal agencies to consider the environmental consequences of their actions and to allow public participation in the decision-making process. Utahns for Better Transp. v. U.S. Dep’t of Transp.,
Towards those ends, NEPA requires federal agencies to prepare environmental impact statements (“EIS”) for “major Federal actions significantly affecting the quality of the human environment.” 42 U.S.C. § 4332(2)(C). To comply with NEPA, an agency must first consider whether the proposed action is one that normally requires an EIS, or whether it is categorically excluded. 40 C.F.R. § 1501.4(a). If the agency cannot readily determine whether an action fаlls into one of these categories, then it must prepare an environmental assessment (“EA”). Id. §§ 1501.4(b), 1508.9.
An EA is a “concise public document” that “provide[s] sufficient evidence and analysis for determining whether to prepare an [EIS] or finding of no significant impact.” Id. § 1508.9(a). The EA must address the direct, indirect, and cumulative impacts of the proposed action. Id. § 1508.9(b); see also id. §§ 1508.7, 1508.8, 1508.9. If the EA reveals that the project will have a significant effect on the quality of the human environment, then the Corps must prepare a detailed, written EIS. 42 U.S.C § 4332(2)(C). If the agency determines that its proposed action will not have a significant effect on the environment, then it need not prepare an EIS, and may instead issue a Finding of No Significant Impact (“FONSI”). 40 C.F.R. § § 1508.4, 1508.13. A FONSI must be supported by a statement of reasoning and evidence. Id. § 1508.13.
Appellants contend that the Corps violated NEPA by failing to prepare an EA or EIS for the Gulf Coast Pipeline. The Corps first responds by arguing that its NEPA obligations apply only to the adoption of a NWP, and not to the verification of the applicability of a NWP to a particular project. It contends that rеquiring the full NEPA process at the pre-certification stage defeats the streamlining purpose of the NWP process.
In support of this contention, Appellees rely on Snoqualmie Valley Preservation Alliance v. U.S. Army Corps of Engineers,
The Corps also contends that it only controls permitting of the Gulf Coast Pipeline’s water crossings, and that issuance of a NWP at a water crossing is not significant enough to constitute a “major Federal action” and invoke NEPA. It is well-established that not all construction requiring federal approval becomes “federalized” so as to invoke NEPA. See Winnebago Tribe of Neb. v. Ray,
These regulations have particular provisions that apply when the regulated activity is a link in the overall project, such as the pipeline at issue here. Id. § 7(b). This section of the regulations provides that, in determining the scope of a project, the Corps must consider not only the specific activity which requires a Department of the Army permit, but also “any other portion of the project that is within the control or responsibility of the Corps of Engineers (or other Federal agencies).” Id. § 7(b)(3). The regulations provide the following examples:
For example, a 50-mile electrical transmission cable crossing a 1 1/4 mile wide river that is a navigable water of the United States requires a DA permit. Neither the origin and destination of the cable nor its route to and from the navigable water, except as the route applies to the location and configuration of the crossing, are within the control or responsibility of the Corps of Engineers. Those matters would not be included in the scope of analysis which, in this case, would addrеss the impacts of the specific cable crossing.
Conversely, for those activities that require a DA permit for a major portion of a transportation or utility transmission project, so that the Corps permit bears upon the origin and destination as well as the route of the project outside the Corps regulatory boundaries, the scope of analysis should include those portions of the project outside the boundaries of the Corps section 10/404 regulatory jurisdiction. To use the same example, if 30 miles of the 50-mile transmission line crossed wetlands or other “waters of the United States,” the scope of analysis should reflect impacts of the whole 50-mile transmission line.
Id.
The Gulf Coast Pipeline is 485 miles long, and required the Corps to issue 2,227 permits for water crossings. This means that the Gulf Coast Pipeline crosses United States waters almost five times in each mile, or about once every 1150 feet. As such, the Gulf Coast Pipeline is much more comparable to the second example set forth in the cited regulations — which requires consideration of the entire transmission linе — than the first.
Applying these regulations, a district court in Texas has held that the Corps was required to consider the impact of the entire 900 mile pipeline, and to prepare an EA or EIS for the project. See Spiller v. Walker,
Considering the number of permits issued by the Corps relative to the overall size of the Gulf Coast Pipeline, it is patently ludicrous for Appellees to characterize the Corps’ involvement in the subject project as minimal, or to maintain that the Corps’ permitting involves only a “link” in the Gulf Coast Pipeline. As the Ninth Circuit has held:
Although the Corps’ permitting authority is limited to those aspects of a development that directly affect jurisdictional waters, it has responsibility under NEPA to analyze all of the environmental consequences of a project. Put another way, while it is the development’s impact on jurisdictional waters that determines the scope of the Corps’ permitting authority, it is the impact of the permit on the environment at large that determines the Corps’ NEPA responsibility. The Corps’ responsibility under NEPA to consider the environmental consequences of a permit extends even to environmental effects with no impact on jurisdictional waters at all.
Save Our Sonoran, Inc. v. Flowers,
Given the totality of the circumstances in this case, I believe the Corps’ involvement in the Gulf Coast Pipeline was a “major Federal action” that required a comprehensive NEPA analysis for the project. Therefore, in my judgment the Appellants have shown a likelihood of success on the merits with respect to their claim that the failure to prepare an EA or EIS for the Gulf Coast Pipeline was a violation of NEPA.
B
In their as-applied challenge to the approval of the Gulf Coast Pipeline, Appellants argue that the Corps violated the conditions of NWP 12 by failing to adequately consider the cumulative impact of approving the use of the NWP 12 2,227 times for the project.
NWP 12 requires that the Corps’ verification of a project for which a pre-con-struction notice is filed (as there was in this case) must “include an evaluation of the individual crossings to determine whether they individually satisfy the terms and conditions of the NWP(s), as well as cumulative effects caused by all of the crossings authorized by NWP.” The Gulf Coast Pipeline passes through three Corps’ districts — Galveston, Fort Worth, and Tulsa — and pre-construction notifications were filed in each. Each of these districts issued a brief letter authorizing the proposed action. Appellants contend that none of these three verifications takes into consideration (or, indeed, do any of them even reference) the sections of the pipeline in the other two Corps districts. Of even greater import, Appellants argue, is the fact that none of these administrative letters consider the cumulative impacts of the entire project as a whole. As a result, Appellants contend, the Corps violated NWP 12 in this case.
“Because the arbitrary and capricious standard fоcuses on the rationality of an agency’s decision-making process rather than on the rationality of the actual decision, ‘[i]t is well-established that an agency’s action must be upheld, if at all, on the basis articulated by the agency itself.’” Olenhouse v. Commodity Credit Corp.,
The letters of approval prepared by each district do not provide a reasoned basis for any cumulative impacts analysis. Despite the Corps’ contention to the contrary, the law is clear that the agency cannot simply state the legal standard and then recite that it made a “determination” that such criteria were satisfied. See Hull v. I.R.S.,
Recognizing the deficiency in the administrative record with regard to the cumulative impacts analysis, the Corps attempts to rely on affidavits presented to the district court stating that the Districts conferred with each other regarding the cumulative impacts. But this manner of tactical litigation maneuvering — of creating a post hoc evidentiary record before the trial court that was clearly missing in the recоrd before the administrative agency — has been soundly rejected by both this court and the Supreme Court. See Citizens to Pres. Overton Park v. Volpe,
Rather, “the agency’s action must be reviewed on the basis articulated by the agency and on the evidence and proceedings before the agency at the time it acted.” Am. Min. Congress v. Thomas,
In this case, the Corps failed to sufficiently articulate its reasoning for concluding that the authorization of 2,227 uses of NWP 12 to construct the Gulf Coast Pipeline would cause only minimal cumulative impact. There is no mеntion in the administrative record of any collaboration between the Districts with regard to the cumulative impact of the entire length of the Gulf Coast Pipeline. There are also no specific findings in support of the Corps’ conclusion that the Gulf Coast Pipeline, as a whole, would have minimal cumulative impact. The failure to consider the cumulative effects of all of the water crossings involved in the Gulf Coast Pipeline violates the terms of NWP 12, and, therefore, the approval of the use of NWP 12 for construction of the Gulf Coast Pipeline violated the law. See 33 C.F.R. § 330.1(c) (“An activity is authorized under an NWP only if that activity and the permittee satisfy all of the NWP’s terms and conditions.”).
Therefore, in my view, the Appellants have shown a likelihood of success on the merits with respect to their contention that the Corps violated the APA and the CWA when it authorized construction of the Gulf Coast Pipeline through approval of the 2,227 issuances of NWP 12.
II
As set forth above, I find that Appellants have shown a likelihood of success on the merits and, therefore, have satisfied their burden with respeсt to the first prong of the standard for injunctive relief. However, to prevail on their motion for preliminary injunctive relief, Appellants are required to show, not only that they were likely to succeed, but also that they would suffer irreparable injury, that the balance of the harms tipped in their favor, and that an injunction would not be adverse to public interest. Beltronics USA, Inc. v. Midwest Inventory Distrib., LLC,
The district court’s order denying Appellant’s motion for temporary restraining order is sixteen pages long. Of this, more than twelve pages are devoted to whether Appellants were likely to succeed on the merits. After concluding that Appellants had not shown a likelihood of success on the merits, the district court stated: “As a result of the above, the Court finds that Plaintiffs have failed to establish they are
As the majority points out in a lengthy footnote, Rule 52(a) does not require the district court to set out its findings and conclusions in excruciating detail. See Fed.R.Civ.P. 52, Notes of Advisory Committee on 1946 Amendments (“the judge need only make brief, definite, pertinent findings and conclusions upon the contested matters; there is no necessity for over-elaboration of detail or particularization of facts.”). On the other hand, this Court has “cautioned that too little detail frustrates meaningful appellate review by requiring the parties and this court to guess at why the district court reached its conclusion.” OCI Wyo., L.P. v. PacifiCorp,
The majority holds that the district court’s analysis of the balance of the equities satisfies Rule 52(a) because it “identified the harms it thought salient, attributed weight to them, and concluded that the balance did not favor granting an injunction.” Maj. Op. at 891, n. 3 (quoting OCI Wyo.,
In its brief discussion of the equities, the district court included no discussion of the irreparable nature of environmental injury in general or the fact that, where such injury has been alleged, “the balance of harms will usually favor the issuance of an injunction to protect the environment.” See Amoco Prod. Co. v. Vill. of Gambell,
Moreover, the district court focused on only the permanent loss of waters that would result after construction of the Gulf Coast Pipeline was complete, and failed to address the real and significant harm caused by the actual construction of the pipeline, including the clearing of trees and vegetation, removing topsoil, filling wetlands, building access roads, and clearing an eighty-five foot construction right-of-way for the length of the pipeline.
The district court’s balancing of the harms also completely ignores the fact that TransCanada chose to incur its economic harm by entering into contracts for services before the Gulf Coast Pipeline was
For these reasons, I believe the district court’s analysis with respect to the equitable factors other than likelihood of success on the merits is insufficient for us to determine whether the district court properly exercised its discretion in this regard. Notably, the district court was operating under incredibly difficult circumstances in that Appellants’ Motion for Temporary Restraining Order and Preliminary Injunction was filed only weeks before construction on the Gulf Coast Pipeline was set to commence. As a fellow district court judge, I appreciate the attention that the district court gave this case under nearly impossible time constraints. In light of its finding that Appellants had not met their burden with respect to likelihood of success on the merits, there was no need for the district court to analyze the remaining three equitable factors. However, because I would find that Appellants have shown that they are likеly to succeed on the merits, it would become necessary on remand for the district court to consider the remaining equitable factors. Moreover, in my view the district court should have the opportunity to undertake this assessment and analysis in the first instance. See Kikumura v. Hurley,
The majority’s discussion on the balancing of harms usurps the district court’s role not only as the fact-finder, but also as the court which should initially be exercising its discretion to determine whether injunctive relief is appropriate. See eBay Inc. v. MercExchange, L.L.C.,
Given my conclusion that the district court abused its discretion in finding that Appellants did not meet their burden of showing a likelihood of success on the merits, I would reverse the district court’s denial of the Motion for Temporary Restraining Order and Preliminary Injunction, and remand with instructions that the district court determine in the first instance whether Appellants have met their burden with respect to the remaining three equitable factors.
