MEMORANDUM OPINION AND ORDER
THIS MATTER comes before the Court on SWEPI’s Motion for Partial Judgment on the Pleadings, filed May 31, 2014 (Doc. 21)(“Motion”). The Court held a hearing on November 3, 2014. The primary issues are: (i) whether the Court may consider evidence outside the pleadings to determine issues of justiciability; (ii) whether Plaintiff SWEPI, LP has standing to bring its claims; (iii) whether SWEPI, LP’s claims are ripe; (iv) whether SWEPI, LP can bring a claim for a violation of the Supremacy Clause of article 6 of the Constitution of the United States of America; (v) whether the Mora County, N.M., Ordinance 2013-10 (2013), filed January 10, 2014 (Doc. l-l)(“Ordinance”), violates the Supremacy Clause; (vi) whether the Ordinance violates SWEPI, LP’s substantive due-process rights; (vii) whether the Ordinance violates the Equal Protection Clause of Fourteenth Amendment to the Constitution of the United States; (vii) whether the Ordinance violates the First Amendment to the Constitution of the United States; (viii) whether the Defendants have the authority to enforce zoning regulations on New Mexico state land; (ix) whether New Mexico state law preempts the entire field of oil-and-gas production; (x) whether the Ordinance conflicts with state law; and (xi) whether the valid provisions of the Ordinance can be severed from the invalid provisions. Because the Court may consider evidence outside the pleadings for issues of justiciability, the Court will consider outside evidence solely to determine standing and ripeness. SWEPI, LP has suffered an injury in fact and thus has standing to bring each of its claims. Additionally, because the Ordinance has already been enacted, and because SWEPI, LP would suffer harm if the Court delayed considering its claims, each of SWEPI, LP’s claims are. ripe, except for its claim under the Takings Clause of the Fifth Amendment to the Constitution of the-United States. SWEPI, LP has not sought just compensation for its takings claim through a state inverse condemnation action, and, as such, it is not ripe. SWEPI, LP may bring its claim under the Supremacy Clause, because it can bring independent claims through a 42 U.S.C. § 1983 action and under the constitutional
FACTUAL BACKGROUND
In deciding a motion for judgment on the pleadings that a plaintiff filed, the Court may consider only “ ‘allegations of fact [that] are admitted or not controverted in the pleadings’ ” so that “ ‘only questions of law remain to be decided by the district court.’ ” Kellar v. U.S. Dep’t of Veteran’s Affairs, No. CIV 08-0761 WYD/KLM,
1. The Parties.
SWEPI, LP filed the Complaint, seeking an injunction to prohibit the Defendants from enforcing the Ordinance and seeking monetary damages. See Complaint ¶ 2, at 2; Answer ¶ 2, at 2. SWEPI, LP entered into an oil-and-gas lease with the State of New Mexico through a lease dated August 1, 2010. See Complaint ¶ 5, at 2; Answer ¶ 5, at 2 (“Defendants admit that a copy of a lease dated August 1, 2010 between the State of New Mexico and SWEPI is attached to the Complaint as exhibit 3.”). See also Oil and Gas Lease between SWEPI LP and the State of New Mexico, dated August 1, 2010, filed January 1, 2014 (Doc. l-3)(“Aug. 1, 2010, Lease”).
2. The Ordinance.
On April 29, 2013, the Mora County Board of County Commissioners voted two to one to adopt the “Mora County Community Water Rights and Local Self-Government Ordinance.” Ordinance 2013-01 (the “Ordinance”). Complaint for Declaratory and Injunctive Relief and Damages ¶ 1, at 1, filed January 10, 2014 (Doc. l)(“Complaint”); id. ¶ 31, at 8. See Answer ¶ 1, at 1; id. ¶ 31, at 5.
WHEREAS, We, the residents in Mora County, are a multi-cultural community with indigenous roots of Many; and
WHEREAS, We recognize the Earth, water, and air as a source of life for all living in Mora County; and
WHEREAS, We are convinced that the quality of life for residents in Mora County, for both the present and the future, will be destroyed if we allow at-risk exploitation and pollution of the Earth, water, and air; and
WHEREAS, We the People of the County of Mora declare that we have the duty to safeguard the water both on and beneath the Earth’s surface, and in the process, safeguard the rights of people within the county of Mora and the rights of the ecosystems of which Mora County is a part; and WHEREAS, We the People of Mora County declare that all of our water is held in the public trust as a common resource to be used for the benefit of Mora residents and of the natural ecosystems of which they are a part. We believe that industrial use of water supplies in this county placing the control of water in the hands of a corporate few, rather than the county would constitute abuse and usurpation; and that we are therefore duty bound to oppose such abuse and usurpation. That same duty requires us to recognize that two centuries’ worth of governmental conferral of constitutional powers upon corporations has deprived people of the authority to govern their own communities, and requires us to take affirmative steps to remedy that usurpation of governing power; and
WHEREAS, we are conscious of the urgency of taking decisive action to protect our collective rights and the rights of future generations, and of ensuring a balanced environment for the survival of all residents of Mora County; THEREFORE, .
BE IT ORDAINED BY THE GOVERNING BODY OF MORA COUNTY, NEW MEXICO ... AN ORDINANCE PROTECTING THE RIGHT OF HUMAN COMMUNITIES, NATURE, AND NATURAL WATER, BY ESTABLISHING A LOCAL BILL OF RIGHTS FOR MORA COUNTY THAT PROTECTS THE NATURAL SOURCES OF WATER FROM.DAMAGE RELATED TO THE EXTRACTION OF OIL, NATURAL GAS, OR OTHER HYDROCARBONS, BY AFFIRMING THE RIGHT TO LOCAL AUTONOMY AND SELF-GOVERNANCE, AND BY ELIMINATING LEGAL PRIVILEGES AND POWERS FROM CORPORATIONS VIOLATING THE ORDINANCE.
Section 1. Name and Purpose
Section 1.1 Name: This Ordinance shall be known and may be cited as the “Mora County Community Water Rights and Local Self-Government Ordinance.”
Section 1.2 Purpose: The People of the County of Mora are a cohesive community of diverse elements, united by common culture, social bonds and a common destiny, and are represented politically in various aspects by the Mora County Government, numerous Acequias, Land Grants and Mutual Domestic Water Consumers Associations. The People of Mora County recognize that water is essential for the life, prosperity, sustainability, and health of their community and that damage to natural groundwater and surface water sources imposes great tangible loss, to the People, natural communities and ecosystems of Mora County, not just for today but for future generations. The People of Mora County recognize that they may be forced, without their consent, to endure or attempt to repair harm inflicted on their environment and their vital water supply, which they have no equivalent governing authority to prevent under current state and federal law. The governing body of Mora County adopts this Mora County Community Water Rights and Local Self-Government Ordinance to overcome that liability, to provide for community health and safety, to promote a sustainable lifestyle, and to secure' the comfort and convenience of the people.
Section 2. Authority
This Ordinance is enacted pursuant to the inherent right of the residents of Mora County to govern their own community. That authority precedes government and is secured, without limitation, by:
The Treaty of Guadalupe Hidalgo, Article VIII & Article IX, which guarantees the “free enjoyment of their liberty and property” of the inhabitantsof what became Mora County, and which states that property of every kind “shall be inviolably respected.” According to a 2001 Government Accounting Office report (http://www. gao.gov/new.iemts/d01951.pdt), this guarantees traditional communal use rights under the Treaty, including, but not limited to, the following rights-hunting “caza,” pasture “pastas,” wood gathering “lefia,” and watering “abrevederos;”
The Declaration of Independence, which states that governments are instituted to secure the rights of people, “deriving their just powers from the consent of the governed;”
The New Mexico Constitution, Article 2, which declares that “all political power is vested in and derived from the people: all government of right originates with the people, is founded upon their will and is instituted solely for their good.” That section also declares that the people “have the sole and exclusive right to govern themselves as a free, sovereign, and independent state” and that “all persons are born equally free, and have certain natural, inherent and inalienable rights” and that “[t]he enumeration in this constitution of certain rights shall not be construed to deny, impair, or disparage others retained by the people;”
The Mora County Comprehensive Land Use Plan, which states that “[t]he connection between our land, our water and our people has sustained our culture since the first settlements in Mora County, and our future depends on keeping these connections strong. Water is a vital link, which, if severed from the land, will also fragment our people from their land. The allocation of our limited water resources must recognizé traditional subsistence agricultural and grazing activities as a priority over other types of more profitable land uses. Water is not just a commodity to be bought and sold, or exploited for short-term gains. Water is the lifeblood of Mora County’s traditions, culture and land use. A sustainable future for Mora County requires protection of the most valuable resource for our communities — the Water!”
Section 3. Defínitions
Section 3.1: “Corporation” shall mean any corporation, limited partnership, limited liability partnership, business trust, or limited liability company organized under the laws of any state of the United States or under the laws of any country, and any other business entity that possesses State-conferred limited liability attributes for its owners, directors, officers, and/or managers.
Section 3.2: “Extraction” shall mean the digging or drilling of a well for the purposes of exploring for, developing or producing oil, natural gas, or other hydrocarbons.
Section 3.3: “Horizontal drilling” shall mean intentional deviation of a wellbore from the vertical for the purpose of reaching subsurface areas laterally remote from the point where a well drilling bit or similar equipment enters the earth at the surface.
Section 34: “Hydraulic fracturing” shall mean an activity in which water, propane, diesel, chemicals and a solid prop-pant or any other agent are pumped into a wellbore at a rate sufficient to increase the pressure downhole to a value in excess of the fracture gradient of the formation rock, causing the formation to crack, thus allowing the fracturing fluid to enter and extend the crack fartherinto the formation, forming passages through which natural gas, oil, or other hydrocarbons can flow.
Section 3.5: “Hydrocarbons” shall mean any of numerous organic compounds, such as benzene and methane, that contain only carbon and hydrogen.
Section 3.6: “La Querencia de la Tierra” shall mean the loving respect which Mora County residents have towards the land and Earth, which is rooted in our indigenous worldview — the Earth is living and holy, is the habitat that sustains us, and is composed of all natural & living systems, flora and fauna — interrelated, interdependent and complementary — which share our common destiny: The right to live free from contamination.
Section 3.7: “Natural Gas” shall mean any gaseous substance, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rari-fied state at standard temperature or pressure conditions, and/or gaseous components or vapors occurring in, or derived from, petroleum or natural gas.
Section 3.8: “Oil” shall mean any thick, flammable, yellow-to-black mixture of gaseous, liquid, and solid hydrocarbons that occur naturally beneath the earth’s surface.
Section 4. Statements of Law-Rights of Mora County Residents and the Natural Environment
Section 1±.1. Right to Water: All residents, natural communities and ecosystems in Mora County possess a fundamental and inalienable right to sustainably access, use, consume, and preserve water drawn from natural water cycles that provide water necessary to sustain life within the County.
Section b.2. Right of Water for Agriculture: All Mora County residents possess the fundamental and inalienable right to unpolluted natural water to produce healthy food, to nourish our bodies, livestock and land and to continue “La Querencia de la Tierra,” Love of the Land.
Section Jp.3. Rights of Natural Communities: Natural communities and ecosystems, including, but not limited to, wetlands, streams, rivers, aquifers, and other water systems, possess inalienable and fundamental rights to exist and flourish within Mora County against oil and gas extraction. Residents of the County, along with the Mora County Commission, shall possess legal standing to enforce those rights on behalf of those natural communities and ecosystems. Natural communities and ecosystems protected by this ordinance shall be protected on all lands within Mora County, including those owned by the state and federal government
Section AA Right to a Sustainable Energy Future: All residents, natural communities, and ecosystems in Mora County possess a right to a sustainable energy future, which includes, but is not limited to, the development, production, and use of energy from renewable fuel sources, and the right to have an energy system based on fuel sources other than fossil fuel sources. This right shall also include the right to energy practices that do not cause harm, and which do not threaten to cause harm, to people, communities, or the natural environment.
Section L5. Right to Self-Government: All residents of Mora County possess the fundamental and inalienable right to a form of governance where they live which recognizes that all power is inherent in the people, that all free governments are founded on the people’s authority and consent, and that corporateentities and their directors and managers shall not enjoy special privileges or powers under the law which make community majorities subordinate to them.
Section 4-6. People are Sovereign: The Mora County Commission shall be the governing authority responsible to, and governed by, the residents of the County. Use of the “Mora County” municipal corporation by the sovereign people of the County to make law shall not be construed to limit or surrender the sovereign authority or immunities of the people to a municipal corporation that is subordinate to them in all respects at all times. The people at all times enjoy and retain an inalienable and indefeasible right to self-governance in the community where they reside.
Section k.7. Rights of La Querencia de la Tierra: The farm-based indigenous/mestizo (mixed blood) people who created the original Mora County culture considered the Earth to be living and holy; thus they referred to their homeland as “La Querencia de la Tier-ra,” Love of the Land. This sacredness connotes an intrinsic right of the land to exist without defilement.
Section 4-8. Rights are Self-Executing: All rights delineated and secured by this ordinance shall be self-executing and these rights shall be enforceable against both public and private actors, and shall not require implementing legislation for their enforceability.
Section 4.9. Exemption: Nothing in this ordinance shall be construed in such a manner as to impact the water rights of acequias, Mutual Domestic Water Consumers Associations or land grant, or to affect or color any negotiations regarding water rights, distribution or usage between these political subdivisions and the County of Mora.
Section 5. Statements of Law Prohibitions Necessary to Secure Bill of Rights’ Protections
Section 5.1: It shall be unlawful for any corporation to engage in the extraction of oil, natural gas, or other hydrocarbons within Mora County.
Section 5.2: It shall be unlawful for any corporation to engage in the extraction of water from any surface or subsurface source within Mora County for use in the extraction of subsurface oil, natural gas, or other hydrocarbons, or for any director, officer, owner, or manager of a corporation to use a corporation to extract water from any surface or subsurface source, within Mora County, for use in the extraction of subsurface oil or natural gas or other hydrocarbons. It shall be unlawful for a corporation to import water or any other substance, including but not limited to, propane, sand, and other substances used in the extraction of oil, natural gas, or other hydrocarbons, into Mora County for use in the extraction of subsurface oil, natural gas, or other hydrocarbons; or for any director, officer, owner, or manager of a corporation to do so.
Section 5.8: It shall be unlawful for any corporation, or any director, officer, owner, or manager of a corporation to use a corporation to deposit, store, transport or process waste water, “produced” water, “frack” water, brine or other materials, chemicals or by-products used in the extraction of oil, natural gas, or other hydrocarbons, into the land, air or waters within Mora County.
Section 5.4: It shall be unlawful for any corporation, or any director, officer, owner, or manager of a corporation to use a corporation to construct or maintain infrastructure related to the extraction of oil, natural gas, or other hydrocarbons within Mora County.“Infrastructure” shall include, but not be limited to, pipelines or other vehicles of conveyance of oil, natural gas, or other hydrocarbons, and any ponds or other containments used for waste-water, “frack” water, or other materials used during the process of oil, gas, or other hydrocarbon extraction.
Section 5.5: Corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not have the rights of “persons” afforded by the United States and New Mexico Constitutions, nor shall those corporations be afforded rights under the 1st or 5th amendments to the United States Constitution or corresponding sections of the New Mexico Constitution, rior shall those corporations be afforded the protections of the commerce or contracts clauses within the United States Constitution or corresponding sections of the New Mexico Constitution.
Section 5.6: Individuals or corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not possess the authority or power to enforce State or federal preemptive law against the people of Mora County, • or to challenge or overturn County ordinances adopted by the Mora County Commission, when that enforcement or challenge interferes with the rights asserted by this ordinance or interferes with the authority of the county to protect the health, safety, and welfare of its residents.
Section 5.7: No permit, license, privilege or charter issued by any state or federal agency, Commission or Board to any person or any corporation operating under a State charter, or any director, officer, owner, or manager of a corporation operating under a State charter, which would violate the prohibitions of this Ordinance or deprive any County resident(s), natural community, or ecosystem of any rights, privileges, or immunities secured by this Ordinance, the Treaty of Guadalupe Hildalgo, the New Mexico Constitution, the United States Constitution, or other' laws, shall be deemed valid within Mora County.
Section 5.8: The New Mexico Constitution’s Bill of Rights, and the United States Constitution’s Bill of Rights and amendments thereto, shall be recognized as preemptive law within the County of Mora only to the extent that their interpretation and application are not inconsistent with the provisions of this Ordinance regarding the powers and “rights” of corporations, and to the extent that they do not otherwise elevate property interests over rights secured by this Ordinance.
Section 5.9: Laws adopted by the legislature of New Mexico and rules adopted by any State agency, and laws adopted by the United States Congress and rules adopted by any federal agency, shall be recognized as preemptive law within the County of Mora only if those laws and rules both expressly preempt County ordinances and charters, and provide greater protections for the health, safety, and welfare of the people of Mora County than County ordinances and charters.
Section 6. Strict Liability
Section 6.1: Persons using corporations to engage in the extraction of oil, natural gas or other hydrocarbons in a neighboring municipality shall be strictly liable for all harms' caused to the health, safety, and welfare of the residents of Mora County from those activities, and for all harms caused to ecosystems and natural communities within Mora County.
Section 7. Future Lost Proñts
Section 7.1: Within the County of Mora, corporate claims to “future lost profits” shall not be considered property interests under the law, and thus, shall not be recoverable by corporations seeking those damages.
Section 8. Enforcement
Section 8.1: Any violation of any provision of this Ordinance shall be considered a criminal offense, punishable by maximum penalties and imprisonment as authorized by applicable New Mexico law. Each instance of a violation of the provisions of this Ordinance shall be treated as a separate offense subject to penalties authorized by applicable New Mexico law.
Section 8.2: Mora County may enforce this Ordinance through an action brought in any court of competent jurisdiction. In such an action, Mora County shall be entitled to recover all costs of litigation, including, without limitation, expert and attorney’s fees, in addition to damages caused by the violation of this ordinance.
Section 8.8: Any County resident shall have the authority to enforce this Ordinance through an action brought in a court of competent jurisdiction. In such an action, the resident shall be entitled to recover all costs of litigation, including, without limitation, expert and attorney’s fees.
Section 8.b: Any person or municipality who brings an action to secure or protect the rights of natural communities or ecosystems against oil and gas extraction within Mora County shall bring that action in the name of the natural community or ecosystem in a court of competent jurisdiction. Damages shall be measured by the cost of restoring the natural community or ecosystem to its pre-damaged state, and shall be paid to the County of. Mora or other applicable governmental entity, to be used exclusively for the full and complete restoration of the natural community or ecosystem.
Section 8.5. Reinstatement of Moratorium on Oil and Gas Extraction: In the event that this ordinance is overturned or nullified, for any reason, a moratorium on the extraction of oil and gas within the County of Mora shall become effective on the date that this ordinance becomes inactive. That temporary moratorium shall have a duration of no more than six months, during which the Board of County Commissioners shall adopt another ordinance which permanently bans hydrocarbon extraction within the County of Mora.
Section 9. Effective Date and Existing State Permit Holders
This Ordinance shall be effective five (5) days after the date of its enactment, at which point the Ordinance shall apply to any and all extractions of oil, natural gas, or other hydrocarbons in Mora County regardless of the date of any applicable governmental permits.
Section 10. County Commission Action and Voter Referenda to Repeal Ordinance
The foundation for the making , and adoption of this law is the people’s fundamental and inalienable right to govern themselves, and thereby secure their rights to life, liberty, and the pursuit of happiness. Accordingly, this Ordinance automatically suspends the operating rules of the Mora County Commission when the question of repealing this Ordinance is introduced. Repeal of this ordinance shall require both a unanimous vote of the Mora County Commissioners voting in favor of the repeal of the' ordinance, and a voter referenda following that vote which shall make therepeal effective only if two thirds of the Mora' County electorate vote to repeal the ordinance.
Section 11. People’s Right to Self-Government — Preemption
Any attempts to use other units and levels of government to preempt, amend, alter, or overturn this Ordinance, or parts of this Ordinance, shall require the County Commission to hold public meetings that explore the adoption of other measures that expand local control and the ability of residents to protect their fundamental and inalienable right to self-government. Such consideration may include actions to separate the County from the other levels of government used to preempt, amend, alter, or overturn the provisions of this Ordinance or other levels of government used to intimidate the people of Mora County or their elected officials.
Section 12. New Mexico Constitutional Changes
Through the adoption of this local law, the people of Mora County call for amendment of the New Mexico Constitution to explicitly secure a community right to local self-government that cannot be preempted by the State if the community’s laws enforce rights or standards more protéctive of the health, safety, and welfare of the people of Mora County and the natural environment, communities, and ecosystems. The people of Mora County also call for a state constitutional amendment that explicitly elevates community rights above corporate property rights, and that recognize the rights of nature enforceable by the residents of a community.
Section 13. Severability
The provisions of this Ordinance are severable. If any court of competent jurisdiction decides that any section, clause, sentence, part, or provision of this Ordinance is illegal, invalid, or' unconstitutional, such decision shall not affect, impair, or invalidate any of the remaining sections, clauses, sentences, parts, or provisions of the Ordinance. The Mora County Commission hereby declares that in the event of such a decision, and the determination that the court’s ruling is legitimate, it would have enacted this Ordinance even without the section, clause, sentence, part, or provision that the court decides is illegal, invalid, or unconstitutional.
Section 14. Repealer
All inconsistent provisions of prior Ordinances adopted by the Mora County Commission are hereby repealed, but only to the extent necessary to remedy the inconsistency.
Ordinance at 1-6 (alterations in original)(bold in original). See Answer ¶ 1, at 1 (admitted that the Ordinance is attached to the Complaint).
PROCEDURAL BACKGROUND
On January 10, 2014, SWEPI, LP filed suit against Mora County, the Mora County Commissioners, and the Individual Commissioners, bringing a number of federal and state claims. See Complaint at 1. SWEPI, LP seeks both injunctive and compensatory relief. See Complaint ¶¶ 142-52, at 27-28. Specifically, SWEPI, LP seeks a declaration that the Ordinance is unconstitutional and that it violates state law, and seeks an entry of judgment that permanently enjoins Mora County from enforcing the Ordinance. See Complaint ¶ 2, at 2. SWEPI, LP alleges nine claims of relief in the Complaint: (i) violation of the Supremacy Clause, U.S. Const, art. 6, cl. 2; (ii) violation of the Equal Protection Clause, U.S. Const, amend. XIV, § 1; (iii) violation of the Dormant Commerce Clause, U.S. Const, art. 1, § 8, cl. 3; (iv)
1. The Motion.
On May 13, 2014, SWEPI, LP filed the Motion, asking to Court to grant it judgment on its first, second, fourth, fifth, sixth, seventh, eighth, and ninth claims for relief. See Motion at 1. SWEPI, LP argues that the Court should declare the Ordinance unconstitutional, because it “legalizes invidious discrimination against corporations,” and because it “purports to strip corporations of their rights” that the First, Fifth, and Fourteenth Amendments guarantee. Motion at 1. It asserts that the Ordinance, “[b]y its express terms, ... contravenes over two hundred years of Supreme Court precedent squarely establishing that corporations have protected constitutional rights,” which “may not simply be cast aside out of animosity or disdain toward the corporate form.” Motion at 1.
SWEPI, LP argues that the Ordinance violates the Supremacy Clause by stating that its provisions take precedence over conflicting or contrary federal law. See Motion at 2. SWEPI, LP contends that the Ordinance violates the Due Process Clause and the Equal Protection Clause by depriving SWEPI, LP of its property rights for an arbitrary reason: SWEPI, LP’s status as an incorporated entity. See Motion at 2. SWEPI, LP argues that the Ordinance takes SWEPI, LP’s property without just compensation by completely eliminating all economic value from its property in Mora County. See Motion at 2. SWEPI, LP also argues that the Ordinance eviscerates SWEPI, LP’s constitutional rights under the First and Fifth Amendments. See Motion at 2. It maintains that the Ordinance is ultra vires and violates New Mexico state law by imposing local zoning regulations on New Mexico state lands. See Motion at 2. SWEPI, LP asserts that the Ordinance also violates state law by “dictating the use and effective abandonment of State oil and gas minerals that have been leased by the State to SWEPI.” Motion at 2. Finally, SWEPI, LP argues that the Ordinance violates SWEPI, LP’s property and contract rights that the New Mexico Constitution protects by depriving SWEPI, LP of its “right to explore for and extract hydrocarbons pursuant to its fee and State leases.” Motion at 2.
SWEPI, LP first argues that the Ordinance violates the federal Constitution by invalidating protections that federal law affords in “a thinly veiled threat of secession from the United States.” Motion at 3. SWEPI, LP asserts that a local law is invalid under the Supremacy Clause if the law “ ‘conflicts with federal law or stands as an obstacle to the accomplishment of the full purposes and objectives of Congress.’ ” Motion at 3 (quoting Lawrence Cnty. v. Lead-Deadwood Sch. Dist.,
SWEPI, LP also argues that the Ordinance violates the Equal Protection Clause. See Motion at 5. It contends that the Supreme Court of the United States of America has held that corporations are persons “within the meaning of the Equal Protection Clause and are entitled to its protections.” Motion at 5 (citing Metropolitan Life Ins. Co. v. Ward,
SWEPI, LP asserts that a state “ ‘may not rely on a classification whose relationship to an asserted goal is so attenuated as to render the distinction arbitrary or irrational.’ ” Motion at 6 (quoting City of Cleburne v. Cleburne Living Ctr.,
SWEPI, LP contends that the Supreme Court has held that disparate treatment between corporations and individuals bears no rational relationship to a legitimate state interest and, thus, violates the Equal Protection Clause. See Motion at 7. SWEPI, LP asserts that the Supreme Court, in Frost v. Corporation Commission of Oklahoma,
SWEPI, LP maintains that, if a state law is based on an invidious classification or is motivated by a desire to harm a politically unpopular group, the law violates the Equal Protection Clause. See Motion at 8. It contends that the Ordinance’s disparate treatment between corporations and individuals is motivated “by a gross antipathy toward the corporate form,” and that it is based on a discriminatory purpose against corporations. Motion at 8-9. SWEPI, LP argues that the Ordinance also discriminates against people associated with corporations by applying to directors, officers, owners, and managers of corporations. See Motion at 9. It argues that the Ordinance does not have a legitimate purpose, but that it is “a vindictive effort to disempower and punish corporations and anyone who is in' any way affiliated with an incorporated entity.” Motion at 9. SWEPI, LP maintains that the Ordinance’s animus against the corporate form makes clear that it does not have, in violation of the Equal Protection Clause, a rational relationship to a legitimate governmental interest. See Motion at 10.
SWEPI, LP argues that, because it seeks to engage in activities which the Ordinance prohibits, the Ordinance purports to strip it of its First and Fourteenth Amendment rights. See Motion at 10-11 (citing Ordinance § 5.5, at 4 (“Corporations ... seeking to engage in activities prohibited by this ordinance, shall not ... be afforded rights under the 1st or 5th amendments to the United States Constitution. ...”)). SWEPI, LP contends that, by purporting to strip it of its fundamental rights, “the Ordinance is plainly unconstitutional.” Motion at 11. It asserts that the Supreme Court has held that First Amendment protections extend to corporations. See Motion at 11 (citing Citizens United v. Fed. Election Comm’n,
SWEPI, LP argues that the Ordinance effects a regulatory taking of property without just compensation. See Motion at 12. It contends that a regulatory taking can occur if “ ‘government regulation of private property’ ” is “ ‘so onerous that its effect is tantamount to a direct appropriation or ouster.’” Motion at 13 (quoting Lingle v. Chevron U.S.A. Inc.,
SWEPI, LP contends that the Ordinance also violates its substantive due-process rights. See Motion at 15. It argues that substantive due process prohibits a state from depriving property for an arbitrary reason. See Motion at 15 (citing Cnty. of Sacramento v. Lewis,
SWEPI, LP argues that the Ordinance violates state law by enacting zoning regulations over state land. See Motion at 18. It contends that state statutes created Mora County and that Mora County possesses only those “powers expressly granted to it by the Legislature together with those necessarily implied to implement express powers.” Motion at 18 (citing Board of Cnty. Comm’rs v. Greacen,
SWEPI, LP argues that, because the Ordinance undermines state law and the State’s interests, it is unenforceable. See Motion at 20 (citing Chapman v. Luna,
Finally, SWEPI, LP argues that the Court must declare the Ordinance, in its entirety, invalid and that no part of the Ordinance is severable from the rest. See Motion at 21. It contends that a law, in which some portions are invalidated, can have its valid portions severed from the invalid ones, when the legislative purpose of the valid portions can be given effect through the remaining portions and where it cannot be shown that the legislature would not have passed the valid portions if it had known that the other portions would be invalidated. See Motion at 22 (citing Bradbury & Stamm Constr. Co. v. Bureau of Revenue,
2. The Response.
The Defendants responded to the Motion on June 12, 2014. See Defendants’ Answer to Plaintiffs Motion for Partial Judgment on the Pleadings, filed June 12, 2014 (Doc. 33)(“Response”). They argue that SWEPI, LP’s legal theories are flawed, that it has not shown that Mora County lacked a rational basis for passing the Ordinance, and that they have established factual issues that require discovery. See Response at 1-2. The Defendants provide a summary of how the Ordinance came into being. See Response at 2-3. They assert that, in 2011, Mora County residents began to discuss ways to protect the environment and water from oil-and-gas extraction activities, including hydraulic fracturing
The Defendants argue that they have raised a number of affirmative defenses in the Answer, which, if proven, would defeat SWEPI, LP’s claims. See Response at 3. Specifically, they contend that SWEPI, LP lacks standing and that the case is not ripe for adjudication. See Response at 3. The Defendants also contend that they have asserted- a number of factual disputes in the Answer, including that SWEPI, LP does not possess valid leases that authorize it to extract hydrocarbons from Mora County, that SWEPI, LP does not intend to engage in activities related to the extraction of hydrocarbons in Mora County, that Mora County had a rational basis to enact the Ordinance, and that the Ordinance is necessary to protect Mora County residents’ air, water, land, health, welfare, and safety. See Response at 3. They argue that, because they have asserted affirmative defenses and because they have asserted factual disputes in the Answer, the Court should deny the Motion. See Response at 3-4.
The Defendants argue that, because the Court must accept all facts that the non-moving party pled and grant all inferences in the Defendants’ favor, the Court must presume that SWEPI, LP does not have standing, that the case is not ripe, and that the affirmative defenses asserted in the Answer are viable. See Response at 5 (citing Park Univ. Enter., Inc. v. Am. Cas. Co. of Reading, Pa.,
The Defendants argue that SWEPI, LP must allege that it has valuable property to prove a loss, but that SWEPI, LP has not alleged that its leases have value. See Response at 7. They also contend that they have denied SWEPI, LP’s allegations that it is the holder of a valid oil-and-gas lease, and that it is seeking to or is prepared to engage in activities that the Ordinance prohibits. See Response at 7 (citing Answer ¶¶ 4-7, at 2). The Defendants assert that there is a genuine issue of fact whether SWEPI, LP has suffered an injury, and thus has standing, because the Defendants have disputed many of SWEPI, LP’s factual allegations that are necessary to establish standing. See Response at 8. They argue that SWEPI, LP’s sole allegation concerning its property interests in Mora County is that it owns oil-and-gas leases. See Response at 8 (citing Complaint ¶¶ 4-7, at 2-3). They assert that they do not admit:
(1) the existence or legitimacy of the leases or that the leases have value; (2) that Plaintiff obtained the leased mineral rights to explore for and extract hydrocarbons; (3) that Plaintiffs allegedproperty rights are valueless without the right to explore for and extract hydrocarbons; (4) that Plaintiff presently seeks to or is prepared to exercise its rights pursuant to the leases; (5) that there is a credible threat of prosecution were Plaintiff to exercise its rights; or (6) that but for the Ordinance, Plaintiff would engage in oil and gas development activities on the property covered by the leases.
Response at 8 (citing Answer ¶¶ 4-7, at 2). The Defendants contend that the Court cannot assume that the leases provide SWEPI, LP with any rights, because that assumption would resolve an issue in the moving party’s favor, which is contrary to the judgment on the pleadings standard. See Response at 8-9. They argue that, while an allegation that a plaintiff has a property interest may satisfy the pleading standard, it is insufficient to meet the standard for judgment on the pleadings, and that the Defendants’ denial of SWEPI, LP’s “factual allegations is sufficient to establish numerous issues of material fact as to whether Plaintiff has standing and to justify denial of Plaintiffs Motion.” Response at 9.
The Defendants argue that SWEPI, LP’s corporate status is insufficient to establish standing. See Response at 9. They contend that SWEPI, LP must have more than “a generalized grievance” and that it cannot rely solely on allegations that the Ordinance discriminates against corporations to establish standing. Response at 9 (citing Harris v. McRae,
The Defendants assert that SWEPI, LP’s standing is speculative, because it initiated the lawsuit before any enforcement had occurred under the Ordinance. See Response at 10. They argue that SWEPI, LP alleges only that it desires to engage in activities that the Ordinance prohibits. See Response at 10. They contend that SWEPI, LP’s position in this case is comparable to that of the plaintiff in Kegler v. United States Department of Justice,
The Defendants contend that there are genuine issues of material fact as whether
The Defendants argue that SWEPI, LP’s leases, without other permits or authority from the State, do not provide SWEPI, LP with a legal basis to explore and produce hydrocarbons in Mora County. See Response at 13. They contend that SWEPI, LP has not alleged that it applied for a drilling permit, or sought permission for the disposition of toxic wastewater that could result from oil-and-gas extraction activities. See Response at 13. The Defendants argue that SWEPI, LP’s position is similar to the position of the plaintiffs in Lujan v. Defenders of Wildlife, where the Supreme Court held that there was no case or controversy based on the plaintiffs’ intent to travel to a certain area at some point in the future without any definitive plans to do so. See Response at 13 (citing Lujan v. Defenders of Wildlife,
The Defendants maintain that there are factual disputes concerning Mora County’s legitimate interests in the Ordinance’s enactment. See Response at 14. They contend that the Court has insufficient information to assess the dangers to public health, safety, and welfare against which
The Defendants contend that, while the Land Commissioner has dominion over state lands, that dominion is not without limitations and is subject to certain restrictions. See Response at 15-16 (citing Burguete v. Del Curto,
first, disposals of land are limited to the disposals described in the Enabling Act [of 1910, 36 Stat. 557]; second, land can only be sold or leased at a public auction to the highest and best bidder; and third, all sales and leases must yield at least the appraised value of the land.
Response at 15-16 (quoting King v. Lyons,
The Defendants argue that the Supremacy Clause does not create a private right of action. See Response at 18-19. They contend that some federal statute must exist before the Court can engage in a Supremacy Clause analysis. See Response at 19 (citing City of N.Y. v. F.C.C.,
The Defendants argue that the Court should deny the Motion, “because the people of Mora County possess the inherent and constitutional right of local community self-government, the right to governmental protection of their fundamental civil rights, and the right to change their local system of government if it denies these rights.” Response at 20. They contend that
On April 29, 2013, the people of Mora County exercised their right to change their system of local government to one that both recognizes their right of self-government and protects their fundamental civil rights. To protect that new system, they restricted the operation of several legal doctrines, including the doctrine of corporate constitutional “rights.” In July of 1776, the Second Continental Congress adopted the Declaration of Independence, which established
that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just •powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
AMER. DEC. OF INDEP., ¶2 (emphasis added). These words embody the theory of legitimate government for the people of the United States of America. All governmental power comes from the people (i.e., the principle of self-government); the proper role of government is the protection of the people’s fundamental civil rights, including their life, liberty, and happiness; and'the people inherently possess the right to change their system of government if it becomes destructive of those ends.
Like the people of the thirteen original colonies, New Mexicans — both indigenous, and those of Spanish and Mexican descent — have fought for their right of local community self-government. From preservation of the Pueblos’ right of self-government, to battles against Spanish, Mexican, and U.S. colonizers’ efforts to remove that right, New Mexicans have a long history of defending their self-governing authority. It was that ongoing insistence upon self-governing authority that eventually forced
In 1910, as a prerequisite to statehood, Congress adopted an Enabling Act for New Mexico. The Act required the drafting and popular ratification of a New Mexican Constitution, and required that the new Constitution be consistent “with the principles of the declaration of independence.” Act of June 20, 1910, 36 Statutes at Large 557, Chapter 310, section 2. The resulting New Mexico Bill of Rights thus reaffirmed the framework of law articulated by the Declaration, as it was required to do, proclaiming that all “political power is vested in and derived from the people” and that any government is illegitimate unless it “originates with the people, is founded upon their will and is instituted solely for their good.” N.M. CONST., art. II, § 2.
Now, through their Ordinance, the people of Mora have reaffirmed that theory of government in local law:
Right to Self-Government: All residents of Mora County possess the fundamental and inalienable right to a form of governance where they live which recognizes that all power is inherent in the people, that all free governments are founded on the people’s authority and consent, and that corporate entities and their directors and managers shall not enjoy special privileges or powers under the law which make community majorities subordinate to them.
Mora Ordinance at § 4.5.
Thus, both inherently under the Declaration’s theory of legitimate American government, and as expressly provided by federal law, their State Constitution,
and the Mora Ordinance, Mora Coun-tians possess the local, state, and federally guaranteed constitutional authority to govern their own community. That authority includes the right to change their local system of government if it fails to recognize their authority to govern, or if the system has been rendered incapable of securing the peoples’ fundamental civil rights.
Response at 20-22 (footnotes omitted)(emphasis in original). They further contend that the United States Congress has codified the Declaration of Independence as an “organic law” and that principles from the Declaration of Independence are embedded into the preamble to the Constitution. Response at 21 n. 4 (citing 1 U.S.C. § i-iii).
The Defendants argue that corporate constitutional rights nullify Mora County residents’ self-governing authority. See Response at 22. They contend that, for the past 150 years, the judiciary has conferred on corporations rights that were once intended to protect only natural persons. See Response at 23. They assert that corporations “are, of course, property, and property itself is incapable of possessing civil or political rights.” Response at 23 n. 8. The Defendants list a number of constitutional rights that the Supreme Court has recognized that corporations hold. See Response at 23 & n. 9, n. 10, n. 11 (citing First Nat’l Bank of Boston v. Bellotti
The Defendants contend that corporations are creations of the state. See Response at 24 (citing Hale v. Henkel,
The Defendants argue that Mora County residents have certain fundamental rights, including the right to water, the right to a healthy environment, and the right to a sustainable energy future, and that Mora County residents decided that hydrocarbon extraction activities would violate those fundamental rights. See Re
By their very nature, then, corporate constitutional “rights” often override the authority of community majorities to make their own rules for economic development, agriculture, energy, resource extraction, and other matters of public policy that affect the business of corporations. Thusly have the rights of property routinely (and unconstitutionally) superseded the collective rights of people exercised through local and state governments,.rendering — in this case — a local system of government incapable of carrying out the governing authority of the community majority. It is that failure of their local system of government — prior to the adoption of the Mora Ordinance — that triggered the inherent and constitutional right of the people of Mora County to replace their system of county government with one which recognizes the people’s self-governing authority and which protects their rights.
Response at 27 (emphasis in original).
The Defendants contend that, if the Court invalidates any portions of the Ordinance, those portions are severable from the remaining Ordinance. See Response at 27. They contend that an invalid portion of a law can be severed from the remaining portions if: (i) the invalid portion would not impair the force and effect of the valid portions; (ii) the legislative purpose of the valid portion can be given force and effect without the invalid portions; and (iii) it cannot be said that the legislature would not have passed the remaining portions without the invalid parts. See Response at 27 (citing Bd. of Cnty. Comm’rs v. QWest Corp.,
4. Intervenor’s Opposition to Motion.
The DefendántAlntervenors, La Merced de Santa Getrudis de lo Mora and Jacobo Pacheco, filed the Defendant Intervenor-Applicants’ Opposition to. Plaintiffs’ [sic] Motion for Judgement [sic] on the Pleadings, filed June 12, 2014 (Doc. 34)(“Inter-venor Motion”). When the DefendanNIn-tervenors filed the Intervenor Motion, the Court had not yet ruled on the Defendant Intervenor-Applicants’ Motion to Intervene, filed March 6, 2014 (Doc. 6)(“Motion to Intervene”). They argue that the Court should deny the Motion for the reasons set forth in the Defendants’ Answer. See In-tervenor Motion at 3. They also request that the Court postpone ruling on the Motion until the Court rules on the Motion to Intervene and provides them with an opportunity to respond to the Motion. See Intervenor Motion at 3.
5. The Reply.
SWEPI, LP replied on July 14, 2014. See SWEPI’s Reply Brief in Support of
SWEPI, LP contends that the Defendants’ denial of SWEPI, LP’s allegation that it owns valid oil-and-gas leases in Mora County is contrary to the Defendants’ judicial admissions in the Answer. See Reply at 2 (citing Answer ¶ 5, at 2 (stating that the Defendants “admit that a copy of a lease dated August 1, 2010 between ■ the State of New Mexico and SWEPI is attached to the Complaint as Exhibit 3”)). SWEPI, LP argues that the Defendants do not state a basis for retracting their judicial admission and that they cannot avoid the admission merely because it suits their current purposes. See Reply at 2 (citing Guidry v. Sheet Metal Workers Int’l Ass’n,
SWEPI, LP maintains that its interests in the leases confer it with standing. See Reply at 3. It argues that, because the Ordinance destroys its constitutionally protected property interests — its oil-and-gas leases — it has suffered an injury in fact. See Reply at 5 (citing Deniz v. Mun. of Guaynabo,
SWEPI, LP further argues that, even if it obtained the leases for purposes other than to explore for and extract hydrocarbons, it would have standing, because the Ordinance destroys an interest in real property. See Reply at 7. SWEPI, LP contends that, if it purchased the leases with the hope that they would appreciate in value, the destruction of the leases’ value constitutes an injury in fact. See Reply at 7. It asserts that the United States Court of Appeals for the Fifth Circuit supports this argument in Energy Management Corp. v. City of Shreveport,
SWEPI, LP argues that its claims are ripe for adjudication. See Reply at 10. It contends that the Defendants misunderstand the' ripeness doctrine. See Reply at 10. SWEPI, LP asserts that ripeness considers whether an issue is purely legal and whether a challenged agency action is fi
SWEPI, LP contends that the Motion presents pure questions of law. See Reply at 13-14. It argues that it can bring a challenge under the Supremacy Clause, even if the federal law that preempts state law does not- create a private right of action. See Reply at 14 (citing Qwest Corp. v. City of Santa Fe,
6. The November 11, 2014, Hearing.
The Court held a hearing on November 3, 2014. See Transcript of Hearing (taken November 3, 2014), filed November 14, 2014 (Doc. 54)(“Tr.”). ■ The Court first heard arguments on the Motion to Inter-yene. See Tr. at 3:13-26:18 (Anderson, Haas, Long, Court). Because the same attorney represented both the Intervenor-Defendants and the Defendants, the Court told the parties that, for the purposes of the hearing, it would “allow the interve-nors to make whatever arguments they have” on the Motion, so that, if the Court later granted the Motion to Intervene, it would know their arguments regarding the
In discussing the Ordinance’s origin, SWEPI, LP asserted that it believed that an environmental group on the East Coast did the original draft, and that Mora County later tailored and adopted it. See Tr. at 28:10-29:4 (Anderson, Court). The Defendants asserted that the Ordinance was prepared after many hearings were held in Mora County over a one-to-two-year period. See Tr. at 34:2-11 (Haas, Court). They stated that local committees studied the Ordinance while drafting it and that an organization called the Community Environmental Legal Defense provided legal advice. See Tr. at 34:12-25 (Haas, Court). SWEPI, LP conceded that it did not know of any oil-and-gas exploration or development in Mora County. See Tr. at 39:25-40:6 (Anderson).
SWEPI, LP and the Defendants agreed that the Court would have to deal with the jurisdictional issues of standing and ripeness before addressing the Motion’s substance. See Tr. at 29:19-30:5 (Anderson, Court); id. at 32:19-24 (Haas). SWEPI, LP stated that the issues of ripeness and standing are issues for rule 12(b)(1) of the Federal Rules of Civil Procedure and that the Court can supplement the record in determining issues under rule 12(b)(1). See Tr. at 30:20-31:4 (Anderson, Court). SWEPI, LP argued, however, that the pleadings on their face establish standing. See Tr. at 31:16-20 (Anderson).
In addressing standing, SWEPI, LP repeated a number of its arguments from the Reply, arguing that the leases confer standing and that the Court can rely on them, because it attached them to the Complaint, and because they are public documents. See Tr. at 36:6-10 (Anderson). It argued that the leases were obtained before the Defendants enacted the Ordinance and that the leases are only for the development of hydrocarbons. See Tr. at 37:11-23 (Anderson, Court). The Court asked SWEPI, LP if it purchased the leases to manufacture a lawsuit to challenge the Ordinance, and SWEPI, LP responded by stating that it invested millions of dollars to purchase dozens of leases in Mora County and that it purchased the leases in 2010, three years before the Defendants enacted the Ordinance. See Tr. at 38:12-39:10 (Anderson, Court); id. at 61:1-8 (Montano, Court); id. at 64:5-21 (Anderson). SWEPI, LP argued that Alto Eldorado Partners v. City of Santa Fe is distinguishable, because, here, SWEPI, LP is a subsidiary of Shell Oil, which is “a major oil and gas producer and developer,” and because SWEPI, LP has a concrete, identifiable stake in the case: the millions of dollars it spent on leases in Mora County. Tr. at 41:3-23 (Anderson, Court). SWEPI, LP conceded that the record does not contain evidence of a concrete plan to begin hydrocarbon exploration and development in Mora County, but it argued that holding the leases is sufficient to establish standing, especially for its takings claim. See Tr. at 42:2-43:22 (Anderson, Court). SWEPI, LP contended that its status as a corporation does not, by itself, provide it with standing, but that, because the Ordinance violates its constitutional rights, it has standing. See Tr. at 66:8-67:12 (Anderson, Court).
The Defendants addressed SWEPI, LP’s contention that it spent millions of dollars in leases by arguing that, in the one lease that SWEPI, LP attached to the Complaint, SWEPI, LP paid $8,800.00 to
In addressing ripeness," SWEPI, LP largely repeated its arguments from the Reply-that the Ordinance constitutes a final legislative action and that, if the Court does not determine the case, it will suffer a hardship. See Tr. at 72:7-74:12 (Anderson, Court). It argued that it does not need to expend the money and resources to explore and drill for hydrocarbons in Mora County, risking prosecution, to show that it faces a hardship for ripeness purposes. See Tr. at 75:8-20 (Anderson).
When asked about the fact that SWEPI, LP violated the Ordinance by filing the Complaint, yet Mora County has not prosecuted it, SWEPI, LP contended that it does not need to show an imminent threat of prosecution, because, for its First Amendment and equal protection claim, the Ordinance prohibits SWEPI, LP from engaging in certain activities. See Tr. at 69:18-70:14 (Anderson, Court).
The Defendants again argued that there is no evidence in the record that SWEPI, LP is prepared to explore for and extract hydrocarbons in-Mora County, because it denied those allegations in their Answer, making the case premature. See Tr. at 75:24-21 (Haas). They contended that, for ripeness, SWEPI, LP must show either that it is going to be prosecuted or that, if it acts in a certain manner, it will be
SWEPI, LP noted that Mora County has a legitimate state interest in its citizens’ health, safety, and welfare, including an interest in clean water. See Tr. at 83:14-84:7 (Anderson, Court). SWEPI, LP argued that a municipality cannot regulate zoning on state land, even state land that is within the municipality’s borders. See 84:25-87:10 (Anderson, Court). It also argued that municipalities cannot pass ordinances that are inconsistent with rules that the State of New Mexico or its agencies promulgate. See Tr. at 87:11-24 (Anderson, Court).
The Defendants represented that, in addressing SWEPI, LP’s argument that state law preempts municipal law in the oil-and-gas arena, they will show that the Oil and Gas Commission cannot regulate oil-and-gas drilling, which creates a factual issue. See Tr. at 91:2-25 (Haas, Court). They contend that, because there is insufficient state enforcement against oil-and-gas leaks and spills, they had to pass the Ordinance to protect their water. See Tr. at 92:1-25 (Haas). When the Court stated that State enforcement and the State’s preemption of municipal law were legal issues, the Defendants argued that- they are based on factual premises. See Tr. at 93:10-94:12 (Haas, Court). The Defendants argued that the more the Court supplements the record, the more the Motion turns into a motion for summary judgment. See Tr. at 96:19-21 (Haas).
In support of its Supremacy Clause claim, SWEPI, LP argued that the Ordinance explicitly states that it preempts federal, constitutional law. See Tr. at 98:1-99:5 (Anderson). The Defendants responded by arguing that corporate rights and community rights are included in the Constitution, the Declaration of Independence, and the nation’s history, and that the Ordinance is based on “a history of law that predates the Constitution” and that is part of the Declaration of Independence, which is part of the United States Code. Tr. at 99:10-100:6 (Haas). They contended that the Ordinance does not declare that corporations are not constitutional persons, but that, if corporations violate the Ordinance, they lose théir legal protections. See Tr. at 100:7-12 (Haas). The Defendants stated that it is ironic that SWEPI, LP — a corporation and property — is suing under 42 U.S.C. § 1983, which Congress passed after the Civil War to protect the rights of former slaves and to establish that people are not property, because, in this case, property is using § 1983 to sue people. See Tr. at 100:13-101:4 (Haas). They argued that the Treaty of Guadalupe Hidalgo
Concerning its equal protection claims, SWEPI, LP repeated its arguments that the Ordinance’s purpose is to disempower corporations and that it was enacted based on an animus against corporations, which is not a legitimate state interest. See Tr. at 105:16-109:13 (Anderson, Court)(citing Bishop v. Smith,
The Defendants argued that the Ordinance prohibits individuals, as well as corporations, from engaging in hydrocarbon exploration and extraction. See Tr. at 109:21-111:13 (Haas, Court). They contended that there is a factual issue whether they passed the Ordinance because of an anti-corporation animus. See Tr. at 111:21-112:6 (Haas). The Defendants further argued that the Ordinance applies only to corporations seeking to extract hydrocarbons in Mora County and not to corporations in general, which evidences that its purpose is to protect the environment and not to penalize corporations. See Tr. at 112:7-19 (Haas); id. at 113:18— 24 (Haas). They maintained that corporations are singled out in the Ordinance, because only corporations have the resources and immunities to engage in oil- and-gas extraction, and to avoid liability for spill and leaks by declaring bankruptcy. See Tr. at 112:16-113:6 (Haas). The Defendants argued that there is a factual issue whether individuals engage in oil- and-gas extraction. See Tr. at 113:6-10 (Haas). They contended that corporations create subsidiaries to protect themselves from liability, which happened in this case, because SWEPI, LP is Shell Oil’s subsidiary. See Tr. at 114:23-115:10 (Haas, Court).
For its First Amendment claim, SWEPI, LP repeated some of the arguments from its briefs. See Tr. at 122:20-123:17 (Anderson). The Defendants again argued that corporate constitutional rights conflict with community rights, which provides Mora County with the power to nullify SWEPI, LP’s First Amendment rights. See Tr. at 123:22-124:7 (Haas).
For its takings claim, SWEPI, LP argued that it has standing, because it needed to show only that it owns land that the Ordinance destroyed, which it has shown. See Tr. at 125:2-126:25 (Anderson, Court). It argued that its claim is based on an appropriation of property, which is a rubric of a regulatory takings claim. See Tr. at 126:7-11 (Anderson). SWEPI, LP ar
The Defendants contended that, if the Ordinance banned releasing cyanide into water streams and if SWEPI, LP’s lease was for gold mining that would involve the use of cyanide, the Ordinance would not be a taking. See Tr. at 127:8-16 (Haas). They argued that, in the same way, the Ordinance protects the health and safety of Mora County residents. See Tr. at Í27:17-128:16 (Haas, Court). When the Court asked the Defendants if SWEPI, LP’s leases have any benefit in light of the Ordinance, they argued that it could still gather water or other minerals that are not hydrocarbons. See Tr. at 128:25-130:12 (Haas, Court).
SWEPI, LP and the Defendants repeated their arguments from their briefs for the substantive due-process claims. See Tr. at 134:9-135:15 (Anderson, Haas, Court). For its state-law preemption claim, SWEPI, LP argued that the Court would have diversity jurisdiction to decide the state-law claims if the Court ruled in its favor for its federal claims. See Tr. at 136:20-137:23 (Montaño, Court). It argued that local government cannot ban activities that the state government has said are permissible. See Tr. at 138:1-17 (Montaño); id. at 143:13-144:1 (Montaño). SWEPI, LP argued that a county cannot impose zoning regulations on state lands, even if the state lands are leased to a private party, because, once the state land is leased, the Land Commissioner still retains interest in the property. See Tr. at 139:15-140:18 (Montaño, Court). SWEPI, LP contended that this restriction applies even when the state is acting in a commercial fashion and when the state lands are within a municipality’s borders. See Tr. at 141:11-142:17 (Montaño, Court). It further argued that regulating oil-and-gas production on state lands economically affects the State of New Mexico, because the State receives royalties from the state lands. See Tr. at 147:7-18 (Montaño). SWEPI, LP asserted that counties- often regulate activities above ground, while the State often regulates activities that occur below ground. See Tr. at 148:12-17 (Mon-taño).
The Defendants argued that the Oil and Gas Act does not explicitly preempt local governments from regulating oil and gas, and that the Ordinance does not regulate oil-and-gas extraction, but bans it. See Tr. at 145:9-19 (Haas, Court). They argued that, if conduct on state lands affects the water on the adjoining Mora County lands, Mora County has a right to regulate the conduct that is occurring on the state lands. See Tr. at 146:10-22 (Haas). Additionally, the Defendants argued that, if the Court decides the federal issues, it would not have diversity jurisdiction over the case, because arms of the state, including counties, are not citizens of the state for diversity purposes. See Tr. at 174:24-176:2 (Long, Court)(citing Moor v. Alameda Cnty.,
The Defendants again argued that the Ordinance’s purpose is to protect Mora County’s environment and to .prohibit oil- and-gas extraction, not to discriminate against corporations. See Tr. at 157:11— 158:12 (Haas). They asserted that, if the Court invalidates the Ordinance’s distinction between corporations and individuals, the Court should sever those portions from the remaining provisions. See Tr. at 158:13-21 (Haas). The Defendants also argued that the Ordinance contains a sev-erability clause, which states that any invalid portions should be severed from the rest of the Ordinance. See Tr. at 160:7-161:9 (Haas).
The Court stated that it was inclined to find that SWEPI, LP has standing, based solely on the leases, and especially if SWEPI, LP supplements the record with additional documents supporting standing. See Tr. at 71:3-12 (Court). The Court also informed the parties that it was inclined to find that the case is ripe. See Tr. at 82:18-5 (Court). For SWEPI, LP’s equal protection claim, the Court noted that it was inclined to find that the distinction between corporations and individuals was not based on a legitimate rational basis. See Tr. at 121:9-122:15 (Court). The Court stated that it was inclined to invalidate the portion of the Ordinance that says that corporations do not have First or Fifth Amendment rights in Mora County. See Tr. at 124:11-125:1 (Court). The Court noted that it would likely invalidate some of the Ordinance’s provisions as a violation of SWEPI, LP’s substantive due-process rights. See Tr. at 135:16-23 (Court).
7. SWEPI, LP’s Supplemental Evidence.
On November 19, 2014, SWEPI, LP filed the Notice of Supplemental Evidence Relating to. Justiciability, filed November 19, 2014 (Doc. 57)(“SWEPI Supplement”). SWEPI, LP attached to its supplement copies of thirty-six oil-and-gas leases from Mora County. SWEPI Supplement at 1-5. Each of the oil-and-gas leases were executed in 2008 or 2010. See SWEPI Supplement at 1-5. According to the leases, SWEPI, LP paid a total of $216,200.00 for all of the leases. See SWEPI Supplement at 1. SWEPI, LP states that it submitted the supplemental evidence for the purpose of the establishing the Court’s subject matter jurisdiction over the case. See SWEPI Supplement at 1 (citing Newton v. Dep’t of Veterans Affairs, No. CIV 12-0163 JB/LAM,
8. The Defendants’ Supplemental Evidence.
On December 15, 2014, the Defendants filed the Defendants’ Notice of Supplemental Evidence Relating to Justiciability, filed December 15, 2014 (Doc. 65)(“Defendants 1st Supplement”). The Defendants attached to their supplement an affidavit by Dr. Kate Zeigler, who is a geologist and is the owner of Zeigler Geologic Consulting,
The Defendants also attached to its supplement a spreadsheet of all oil-and-gas wells in Mora County and an electronic mail transmission from William Jones, District IV Supervisor of the New Mexico Oil Conservation Division. See Well Spreadsheet, filed December 15, 2014 (Doc. 65-4); Electronic Mail Transmission from William Jones, District IV Supervisor of the New Mexico Oil Conservation Division, to Dianne Lindsay (Dec. 9, 2014), filed December 15, 2014 (Doc. 65-5)(“Jones 1st Email”). In the electronic mail transmission, Jones states that all wells in Mora County have been plugged
The Defendants argue that this evidence shows that SWEPI, LP is not currently seeking to engage in oil-and-gas exploration and extraction in Mora County. See Defendants 1st Supplement at 2. They contend that this evidence shows that SWEPI, LP’s claims are not ripe and that it lacks standing. See Defendants 1st Supplement at 2-4.
On December 16, 2014, the Defendants filed the Defendants’ Second Notice of Supplemental Evidence Relating to Justici-ability, filed December 16, 2014 (Doc. 67)(“Defendants 2d Supplement”). The Defendants attached to their second supplement an electronic mail transmission from Jones stating that there have been no applications for oil-and-gas drilling permits in Mora County. See Electronic Mail Transmission from William Jones, District IV Supervisor of the New Mexico Oil Conservation Division, to Dianne Lindsay (Dec. 15, 2014), filed December 16, 2014 (Doc. 67-1)(“Jones 2d Email”). The Defendants again argue that the lack of permit applications shows that SWEPI, LP
9. Additional Brieñng.
On January 9, 2015, the Court requested that the parties provide additional briefing on the ripeness of SWEPI, LP’s takings claim. See Request for Additional Briefing, filed January 9, 2014 (Doc. 77)(“Re-quest for Briefing”). The Court noted that the United States Court of Appeals for the Tenth Circuit requires a plaintiff to first seek just compensation from the state, if adequate procedures exist, before bringing an action under the Takings Clause. See Request for Briefing at 2. The Court asked the parties to provide additional briefing whether an inverse condemnation action under N.M. Stat. Ann. § 42A-1-29 provides an adequate procedure for seeking compensation, such that federal takings law requires SWEPI, LP to file an inverse condemnation action before its takings claim is ripe. See Request for Briefing at 2-3.
The Defendants responded to the request by arguing that § 42A-1-29 provides SWEPI, LP with an adequate procedure for seeking just compensation. See Electronic Mail Transmission from Nancy R. Long to the Honorable James O. Browning, United States District Judge for the District of New Mexico at 1-2, filed January 19, 2015 (Doc. 82)(“Defendants Takings Email”). They argue that SWEPI, LP has not sought compensation through an inverse condemnation action. See Defendants Takings Email at 3. The Defendants assert that, because SWEPI, LP has not sought just compensation, its takings claim is not ripe. See Defendants Takings Email at 4. SWEPI, LP did not provide any additional briefing.
LAW REGARDING RULE 12(b)(1)
“Federal courts are courts of limited jurisdiction; they are empowered to hear only those cases authorized and defined in the Constitution which have been entrusted to them under a jurisdictional grant by Congress.” Henry v. Office of Thrift Supervision,
On a facial attack, a plaintiff is afforded safeguards similar to those provided in opposing a rule 12(b)(6) motion: the court must consider the complaint’s allegations to be true. See Ruiz v. McDonnell,299 F.3d at 1180 ; Williamson v. Tucker,645 F.2d 404 , 412 (5th Cir.1981). But when the attack is aimed at the jurisdictional facts themselves, a district court may not presume the truthfulness of those allegations. A court has wide discretion to allow affidavits, other documents, and, a limited evidentiary hearing to resolve disputed jurisdictional facts under Rule 12(b)(1). In such instances, a court’s reference to evidence outside the pleadings does not convert the motion to a Rule 56 motion.
Hill v. Vanderbilt Capital Advisors, LLC,
[T]he trial court may proceed as it never could under 12(b)(6) or Fed.R.Civ.P. 56. Because at issue in a factual 12(b)(1) motion is the trial court’s jurisdiction&emdash; its very power to hear the case&emdash;there is substantial authority that the trial court is free to weigh the evidence and satisfy itself as to the existence of its power to hear the case. In short, no presumptive truthfulness attaches to plaintiffs allegations, and the existence of disputed material facts will not preclude the trial court from evaluating for itself the merits of jurisdictional claims.
Williamson v. Tucker,
When making a rule 12(b)(1) motion, a party may go beyond the allegations in the' complaint to challenge the facts upon which jurisdiction depends, and may do so by relying on affidavits or other evidence properly before the court. See New Mexicans for Bill Richardson v. Gonzales,
LAW REGARDING RULE 12(b)(6)
Rule 12(b)(6) authorizes a court to dismiss a complaint for “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). “The nature of a Rule 12(b)(6) motion tests the sufficiency of the allegations within the four corners of the complaint after taking those allegations as true.” Mobley v. McCormick,
To survive a motion to dismiss, a plaintiffs complaint must contain sufficient facts that, if assumed to be true, state a claim to relief that is plausible on its face. See Bell Atl. Corp. v. Twombly,
“[Plausibility” in this context must refer to the scope of the allegations in a complaint: if they are so general that they encompass a wide swath of conduct, much of it innocent, then the plaintiffs “have not nudged their claims across the line from conceivable to plausible.” The allegations must be enough that, if assumed to be true, the plaintiff plausibly (not just speculatively) has a claim for relief.
Robbins v. Oklahoma,
Although affirmative defenses must generally be pled in the defendant’s answer, not argued on a motion to dismiss, see Fed.R.Civ.P. 8(c), there are exceptions where: (i) the defendant asserts an immunity defense&emdash;the courts handle these cases differently than other motions to dismiss, see Glover v. Gartman,
LAW REGARDING RULE 12(c)
Any party may move for judgment on the pleadings if no material facts are in dispute, and the dispute can be resolved on both the pleadings and any facts of which the Court can take judicial notice. See Fed.R.Civ.P. 12(c). A motion pursuant to rule 12(c) of the Federal Rules of Civil Procedure is generally treated in the same manner as a rule 12(b)(6) motion to dismiss. See Mock v. T.G. & Y. Stores Co.,
LAW REGARDING LIABILITY FOR CONSTITUTIONAL VIOLATIONS UNDER 42 U.S.C. § 1983
Section 1983 of Title 42 of the United States Code provides:
Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution .and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress, except that in any action brought against a judicial officer for an act or omission taken in such officer’s judicial capacity, injunctive relief shall not be granted unless a declaratory decree was violated or declaratory relief was unavailable. For the purposes of this section, any Act of Congress applicable exclusively to the District of-Columbia shall be considered to be a statute of the District of Columbia.
42 U.S.C. § 1983. “To state a claim under § 1983, a plaintiff must allege the violation of a right secured by the Constitution and laws of the United States, and must show that the alleged deprivation was committed by a person acting under color of state law.” West v. Atkins,
1. Color of State Law.
“Under Section 1983, liability attaches only to conduct occurring ‘under color of law.’ ” Gallagher v. Neil Young Freedom Concert,
In the context of a public employee, the Tenth Circuit has directed that, while “ ‘state employment is generally sufficient to render the defendant a state actor ... [,]’ at the same time, it is ‘well settled that an otherwise private tort is not committed under color of law simply because the tortfeasor is an employee of the state.’ ” Jojola v. Chavez, 55 F.3d at 493 (quoting Lugar v. Edmondson Oil Co.,
The under color of law determination rarely depends on a single, easily identifiable fact, such as the officer’s attire, the location of the act, or whether or not the officer acts in accordance with his or her duty. Instead one must examine “the nature and circumstances of the officer’s conduct and the relationship of that conduct to the performance of his official duties.”
David v. City & Cnty. of Denver,
2. Individual Liability.
Government actors may be liable for the constitutional violations that another committed, if the actors “set in motion a series of events that the defendant knew or reasonably should have known would cause others to deprive the plaintiff of her constitutional rights,” thus establishing the “requisite causal connection” between the government actor’s conduct and a plaintiffs constitutional deprivations. Trask v. Franco,
The Tenth Circuit has found liability for those defendants who proximately caused an injury alleged under § 1983 and stated that the fact, that the “conduct of other people may have concurrently caused the harm does not change the outcome as to [the defendant],” so long as there was not a superseding-mtervening cause of a plain
Even if a factfinder concludes that the residential search was unlawful, the officers only “would be liable for the harm ‘proximately’ or ‘legally’ caused by their tortious conduct.” Bodine v. Warwick,72 F.3d 393 , 400 (3d Cir.1995). “They would not, however, necessarily be hable for all of the harm caused in the ‘philosophic’ or but-for sense by the illegal entry.” Id. In civil rights cases, a superseding cause, as we traditionally understand it in tort law, reheves a defendant of liability. See, e.g., Warner v. Orange Cnty. Dep’t of Prob.,115 F.3d 1068 , 1071 (2d Cir.1997); Springer v. Seaman,821 F.2d 871 , 877 (1st Cir.1987), abrogated on other grounds by Jett v. Dallas Indep. Sch. Dist.,491 U.S. 701 ,109 S.Ct. 2702 ,105 L.Ed.2d 598 (1989).
Trask v. Franco,
Suppose that three police officers go to a suspect’s house to execute an arrest warrant and that they improperly enter without knocking and announcing their presence. Once inside, they encounter the suspect, identify themselves, show him the warrant, and tell him that they are placing him under arrest. The suspect, however, breaks away, shoots and kills two of the officers, and is preparing to shoot the third officer when that officer disarms the suspect and in the process injures him. Is the third officer necessarily liable for the harm caused to the suspect on the theory that the illegal entry without knocking and announcing rendered any subsequent use of force unlawful? The obvious answer is “no.” The suspect’s conduct would constitute a “superseding” cause, see Restatement (Second) of Torts § 442 (1965), that would limit the officer’s liability. See id. § 440.
Trask v. Franco,
the reasonable foreseeability of an intervening act’s occurrence is a factor in determining whether the intervening act relieves the actor from liability for his antecedent wrongful act, and under the undisputed facts there is room for reasonable difference of opinion as to whether such act was wrongful or foreseeable, the question should be left for the jury.
Trask v. Franco,
3. Supervisory Liability.
The Tenth Circuit has held that supervisors are not liable under 42 U.S.C. § 1983 unless there is “ ‘an affirmative link ... between the constitutional deprivation and either the supervisor’s personal participation, ... exercise of control or direction, or ... failure to supervise.’ ” Gallagher v. Shelton,
The Tenth Circuit has recognized that Ashcroft v. Iqbal limited, but did not eliminate, supervisory liability for government officials based on an employee’s or subordinate’s constitutional violations. See Garcia v. Casuas,
Whatever else can be said about Iqbal, and certainly much can be said, we conclude the following basis of § 1983 liability survived it and ultimately resolves this case: § 1983 allows a plaintiff to impose liability upon a defendant-supervisor who creates, promulgates, implements, or in some other way possesses responsibility for the continued operation of a policy the enforcement (by the defendant-supervisor or her subordinates) of which “subjects, or causes to be subjected” that plaintiff “to the deprivation of any rights ... secured by the Constitution.... ”
A plaintiff may ... succeed in a § 1983 suit against a defendant-supervisor by demonstrating: ' (1) the defendant promulgated, created, implemented or possessed responsibility for the continued operation of a policy that (2) caused the complained of constitutional harm, and (3) acted with the state of mind required to establish the alleged constitutional deprivation.
Dodds v. Richardson,
Where a plaintiff claims that a particular municipal action itself violates federal law, or directs an employee to do so, resolving these issues of fault and causation is straightforward. Section 1983 itself contains' no state-of-mind requirement independent of that necessary to state a violation of the underlying federal right. In any § 1983 suit, however, the plaintiff must establish the state of mind required to prove the underlying violation. Accordingly, proof that a municipality’s legislative body or authorized decisionmaker has intentionally deprived a plaintiff of a federally protected right necessarily establishes that the municipality acted culpably. Similarly, the conclusion that the action taken or directed by the municipality or its authorized decisionmaker itself violates federal law will also determine that the municipal action was the moving force behind the injury of which the plaintiff complains.
Dodds v. Richardson,
4. Municipal Liability.
A municipality will not be held liable under § 1983 solely because its officers inflicted injury. See Graves v. Thomas,
LAW REGARDING STANDING
A federal court may hear cases only where the plaintiff has standing to sue.' Standing has two components. First, standing has a constitutional component arising from Article Ill’s requirement that federal courts hear only genuine cases or controversies. Second, standing has a prudential component. See Habecker v. Town of Estes Park, Colo.,
1. Article III Standing.
“Article III of the Constitution limits the jurisdiction of federal courts to Cases • and Controversies.” San Juan County v. United States,
“Standing is determined as of the time the action is brought.” Smith v. U.S. Court of Appeals, for the Tenth Circuit,
was in no position to challenge the adequacy of state appellate review in cases culminating in unpublished opinions unless he could show that he would in fact receive such review from the state court of appeals (and from the state supreme court as well, if it took the case on certiorari).
By contrast, in Nova Health Sys. v. Gandy, the Tenth Circuit found that abortion providers had standing to challenge an Oklahoma parental-notification law on the grounds that they were in imminent danger of losing patients because of the new law. Although finding standing, the Tenth Circuit was careful to frame the issue as whether, “as of June 2001 [the time the lawsuit was filed],” Nova faced any immi
2. Prudential Standing.
“Prudential standing is not jurisdictional in the saihe sense as Article III standing.” Finstuen v. Crutcher,
A “plaintiff generally must assert his own legal rights and interests, and cannot rest his claim to relief on the legal rights or interests of third parties.” Aid for Women v. Foulston,
LAW REGARDING RIPENESS
“In order for a claim to be justiciable under Article III, it must be shown to be a ripe controversy.” New Mexicans for Bill Richardson v. Gonzales,
In MedImmune, Inc. v. Genentech, Inc., a patent licensee, who continued to pay
The complaint filed in this case does not specify the sort of travel to Cuba appellant has in mind — e.g., whether he plans to proceed to Cuba directly or travel there via one or more other countries. Nor can we tell from the papers filed whether the Government will, in the event appellant journeys to Cuba, charge him under § 215(b) with leaving the United States on a carrier bound for Cuba with a passport not validated for Cuba; leaving the United States with such a passport with the intent of traveling to Cuba before he returns home; leaving the United States with such a passport on a journey which in fact takes him to Cuba; re-entering the United States with such a passport after having visited Cuba; some other act — or whether it will charge him at all. Whether each or any of these gradations of fact or charge would make a difference as to criminal liability is an issue on which the District Court wisely took no position. Nor do we. For if we are to avoid rendering a series of advisory opinions, adjudication of the reach and constitutionality of § 215(b) must await a concrete fact situation.
Zemel v. Rusk,
In Eccles v. Peoples Bank,
[T]he Bank seeks a declaration of its rights if it should lose its independence [from Transamerica], or if the Board of Governors should reverse its policy and seek to invoke the condition even though the Bank remains independent and if then the Directors of the Federal Deposit Insurance Corporation should not change their policy not to grant deposit insurance to the Bank as a non-member of the Federal Reserve System.
Eccles v. Peoples Bank,
In Plant Oil Powered Diesel Fuel Systems, Inc. v. ExxonMobil Corp.,
LAW REGARDING TAKINGS CLAIMS UNDER THE FIFTH AMENDMENT
The Takings Clause of the Fifth Amendment to the Constitution of the United States states that “private property” shall not “be taken for public use, without just compensation.” U.S. Const, amend. V. The Supreme Court has stated: “The Takings Clause of the Fifth Amendment, applicable to the States through the Fourteenth Amendment, ... prohibits the government from taking private property for public use without just compensation.” Palazzolo v. Rhode Island, 533 U.S. 606, 617,
LAW REGARDING FIRST AMENDMENT OVERBREADTH CHALLENGES
An overbreadth challenge is a facial challenge to a speech-restricting statute on First Amendment grounds, and, if successful, it results in the invalidation of the entire statute. To succeed, the challenged statute must regulate substantially more expression than the First Amendment allows governments to regulate. See Schad v. Borough of Mt. Ephraim,
1. The Substantive Aspect: Inverting the Usual Rule for Facial Challenges.
Outside of the First-Amendment context, for a party to succeed in facially challenging a statute, “the challenger must establish that no set of circumstances exists under which the Act
An example of a successful overbreadth challenge occurred in Schad v. Borough of Mt. Ephraim. In that ease, a club that featured nude dancing challenged a city ordinance that purported to ban all live entertainment in commercial zones.
“[T]he overbreadth of a statute must not only be real, but substantial as well, judged in relation to the statute’s plainly legitimate sweep.” Broadrick v. Oklahoma,
As to where the line is between insubstantial overbreadth and substantial over-breadth, the Supreme Court has stated:
The concept of substantial over-breadth is not readily reduced to an exact definition. It is clear, however, that the mere fact that one can conceive of some impermissible applications of a statute is not sufficient to render it susceptible to an overbreadth challenge. On the contrary, the requirement of substantial overbreadth stems from the underlying justification for the overbreadth exception itself — the interest in preventing an invalid statute from inhibiting the speech of third parties who are not before the Court.
“The requirement of substantial over-breadth is directly derived from the purpose and nature of the doctrine. While a sweeping statute, or one incapable of limitation, has the potential to repeatedly chill the exercise of expressive activity by many individuals, the extent of deterrence of protected speech can be expected to decrease with the declining reach of the regulation.” New York v. Ferber,458 U.S. 747 , 772,102 S.Ct. 3348 ,73 L.Ed.2d 1113 (1982). In short, there must be a realistic danger that the statute' itself will significantly compromise recognized First Amendment protections of parties not before the Court for it tó be facially challenged on over-breadth grounds.
Members of the City Council of L.A. v. Taxpayers for Vincent,
When assessing whether an over-broad statute is likely to chill third parties from engaging in protected expression, courts should assess not only whether the number of unconstitutional potential applications of the statute is significant relative to the overall number of applications, but the levél of interpretive discretion given to those in charge of its enforcement, and the likelihood of capricious enforcement. In City of Houston v. Hill,
As the Court observed over a century ago, “[i]t would certainly be dangerous if the legislature could set a net large enough to catch all possible offenders, and leave it to the courts to step inside and say who could be rightfully detained, and who should be set at large.” United States v. Reese, 92 U.S. (2 Otto) 214, 221,23 L.Ed. 563 (1876).
The ordinance’s plain language is admittedly violated scores of times daily, yet only some individuals — those- chosen by the police in their unguided discretion— are arrested. Far from providing the “breathing space” that “First Amendment freedoms need ... to survive,” NAACP v. Button,371 U.S. 415 , 433,83 S.Ct. 328 ,9 L.Ed.2d 405 (1963), the ordinance is susceptible of regular application to protected expression.
City of Houston v. Hill,
Some commentators have ' suggested that, when considering whether a statute’s overbreadth is substantial, courts should take into account the importance of the protected speech being restricted or chilled. See Richard Fallon, Jr., Making Sense of Overbreadth, 100 Yale L.J. 853, 894 (1991). Under this view, a statute that chills a swath of political speech should be more readily facially invalidated than one that chills sexual, frivolous, or even artistic speech&emdash;the latter statute being more amenable to as&emdash;applied challenges. Although the Supreme Court has not endorsed this view explicitly, it has held that “the overbreadth doctrine does not apply to commercial speech.” Village of Hoffman Estates v. Flipside, Hoffman Estates, Inc.,
In Griffin v. Bryant,
2. The Standing Aspect: The Near Abolition of Prudential Standing Factors.
A non-First Amendment, non-overbreadth facial challenge is always more difficult to mount than an as-applied challenge to the same statute. See United States v. Salerno,
Embedded in the traditional rules governing constitutional adjudication is . the principle that a person to whom a statute may constitutionally be applied will not be heard to challenge that statute on the ground that it may conceivably be applied unconstitutionally to others, in other situations not before the Court. A closely related principle isthat constitutional rights are personal and may not be asserted vicariously. These principles rest on more than the fussiness of judges. They reflect the conviction that under our constitutional system courts are not roving commissions assigned to pass judgment on the validity of the Nation’s laws. Constitutional judgments, as Mr. Chief Justice Marshall recognized, are justified only out of the necessity of adjudicating rights in particular cases 'between the litigants brought before the Court.
Broadrick v. Oklahoma,
The relative difficulty of mounting facial and as-applied challenges is almost, but not entirely, reversed in the context of a First Amendment overbreadth challenge. Although a successful as-applied challenge does not guarantee a victorious facial challenge — the court could find the statute’s overbreadth insubstantial — it is not necessary to have a viable as-applied challenge to succeed on a facial challenge. “[Wjhere the claim is that a statute is overly broad in violation of the First Amendment, ... [there is] no requirement that the person making the attack demonstrate that his own conduct could not be regulated by a statute drawn with the requisite narrow specificity.” Sec’y of State of Md. v. Joseph H. Munson Co.,
The relaxation of the usual standing rules in the overbreadth context goes further than simply allowing an individual to whom the law is constitutionally applied to sue on the basis of unconstitutional applications. The challenged law need not have been applied against the challenger at all; as long as the barebones requirements of Article III standing are met,
[T]he Secretary’s most serious argument against allowing Munson to challenge the statute is that there is no showing that a charity cannot bring its own lawsuit. Although such an argument might defeat a party’s standing outside the First Amendment context, this Court has not found the argument dispositive in determining whether standing exists to challenge a statute that allegedly chills free speech. To the contrary, where the claim is that a statute is overly broad in violation of the First Amendment, the Court has allowed a party to assert the rights of another without regard to the ability of the other to assert his own claims and “ ‘with no requirement that the person making the attack demonstrate that his own conduct could not be regulated by a statute drawn with the requisite narrow specificity.’” Broadrick v. Oklahoma,413 U.S. at 612 ,93 S.Ct. 2908 (quoting Dombrowski v. Pfister,380 U.S. 479 , 486,85 S.Ct. 1116 ,14 L.Ed.2d 22 (1965)).
The fact that, because Munson is not a charity, there might not be a possibility that the challenged statute could restrict Munson’s own First Amendment rights does not alter the analysis. Facial challenges to overly broad statutes are allowed not primarily for the benefit of the litigant, but for the benefit of society — to prevent the statute from chilling the First Amendment rights of other parties not before the court. Munson’s ability to serve that function has nothing to do with whether or not its own First Amendment rights are at stake. The crucial issues are whether Munson satisfies the requirement of “injury-in-fact,” and whether it can be expected satisfactorily to frame the issues in the case. If so, there is no reason that Munson need also be a charity. If not, Munson could not bring this challenge even if it were a charity.
The Secretary concedes that the Art. Ill case-or-controversy requirement has been met and the Secretary has come forward with no reason why Munson is an inadequate advocate to assert the charities’ rights. The activity sought to be protected is at the heart of the business relationship between Munson and its clients, and Munson’s interests in challenging the statute are completely consistent with the First Amendment interests of the charities it represents. We see no prudential reason not to allow it to challenge the statute
Sec’y of State of Md. v. Joseph H. Munson Co.,
LAW REGARDING SUBSTANTIVE DUE-PROCESS CLAIMS
The Fourteenth Amendment’s Due Process Clause provides that “no
A government actor’s official conduct intended to injure in a way that cannot reasonably be justified by any government interest most likely shocks the conscience. See Cnty. of Sacramento v. Lewis,
Establishing these limits advances “three basic principles highlighted by the Supreme Court in evaluating substantive due process claims: (1) the need for restraint in defining their scope; (2) the concern that § 1983 not replace state tort law; and (3) the need for deference to local policymaking bodies in making decisions impacting upon public safety.”
Camuglia v. City of Albuquerque,
“Whether the conduct shocks the conscience is an objective test, based on the circumstances, rather than a subjective test based on the government actor’s knowledge.” Peña v. Greffet,
In Martinez v. Uphoff,
In Schaefer v. Las Cruces Public School District,
Assuming the absolute worst from the Schaefers’ alleged facts, the Defendants were aware of three instances of an unknown eighth-grade student racking various sixth-grade students within the span of a month, and failed to implement policies to improve hallway monitoring and stop this conduct from occurring in time to prevent [the plaintiffs’ son] from falling victim to the same fate. Further, the Defendants indicated to the sixth graders that it had policies in place to punish individuals that assaulted other students but did not, in fact, have such policies.
While such behavior may be worthy of remedy under tort law, and perhaps worthy of punishment in the form of punitive damages, the Court’s conscience is not shocked....
Any number of actions by the Defendants might have remedied the problem, but the Court’s conscience is not shocked by the Defendants’ failure to consider or implement such a policy. Even if the Defendants knew that students frequently — more than three times per month — attacked other students in the halls and declined to implement safety measures to minimize that conduct, the Court is not convinced that it would rise to the level of shocking the conscience.
LAW REGARDING INJUNCTIONS
To obtain a permanent injunction, the party requesting such relief bears the burden of showing: “(1) actual success on the merits; (2) irreparable harm unless the injunction is issued; (3) the threatened injury outweighs the harm that the injunction may cause the opposing party; and (4) the injunction, if issued, will not adversely affect the public interest.” Fisher v. Oklahoma Health Care Auth.,
LAW REGARDING SUPPLEMENTAL JURISDICTION
It is a fundamental precept of American law that the federal courts are “courts of limited jurisdiction.” Exxon Mobil Corp. v. Allapattah Servs., Inc.,
1. Congressional Authority.
Although a statutory basis is necessary for federal courts to exercise jurisdiction over a controversy, “it is well established&emdash;in certain classes of cases&emdash; that, once a court has original jurisdiction over some claims in the action, it may exercise supplemental jurisdiction over additional claims that are part of the same case or controversy.” Exxon Mobil Corp. v. Allapattah Servs., Inc.,
In 1988, the Honorable William H. Rehnquist, Chief Justice of the United States, created the Federal Courts Study Committee to analyze the federal court system and to recommend reforms. See James v. Chavez, No. CIV 09-0540 JB/CG,
[I]n any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
28 U.S.C. § 1367(a). In enacting 28 U.S.C. § 1367, Congress conferred upon federal district courts “supplemental forms of jurisdiction ... [that] enable them to take full advantage of the rules on claim and party joinder to deal economically — in single rather than multiple litigation — -with matters arising from the same transaction or occurrence.” Report of the Federal Courts Study Committee, Part II.2.B.2.b. (April 2, 1990), reprinted in 22 Conn. L.Rev. 733, 787 (1990).
2. District Court Discretion.
The Tenth Circuit has followed the Supreme Court’s lead in classifying supplemental jurisdiction, not as a litigant’s right, but as a matter of judicial discretion. See Estate of Harshman v. Jackson Hole Mountain Resort Corp.,
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
28 U.S.C. § 1367(c). In applying these factors, district courts should seek to exercise supplemental jurisdiction in an effort to “vindicate values of economy, convenience, fairness, and comity.” Estate of Harshman v. Jackson Hole Mountain Resort Corp.,
Numerous courts have acknowledged that 28 U.S.C. §, 1367(c) necessarily changed the district courts’ supplemental jurisdiction discretion analysis and that, unless one of the conditions of 28 U.S.C. § 1367(c) exists, courts are not free to decline jurisdiction. See Itar-Tass Russian News Agency v. Russian Kurier, Inc.,
The Tenth Circuit has held that district courts should generally decline jurisdiction over state claims when federal claims no longer remain: “When all federal claims have been dismissed, the court may, and usually should, decline to exercise jurisdiction over any remaining state claims.” Koch v. Del City,
Needless decisions of state law should be avoided both as a matter of comity and to promote justice between the parties, by procuring for them a surer-footed reading of applicable law. Certainly, if the federal claims are dismissed before trial, even though not insubstantial in a jurisdictional sense, the state claims should be dismissed as well.
United Mine Workers of Am. v. Gibbs,
ANALYSIS
The Court will grant the Motion in part and deny it in part, and will invalidate the Ordinance. The Court will consider evidence outside the pleadings solely for the purpose of determining issues of standing and ripeness, because the Court may consider evidence in determining justiciability ■ issues. SWEPI, LP has standing to bring each of its claims, because it has suffered an injury in fact. Because the Defendants have already enacted the Ordinance, and because SWEPI, LP would suffer harm if the Court delayed considering its claims, each of SWEPI, LP’s claims are ripe, except for its claim under the Takings Clause. Because SWEPI, LP has not sought just compensation through a state inverse condemnation action, its takings claim is not ripe. SWEPI, LP may bring its claim under the Supremacy Clause, because it could bring independent claims, through 42 U.S.C. § 1983, under the constitutional provisions that it asserts trumps the Ordinance. Additionally, the Ordinance violates the Supremacy Clause, because it conflicts with federal law. The Ordinance does not, however, violate SWEPI, LP’s substantive due-process rights or the Equal Protection Clause, because the Defendants had a legitimate state interest for enacting the Ordinance. The Ordinance violates the First Amendment by chilling protected First Amendment conduct. Because the Defendants lack the authority to enforce zoning laws .on New Mexico state lands, they may not enforce the Ordinance on state lands. Also, because there is room for concurrent jurisdiction between state and local law, New Mexico state law does not preempt the entire oil-and-gas production field. The Ordinance conflicts, however, with state law by prohibiting activities that state law permits: the production and extraction of oil and gas. Finally, the invalid provisions are not severable from the valid provisions, making the Ordinance, in its entirety, invalid.
I. THE COURT CAN CONSIDER THE SUPPLEMENTED RECORD TO DETERMINE JUSTICIABILITY ISSUES.
The Court can consider the supplemented record to determine justiciability issues. Depending on the substance and issues involved in a 12(c) motion for judgment on the pleadings, the Court will either treat it as a rule 12(b)(6) motion or a rule 12(b)(1) motion. Normally, rule 12(c) motions are determined under the same standard as rule 12(b)(6) motions. See Mock v. T.G. & Y. Stores Co.,
This case is in a unique procedural pos.ture. SWEPI, LP — the plaintiff — filed the Motion pursuant to rule 12(c), and, in response, the Defendants argue that
The Defendants’ arguments that SWEPI, LP lacks standing and that its claims are not ripe are issues that are normally resolved under rule 12(b)(1). See United States v. Rodriguez-Aguirre,
At least two courts have applied a 12(b)(1) standard to certain issues in a motion for judgment on the pleadings while applying a 12(b)(6) standard to other issues. In Muir v. Winston-Salem State University, No. CIV 11-0282,
Accordingly, the Court will treat the Defendants’ subject-matter jurisdiction arguments^ — lack of standing and ripeness— under a rule 12(b)(1) standard and will consider the rest of the Motion under a rule 12(b)(6) standard. The Court will thus consider the parties’ supplemental evidence for purpose of resolving the jurisdictional issues — whether SWEPI, LP has standing and whether its claims are ripe— but will not consider anything outside the pleadings and the documents attached the pleadings in resolving the rest of the Motion.
II. SWEPI, LP HAS STANDING IN THIS CASE.
SWEPI, LP has standing. SWEPI, LP must demonstrate standing on each of its claims and for each form of relief that it seeks. See Davis v. Fed. Election Comm’n,
A. SWEPI, LP HAS SUFFERED AN INJURY IN FACT THAT PROVIDES IT WITH STANDING FOR EACH OF ITS CLAIMS.
SWEPI, LP has suffered an injury in fact that provides it with standing for each of its claims. An injury in fact means the “invasion of a legally protected interest that is ‘(a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical.’ ” N.E. Fla. Chapter of Associated Gen. Contractors of Am. v. City of Jacksonville,
SWEPI, LP suffered an injury in fact to support its takings claim. ‘“The owner of an interest in property at the time of an alleged taking has standing to assert that a taking has occurred.’ ” Deniz v. Mun. of Guaynabo,
In any case, even if SWEPI, LP were required to show that its leases have value that has been negatively affected by the Ordinance, it has done so. While the Court should normally decline to resolve the merits of a case before determining standing, because without standing the Court has no authority to decide the merits of the case, see Hollingsworth v. Perry, - U.S. -,
In Energy Management Corp. v. City of Shreveport, the Fifth Circuit held that mineral interest owners had standing to challenge a city ordinance that prohibited drilling for oil and gas within one thousand feet of Cross Lake. See
[The ‘ plaintiff] further alleges that because of Ordinance 221, its mineral interests in and around Cross Lake have been adversely' affected. Ordinance 221 imposes limitations on oil and gas drilling activity around Cross Lake in addition to the [Louisiana Office of Conservation] regulations by limiting drilling locations and imposing other requirements which interfere with the exploitation of oil and gas interests by preventing or delaying the activity and making it more costly. These allegations are sufficient to state an injury in fact.
The Defendants argue that SWEPI, LP has not shown that its leases have value. See Response at 7. While the Court has already concluded that SWEPI, LP has to only show an affected property interest and not a decrease in value, the Defendants’ decrease-in-value argument is contrary to the evidence and would require the Court to adopt unreasonable inferences. In deciding a motion for judgment on the pleadings, the Court must “grant all reasonable inferences” in the non-moving party’s favor. Park Univ. Enter., Inc. v. Am. Cas. Co. of Reading, Pa.,
The Defendants argue that SWEPI, LP is not currently prepared to engage in hydrocarbon extraction activities.- See Response at 11-14. The issue whether SWEPI, LP is prepared to engage in hydrocarbon extraction activities, or whether SWEPI, LP will ever engage in hydrocarbon extraction activities, misses the mark. SWEPI, LP may never intend to act on its leases and drill for oil and gas, yet it still suffered an injury in fact, specifically, the decrease in its leases’ value. See Kaing v. Pultegroup, Inc.,
This reasoning holds true even if it is currently economically infeasible to drill for oil and gas in Mora County. If the Defendants were able to present evidence that, not only is SWEPI, LP not currently prepared to drill for oil and gas, but that no one would drill for oil and gas in Mora County, the Court would still find that SWEPI, LP has standing, because its leases would still have value but for the Ordinance. Oil prices are constantly fluctuat
Finally, the Defendants may attempt to argue that there are no oil-and-gas reserves in Mora County, and, therefore, it will never be economically feasible to drill for oil and gas.
It is not necessary for the Court to determine the exact value of the leases-today. All that matters is that they have value that the Ordinance destroyed. The leases’ exact value would be relevant to the amount of just compensation that Mora County owes, but is not relevant to whether SWEPI, LP has standing. As long as SWEPI, LP has an interest in the leases&emdash; i.e. a legally protectable, concrete interest&emdash;then it has standing if the Ordinance infringes on this interest, which it does. This taking and destruction of SWEPI, LP’s property constitutes an injury in fact. Its leases provide it with a particularized, concrete interest in property that state law protects. See Johnson v. Gray,
2.SWEPI, LP’s Substantive Due-Process Claims.
SWEPI, LP has standing to bring its substantive due-process claims for the same reason that it has standing to bring its takings claim: the Ordinance has deprived it of all economic value in its leases. SWEPI, LP’s substantive due-process claims centers around the deprivation of its property&emdash;its leases&emdash;for an arbitrary reason&emdash;because it is a corporation. See Complaint ¶¶ 81-102, at 17-20; Motion at 15-18. Its injury for its due-process claims is the same as its takings claim: the deprivation of its property. Because the Ordinance deprives SWEPI, LP of its value and use in its property, it has suffered a concrete, particularized injury sufficient to establish standing on its substantive due-process claims. See ConocoPhillips Co. v. Henry,
3.SWEPI, LP’s First Amendment Claim.
SWEPI, LP has suffered an injury in fact to establish standing on its First Amendment claim. SWEPI, LP asserts that the Ordinance is overbroad in its absolute prohibition of First Amendment protections. See Complaint ¶¶ 121-132, at 23-25; Motion at 10-12. The Supreme Court has established a lax standing requirement for First Amendment over-breadth challenges. See Sec’y of State of Md. v. Joseph H. Munson Co.,
Here, the Ordinance does more than deter or chill First Amendment rights; it prohibits them. See Ordinance § 5.5, at 4.
Section 5.5 of the Ordinance states:
Section 5.5: Corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not have the rights of “persons” afforded by the United States and New Mexico Constitutions, nor shall those corporations be afforded rights under the 1st or 5th amendments to the United States Constitution or corresponding sections of the New Mexico Constitution, nor shall those corporations be afforded the protections of the commerce or contracts clauses within the United States Constitution or corresponding sections of the New Mexico Constitution.
Ordinance § 5.5, at 4. According to the Ordinance, because SWEPI, LP has filed suit to engage in activities that the Ordinance prohibits, SWEPI, LP lacks First Amendment rights. See Ordinance § 5.5, at 4 (“Corporations ... seeking to engage in activities prohibited by this ordinance, shall not ... be afforded rights under the 1st or 5th amendments to the United States Constitution.... ”). This restriction is a prohibition of SWEPI, LP’s First Amendment rights.
While Mora County has not yet sought to enforce the Ordinance against SWEPI, LP through a criminal prosecution, actual enforcement is not necessary for ripeness and the Defendants have refused to state that they will not enforce the Ordinance. First, in Griffin v. Bryant, the Court concluded that a plaintiff could bring a First Amendment overbreadth challenge to a city rule, even though the plaintiff had never been punished for violating that rule. See
SWEPI, LP has gone ahead and filed suit in violation of the Ordinance. While its willingness to violate the Ordinance and risk prosecution indicates that its First Amendment rights have not been chilled, the Tenth Circuit uses an objective test for a chilling effect and not a subjec
That the Defendants have not prosecuted SWEPI, LP for violating the Ordinance by filing this case also does not undermine its standing to bring a First Amendment claim. It is understandable that the Defendants might not want to undermine their standing and ripeness arguments by bringing criminal charges against a corporation for filing a complaint • in federal court, perhaps a violation of this Ordinance that most obviously violates SWEPI, LP’s First Amendment rights. The Defendants probably also want this Court’s ruling on the issues presented and want to make their chances of prevailing on portions of the Ordinance that outlaws oil-and-gas exploration, which seems to be the Ordinance’s primary purpose.
Accordingly, because SWEPI, LP Is currently seeking to engage in activities that violate the, Ordinance, because the Ordinance states that this conduct strips it of its First Amendment rights, and because the Ordinance creates a chilling effect on the exercise of First Amendment rights, SWEPI, LP has suffered an injury in fact.
4. SWEPI, LP’s Equal-Protection Claim.
SWEPI, LP has suffered an injury in fact to confer it standing on its equal-protection claim. SWEPI, LP’s equal-protection claim is based on the assertions that the Ordinance discriminates against corporations by applying only to corporations and not to individuals. See Complaint ¶¶ 59-71, at 14-16; Motion at 5-10. SWEPI, LP’s injury is thus that the Ordinance applies to it. The Ordinance prohibits SWEPI, LP for extracting hydrocarbons in Mora County and purports to strip SWEPI, LP of its constitutional rights. See Ordinance § 5.1, at 4 (“It shall be unlawful for any corporation to engage in the extraction of oil, natural gas, or other hydrocarbons within Mora County.”); id. § 5.5 (“Corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not have the rights of ‘persons’ afforded by the United States and New Mexico Constitutions ...”). Its injuries are the same as for its takings claim and its First Amendment claim. If the Ordinance did not apply to it, the economic value of its leases would not be destroyed. Similarly, if the Ordinance did not apply to it, the Ordinance would not purport to strip it of its constitutional
5. SWEPI, LP’s Supremacy Clause Claim.
SWEPI, LP’s Supremacy Clause claim is based on the fact that § ''5.5 of the Ordinance purports to strip corporations of their constitutional rights if they violate or seek to engage in activities that violate the Ordinance. See Complaint ¶¶ 52-58, at 13. Motion at 3-4. SWEPI, LP’s injury in fact for this claim is the same as its takings claim and its First Amendment claim. Section 5.5 states that corporations do not have constitutional rights. See Ordinance § 5.5, at 4. According to the Ordinance, SWEPI, LP does not have Fifth or Fourteenth Amendment rights to pursue its takings claims, or First Amendment rights to pursue its First Amendment claim. SWEPI, LP’s Supremacy Clause claim is essentially that it does have these constitutional rights, because the Supremacy Clause nullifies § 5.5. Thus, its injury in fact for this claim is that it suffered a sufficient injury to pursue its other claims. The Court has already concluded that SWEPI, LP suffered a sufficient injury for its takings and First Amendment claims. These injuries are sufficient to confer standing for SWEPI, LP’s Supremacy Clause claim. See Taubman Realty Grp. Ltd. P’ship v. Mineta,
6. SWEPI, LP’s State-Law Claims.
SWEPI, LP has suffered a sufficient injury in fact to bring its state-law claims. SWEPI, LP’s state-law claims rely on allegations that Mora County lacks the authority to regulate oil-and-gas activities. See Complaint ¶¶ 103-120, at 20-23; Motion at 17-21. Its injury for these claims is that it is prohibited from exercising its rights under its leases; that is, it is prohibited from engaging in oil-and-gas exploration and extraction. Additionally, because the Ordinance strips SWEPI, LP’s leases of value, its state-law claims are based on the same injury as its takings claim. In Energy Management Corp. v. City of Shreveport, the Fifth Circuit considered the harm to the plaintiffs mineral interests to consider whether the plaintiff had standing to bring a state law preemption claim. See
B. THERE IS A CAUSAL RELATIONSHIP BETWEEN SWEPI, LP’S INJURIES AND THE ORDINANCE, AND IT IS LIKELY THAT A FAVORABLE DECISION WILL REDRESS ITS INJURIES.
In addition to an injury in fact, to establish standing, SWEPI, LP must show that there is “a causal relationship between the injury and the challenged conduct,” and that there is “a likelihood that the injury would be redressed by a favorable decision.” Protocols, LLC v. Leavitt,
First, each of SWEPI, LP’s injuries are a direct result of the Ordinance’s prohibitions. SWEPI, LP’s leases have been devalued, because the Ordinance prohibits hydrocarbon exploration and extraction. Its First Amendment rights have been attacked and chilled because the Ordinance states that corporations that seek to violate the Ordinance lack constitutional rights. There is thus a causal relationship between SWEPI, LP’s injuries and the challenged conduct — ie. the Ordinance. Second, a favorable decision would redress its injuries. If the Ordinance is invalidated, SWEPI, LP’s leases would have their value reinstated. Additionally, its First Amendment rights would no longer be chilled. Finally, SWEPI, LP could receive just compensation to reimburse it for the time in which the Ordinance took its leases. Accordingly, SWEPI, LP has shown a causal connection and redressibility, and has established that it has standing on each of its claims.
III. SWEPI, LP’S CLAIMS, EXCEPT FOR ITS TAKINGS CLAIM, ARE RIPE.
Each of SWEPI, LP’s claims, except for its takings claim, are ripe for adjudication. Ripeness concerns the timing of a dispute. See Blanchette v. Conn. Gen. Ins. Corp.,
A. SWEPI, LP’S TAKINGS CLAIM IS NOT RIPE.
SWEPI, LP’s takings claim is not ripe. In determining ripeness for Takings Clause claims, courts apply a two-prong test. See Alto Eldorado Partners v. Cnty. of Santa Fe,
First, there must be a final decision about how a regulation will be applied to the property in question, including whether the implementing administrative body will grant any waiver or variance. Second, a property owner may not challenge regulatory action under the Takings Clause until the owner has sought compensation, assuming adequate procedures exist for doing so. Because contemporaneous compensation is not constitutionally required, if the state provides a mechanism for seeking compensation, the property owner must utilize the procedure and be denied just compensation before a takings claim is ripe.
Alto Eldorado Partners v. Cnty. of Santa Fe,
Concerning the second prong, there are existing procedures for which SWEPI, LP can seek compensation, but it has not done so. In Alto Eldorado Partners v. City of Santa Fe, the Court dismissed the plaintiffs’ Takings Clause claim, because it was not ripe. See
The Defendants have not argued that SWEPI, LP failed to first seek compensation through an inverse condemnation action. Rather, the Defendants contend that the case is not ripe, because SWEPI, LP has not demonstrated that it is prepared to engage in hydrocarbon exploration and extraction. See Response at Ills. In the Complaint, SWEPI, LP alleges that it “has no adequate legal, administrative, or other remedy by which to prevent or minimize the continuing irreparable harm to its constitutional rights,” specifically “the Ordinance provides no mechanism through which Plaintiff may obtain just compensation for the regulatory taking if its property.” Complaint ¶ 140, at 26. The Defendants denied the allegation in that paragraph of the Complaint. See Answer ¶ 140, at 14. Accordingly, the Court may not rely on SWEPI, LP’s assertion that it has no other remedy for its takings claim and that the Ordinance does not provide it with a compensation mechanism. See Kellar v. U.S. Dep’t of Veteran’s Affairs,
New Mexico has an inverse condemnation statute, under which a person can seek compensation when an authorized person has taken or damaged property for public use without providing compensation. See N.M. State Ann. § 42A-1-29. It provides:
A person authorized to exercise the right of eminent domain who has taken or damaged or who may take or damage any property for public use without making just compensation or without instituting and prosecuting to final judgment in a court of competent jurisdiction any proceeding for condemnation is liable to the condemnee, or any subsequent grantee thereof, for the value thereof or the damage thereto at the time the property is or was taken or damaged, with ten percent per year interest, to the date such just compensation is made, in an action to be brought under and governed by the Rules of Civil Procedure for the District Courts of this state. Actions under this section shall be brought in the county where the land or any portion thereof is located.
N.M. Stat. Ann. § 42A-1-29. In Alto Eldorado Partners v. City of Santa Fe, the Tenth Circuit noted that the plaintiffs did not seek compensation under this inverse condemnation statute. See
Section 42A-1-29 states that a “person authorized to exercise the right of eminent domain” may be liable under the statute. N.M. Stat. Ann. § 42A-1-29. A “ ‘person’ includes a natural individual, partnership, corporation, association, or other legal or fiduciary entity and a governmental entity.’” N.M. Stat. Ann. § 42A-1-2(H). Section 42A-1-29 may be interpreted to mean that, if a person has general eminent domain powers, that person may be liable in an inverse condemnation action, as long as the taking was for public use. On the other hand, § 42A-1-29 may be interpreted to mean that, if a person acted under his or her eminent domain authority, that person may be liable in an inverse condemnation action. Under the first interpretation, if a person who has eminent domain authority, acted beyond that authority, but still took or damaged another’s property, the person can be hable under § 42A-1-29. Under the second interpretation, if a person who has eminent domain authority, acted beyond that authority, but still took or damaged another’s property, the person cannot be liable under § 42A-1-29, because that person acted without eminent domain authority. The Court concludes that the first interpretation is correct.
The Supreme Court of New Mexico has held that § 42A-1-29 does not apply in two situations: (i) when the taking was not for public use; and (ii) when the entity conducting the taking lacked eminent domain powers. Neither situation applies here.
First, § 42A-1-29 does not apply if the taking was not for public use. In Brosseau v. New Mexico State Highway Department,
A further justification for our decision is the fact that Brosseau and others in his position may have no adequate substitute to obtain an adjudication of their property rights as against the claimed interest of the State. An inverse condemnation action under § 22-9-22, N.M.S.A.1953 (Supp.1975) would not lie if this property was not acquired for a public use. The doctrine of sovereign immunity may not be interposed to bar quiet title actions if its effect is to deny one a remedy for the taking of his property without compensation.
The Supreme Court of New Mexico again applied the rule from Brosseau v. New Mexico State Highway Department in Kennedy v. Yates Petroleum Corp.,
Any person, firm, association or corporation may exercise the right of eminent domain to take and acquire the necessary right-of-way for the construction, maintenance and operation of pipelines, including microwave systems and structures and other necessary facilities for the purpose of conveyance of petroleum, natural gas, carbon dioxide gas and the products derived .therefrom, but any such right-of-way shall in all cases be so located as to do the least damage to private or public property consistent with proper use and economical construction. Such land and right-of-way shall be acquired in the manner provided by the Eminent Domain Code. Pursuant to the requirements of Sections' 42A-1-8 through 42A-1-12 NMSA 1978,....
N.M. Stat. Ann. § 70-3-5(A). The Supreme Court of New Mexico held that, if the oil company’s laying of the pipeline was done for public use, the plaintiffs’ sole remedy was an inverse condemnation action under § 42A-1-29. See Kennedy v. Yates Petroleum Corp.,
In North v. Public Service Company of New Mexico,
Neither the Supreme Court of New Mexico, in Brosseau v. New Mexico State Highway Department, nor Judge Walters, in her concurring opinion in North v. Public Service Company of New Mexico, explained their reasoning for why § 42A-1-29, or then-§ 22-9-22, does not apply if the taking was not for public use. Section 42A-l-29’s inapplicability can either be because the defendants in those cases lacked authority to exercise the power of eminent domain or because § 42A-1-29, by its terms, requires the taking to be for public use. The state lacks authority to take property through eminent domain if the taking is not for public use. See Kaiser Steel Corp. v. W.S. Ranch Co.,
Section 42A-1-29 states: “A person authorized to exercise the right of eminent domain who has taken or damaged or who may take or damage any property for public use without making just compensation ... is liable to the condemnee.... ” N.M. Stat. Ann. § 42A-1-29 (emphasis added). Section 42A-l-29’s language states that the taking must be for public use for it to apply. Section 42A-1-29 does not apply when the taking is not for public use,
The second limitation on an inverse condemnation action under § 42A-1-29 is that the defendant must be “authorized to exercise the right of eminent domain.” N.M. Stat. § 42A-1-29. In Manning v. New Mexico Energy, Minerals and Natural Resources Department,
First, Mora County has eminent domain powers. Section 4-52-11 of the New Mexico Statutes Annotated states that a “board of county commissioners has power to ... acquire by purchase, gift, grant, bequest, devise or through condemnation proceedings, in the manner provided in the Eminent Domain Code, such property, rights-of-way or equipment as is necessary for exercise of any authorized function of the district....” N.M. Stat. Ann. § 4-52-11. Additionally, New Mexico counties have broad authority to provide for its residents’ safety, health, and prosperity. See N.M. Stat. Ann. § 4-37-1.
All counties are granted the same powers that are granted municipalities exT cept for those powers that are inconsistent with statutory or constitutional limitations placed on counties. Included in this grant of powers to the counties are those powers necessary and proper to provide for the safety, preserve the health, promote the prosperity and improve the morals, order, comfort and convenience of any county or its inhabitants. The board of county commissioners may make and publish any ordinance to discharge these powers not inconsistent with statutory or constitutional limitations placed on counties.
N.M. Stat. Ann. § 4r-37-l. Mora County thus has eminent domain authority, and § 42A-1-29 applies as long as Mora County enacted the Ordinance for public use.
Second, the taking was done for public use. The Supreme Court of New Mexico has defined the phrase “for public use” as a “public entity’s deliberate taking or damaging of the property in order to accomplish the public purpose.” Electro-Jet Mfg. Co. v. City of Albuquerque, 1992 NMSC-060, ¶ 9,
[W]e already had a policy, also time-honored, as to waters. We had nationalized them. Not as a source of public revenue, as minerals are retained for royalties; but as an elemental necessity, like air, which must not be allowed to fall under private control. Only by invoking the power of eminent domain can the state distribute its own waters as its public policy requires. A right of way taken for that purpose is in a large sense devoted to public use. This policy finds general and express recognition in the Constitution. It is impossible to suppose that any interpretation of “public use” was intended to upset it.
Threlkeld v. 3d Judicial Dist. Ct.,
The Ordinance is focused on the protection and use of water. Its name states that it concerns water rights. See Ordinance § 1.1, at 1 (“This Ordinance shall be known and may be cited as the ‘Mora County Community Water Rights and Local Self-Government Ordinance.’ ”). The Ordinance states that its purpose is to protect “the natural sources of water from damage related to the extraction of oil, natural gas, or other hydrocarbons.” Ordinance, Introduction (capitalization removed). See id. § 1.2 (stating that the Ordinance’s purpose is focused on water). The Ordinance is focused on the protection and beneficial use of water. Water in Mora County cannot be used for drinking or farming if toxins from fracking polluted the water.
Because Mora County has eminent domain authority, and because the Ordinance was enacted for a public purpose, SWEPI, LP could have brought an inverse condemnation action under § 42A-1-29 against the Defendants for the taking of its leases. SWEPI, LP’s failure to bring such an action before filing this suit causes its takings claim to not be ripe. Consequently, SWEPI, LP’s taking claim is not ripe.
B. SWEPI, LP’S DUE-PROCESS CLAIMS ARE RIPE.
SWEPI, LP’s due-process claims are ripe. Because the Ordinance has been enacted, and because it destroys the value of SWEPI, LP’s leases, its due-process claims do not involve “uncertain or contingent future events that may not occur as anticipated, or indeed may not occur at all.” New Mexicans for Bill Richardson v. Gonzales,
C. SWEPI, LP’S FIRST AMENDMENT CLAIM IS RIPE.
SWEPI, LP’s First Amendment claim is ripe. Ripeness for First Amendment claims is subject to a more relaxed standard. The Tenth Circuit has stated:
The customary ripeness analysis outlined above is, however, relaxed somewhat in circumstances such as this where a facial challenge, implicating First Amendment values, is brought. E.g., ACORN[ v. City of Tulsa], 835 F.2d [735, 739 (10th Cir.1987) ]; Martin Tractor Co. v. Federal Election Comm’n,627 F.2d 375 , 380 (D.C.Cir.), cert. denied,449 U.S. 954 ,101 S.Ct. 360 ,66 L.Ed.2d 218 (1980). Thus, while it is true that “the mere existence of a statute is ordinarily not enough to sustain a judicial challenge, even by one who reasonably believes that the law applies to him and will be enforced against him according to its terms,” National Student Ass’n v. Hershey,412 F.2d 1103 , 1110 (D.C.Cir.1969), in the context of a First Amendment facial challenge, “[r]easonable predictability of enforcement or threats of enforcement, without more, have sometimes been enough to ripen a claim,” Martin Tractor,627 F.2d at 380 . See also Babbitt v. United Farm, Workers Nat’l Union,442 U.S. 289 , 298-99,99 S.Ct. 2301 ,60 L.Ed.2d 895 (1979). The primary reasons for relaxing the ripeness analysis in this Context is the chilling effect that potentially unconstitutional burdens on free speech may occasion:
First Amendment rights of free expression and association are particularly apt to be found ripe for immediate protection, because of the fear of irretrievable loss. In a wide variety of settings, courts have found First Amendment claims ripe, often commenting directly on the special need to protect against any inhibiting chill.
13A Wright, Miller & Cooper, Federal Practice and Procedure § 3532.3 at 159, see also ACORN,835 F.2d at 740 .
New Mexicans for Bill Richardson v. Gonzales,
For a facial First Amendment challenge, ripeness requires consideration of three elements: (i) “hardship to the parties by withholding review”; (ii) “the chilling effect the challenged law may have on First Amendment liberties”; and (iii) “fitness of the controversy for judicial review.” New Mexicans for Bill Richardson v. Gonzales,
The first two elements — hardship and chilling effect — are related. As noted earlier, part of SWEPI, LP’s injury is the chilling effect on First Amendment rights that the Ordinance creates. By delaying review of SWEPI, LP’s First Amendment claim, the Court would be requiring SWEPI, LP to further endure this injury without redress. See U.S. W. Inc. v. Trist
The third element is also met. The Defendants have already enacted the Ordinance. It is currently in effect. This case does not involve “uncertain or contingent future events that may not occur as anticipated, or indeed may not occur at all.” New Mexicans for Bill Richardson v. Gonzales,
D.SWEPI, LP’S EQUAL-PROTECTION CLAIM IS RIPE.
SWEPI, LP’s equal protection claim is ripe. As previously stated, the case is fit for judicial review. The Defendants have already enacted the Ordinance. SWEPI, LP’s claim is not based on a hypothetical, uncertain event. See New Mexicans for Bill Richardson v. Gonzales,
E. SWEPI, LP’S SUPREMACY CLAUSE CLAIM IS RIPE.
SWEPI, LP’s Supremacy Clause claim is ripe. First, the claim is fit for adjudication, because Mora County has already enacted the Ordinance. Second, SWEPI, LP would suffer a hardship if the Court delayed resolving the case. The Defendants are already violating SWEPI, LP’s First and Fourteenth Amendment rights&emdash; its property has been taken and its First Amendment rights have been chilled. The case is not based on a potential future event or injury. SWEPI, LP has brought suit, asserting the very rights that the Ordinance says that it lacks. It is thus currently facing a hardship that will continue if the Court does not resolve its claim. Accordingly, SWEPI, LP’s Supremacy Clause claim is ripe.
F. SWEPI, LP’S STATE-LAW CLAIMS ARE RIPE.
SWEPI, LP’s state-law claims are ripe for substantially the same reason that its Equal Protection and substantive due-process claims are ripe. First, the case is fit for judicial determination, because the Ordinance has already been enacted. Second, because SWEPI, LP’s leases have been devalued, it is currently facing an imminent harm that it will continue to endure if the Court does not address its claims. Accordingly, SWEPI, LP’s state-law claims are ripe for adjudication.
IV. THE ORDINANCE VIOLATES THE SUPREMACY CLAUSE.
The Ordinance violates the Supremacy Clause. The Supremacy Clause provides:
This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.
U.S. Const. art. VI, cl. 2. In simpler terms, the “Supremacy Clause of the Constitution provides that federal law trumps, or preempts, contrary state laws.” Russo v. Ballard Med. Prods.,
A. SWEPI, LP MAY BRING A CLAIM UNDER THE SUPREMACY CLAUSE.
The Defendants argue that, because the Supremacy Clause does not create a private right of action, “some form of federal statute must exist to engage in Supremacy Clause analysis.” Response at 19. While the Defendants do not cite to it, they are likely referring to the Tenth Circuit’s recent opinion in Planned Parenthood of Kansas and Mid-Missouri v. Moser,
Our holding is much narrower than what the dissent[, Judge Lucero,] suggests. We hold only that when actual or threatened state action is allegedly contrary to a federal statute, the Supremacy Clause does not necessarily (it is a matter of statutory interpretation that depends on the specifics of the federal statute) authorize an injunction against the state action when four conditions are all satisfied: (1) the statute does not specifically authorize injunctive relief, (2) the statute does not create an individual right (which may be enforceable under 42 U.S.C. § 1988), (3) the statute is enacted under the Constitution’s Spending Clause, and (4) the state action is not an enforcement action in adversary legal proceedings to impose sanctions on conduct prohibited by law.
In Planned Parenthood of Kansas and Mid-Missouri v. Moser, the plaintiff could not bring a private action under § 1983 for a Title X violation. See
B. THE ORDINANCE VIOLATES THE SUPREMACY CLAUSE.
The Ordinance — specifically §§ 5.5, 5.6, 5.7, and 5.9 — violates the Supremacy Clause. These provisions state:
Section 5.5: Corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activitiesprohibited by this ordinance, shall not have the rights of “persons” afforded by the United States and New Mexico Constitutions, nor shall those corporations be afforded rights under the 1st or 5th amendments to the United States Constitution or corresponding sections of the New Mexico Constitution, nor shall those corporations be afforded the protections of the commerce or contracts clauses within the United States Constitution or corresponding sections of the New Mexico Constitution.
Section 5.6: Individuals or corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not possess the authority or power to enforce State or federal preemptive law against the people of Mora County, or to challenge or overturn County ordinances adopted by the Mora County Commission, when that enforcement or challenge interferes with the rights asserted by this ordinance or interferes with the authority of the county to protect the health, safety, and welfare of its residents.
Section 5.8: The New Mexico Constitution’s Bill of Rights, and the United States Constitution’s Bill of Rights and amendments thereto, shall be recognized as preemptive law within the County of Mora only to the extent that their interpretation and application are not inconsistent with the provisions of this Ordinance regarding the powers and “rights” of corporations, and to the extent that they do not otherwise elevate property interests over rights secured by this Ordinance.
Section 5.9: Laws adopted by the legislature of New Mexico and rules adopted by any State agency, and laws adopted by the United States Congress and rules adopted by any federal agency, shall be recognized as preemptive law within the County of Mora only if those laws and rules both expressly preempt County ordinances and charters, and provide greater protections for the health, safety, and welfare of the people of Mora County than County ordinances and charters.
Ordinance §§ 5.5, 5.6. 5.8 & 5.9, at 4-5. Each of these provisions contradicts federal constitutional law.
Section 5.5 states that corporations that violate, or seek to violate, the Ordinance do not have First or Fifth Amendment rights, nor rights undér the Commerce Clause or the Contract Clause. See Ordinance § 5.5, at 4. The Supreme Court has established that corporations are “persons” within the meaning of the Equal Protection Clause and are entitled to its protections. Metro. Life Ins. Co. v. Ward,
Section 5.6 states that no one can use federal preemptive law to challenge the Ordinance. See Ordinance § 5.6, at 4. A county cannot decide when federal preemptive law; applies and when it does not. While the Tenth Circuit has reigned in a private litigants’ ability to apply federal preemptive law, especially under a Supremacy Clause challenge, see Planned Parenthood of Kan. & Mid-Missouri v. Moser,
The Court has previously discussed additional concerns regarding Section 5.6. See SWEPI, LP v. Mora Cnty.,
The Ordinance, thus, appears to state that no one can challenge it, or any other Mora County ordinance, as long as the ordinance concerns the health, safety, or welfare of its residents. See Ordinance § 5.6. The Intervenor-Applicants’ argument is that SWEPI, LP, cannot challenge the Ordinance’s constitutionality, because the Ordinance deprives SWEPI, LP, of its constitutional rights. If this argument has validity, it would signal the end of all civil rights that the Constitution protects. A county could pass an unconstitutional ordinance, but then say that anyone who challenged the ordinance lacks constitutional rights to support the challenge. The county could enforce its unconstitutional ordinance free of constitutional restrictions, because no one could challenge the validity of the ordinance. The consequences of such an outcome could be devastating to the Union as the Nation has known it since the Civil War. Some counties could prohibit speech on certain viewpoints. Others could deny basic rights to members of certain racial eth-nicities. Still others could prohibit religious practices; others could require participation in religious services. The Constitution would be applied in a cookie-cutter fashion across the United States with such inconsistency from place-to-place that it would cease to be a Constitution of the United States at all.
SWEPI, LP v. Mora Cnty.,
Sections 5.8 and 5.9 are invalid for the same reasons. Section 5.8 states that the Bill of Rights preempts of Mora County ordinances only if their “interpretation and application” is not inconsistent with the Ordinance’s provisions concerning corporate rights. Ordinance § 5.8, at 5. Section 5.9 states that federal law is preemptive only if it “both expressly preempt[s] County ordinances and charters, and provide[s] greater protections for the health, safety, and welfare of the people of Mora County than County ordinances and charters.” • Ordinance § 5.9, at 5. Both of these provisions provide for the circumstances in which federal law may preempt Mora County law. If a county could declare under what conditions federal law
To find support for the long history of corporate constitutional rights, the Court needs to look no further than the Defendants’ Response. The Defendants list numerous cases in which the Supreme Court recognized corporate constitutional rights. See Response at 23-25. They urge the Court to ignore Supreme Court precedent, arguing that the rights of property should not supersede the rights of people. See Response at 26. It is well established, however, that corporations have constitutional rights, even if they are property. See, e.g., Metro. Life Ins. Co. v. Ward,
The Defendants argue that Mora County residents’ right to self-government provides them with the right to pass the Ordinance, including the provisions stripping corporations of their constitutional rights. See Response at 20-23. They argue that the Declaration of Independence and the Treaty of Guadalupe Hidalgo provide, or at least recognize, these rights. See Response at 20-23; Tr. at 102:22-103:9 (Haas, Court). The Defendants are, however, mistaken. “The Declaration of Independence is a statement of ideals, not law.” Schifanelli v. U.S. Gov’t, No. 88-2172,
V. THE ORDINANCE DOES NOT VIOLATE THE DUE PROCESS CLAUSE.
The Ordinance does not violate the Due Process Clause. SWEPI, LP brings two claims under the Due Process Clause: (i) that the Ordinance arbitrarily deprives it of its property; and (ii) that Mora County lacked either a compelling or legitimate county interest in enacting the Ordinance. See Complaint ¶¶ 81-102, at 17-20. These two claims are one and the same. At the hearing, SWEPI, LP argued that the Court should apply the shocks-the-conscience test in analyzing its due-process claims See Tr. at 135:1-5 (Anderson, Court). The shocks-the-conscience standard, however, is not the correct standard for SWEPI, LP’s due-process claims. The Tenth Circuit has held that, in analyzing arbitrary government action under the Due Process Clause, if the action is executive, the shocks the conscience standard applies, but, if the action is legislative, a rational basis test applies. See Dias v. City & Cnty. of Denver,
However, the “shocks the conscience” standard is not applicable to cases in which plaintiffs advance a substantive due process challenge to a legislative enactment. Instead, it is an inquiry reserved for cases challenging executive action. Legislative action is tested under a two-part substantive due process framework as we have described. Again, we ask whether a fundamental right is implicated. If it is, we apply strict scrutiny to test the fit between the enactment’s means and ends. Otherwise, we use a rational basis test.
Dias v. City & Cnty. of Denver,
A. SWEPI, LP’S SUBSTANTIVE DUE-PROCESS CLAIMS DO NOT IMPLICATE A FUNDAMENTAL RIGHT.
SWEPI, LP’s substantive due-process claims do not implicate a funda
SWEPI, LP argues that its oil- and-gas leases are “property interests [that] are fundamental rights protected by the Fourteenth Amendment.” Complaint ¶ 91, at 18. It further argues that the Ordinance deprived it of its “fundamental property interests.” Complaint ¶ 92, at 18. At the hearing, however, SWEPI, LP argued that Mora County lacked only a legitimate state interest, but did not argue that it lacked a compelling state interest. See Tr. at 134:13-24 (Anderson). In the Motion, SWEPI, LP argues that the Court must determine “whether the deprivation of SWEPI’s property interest bears a rational relationship to a legitimate governmental interest.” Motion at 16. Thus, in the Complaint, SWEPI, LP appears to argue that its property interests are fundamental rights, requiring a strict scrutiny analysis; at the hearing, and in the Motion, however, SWEPI, LP appears to argue that its property rights are not fundamental rights and that its substantive due-process claims should be resolved under a rational basis analysis. In any case, because its property rights are not fundamental rights, a rational basis analysis is the correct standard.
Courts have routinely held that property interests and rights do not rise to the level of fundamental rights requiring a strict scrutiny analysis. See, e.g., Weems v. Little Rock Police Dep’t,
There is, moreover, at least one other valid reason for rejecting [the argument that government action affecting property interests require strict scrutiny analysis]. The right not to have one’s property taken without just compensation, the property right at issue here, is very different from the type of personal right that has been recognized as “fundamental” for equal protection purposes. See, e.g., [Mass. Bd. of Retirement v.] Murgia, 427 U.S. [307, 312 n. 3,96 S.Ct. 2562 ,49 L.Ed.2d 520 (1976) ] ... (citing cases which involve fundamental rights such as the right to vote, the right to procreate, and the right to interstate travel). All of those fundamental personal rights are rights that the individual can affirmatively exercise. It is clear that any “rights” conferred by the takings clause are different from these fundamental rights in that they are not affirmative rights that can be exercised. For all of these reasons, the Court.finds that the plaintiffs have failed to rebut the presumption that rational basis review applies to social legislation and heightened scrutiny of this regulation is therefore unwarranted.
Clajon Prod. Corp. v. Petera,
Moreover, strict scrutiny analysis would be contrary to the Supreme Court’s Takings Clause jurisprudence. The Supreme Court has held that “the exercise of eminent domain power” must be “rationally related to a conceivable public purpose.” Hawaii Hou. Auth. v. Midkiff,
B. THE DEFENDANTS HAVE A LEGITIMATE COUNTY INTEREST.
The Defendants have a legitimate county interest in enacting the Ordinance. It is rational that the Defendants would ban corporations, but not individuals, from engaging in hydrocarbon exploration and extraction. Such a distinction is not arbitrary. The Defendants argue that only corporations have the resources to engage in fracking, and have the immunities to avoid liability from spills and leaks by
In Dias v. City and County of Denver, the Tenth Circuit held that the plaintiffs sufficiently alleged that a city and county ordinance banning the possession of pit bull terriers lacked a legitimate state interest. See
Here, there is no developed record. Additionally, as the non-moving party, the Court must grant all inferences in the Defendants’ favor. See Smith v. United States,
While it is reasonable to assume that only incorporated entities drill oil-and-gas wells and engage in fracking, this assumption may not be accurate. A more devel
The Defendants also argue that corporations are able to avoid liability for spills and leaks by declaring bankruptcy. Even though this rationale may not be the soundest reasoning, it is still rational. SWEPI, LP argues that, if a corporation attempts to take advantage of the corporate form to avoid liability, a court can pierce the corporate veil. See Tr. 119:15-23 (Anderson). While undercapitalization is a factor to consider in' piercing the corporate veil, it is not determinative. See Certain Underwriters at Lloyd’s, London Subscribing to Policy Number 501/NBO3ACMD v. Nance,
VI. THE ORDINANCE DOES NOT VIOLATE SWEPI, LP’S EQUAL-PROTECTION RIGHTS.
The Ordinance does not violate SWEPI, LP’s equal-protection rights. SWEPI, LP asserts two separate equal-protection arguments. Its first argument is closely related to its substantive due-process claims: the Ordinance’s distinction between corporations and individuals is arbitrary and does not bear a rational relationship with a legitimate state interest. See Motion at 7-8. SWEPI, LP’s second argument is that the Ordinance’s distinction is based on an invidious and unlawful animus. See Motion at 8-10. Both of these arguments fail.
A. THE ORDINANCE IS RATIONALLY RELATED TO A LEGITIMATE STATE INTEREST.
The Ordinance is rationally related to a legitimate state interest. SWEPI, LP argues that disparate treatment between corporations and individuals bears no rational relationship to a legitimate governmental purpose. See Motion at 7. SWEPI, LP relies heavily on the 1929 Supreme Court case, Frost v. Corporation Commission of Oklahoma. See Motion at 7-8. That case stands, however, for the proposition that arbitrary disparate treatment between corporations and individuals bears no rational relationship to a legitimate governmental purpose, and not that all disparate treatment bears no such rational relationship. See Frost v. Corp. Comm’n of Okla.,
This Court has several times decided that a corporation is as much entitled to the equal protection of the laws as anindividual. The converse, of course, is equally true. A classification which is bad because it arbitrarily favors the individual as against the corporation certainly cannot be good when it favors the corporation as against the individual. In either case, the classification, in order to be valid, must rest upon some ground of difference having a fair and substantial relation to the object of the legislation, so that all persons similarly circumstanced shall be treated alike.
That it was the arbitrariness of the distinction, and not the distinction itself, is highlighted by the Supreme Court’s comparison between the two categories of Oklahoma corporations. In 1917, Oklahoma passed a statute providing that “cooperative agricultural or horticultural associations not having capital stock or being conducted for profit, may be formed for the purpose of mutual help by persons engaged in agriculture or horticulture.” Frost v. Corp. Comm’n of Okla.,
Stripped of immaterial distinctions and reduced to its ultimate effect, the proviso, as here construed and applied, baldly creates one rule for a natural person and a different and contrary rule for an artificial person, notwithstanding the fact that both are doing the same business with the general public and to the same end, namely, that of reaping profits. That is to say, it produces a classification which subjects one to the burden of showing a public necessity for his business, from which it relieves the other, and is essentially arbitrary, because based upon no real or substantial differences, having reasonable relation to the subject dealt with by the legislation.
Frost v. Corp. Comm’n of Okla.,
As noted earlier, the differences between corporations and individuals in the hydrocarbon extraction arena are not arbitrary. Corporations engage in more hydrocarbon extraction activities than individuals. Additionally, corporations may be able to take steps to prevent total liability in ways that individuals cannot. Merely because Mora County decided to eliminate some hydrocarbon extraction activities, but not, all does not make the Ordinance’s distinctions arbitrary. The Supreme
And the fact that New York City sees fit to eliminate from traffic this kind of distraction but does not touch what may be even greater ones in a different category, such as the vivid displays on Times Square, is immaterial. It is no requirement of equal protection that all evils of the same genus be eradicated or none at all.
In the same way, the Defendants could have concluded that corporations were more likely to drill for oil and gas and to engage in fracking than individuals. That the Defendants did not ban all hydrocarbon extraction&emdash;by both corporations and individuals&emdash;does not violate the Equal Protection Clause. See Ry. Express Agency v. People of N.Y.,
B. THE ORDINANCE WAS NOT ENACTED WITH AN UNLAWFUL ANIMUS.
SWEPI, LP argues that the Ordinance constitutes an unlawful animus against corporations. See Motion at 8-10. Normally, courts do not consider legislators’ subjective intent in determining the constitutionality of a law. See Palmer v. Thompson,
1. The Animus Cases.
The first case to apply the animus doctrine was United States Department of Agriculture v. Moreno. See
if the constitutional conception of equal protection of the laws means anything, it must at the very least mean that a bare congressional desire to harm a politically unpopular group cannot constitute a legitimate governmental interest. As a result, a purpose to discriminate against hippies cannot, in and of itself and without reference to some independent considerations in the public interest, justify the [classification],
The Supreme Court again addressed the animus doctrine in City of Cleburne v. Cleburne Living Center. See
In Romer v. Evans, the Supreme Court invalidated a Colorado law that repealed any ordinance or law prohibiting discrimination against homosexuals. See
In United States v. Windsor, - U.S. -,
2. Judge Holmes’ Interpretation of the Animus Doctrine.
In his concurring opinion in Bishop v. Smith, the Honorable Jerome A. Holmes, United States Circuit Judge for the Tenth Circuit, elucidated his interpretation of the animus doctrine. See
When a litigant presents a colorable claim of animus, the judicial inquiry searches for the foregoing clues. What happens when the clues are all gathered and animus is detected? The answer is simple: the law falls. Remember that under rational-basis review, the most forgiving of equal-protection standards, a law must still have a legitimate purpose. A legislative motive qualifying as animus is never a legitimate purpose. In other words, once animus is detected, the inquiry is over: the law is unconstitutional.
3. Mora County Did Not Enact the Ordinance Based Solely on an Unlawful Animus.
Mora County did not enact the Ordinance based solely on an unlawful animus. While Judge Holmes’ animus test may call for the Ordinance’s invalidation, the Court is hesitant to apply the animus doctrine in a case such as this one. SWEPI, LP has not cited, and the Court has been unable to find, any cases invalidating a law because of an unlawful animus toward the corporate form. In fact, it appears that, outside United States Department of Agriculture v. Moreno and City of Cleburne v. Cleburne Living Center, the animus doctrine has been applied only in homosexual rights cases. • The Court is hesitant to be the first to apply the doctrine in these circumstances. Moreover, the Tenth Circuit has. previously indicated that the animus doctrine applies only after a court has determined that there is no conceivable purpose for passing a law other than an unlawful animus. See Powers v. Harris,
Under Judge Holmes’ articulation of the animus doctrine, however, the Ordinance should be invalidated. Judge Holmes identified two structural aberrations for which a court should search in detecting an unlawful animus: (i) the law imposes a “wide-ranging and novel deprivations upon the disfavored group”; and (ii) the law strays “from the historical territory of the lawmaking sovereign just to eliminate privileges that a group would otherwise receive.” Bishop v. Smith,
First, the Ordinance imposes “wide-ranging and novel deprivations upon [a] disfavored group”: corporations. Bishop v. Smith,
Second, the Ordinance strays from the historical territory of county lawmaking just to deprive corporations of their rights. Regulating oil-and-gas production is not within the purview of traditional county powers. In New Mexico, oil-and-gas regulations have traditionally been left to the state and to the'Oil and Gas Commission. See N.M. Att’y Gen. Op. 86-2,
Also, on a more basic level, the animus toward corporations is evident. See Ordinance Introduction, at 1 (“We believe that industrial use of water supplies in this county placing the control of water in the hands of a corporate few, rather than the county would constitute abuse and usurpation; and that we are therefore duty bound to oppose such abuse and usurpation.” (bold omitted)); id. at 1 (“An Ordinance protecting the right of human communities, nature, and natural water, ... by eliminating legal privileges and powers from corporations violating the Ordinance.” (bold omitted)(eapitalization omitted)); id. § 4.5, at 3 (“[Corporate entities and their directors and managers shall not enjoy special privileges or powers under the law which make community majorities subordinate to them.”). Once animus is detected, at all, and here that animus
Before United States v. Windsor, The Tenth Circuit noted, that, in Romer v. Evans and City of Cleburne v. Cleburne Living Center, the Supreme Court may have found that, “after considering all other conceivable purposes,” the only conceivable state interest was “a bare desire to harm a politically unpopular group.” Powers v. Harris,
Additionally, the animus doctrine may only apply if the disadvantaged class “has a history of oppression and political powerlessness.” Kitchen v. Herbert,
In light of the uncertain contours of the animus doctrine, the Court declines to be the first to apply it in such a novel situation. In Powers v. Harris, the Tenth Circuit declined to apply the animus doctrine, because the Supreme Court had not applied it in similar circumstances. See
The Ordinance violates SWEPI, LP’s First Amendment Rights. The Court has already invalidated § 5.5 under the Supremacy Clause. Section 5.5 is doubly invalid, because it also violates the First Amendment. Section 5.5 provides:
Section 5.5: Corporations in violation of the prohibitions enacted by this ordinance, or seeking to engage in activities prohibited by this ordinance, shall not have the rights of “persons” afforded by the United States and New Mexico Constitutions, nor shall those corporations be afforded rights under the 1st or 5th amendments to the United States Constitution or corresponding sections of the New Mexico Constitution, nor shall those corporations be afforded the protections of the commerce or contracts clauses within the United States Constitution or corresponding sections of the New Mexico Constitution.
Similarly, § 5.5 states that corporations that violate, or seek to violate, the Ordinance have no First Amendment Rights. See Ordinance § 5.5, at 4. “The [Supreme] Court has recognized that First Amendment protection extends to corporations.” Citizens United v. Fed. Election Comm’n,
VIII. THE ORDINANCE VIOLATES STATE LAW AND MUST BE INVALIDATED.
The Ordinance violates state law and must be invalidated.
A. THE DEFENDANTS CANNOT ENFORCE ZONING REGULATIONS ON STATE LANDS.
The Defendants cannot enforce zoning regulations on state lands. That is not to say that every county ordinance must contain an explicit exception stating that it does not apply on state lands. Rather, a county may not enforce its existing zoning ordinances to state lands. Here, the Ordinance does not state that it does not apply to state lands. Such a statement is unnecessary. The Defendants, however, have argued that it may be applied to state lands, because hydrocarbon extraction on state lands may affect adjoining properties. See Response at 18. Such an assertion is incorrect.
In City of Santa Fe v. Armijo, the Supreme Court of New Mexico held that the city of Santa .Fe could not enforce a local zoning ordinance on the premises of the State Land Office Building. See 1981— NMSC-102, ¶ 1,
Two Court of Appeals of New Mexico Court cases have clarified that this doctrine from City of Santa Fe v. Armijo does not apply only to activity by the State on state land, but also applies to private conduct on state lands. In City of Albuquerque v. Jackson Brothers, Inc.,
In County of Santa Fe v. Milagro Wireless, LLC, a private company erected a cellular telephone tower on state land near Santa Fe. See
While the Court’s task is to determine how the Supreme Court of New Mexico would decide the issues, the Court con-
Here, the Defendants have not identified any state statute explicitly granting them the authority to enforce zoning regulations on state land. Instead, the Defendants argue that conduct on state lands may affect adjoining county lands; specifically, hydrocarbon extraction on state lands may affect the water on the adjoining land. See Tr. at 146:10-22 (Haas). The effect that conduct on state lands may have on adjoining lands- is not a factor that New Mexico courts have considered. In City of Santa Fe v. Armijo, the Land Commissioner sought to place an oil field pumping rig on the premises of the State Land Office Building. See
The Defendants lack statutory authority to enforce the Ordinance on state lands. While the Defendants have general zoning authority, see N.M. Stat. Ann. § 3-21-1, this general authority is not an express grant of authority to enforce zoning ordinances on state lands, see County of Santa Fe v. Milagro Wireless, LLC,
Because the Ordinance cannot be enforced on state lands, the question is whether the Ordinance should be invalidated merely because it lacks a provision stating that it does not apply to state lands or whether the Court should' enjoin the Defendants from enforcing the Ordinance on state lands. In City of Santa Fe v. Armijo, City of Albuquerque v. Jackson Brothers, Inc., and County of Santa Fe v. Milagro Wireless, LLC, the courts were considering challenges to conduct on state land, and not challenges to city or county ordinances. Thus, they provide little guidance. In the Complaint, SWEPI, LP requests “a declaration that the Ordinance violates New Mexico law because it seeks, without an express delegation of authority, to regulate lands owned by the States, as well as a permanent injunction prohibiting Defendants from enforcing the statute as written.” Complaint ¶ 107, at 20. New Mexico law concerning the enforcement of county and municipal zoning ordinances on federal land is instructive. “A county or municipality may zone federally-owned lands, but may not enforce the adopted zoning ordinances on federal land absent consent from the United States.” Bonito Land & Livestock, Inc. v. Valencia Cnty. Bd. of Comm’rs,
New Mexico state law impliedly preempts the Ordinance, because it conflicts with state law. State law may either expressly or impliedly preempt a county ordinance. See San Pedro Mining Corp. v. Bd. of Cnty. Comm’rs,
1. New Mexico State Law Does Not Impliedly Preempt the Entire Oil-And-Gas Field.
New Mexico state law does not impliedly preempt the entire oil-and-gas field. SWEPI, LP directs the Court to a 1986 New Mexico Attorney General advisory letter in which the Attorney General opined that the entire field of oil-and-gas regulation was occupied by the State — i.e. the State of New Mexico impliedly preempted the entire oil-and-gas field. See Motion at 20 (citing N.M. Att’y Gen. Op. 86-2,
A. The [Oil Conservation Division] shall have, and is hereby given, jurisdiction and authority over all matters relating to the conservation of oil and gas and the prevention of waste of potash as a result of oil and gas operations in this state. It shall have jurisdiction, authority and control of and over all persons, matters or things necessary or proper to enforce effectively the provisions of this act or any other law of this state relating to the conservation of oil and gas and the prevention of waste of potash as a result of oil and gas operations.
N.M. Att’y Gen. Op. 86-2,
Since the Attorney General’s Office issued the advisory letter, New Mexico
neither the Act nor the regulations contain any mention of development issues with which local governments are traditionally concerned, such as traffic congestion, increased noise, possible nuisance created by blasting or fugitive dust, compatibility of mining use with the use made of surrounding land, appropriate distribution of land use and development, and the effect of the mining activity on surrounding property values.
In Rancho Lobo, Ltd. v. Devargas, the Tenth Circuit considered whether the New Mexico Forest Conservation Act, N.M. Stat. Ann. §§ 68-2-1 through 68-2-34, preempted a New Mexico county’s “Timber Harvest Ordinance.” See
the main focus of the Timber Harvest Ordinance is on local issues, such as the amelioration of damage to the surrounding property as the result of timber harvesting, including issues such as the effect of the timber harvest on economic development and local employment, water quality and availability, soil protection, archeological, historic and cultural resources, abatement of noise, dust, smoke and traffic, hours of operation, compatibility with adjacent land uses, cumulative effect when combined with existing harvests.
Rancho Lobo, Ltd. v. Devargas,
The Oil and Gas Act is focused primarily on the prevention of waste and the drilling and maintenance of oil-and-gas wells. The Oil and Gas Act prohibits the production or handling of oil and gas in a manner that constitutes or results in waste. See N.M. Stat. Ann. § 70-2-2. Waste is interpreted with its ordinary meaning, and the Oil and Gas Act also provides a number of specific examples that can be summed up as the inefficient, excessive, or improper use of oil and gas. See N.M. Stat. Ann. § 70-2-3. The Oil and Gas Act provides the Oil Conservation Division with a number of powers concerning the regulation of drilling for, and producing, oil and gas. See N.M. Stat. Ann. § 70-2-12. The Oil and Gas Act, however, does not address “the kinds of ... issues ‘with which local governments are traditionally concerned.’ ” Rancho Lobo, Ltd. v. Devargas,
In the 1986 advisory letter, Assistant Attorney General Stephenson focused on the Oil Conservation Division’s authority and jurisdiction in concluding that the Oil and Gas Act preempted the entire oil-and-gas field. See N.M. Att’y Gen. Op. 86-2,
preempted their respective fields. See Rancho Lobo, Ltd. v. Devargas,
2. The Ordinance Conñicts With State Law.
The Ordinance conflicts with New Mexico state law and must be invalidated. The Supreme Court of New Mexico first articulated the conflict preemption test in State ex rel. Coffin v. McCall,
By banning hydrocarbon exploration- and-extraction activities, the Ordinance is antagonistic to state law, because it prohibits activities that New Mexico state law permits. New Mexico courts have generally applied the conflict preemption doctrine when local laws permit conduct that state law prohibits. For example, in Board of Commissioners of Rio Arriba County v. Greacen, the Supreme Court of New Mexico held that a county ordinance, which imposed penalties for driving under the influence (“DUI”) that were more severe than penalties that a state statute expressly limited, conflicted with state law.
The Court has been unable to find, and the parties have not cited, any case in which a New Mexico court found conflict preemption based on a local ordinance prohibiting conduct that state law permits. The Court, however, has been unable to find a New Mexico case in which a court considered an ordinance as extreme as this
State law is not silent on the exploration and extraction of hydrocarbons. The State has created an extensive statutory and regulatory scheme to regulate oil-and-gas production. See generally N.M. Stat. Ann. § 70-2-1. By extensively regulating oil-and-gas production in a manner that is intended to prevent waste, see N.M. Stat. Ann. § 70-2-2, the State has indicated that oil-and-gas extraction is permitted. This focus on preventing waste also highlights the Oñ and Gas Act’s focus on the efficient production of oil and gas. Furthermore, if state law did not permit oil- and-gas production, the State would not so heavily regulate oil-and-gas production. A complete ban on oil-and-gas extraction would be “antagonistic” to state law.
At the hearing, in addressing SWEPI, LP’s argument that state law preempts the entire oil-and-gas field and that a county cannot regulate oil-and-gas activities, the Defendants argued that the Ordinance does not regulate oil-and-gas extraction, because it bans all such activities. See Tr. at 145:9-19 (Haas, Court). In the field preemption context, a ban rather than a regulation would be a distinction without a difference, because a county could not legislate in that field regardless how the legislation is characterized. For conflict preemption, however, the distinction makes a difference, and it is a difference that hurts the Defendants’ position. If the Defendants had merely regulated oil-and-gas production in Mora County, those regulations may not conflict with state law, even if they were stricter than state law. See Rancho Lobo, Ltd. v. Devargas,
First, an outright ban on oil and gas results in the waste of oil and gas in every pool where such a ban is in place. Opponents might respond that the 0 & G Act only prohibits waste in connection with “the production or handling of crude petroleum oil or natural gas.” It follows that without production or handling (activities that are banned in Mora County), there can be no prohibited waste. Such an argument, however, fails to recognize that pools do not conform to local boundaries. Instead of drilling in an efficient pattern prescribed by reservoir characteristics, a ban requires an inefficient, irregular pattern of production from outside the local boundary in a manner that impedes the state’s interest in the efficient production of the pool.
Second, the argument that New Mexico law only governs the manner of production, but not the ability to produce at all, ignores the relationship between waste and correlative rights. A ban on production eviscerates the correlative rights of an owner by denying that owner the opportunity to produce her just and equitable share, or any share. While all manner of federal and state laws that protect the environment may impair correlative rights, allowing a local government to ban oil and gas operations fails the basic preemption test. It arguably goes even further by prohibiting not just something that the law allows, but something that an entire agency is bound by state law to protect. A local ban also discriminates against the owners of a common pool with mineral interests inside the boundaries of the locality as owners outside the boundary would effectively have the right to drain the entire pool. Further, because an owner has such an opportunity to produce under state law, it follows that a prohibition on fracking, a lawful method required for the extraction of oil and gas in shale and other tight formations, also wastes oil and gas that cannot be produced by other methods, thereby impairing correlative rights.
A ban allows for no permit, variance, or other procedure, but simply declares illegal an act that New Mexico law permits and comprehensively regulates, and that legislative history declares critically important to the state and its economy.
Ritchie, supra at 810-11 (footnotes omitted). Accordingly, the Ordinance’s ban conflicts with state law.
Because certain provisions in the Ordinance conflict with state law, they must be invalidated. See Bd. of Comm’rs of Rio Arriba Cnty. v. Greacen,
Section 5.1: It shall be unlawful for any corporation to engage in the extraction of oil, natural gas, or other hydrocarbons within Mora County.
Section 5.2: It shall be unlawful for any corporation to engage in the extraction of water from any surface or subsurface source within Mora County for use in the extraction of subsurface oil, natural gas, or other hydrocarbons, or for any director, officer, owner, or manager of a corporation to use a corporation to extract water from any surface or subsurface source, within Mora County, for use in the extraction of subsurface oil or natural gas or other hydrocarbons. It shall be unlawful for a corporation to import water or any other substance, including but not limited to, propane, sand, and other substances used in the extraction of oil, natural gas, or other hydrocarbons, into Mora County for use in the extraction of subsurface oil, natural gas, or other hydrocarbons; or for any director, officer, owner, or manager of a corporation to do so.
Section 5.3: It shall be unlawful for any corporation, or any director, officer, owner, or manager of a corporation to use a corporation to deposit, store, transport or process waste water, “produced” water, “frack” water, brine or other materials, chemicals or by-products used in the extraction of oil, natural gas, or other hydrocarbons, into the land, air or waters within Mora County.
Section 54: It shall be unlawful for any corporation, or any director, officer, owner, or manager of a corporation to use a corporation to construct or maintain infrastructure related to the extraction of oil, natural gas, or other hydrocarbons within Mora County. “Infrastructure” shall include, but not be limited to, pipelines or other vehicles of conveyance of oil, natural gas, or other hydrocarbons, and any ponds or other containments used for waste-water, “frack” water, or other materials used during the process of oil, gas, or other hydrocarbon extraction.
Section 8.5. Reinstatement of Moratorium on Oil and Gas Extraction. In the event that this ordinance is overturned or nullified, for any reason, a moratorium on the extraction of oil and gas within the County of Mora shall become effective on the date that this ordinance becomes inactive. That temporary moratorium shall have a duration of no more than six months, during which the Board of County Commissioners shall adopt another ordinance which permanently bans hydrocarbon extraction within the County of Mora.
Ordinance §§ 5.1-5.4, at 4; id. § 8.5, at 6.
Section 5.1 bans corporations from engaging in hydrocarbon extraction. As the Court has previously noted, and as the Defendants argued, see Response at 19, corporations are likely the only entities engaged in hydrocarbon extraction. Individuals do not engage in oil-and-gas production without some form of limited liability protection. By banning all corporations from engaging in hydrocarbon extraction, and by defining the term corporation broadly, see Ordinance § 3.1, at 2, the Ordinance effectively bans all oil- and-gas production. This conflicts with state law, and § 5.1 must be invalidated.
Sections 5.2, 5.3, and 5.4 are all invalid for the same reasons: they effectively ban all oil-and-gas production in Mora County. While they do not explicitly ban hydrocarbon extraction activities — like § 5.1 does— they have the same effect of prohibiting all oil-and-gas production in Mora County. Section 5.2 prohibits corporations and individuals associated with corporations from possessing materials used in hydrocarbon extraction. See Ordinance § 5.2, at 4. Section 5.3 prohibits corporations from possessing any chemicals used in hydrocarbon extraction. See Ordinance § 5.3, at 4. And section 5.4 prohibits corporations from constructing the necessary infrastructures for hydrocarbon extraction. See Ordinance § 5.3, at 4. Each section is an effective ban on all oil-and-gas production. No one can produce oil and gas without the necessary materials, chemicals, or infrastructure. By prohibiting these things,
Section 8.5 is invalid, because it threatens to ban all hydrocarbon extraction activities. See Ordinance § 8.5, at 6. Section 8.5 states that, if the Ordinance is overturned or nullified, then there will be a moratorium on oil-and-gas extraction in Mora County, and that, during the moratorium, the County Commissioners will adopt another ordinance permanently banning hydrocarbon extraction. See Ordinance § 8.5, at 6. In this Memorandum Opinion and Order, the Court is invalidating the Ordinance. According to § 8.5, once the Court invalidates the Ordinance, hydrocarbon extraction will be banned in Mora County. See Ordinance § 8.5, at 6. Because a ban on all oil-and-gas production conflicts with state law, § 8.5’s moratorium, which will take effect once the Court issues this Memorandum Opinion and Order, conflicts with state law. Accordingly, § 8.5 is invalidated as well.
In sum, §§ 5.1, 5.2, 5.3, 5.4, and 8.5 are invalid, because they conflict with state law.
IX. THE ORDINANCE IS NOT SEV-ERABLE AND MUST BE INVALIDATED IN ITS ENTIRETY.
The Ordinance is not severa-ble and must be invalidated in its entirety. The Court has invalidated a number of the Ordinance’s provisions. The Court must now proceed to determine whether those provisions of the Ordinance are severable from the remainder of the Ordinance, such that these portions of the Ordinance that are not unlawful may remain in force. “To determine whether invalid portions of [an] ordinance[ ] are severable, the court must refer to state law.” Bd. of Cnty. Comm’rs v. QWest Corp.,
A part of the law may be unconstitutional and the remainder of it valid, where the objectionable part may be properly separated from the other without impairing the force and effect of the portion which remains, and where the legislative purpose as expressed in such valid portion can be accomplished and given effect, independently of the void provisions, and where if the entire act is taken into consideration it cannot be said that the enacting power would not have passed the portion retained had it known that the void provisions must fall.
Chapman v. Luna,
Section 13. Severability
The provisions of this Ordinance are severable. If any court of competent jurisdiction decides that any section, clause, sentence, part, or provision of this Ordinance is illegal, invalid, or unconstitutional, such decision shall not affect, impair, or invalidate any of the remaining sections, clauses, sentences, parts, or provisions of the Ordinance. The Mora County Commission hereby declares that in the event of such a decision, and the determination that the court’s ruling is legitimate, it would have enacted this Ordinance even without the section, clause, sentence, part, or provision that the court decides is illegal, invalid, or unconstitutional.
Ordinance § 13, at 6. The Court has invalidated §§ 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.8, 5.9, and 8.5. The remaining Ordinance, in its entirety, provides:
WHEREAS, We, the residents in Mora County, are a multi-cultural community with indigenous roots of Many; and
WHEREAS, We recognize the Earth, water, and air as a source of life for all living in Mora County; and
WHEREAS, We are convinced that the quality of life for residents in Mora County, for both the present and the future, will be destroyed if we allow at-risk exploitation and pollution of the Earth, water, and air; and
WHEREAS, We the People of the County of Mora declare that we have the duty to safeguard the water both on and beneath the Earth’s surface, and in the process, safeguard the rights of people within the county of Mora and the rights of the ecosystems of which Mora County is a part; and WHEREAS, We the People of Mora County declare that all of our water is held in the public trust as a common resource to be used for the benefit of Mora residents and of the natural ecosystems of which they are a part. We believe that industrial use of water supplies in this county placing the control of water in the hands of a corporate few, rather than the county would constitute abuse and usurpation; and that we are therefore duty bound to oppose such abuse and usurpation. That same duty requires us to recognize that two centuries’ worth of governmental conferral of constitutional powers upon corporations has deprived people of the authority to govern their own communities, and requires us to take affirmative steps to remedy that usurpation of governing power; and
WHEREAS, we are conscious of the urgency of taking decisive action to protect our collective rights and the rights of future generations, and of ensuring a balanced environment for the survival of all residents of Mora County; THEREFORE,
BE IT ORDAINED BY THE GOVERNING BODY OF MORA COUNTY, NEW MEXICO ... AN ORDINANCE PROTECTING THE RIGHT OF HUMAN COMMUNITIES, NATURE, AND NATURAL WATER, BY ESTABLISHING A LOCAL BILL OF RIGHTS FOR MORA COUNTY THAT PROTECTS THE NATURAL SOURCES OF WATER FROM DAMAGE RELATED TO THE EXTRACTION OF OIL, NATURAL GAS, OR OTHER HYDROCARBONS, BY AFFIRMING THE RIGHT TO LOCAL AUTONOMY AND SELF-GOVERNANCE, AND BY ELIMINATING LEGAL PRIVILEGES AND POWERSFROM CORPORATIONS VIOLATING THE ORDINANCE.
Section 1. Name and Purpose
Section 1.1 Name: This Ordinance shall be known and may be cited as the “Mora County Community Water Rights and Local Self-Government Ordinance.”
Section 1.2 Purpose: The People of the County of Mora are a cohesive community of diverse elements, united by common culture, social bonds and a common destiny, and are represented politically in various aspects by the Mora County Government, numerous Acequias, Land Grants and Mutual Domestic Water Consumers Associations. The People of Mora County recognize that water is essential for the life, prosperity, sustainability, and health of their community and that damage to natural groundwater and surface water sources imposes great tangible loss, to the People, natural communities and ecosystems of Mora County, not just for today but for future generations. The People of Mora County recognize that they may be forced, without their consent, to endure or attempt to repair harm inflicted on their environment and their vital water supply, which they have no equivalent governing authority to prevent under current .state and federal law. The governing body of Mora County adopts this Mora County Community Water Rights and Local Self-Government Ordinance to overcome that liability, to provide for community health and safety, to promote a sustainable lifestyle, and to secure the comfort and convenience of the people.
Section 2. Authority
This Ordinance is enacted pursuant to the inherent right of the residents of Mora County to govern their own community. That authority precedes government and is secured, without limitation, by:
The Treaty of Guadalupe Hidalgo, Article VIII & Article IX, which guarantees the “free enjoyment of their liberty and property” of the inhabitants of what became Mora County, and which states that property of every kind “shall be inviolably respected.” According to a 2001. Government Accounting Office report (http://www. gao.gov/new.iemts/d01951.pdt), this guarantees traditional communal use rights under the Treaty, including, but not limited to, the following rights-hunting “caza,” pasture. “pastas,” wood gathering “lefia,” and watering “abrevederos;”
The Declaration of Independence, which states that governments are instituted to secure the rights of people, “deriving their just powers from the consent of the governed;”
The New Mexico Constitution, Article 2, which declares that “all political power is vested in and derived from the people: all government of right originates with the people, is founded upon their will and is instituted solely for their good.” That section also declares that the people “have the sole and exclusive right to govern themselves as a free, sovereign, and independent state” and that “all persons are born equally free, and have certain natural, inherent and inalienable rights” and that “[t]he enumeration in this constitution of certain rights shall not be construed to deny, impair, or disparage others retained by the people;”
The Mora County Comprehensive Land Use Plan, which states that “[t]he connection between our land, our water and our people has sustained our culture since the firstsettlements in ■ Mora County, and our future depends on keeping these connections strong. Water is a vital link, which, if severed from the land, will also fragment our people from their land. The allocation of our limited water resources must recognize traditional subsistence agricultural and grazing activities as a priority over other types of more profitable land uses. Water is not just a commodity to be bought and sold, or exploited for short-term gains. Water is the lifeblood of Mora County’s • traditions, culture and land use. A sustainable future for Mora County requires protection of the most valuable resource for our communities — the Water!”
Section 3. Definitions
Section 3.1: “Corporation” shall mean any corporation, limited partnership, limited liability partnership, business trust, or limited liability company organized under the laws of any state of the United States or under the laws of any country, and any other business entity that possesses State-conferred limited liability attributes for its owners, directors, officers, and/or managers.
Section 3.2: “Extraction” shall mean the digging or drilling of a well for the purposes of exploring for, developing or producing oil, natural gas, or other hydrocarbons.
Section 3.3: “Horizontal drilling” shall mean intentional deviation of a wellbore from the vertical for the purpose of reaching subsurface areas laterally remote from the point where a well drilling bit or similar equipment enters the earth at the surface.
Section 34: “Hydraulic fracturing” shall mean an activity in which water, propane, diesel, chemicals and a solid prop-pant or any other agent are pumped into a wellbore at a rate sufficient to increase the pressure downhole to a value in excess of the fracture gradient of the formation rock, causing the formation to crack, thus allowing the fracturing fluid to enter and extend the crack farther into the formation, forming passages through which natural gas, oil, or other hydrocarbons can flow.
Section 3.5: “Hydrocarbons” shall mean any of numerous organic compounds, such as benzene and methane, that contain only carbon and hydrogen.
Section 3.6: “La Querencia de la Tierra” shall mean the loving respect which Mora County residents have towards the land and Earth, which is rooted in our indigenous worldview — the Earth is living and holy, is the habitat that sustains us, and is composed of all natural & living systems, flora and fauna — interrelated, interdependent and complementary — which share our common destiny: The right to live free from contamination.
Section 3.7: “Natural Gas” shall mean any gaseous substance, either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rari-fied state at standard temperature or pressure conditions, and/or gaseous components or vapors occurring in, or derived from, petroleum or natural gas.
Section 3.8: “Oil” shall mean any thick, flammable, yellow-to-black mixture of gaseous, liquid, and solid hydrocarbons that occur naturally beneath the earth’s surface.
Section 4. Statements of Law— Rights of Mora County Residents and the Natural Environment
Section LI. Right to Water: All residents, natural communities and ecosystems in Mora County possess a fundamental and inalienable right tosustainably access, use, consume, and preserve water drawn from natural water cycles that provide water necessary to sustain life within the County.
Section Jp.2. Right of Water for Agriculture: All Mora County residents possess the fundamental and inalienable right to unpolluted natural water to produce healthy food, to nourish our bodies, livestock and land and to continue “La Querencia de la Tierra,” Love of the Land.
Section b.3. Rights of Natural Communities: Natural communities and ecosystems, including, but not limited to, wetlands, streams, rivers, aquifers, and other water systems, possess inalienable and fundamental rights to exist and flourish within Mora County against oil and gas extraction. Residents of the County, along with the Mora County Commission, shall possess legal standing to enforce those rights on behalf of those natural communities and ecosystems. Natural communities and ecosystems protected by this ordinance shall be protected on all lands within Mora County, including those owned by the state and federal government
Section k-b- Right to a Sustainable Energy Future: All residents, natural communities, and ecosystems in Mora County possess a right to a sustainable energy future, which includes, but is not limited to, the development, production, and use of energy from renewable fuel sources, and the right to have an energy system based on fuel sources other than fossil fuel sources. This right shall also include the right to energy practices that do not cause harm, and which do not threaten to cause harm, to people, communities, or the natural environment.
Section 4-5. Right to Self-Government: All residents of Mora County possess the fundamental and inalienable right to a form of governance where they live which recognizes that all power is inherent in the people, that all free governments are founded on the people’s authority and consent, and that corporate entities and their directors and managers shall not enjoy special privileges or powers under the law which make community majorities subordinate to them.
Section 4-6. People are Sovereign: The Mora County Commission shall be the governing authority responsible to, and governed by, the residents of the County. Use of the “Mora County” municipal corporation by the sovereign people of the County to make law shall not be construed to limit or surrender the sovereign authority or immunities of the people to a municipal corporation that is subordinate to them in all respects at all times. The people at all times enjoy and retain an inalienable and indefeasible right to self-governance in the community where they reside.
■Section b.7. Rights of La Querencia de la Tierra: The farm-based indigenous/mestizo (mixed blood) people who created the original Mora County culture considered the Earth to be living and holy; thus they referred to their homeland as “La Querencia de la Tier-ra,” Love of the Land. This sacredness connotes an intrinsic right of the land to exist without defilement.
Section 4-8. Rights are Self-Executing: All rights delineated and secured by this ordinance shall be self-executing and these rights shall be enforceable against both public and private actors, and shall not require implementing legislation for their enforceability.
Section b-9- Exemption. Nothing in this ordinance shall be construed in such a manner as to impact the water rights of acequias, Mutual Domestic Water Consumers Associations or land grant, or to affect or color any negotiations regarding water rights, distribution or usage between these political subdivisions and the County of Mora.
Section 5. Statements of Law Prohibitions Necessary to Secure Bill of Rights’ Protections
Section 5.7: No permit, license, privilege or charter issued by any state or federal agency, Commission or Board to any person or any corporation operating under a State charter, or any director, officer, owner, or manager of a corporation operating under a State charter, which would violate the prohibitions of this Ordinance or deprive any County resident(s), natural community, or ecosystem of any rights, privileges, or immunities secured by this Ordinance, the Treaty of Guadalupe Hildalgo, the New Mexico Constitution, the United States Constitution, or other laws, shall be deemed valid-within Mora County.
Section 6. Strict Liability
Section 6.1: Persons using corporations to engage in the extraction of oil, natural gas or other hydrocarbons in a neighboring municipality shall be strictly liable for all harms caused to the health, safety, and welfare of the residents of Mora County from those activities, and for all harms caused to ecosystems and natural communities within Mora County-
Section 7. Future Lost Profits
Section 7.1: Within the County of Mora, corporate claims to “future lost profits” shall not be considered property interests under the law, and thus, shall not be recoverable by corporations seeking those damages.
Section 8. Enforcement
Section 8.1: Any violation of any provision of this Ordinance shall be considered a criminal offense, punishable by maximum penalties and imprisonment as authorized by applicable New Mexico law. Each instance of a violation of the provisions of this Ordinance shall be treated as a separate offense subject to penalties authorized by applicable New Mexico law.
Section 8.2: Mora County may enforce this Ordinance through an action brought in any court of competent jurisdiction. In such an action, Mora County shall be entitled to recover all costs of litigation, including, without limitation, expert and attorney’s fees, in addition to damages caused by the violation of this ordinance.
Section 8.8: Any County resident shall have the authority to enforce this Ordinance through an action brought in a court of competent jurisdiction. In such an action, the resident shall be entitled to recover all costs of litigation, including, without limitation, expert and attorney’s fees.
Section 84: Any person or municipality who brings an action to secure or protect the rights of natural communities or ecosystems against oil and gas extraction within Mora County shall bring that action in the name of the natural community or ecosystem in a court of competent jurisdiction. Damages shall be measured by the cost of restoring the natural community or ecosystem to its pre-damaged state, and shall be paid to the County of Mora or other applicable governmental entity, to be used exclusively for the full and complete restoration of the natural community or ecosystem.
Section 9. Effective Date and Existing State Permit Holders
This Ordinance shall be effective five (5) days after the date of its enactment', at which point the Ordinance shall apply to any and all extractions of oil, naturalgas, or other hydrocarbons in Mora County regardless of the date of any applicable governmental permits.
Section 10. County Commission Action and Voter Referenda to Repeal Ordinance
The foundation for the making and adoption of this law is the people’s fundamental and inalienable right to govern themselves, and thereby secure their rights to life, liberty, and the pursuit of happiness. Accordingly, this Ordinance automatically suspends the operating rules of the Mora County Commission when the question of repealing this Ordinance is introduced. Repeal of this ordinance shall require both a unanimous vote, of the Mora County Commissioners voting in favor of the repeal of the ordinance, and a voter referenda following that vote which shall make the repeal effective only if two thirds of the Mora County electorate vote to repeal the ordinance.
Section 11. People’s Right to Self-Government — Preemption
Any attempts ’ to use other units and levels of government to preempt, amend, alter, or overturn this Ordinance, or parts of this Ordinance, shall require the County Commission to hold public meetings that explore the adoption of other measures that expand local control and the ability of residents to protect then-fundamental and inalienable right to self-government. Such consideration may include actions to separate the County from the other levels of government used to preempt, amend, alter, or overturn the provisions of this Ordinance or other levels of government used to intimidate the people of Mora County or their elected officials.
Section 12. New Mexico Constitutional Changes .
Through the adoption of this local law, the people of Mora County call for amendment of the New Mexico Constitution to explicitly secure a community right to local self-government that cannot be preempted by the State if the community’s laws enforce rights or standards more protective of the health, safety, and welfare of the people of Mora County and the natural environment, communities, and ecosystems. The people of Mora County also call for a state constitutional amendment that explicitly elevates community rights above corporate property rights, and that recognize the rights of nature enforceable by the residents of a community.
Section 13. Severability
The provisions of this Ordinance are severable. If any court of competent jurisdiction decides that any section, clause, sentence, part, or provision of this Ordinance is illegal, invalid, or unconstitutional, such decision shall not affect, impair,' or invalidate any of the remaining sections, clauses, sentences, parts, or provisions of the Ordinance. The Mora County Commission hereby declares that in the event of such a decision, and the determination that the court’s ruling is legitimate, it would have enacted this Ordinance even without the section, clause, sentence, part, or provision that the court decides is illegal, invalid, or unconstitutional.
Section 14. Repealer
All inconsistent provisions of prior Ordinances adopted by the Mora County Commission are hereby repealed, but only to the extent necessary to remedy the inconsistency.
Ordinance § 1.1-14, at 1-6 (invalid provisions omitted).
The Court has effectively invalidated all of Section 5. Without these provisions, the
Without § 5’s prohibitions, which the Court invalidated, the remaining Ordinance is an empty shell. There is no enforcement power. The remaining provisions provide support for § 5’s prohibitions, state lofty ideals that have no force of law, or provide for the manner in which Mora County’s government should act when certain issues arise regarding the Ordinance. The only remaining provisions that have a semblance of legal enforcement are §§ 6 and 7 — the strict liability and future lost profits provisions. As the Court has noted, however, the validity of these two provisions is suspect. The Court cannot say that the Defendants would have enacted the Ordinance without § 5’s prohibitions. The entire Ordinance revolves around § 5. The Ordinance repeatedly discusses the importance of water and the need to protect it. See Ordinance Introduction, at 1 (“[W]e have the duty to safeguard the water both on and beneath the Earth’s surface .... ” (bold omitted)); id. § 1.2, at 2 (“The People of Mora County recognize that water is essential for the life, prosperity, sustainability, and health of their community and that damage to natural groundwater and surface water sources imposes great tangible loss .... ”); id. § 2, at 2 (“Water is the lifeblood of Mora County’s traditions, culture and land use. A sustainable future for Mora County requires protection of the most valuable resource for our communities — the Water!” (internal quotation marks omitted)); id. § 4.1, at 3 (“All residents, natural communities and ecosystems in Mora County possess a fundamental and inalienable right to sustainably access, use, consume, and preserve water -”); id. § 4.4, at 3 (“All residents ... possess a right to a sustainable energy future, ... and the right to have an energy system based on fuel sources other than fossil fuel sources.”). The Ordinance also focuses on subverting corporate rights. See Ordinance Introduction, at 1 (“We believe that industrial use of water supplies in this county placing the control of water in the hands of a corporate few, rather than the county would constitute abuse and usurpation; and that we are therefore duty bound to oppose such abuse and usurpation.” (bold omitted)); id. Introduction at 1- (“An Or- _ dinance protecting the right of human communities, nature, and natural water, ... by eliminating legal privileges and powers from corporations violating the Ordinance.” (bold omitted)(capitalization omitted)); id.. § 4.5, at 3 (“[Cjorporate entities and their directors and managers shall not enjoy special privileges or powers under the law which make community majorities subordinate to them.”). The provisions that furthered each of these purposes have been invalidated. The hydrocarbon extraction bans protected water, and the stripping corporations of their rights corrected the perceived wrongs that corporate rights create. These provisions, however, have been invalidated. The Ordinances’ purpose can no longer be given force and effect.
After the invalid provisions have been removed, the remaining portions no longer have “force and effect”; their- legislative
IT IS ORDERED that SWEPI’s Motion for Partial Judgment on the Pleadings, filed May 31, 2014 (Doc. 21), is granted in part and denied in part. The Mora County, N.M., Ordinance 2013-10 (2013) is invalidated in its entirety.
Notes
. SWEPI, LP also attached a portion of an oil-and-gas lease to the Complaint while alleging that it attached a copy of a lease dated April 1, 2010. See Complaint ¶ 4, at 2; Exhibit 2, filed January 10, 2014 (Doc. 1-2). The Defendants, in the Answer, denied that a copy of a lease is attached to the Complaint, but noted that an “incomplete copy of a Memorandum of Oil and Gas Lease purportedly executed on April 1, 2010 but acknowledged on April 6, 2010 is attached to the Complaint as Exhibit 2.” Answer ¶ 4, at 2. On May 13, 2014, SWEPI, LP filed a notice of errata stating that its Exhibit 2 to the Complaint
. In the Complaint, SWEPI, LP states that the Ordinance is titled the "Mora County Water Rights and Local Self-Governance Ordinance.” Complaint ¶ 1, at 1. The Defendants admit that that the Mora County Board of County Commissioners passed the Ordinance, "but state that the correct name of the Ordinance is the 'Mora County Community Water Rights and Local Self-Governance Ordinance.' ” Answer ¶ 1, at 1. The Ordinance, which SWEPI, LP attached to the Complaint, is titled the "Mora County Community Water Rights and Local Self-Governance Ordinance.” Mora County, N.M., Ordinance 2013-10 § 1.1 (2013), filed January 10, 2014 (Doc. l-l)("This Ordinance shall be known and may be cited as the 'Mora County Community Water Rights and Local Self-Government Ordinance.' ”). In deciding a rule 12(c) motion, the Court may consider the pleadings and documents attached to the pleadings. See O’Donnell v. Sullivan, No. CIV 10-0133,
. SWEPI, LP is not a corporation; it is a limited partnership. See Complaint ¶ 3, at 2. Because the Ordinance’s definition of corporations includes limited partnerships, see Ordinance § 3.1, at 2 ("'Corporation shall mean any corporation, limited partnership, ....”), SWEPI, LP refers to itself as a corporation in the Motion. The Court will also, in addressing SWEPI, LP’s claims, refer to SWEPI, LP as a corporation for clarity, because the Ordinance considers SWEPI, LP to be a corporation, even though it is not.
. Fracking is a hydrocarbon extraction technique.
Hydraulic fracturing (also hydrofracturing, hydrofracking, fracking or fraccing), is a well-stimulation technique in which rock is fractured by a hydraulically pressurized liquid made of water, sand, and chemicals. Some hydraulic fractures form naturally— certain veins or dikes are examples. A high-pressure fluid (usually chemicals and sand suspended in water) is briefly injected into a wellbore to create cracks in the deep-rock formations through which natural gas," petroleum, and brine, will flow more freely. When the hydraulic pressure is removed from the well, small grains of hydraulic fracturing proppants (either sand or alu-minium oxide) hold the fractures open once the deep rock achieves geologic equilibrium.
Hydraulic Fracturing, Wikipedia.org, http:// en.wikipedia.org/wiki/Hydraulic_ fracturing# Method (last visited Jan. 17, 2015).
. Rather than attempting to summarize the Defendants' arguments for this section, the Court will reproduce them in full.
. The same attorney represents the Defendants and the Defendant-Intervenors: Jeffrey H. Haas. See SWEPI, LP v. Mora County,
. The Aug. 1, 2010, Lease is for 659.08 acres, not 64,000 acres. See Aug. 1, 2010, Lease at 1.
. The Treaty of Guadalupe Hidalgo ended the Mexican-American War.
The Treaty of Guadalupe Hidalgo (Tratado de Guadalupe Hidalgo in Spanish), officially entitled the Treaty of Peace, Friendship, Limits and Settlement between the United States of America and the Mexican Republic, is the peace treaty signed on February 2, 1848, in the Villa de Guadalupe Hidalgo (now a neighborhood of Mexico City) between the United States (US) and Mexico that ended the Mexican-American War (1846-48).
With the defeat of its army and the fall of its capital, Mexico entered into negotiations to end the war. The treaty called for the U.S. to pay $15 million to Mexico and to pay off the claims of American citizens against Mexico up to $3.25 million. It gave the United States the Rio Grande as a boundary for Texas, and gave the U.S. ownership of California and a large area comprising New Mexico, Arizona, Nevada, Utah, and partsof Wyoming and Colorado. Mexicans in those annexed areas had the choice of relocating to within Mexico’s new boundaries or receiving American citizenship with full civil rights. Over 90% chose to become U.S. citizens.
Treaty of Guadalupe Hidalgo, Wikipedia.org, http://en.wikipedia.org/wiki/Treaty_of_ GuadahipeJHidalgo (last visited Jan. 17, 2015).
. Plugging an oil-and-gas well means:
To fill up the borehole of an abandoned well with mud and cement to prevent the flow of water or oil from one strata to another or to the surface. In the industry’s early years, wells were often improperly plugged or left open. Modern practice requires that an abandoned well be properly and securely plugged.
Glossaiy, Prodigy Oil and Gas, http://www. prodigyoilandgas.com/oil-and-gas-glossary. html (last visited Jan. 17, 2015).
. In Bivens v. Six Unknown Fed. Narcotics Agents,
. The Tenth Circuit and leading commentators contend that the formulation in United States v. Salerno,
[I]n City of Chicago v. Morales, [527 U.S. 41 , 55 n. 22,119 S.Ct. 1849 ,144 L.Ed.2d 67 (1999),] a plurality of the Court asserted that "[t]o the extent that we have consistently articulated a clear standard for facial challenges, it is not the Salerno formulation, which has never been the decisive factor in any decision of this Court, including Salerno itself.”
Salerno’s language thus is accurately understood not as setting forth a test for facial challenges, but rather as describing the result of a facial challenge in which a statute fails to satisfy the appropriate constitutional standard. In other words, where a statute fails the relevant constitutional test (such as strict scrutiny, the Ward test, or reasonableness review), it can no longer be constitutionally applied to anyone — and thus there is "no set of circumstances” in which the statute would be valid. The relevant constitutional test, however, remains the proper inquiry.
Doe v. City of Albuquerque,
. The Borough of Mt. Ephraim argued that the zoning ordinance constituted a "reasonable time, place, and manner restriction.”
. Government employees do not receive the same level of First Amendment protection from adverse employment actions, e.g., firings that citizens do from adverse government action, e.g., penal or civil sanctions, discrimina1 tion on the basis of speech (content-based speech regulation), compelled speech, or the conditioning of a benefit. See Erwin Chemerinsky, Constitutional Law: Principles and Policies § 11.2.4.1, at 969; id. § 11.3.8.1, at 1112. Government employees are protected from adverse employment actions only on the basis of speech if; (i) the speech is "on a matter of public concern,” Connick v. Myers,
. A logical consequence of there being “no set of circumstances” wherein the law would be constitutional is that the manner in which the government applied the law in the challenger's case must also be unconstitutional.
. Standing is not the only reason that facial challenges are disfavored. Other cases say that "[fjacial adjudication carries too much promise of ‘premature interpretation of statutes' on the basis of barebones records.” Sabri v. United States,
. Establishing Article III standing requires three components: (i) an injury in fact, which is “an invasion of a legally protected interest which is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical,”; (ii) causation between the injury in fact and the conduct complained of, such that the injury is fairly traceable to the challenged action; and (iii) “it must be likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Lujan v. Defenders of Wildlife,
. A leading commentator offers a possible justification for the virtual abandonment of standing doctrine in the context of over-breadth challenges that also explains the concept of "taxpayer standing” for suits brought under the Establishment Clause: the grammar of the Constitution’s text. Nicholas Q. Rosenkranz, The Subjects of the Constitution, 62 Stan. L.Rev. 1209, 1250-57, 1257-63 (2010). The thrust of the argument is that,
. The parties in Schaefer v. Las Cruces Public School District defined being “racked” as being "kicked and/or punched in the testicles.”
. Muller v. Culbertson is an unpublished opinion, but the Court can rely on an unpublished opinion to the extent its reasoned analysis is persuasive in the case before it. See 10th Cir. R. 32.1(A) ("Unpublished opinions are not precedential, but may be cited for their persuasive value."). The Tenth Circuit has stated:
In this circuit, unpublished orders are not binding precedent, ... and we have generally determined that citation to unpublished opinions is not favored. However, if an unpublished opinion or order and judgment has persuasive value with respect to a material issue in a case and would assist the court in its disposition, we allow a citation to that decision.
United States v. Austin,
. Prudential standing concerns whether a plaintiff is asserting his or her own rights; whether a plaintiff's claim is a generalized grievance that all, or a large class of citizens, share; and whether a plaintiff's grievance falls within the zone of interests that the statute or constitutional guarantee, which is invoked in the suit, protects or regulates. See Bd. of Cnty. Comm’rs v. Geringer,
. The Court includes this discussion in this portion of the Memorandum Opinion and Order merely to determine whether SWEPI, LP has standing. The Court is not, however, concluding whether the Ordinance constitutes a taking that requires just compensation. Because SWEPI, LP’s takings claim is not ripe, the Court will not resolve that issue.
. Many people buy and sell leases with no intention of drilling. A person, who has no intention of drilling for oil or gas, may purchase inexpensive oil-and-gas leases upon which there is little prospect of oil or gas being discovered, with the hope that someone else may discover oil or gas on surrounding properties. The discovery of nearby oil and gas would increase the value of the person’s leases, and he or she would be able to sell them for a profit. That the person paid little money for the leases and had no intention to drill does not make the leases valueless. They still have value — albeit not much until some later development increases the likelihood that oil will be found. If land is leased at five cents an acre, the lease still has value — five cents per acre — and it has the potential of increasing in value if oil and gas is discovered nearby.
. 'If there are indeed no oil-and-gas reserves in Mora County, the Ordinance would be pointless, because no hydrocarbon extraction activities would ever occur in Mora County.
. Because the information from seismic and geological studies may negatively affect SWEPI, LP and is highly valuable to any leaseholder or potential leaseholders, this information is kept confidential and is fiercely protected. SWEPI, LP asserts that the information about its seismic studies and data collection is not shared outside the,company and that, if it were disclosed, it would potentially cause it to suffer economic injury. See Frelier Aff. ¶¶ 3-4, at 2. Like a poker player wishing to conceal his or her hand, a leaseholder or potential leaseholder wants to keep its information from seismic and geological studies secret to maintain the advantage that they bring. If the information reveals large potential oil reserves, the person may be able to lease surrounding property at a discount. On the other hand, if the information reveals low or no oil reserves, the leaseholder can still sell its leases to a purchaser who does not have the same information. Once the information is public, however, the leaseholder or potential leaseholder loses his or her advantage, because a lessor would not lease property at a discount, if he or she knows of the potential oil reserves, and a potential purchaser will not be willing to pay the same amount of money for a lease that he or she knows has a low likelihood of every producing oil or gas.
. The Supreme Court of New Mexico in Brosseau v. New Mexico State Highway Department applied the 1975 version of § 22-9-22. See
Property taken or damaged without compensation or condemnation proceedings— Right of action by owner. — Notwithstanding the provisions of the Relocation Assistance Act [22-9A-l to 22-9A-l 6], the state of New Mexico or any agency or politicalsubdivision thereof, including the state highway commission and any person, firm or corporation authorized by the Constitution or laws of this state to exercise the right of eminent domain who has heretofore taken or damaged or who may hereafter take or damage any private property for public use without making just compensation therefor or without instituting and prosecuting to final judgment in a court of competent jurisdiction any proceeding for condemnation thereof, shall be liable to the owner of such property, or any subsequent grantee thereof, for the value thereof or the damage thereto at the time such property is or was taken or damaged, with legal interest, to the date such just compensation shall be made, in an action to be brought under and governed by the Rules of Civil Procedure for the district courts of this state. Actions under this section shall be brought in the county where the land or any portion thereof is located.
N.M. Stat. Ann. 1953 § 22-9-22 (1975 Supp.).
. The Court is not suggesting that fracking or hydrocarbon extraction necessarily pollutes ground water. Rather, the Court is noting that the purpose of the Ordinance is to attempt to protect water to be used for a beneficial purpose, which causes the taking of SWEPI, LP's leases to be done for a public purpose.
. The Honorable Carlos F. Lucero, United States Circuit Judge for the Tenth Circuit, dissented, arguing that, in holding that the Supremacy Clause does not provide a private right of action, Judge Hartz ignored binding Tenth Circuit precedent and "disregarded” the "bedrock principle of stare decisis " that one Tenth Circuit panel cannot overrule the decision of a prior panel. Planned Parenthood of Kan. & Mid-Missouri v. Moser,
. Shortly after the Tenth Circuit issued its opinion, the Fifth Circuit, in an opinion that the Honorable Jerry E. Smith, United States Circuit Judge for the Fifth Circuit, authored, and Judges Jones and Owen joined, reached the opposite conclusion, holding that the Supremacy Clause creates a private right of action. See Detgen ex rel. Detgen v. Janek,
. This holding appears to contradict two pri- or Tenth Circuit cases. In Qwest Corp. v. City of Santa Fe, the Tenth Circuit, in an opinion that Judge Murphy authored, and that Judges Porfilio and Hartz joined, held that a "party may bring a claim under the Supremacy Clause that a local enactment is preempted even if the federal law at issue does not create a private right of action.”
. There have certainly been dissenters to the concept of corporate constitutional rights. See Response at 23 n. 12 (listing a number of dissenting and concurring opinions of Supreme Court Justices challenging corporations’ constitutional rights). The most persuasive argument comes from the concurring opinion of the Honorable John Marshall Harlan, Associate Justice to the Supreme Court, in Hale v. Henkel. Justice Harlan wrote:
In my opinion, a corporation — 'an artificial being, invisible, intangible, and existing only in contemplation of law’ — cannot claim the immunity given by the 4th Amendment; for it is not a part of the ’people,’ within the meaning of that Amendment. Nor is it embraced by the word ‘persons’ in the Amendment. . If a contrary view obtains, the power of the government, by its representatives, to look into the books, records, and papers of a corporation of its own creation, to ascertain whether that corporation has obeyed or is defying the law, will be greatly curtailed, if not destroyed. If a corporation, when its affairs are under examination by a grand jury proceeding in its work under the orders of the court, can plead the immunity given by the 4th Amendment against unreasonable searches and seizures, may it not equally rely upon that Amendment to protect it even against a statute authorizing or directing the examination by the agents of the government creating it, of its papers, documents, and records, unless they specify the particular papers, documents, and records to be examined?
Hale v. Henkel,
The lack of a textual exception for speech by corporations cannot be explained on the ground that such organizations did not exist or did.not speak. To the contrary, colleges, towns and cities, religious institutions, and guilds had long been organized as corporations at common law and under the King’s charter, see 1 W. Blackstone, Commentaries on the Laws of England 455-473 (1765); 1 S. Kyd, A Treatise on the Law of Corporations 1-32, 63 (1793)(reprinted 2006), and as I have discussed, the practice of incorporation only expanded in the United States. Both corporations and voluntary associations actively petitioned the Government and expressed their views in newspapers and pamphlets. For example: An antislavery Quaker corporation petitioned the First Congress, distributed pamphlets, and communicated through the press in 1790. W. diGiacomantonio, "For the Gratification of a Volunteering Society”: Antislavery and Pressure Group Politics in the First Federal Congress, 15 J. Early Republic 169 (1995). The New York Sons of Liberty sent a circular to colonies farther south in 1766. P. Maier, From Resistance to Revolution 79-80 (1972). And the Society for the Relief and Instruction of Poor Germans circulated a biweekly paper from 1755 to 1757. Adams, The Colonial German-language Press and the American Revolution, in The Press & the American Revolution 151, 161-162 (B. Bai-lyn & J. Hench eds.1980). The dissent offers no evidence — none whatever — that the First Amendment's unqualified text was originally understood to exclude such associational speech from its protection.
Historical evidence relating to the textually similar clause "the freedom of the press” also provides no support for the proposition that the First Amendment excludes conduct of artificial legal entities from the scope of its protection. The freedom of “the press” was widely understood to protect the publishing activities of individual editors and printers. See McIntyre v. Ohio Elections Comm'n,514 U.S. 334 , ... (1995) (THOMAS, J., concurring in judgment); see also McConnell [v. Federal Election Comm’n], 540 U.S. [93], at 252-253, ... [ (2003) ] (opinion of SCALIA, J.). But these individuals often acted through newspapers, which (much like corporations) had their own names, outlived the individuals who had founded them, could be bought and sold, were sometimes owned by more than one person, and were operated for profit. See generally F. Mott, American Journalism: A History of Newspapers in the United States Through 250 Years 3-164 (1941); J. Smith, Freedom’s Fetters (1956). Their activities were not stripped of First Amendment protection simply because they were carried out under the banner of an artificial legal entity. And the notion which follows from the dissent’s view, that modern newspapers, since they are incorporated, have free-speech rights only at the sufferance of Congress, boggles the mind.
In passing, the dissent also claims that the Court's conception of corruption is unhistorical. The Framers "would have been appalled,” it says, by the evidence of corruption in the congressional findings supporting the Bipartisan Campaign Reform Act of 2002. For this proposition, the dissent cites a law review article arguing that "corruption” was originally understood to include "moral decay” and even actions taken by citizens in pursuit of private rather than public ends. Teachout, The Anti-Corruption Principle, 94 Cornell L.Rev. 341, 373, 378 (2009). It is hard to see how this has anything to do with what sort of corruption can be combated by restrictions on political speech. Moreover, if speech can be prohibited because, in the view of the Government, it leads to “moral decay” or does not serve "public ends,” then there is no limit to the Government's censorship power.
The dissent says that when the Framers “constitutionalized the right to free speech in the First Amendment, it was the free speech of individual Americans that they had in mind.” That is no doubt true. All the provisions of the Bill of Rights set forth the rights of individual men and women— not, for example, of trees or polar bears. But the individual person’s right to speak includes the right to speak in association with other individual persons. [S]urely the dissent does not believe that speech by the Republican Party or the Democratic Party can be censored because it is not the speech of "an individual American.” It is the speech of many individual Americans, who have associated in a common cause, giving the leadership of the party the right to speak on their behalf. The association of individuals in a business corporation is no different — or at least it cannot be denied the right to speak on the simplistic ground that it is not "an individual American.”
But to return to, and summarize, my principal point, which is the conformity of today's opinion with the original meaning of the First Amendment. The Amendment is written in terms of "speech,” not speakers. Its text offers no foothold for excluding any category of speaker, from single individuals to partnerships of individuals, to unincorporated associations of individuals, to incorporated associations of individuals — and the dissent offers no evidence about the original meaning of the text to support any such exclusion. We are therefore simply left with the question whether the speech at issue in this case is "speech” covered by the First Amendment. No one says otherwise. A documentary film critical of a potential Presidential candidate is core political speech, and its nature as such does not change simply because it was funded by a corporation. Nor does the character of that funding produce any reduction whatever in the "inherent worth of the speech” and "its capacity for informing the public,” First Nat. Bank of Boston v. Bellotti, 435 U.S. 765 , 777, ... (1978). Indeed, to exclude or impede corporate speech is to muzzle the principal agents of the modern free economy. We should celebrate rather than condemn the addition of this speech to the public debate.
Citizens United v. Fed. Election Comm’n,
. Even with the potential of undercapitaliza- " tion, most plaintiffs would rather sue a corporation than a private individual. Corporations more often have the sufficient funds to pay judgments. Plaintiffs often forego cognizable claims against individuals while pursuing claims against insurance companies or corporations for the same conduct or incident. Corporations and insurance companies can pay the judgments, while individuals often cannot. The same rationale likely applies to seeking damages for oil leaks and spills. A corporation is more likely than an individual to have the assets to repair any damage that a leak or spill causes. It is odd that Mora County would ban corporations from engaging in hydrocarbon extraction while permitting individuals, when corporations are more likely to have the necessary assets to clean up after a leak or spill. The Ordinance may fall into the class of laws to which the Honorable John Paul Stevens, Associate Justice of the Supreme Court, referred in his concurring opinion in New York State Board of Elections v. Lopez Torres,
. While some have interpreted United States v. Windsor as an animus case, see Bishop v. Smith,
. Judges Lucero, Holmes, and Kelly sat on the panel for both Kitchen v. Herbert and Bishop v. Smith.
. Michael W. McConnell, former-United States Circuit Judge for the Tenth Circuit and current Stanford Law School Professor, has identified a number of problems that arise if the Supreme Court’s holding in United States v. Windsor was grounded in the animus doctrine.
There are three things wrong with this approach. First, it is not factually true. The Congress that passed DOMA in 1996 by a vote of 85-14 in the Senate and of 342-67 in the House of Representatives was not infested with hate-mongers. Whether one agrees with DOMA or not, the law servedthe entirely rational purpose of ensuring that there would be uniform treatment of same-sex marriage for federal purposes, an outcome based on what was then the unanimous consensus of all fifty states. Congress was merely preserving the status quo, and not "injuring” anyone. President Obama himself claimed to oppose same-sex marriage until recent months. He was not hateful then and benevolent now. He simply changed his mind on a difficult social question.
Second, the Court has repeatedly held that the constitutionality of statutes depends on their objective purpose and not on the subjective motivations of the legislators who vote for them. Yet the Court did not trouble to engage with the rationales offered by the supporters of DOMA either in the legislative history, the national debate, or the briefs. It simply dismissed contrary views as hateful. This is not constitutional analysis; it is adjudication by name-calling.
Third, judicial rhetoric of this sort does grave injury to the body politic. Fundamental to the equal respect necessary for a democratic republic is the ability to treat those with whom we disagree as acting in good faith. Disagreement is not the same thing as malice. Ordinarily we can count on the judiciary to model this respectful disagreement. In Windsor, however, the Court labeled at least half the population, including some of our most revered leaders and institutions, as motivated by a desire to injure and degrade some of their fellow citizens. This kind of talk will not help the nation come to peaceful resolution of this deep moral conflict.
Michael W. McConnell, 2013 Supreme Court Roundup: Telling a Tale of Two Courts, Firstthings.com (October 2013), http://www. firstthings.com/article/2013/10/2013-supreme-court-roundup.
. The animus doctrine has been heavily criticized.
Scholars have tended to discount the doctrine. Beyond uncertainty, there is strong criticism. One critique is that the doctrine is analytically empty, a conclusion clothed in argument. Another is that it calls for thekind of unprincipled judgment about subjective legislative motivation that has long been discredited in jurisprudence. A third holds that slapping the animus label on a law is an attempt to hush debate about deeply contested moral and legal controversies. On this view, it insults those who differ from the Court’s majority, dismissing them as bigots — a form of constitutional name-calling. Perhaps animus doctrine is animus based.
Dale Carpenter, supra at 184-85. The Honorable Antonin G. Scalia, Associate Justice of the Supreme Court, has argued that that animus doctrine allows courts to invalidate laws without addressing the justifications for those laws. See United States v. Windsor,
However, even setting aside traditional moral disapproval of same-sex marriage (or indeed same-sex sex), there are many perfectly valid — indeed, downright boring— justifying rationales for this legislation. Their existence ought to be the end of this case. For they give the lie to the Court’s conclusion that only those with hateful hearts could have voted "aye” on this Act. And more importantly, they serve to make the contents of the legislators' hearts quite irrelevant: "It is a familiar principle of constitutional law that this Court will not strike down an otherwise constitutional statute on the basis of an alleged illicit legislative motive.” United States v. O’Brien,391 U.S. 367 , 383, ... (1968). Or at least it was a familiar principle. By holding to the contrary, the majority has declared open season on any law that (in the opinion of the law’s opponents and any panel of like-minded federal judges) can be characterized as mean-spirited.
The majority concludes that the only motive for this Act was the "bare desire to harm a politically unpopular group.” Bear in mind that the object of this condemnation is not the legislature of some once-Confederate Southern state (familiar objects of the Court’s scorn, see, e.g., Edwards v. Aguillard,482 U.S. 578 , ... (1987)), but our respected coordinate branches, the Congress and Presidency of the United States. Laying such a charge against them should require the most extraordinary evidence, and I would have thought that every attempt would be made to indulge a more anodyne explanation for the statute. The majority does the opposite — affirmatively concealing from the reader the arguments that exist in justification. It makes only a passing mention of the "arguments put forward” by the Act's defenders, and does not even trouble to paraphrase or describe them. I imagine that this is because it is harder to maintain the illusion of the Act’s supporters as unhinged members of a wild-eyed lynch mob when one first describes their views as they see them.
United States v. Windsor,
. Ordinarily, once the Court resolves all federal claims in a case, it will decline to exercise supplemental jurisdiction over any remaining state-law claims. See Salazar v. City of Albuquerque, No. CIV 10-0645,
In Moor v. Alameda County, the Supreme Court held that, while a state and state agen- • cies are not citizens of the state for diversity purposes, a county may be a citizen of a state for diversity purposes. See
. Federal courts must determine what a state’s Supreme Court would do if confronted with the same issue. See Erie R.R. Co. v. Tompkins,
In cases arising under diversity jurisdiction, the federal court's task is not to reach its own judgment regarding the substance of the common law, but simply to ascertain and apply the state law.... The federal court must follow the most recent decisions of the state’s highest court.... Where no controlling state decision exists, the federal court must attempt to predict what the state’s highest court would do.... In doing so, it may seek guidance from decisions rendered by lower courts in the relevant state .... appellate decisions in other states with similar legal principles .... district court decisions interpreting the law of the state in question, ... and the general weight and trend of authority in the relevant area of law.... Ultimately, however, the Court's task is to predict what the state supreme court would do. Our review of the district court's interpretation of state law is de novo.
. At least one author, in considering municipal and county fracking regulations in New Mexico, has reached the same conclusion in considering the ability of New Mexico counties and municipalities to regulate fracking.
A local law regulating fracking would not necessarily apply to all land within the community's borders because community land use regulations in New Mexico apply differently to public and private landowners. Privately owned land is subject to local land use laws. However, such ordinances may be ineffective on publically owned land. Larid owned by the State of New Mexico is not subject to local land use ordinances. Activity on state land, whether by a public or private entity, is not subject to local zoning regulations.
Jonas Armstrong, What the Frack Can We Do? Suggestions for Local Regulation of Hydraulic Fracturing in New Mexico, 53 Nat. Resources J. 357, 369 (2013)(concluding that the oil-and-gas field is not completely preempted by state law, but noting that a complete ban on frack-ing may not be upheld).
. While the Court is willing to issue a permanent injunction, enjoining the Defendants from enforcing the Ordinance on state lands, because the Court will invalidate the Ordinance, in its entirety, such an injunction would be moot.
. Several additional concerns caution against relying on the advisory letter. First, the letter appears to be an informal "advisory letter” rather than a formal Attorney General Opinion. During his time in office, New Mexico Attorney General, Paul Bardacke, the Attorney General in 1986, issued very few formal Attorney General Opinions. See Hal Stratton & Paul Farley, Office of the Attorney General State of New Mexico: History, Powers & Responsibilities 1846-1990 119 (1990)(showing that, in 1986, less than five Official Attorney General Opinions were issued while over seventy-five were issued in 1987, after Mr. Bardacke left office). Second, and related to the first, Mr. Bardacke did not sign the 1986 advisory letter. See N.M. Att’y Gen. Op. 86-2,
. “Clearcutting, clearfelling, or clearcut logging is a forestry/logging practice in which most or all trees in an area are uniformly cut down.” Clearcutting, Wikipedia.org, http:// en.wikipedia.org/wiki/Clearcutting (last visited Jan. 14, 2014).
. The Surface Owners Protection Act, N.M. Stat. Ann. §§ 70-12-1 through 70-12-10, provides protections to surface owners, but the definition of "surface owner” is limited to the "person who holds legal or equitable title ... to the surface of the real property on which the operator has the legal right to conduct oil and gas operations.” N.M. Stat. Ann. § 70-12 — 3(D). Consequently, it does not apply to neighboring properties.
. The statutory provision, on which the Ms. Stephenson relied, gives further evidence that there is no field preemption. That provision states:
The [Oil Conservation Division] shall have, and is hereby given, jurisdiction and authority over all matters relating to the conservation of oil and gas and the prevention of waste of potash as a result of oil or gas operations in this state. It shall have jurisdiction, authority and control of and over all persons, matters or things necessary or proper to enforce effectively the provisions of this act or any other law of this state relating to the conservation of oil or gas and the prevention of waste of potash as a result of oil or gas operations.
N.M. Stat. Ann. § 70-2-6. Ms. Stephenson focused on the language that says the Oil and Gas Division has "jurisdiction and authority over all matters,” and over "all persons, matters or things necessary or proper to enforce effectively the provisions of this act.” N.M. Att’y Gen. Op. 86-2,
. Other states' courts that have considered local bans on oil-and-gas extraction activities have reached differing conclusions. Compare Clouser v. City of Norman,
. The Defendants argue that the Oil and Gas Commission lacks the authority to assess civil penalties for violations of the Oil and Gas Act. See Response at 16-18. They also argue that the State is not enforcing the Oil and Gas Act by punishing individuals for oil-and-gas leaks and spills. See Tr. at 92:19-21 (Haas). Even if these assertions are true, they would not affect whether the Ordinance conflicts with state law. " 'A county is but a political subdivision of the State, and it possesses only such powers as are expressly granted to it by the Legislature, together with those necessarily implied to implement those express powers.' ” Bd. of Comm’rs of Rio Arriba Cnty. v. Greacen,
. While SWEPI, LP has not challenged this provision, it too appears to be in conflict with state law. By stating that people "using corporations” will be strictly liable, the Ordinance appears to be eliminating corporations’ limited liability protections, which would eliminate the purpose of incorporating and effectively eliminate the corporate form altogether. As the Court of Appeals of New Mexico has stated:
It would frustrate the purposes of the corporate law .to expose directors, officers, and shareholders to personal liability for the obligations of a corporation when they, in their individual capacities, contribute funds to, or on behalf of, a corporation for the purpose of assisting the corporation to meet its financial obligations, and not for the purposes of perpetrating a fraud or promoting their personal affairs.
Harlow v. Fibron Corp.,
. It is questionable whether a county may declare that a formerly recognized property interest, which is recoverable in the form of damages, is no longer valid. Because SWEPI, LP has not challenged this provision, the Court will not separately invalidate it, but will invalidate it along with the entire Ordinance, because the invalid portions are not severable from the valid ones.
