UNITED STATES OF AMERICA, Plaintiff-Appellee, v. JAMES D. STEWART, Defendant-Appellant.
No. 03-1857
United States Court of Appeals For the Seventh Circuit
Argued November 12, 2003—Decided March 16, 2004
Before BAUER, MANION, and ROVNER, Circuit Judges.
Appeal from the United States District Court for the Northern District of Illinois, Western Division. No. 02-CR-50024—Philip G. Reinhard, Judge.
BAUER, Circuit Judge. James D. Stewart pleaded guilty, pursuant to a plea agreement, to one count of conspiring to manufacture, distribute, and possess with intent to manufacture and distribute methamphetamine in violation of
I. BACKGROUND
In March 2002, Stewart and a co-defendant were arrested while in Stewart‘s vehicle. In the back seat was a thermos containing the telltale ingredients of the pair‘s attempt to manufacture methamphetamine. At Stewart‘s sentencing hearing, DEA Special Agent Marc Folven gave conflicting testimony about the contents of the thermos when it was seized. On direct examination he said it contained crushed pseudoephedrine tablets, anhydrous ammonia, lithium strips from batteries, and ether. On cross-examination, however, Agent Folven omitted mention of the ether. The first two ingredients, when combined, together with a catalyst such as lithium, react to form a solution containing methamphetamine. After the reaction is complete, the undissolved solid materials are normally filtered out, and ether is then used as a solvent to separate the solution into two parts—a top layer constituting “methamphetamine base” and the rest liquid byproduct. Agent Folven conceded that Stewart would have needed to take additional steps to produce usable methamphetamine. First, to further process the contents of the thermos into methamphetamine base, Stewart had to filter out the remaining solid materials and separate the liquid byproducts leaving the base. From there, to further process the liquid methamphetamine base into the powdered form typically consumed by methamphetamine users, Stewart had to add hydrochloric acid gas—often made from drain cleaner and salt—to crystallize the methamphetamine base into powder. Following this final stage of processing, the liquid remaining after the methamphetamine base crystalized into powder would be considered waste, but would contain trace amounts of methamphetamine.
Although the record developed by the government is ambiguous, it appears that the investigating agents filtered the solid materials from the contents of the thermos, and weighed only the remaining solution in arriving at the 825-gram figure. A DEA chemist estimated, and both parties stipulated, that the entire 825 grams contained 2.4 grams of pure methamphetamine, which, after processing, Stewart could distribute in powder form. In addition to the contents of the thermos, Stewart and his co-defendant also had with them in the car when they were arrested several bags of fully processed powdered methamphetamine weighing 18 grams total and containing 3.1 grams of pure methamphetamine.
Stewart pleaded guilty to a count alleging that he conspired to manufacture, distribute, and possess with intent to manufacture and distribute 500 or more grams of methamphetamine, but reserved the right to challenge at sentencing the drug amount. For guidelines purposes the district court determined that Stewart‘s offense involved at least five grams but not more than 20 grams of actual, or pure, methamphetamine and thus calculated his imprisonment range to be 100 to 125 months. See
In determining whether Stewart was subject to a mandatory minimum sentence under
The government, though, does not clarify whether Agent Folven was also referring to methamphetamine base, rather than to the solution possessed by Stewart, when he testified about whether the solution could be sold to others. The transcript evidences that he meant that methamphetamine base could be sold:
Q. If you could explain. When is the methamphetamine actually produced in any form for the first time that it‘s produced during this process?
A. It‘s when the anhydrous ammonia, the lithium strips, and the pseudoephedrine are combined. It starts producing the methamphetamine. I mean, it‘s not powder form, it‘s a liquid type of form, but that‘s when that chemical reaction takes place to produce the methamphetamine.
Q. So, the methamphetamine at that point is in a liquid form?
A. Yes, sir.
Q. So, the methamphetamine, does it have any—in the liquid form, does it have any value, as far as marketability? Could it be sold and used at that point?
A. Yes, sir.
Q. And how is that?
A. There‘s been people that will buy the liquid meth, also, and people that use the liquid meth out there, also, methamphetamine base. They‘ll drink it or other various ways to use it that way.
Q. Can it be injected?
A. Probably not in that way. I think it‘s more or less drank that way. Q. But you can—you say it does have a market in that stage.
A. Yes, sir.
Q. And did I also hear your answer is that some people might use it in that stage?
A. Yes, sir.
Q. How?
A. It‘s a very pure form of meth. I‘ve interviewed other users, and they‘ve said that they‘ve drank it before.
Sentencing Tr. at 38-39. If Agent Folven was referring to methamphetamine base throughout this portion of his testimony, then there is no evidence that the solution possessed by Stewart had reached the stage in processing where it could have been sold to others for completion.
The district court also read three opinions from other circuits as holding that when a defendant is caught in the process of manufacturing drugs, the sentencing court can include in the drug weight anything found no matter its stage of completion. Two of the three cases, though, actually reach the opposite conclusion—that what is unusable; i.e., not consumable as a drug, must be excluded in calculating drug weight. See United States v. Newsome, 998 F.2d 1571, 1575-79 (11th Cir. 1993) (“the gross weight of ‘unusable mixtures’ should not be equated with the weight of a controlled substance for sentencing purposes“; applying sentencing guidelines); United States v. Sprague, 135 F.3d 1301, 1306 (9th Cir. 1998) (drug weight must exclude substances that must be removed to render solution containing methamphetamine usable; applying guidelines). Only one of the cases arguably supports the district court‘s drug quantity finding. See United States v. Beltran-Felix, 934 F.2d 1075, 1076 (9th Cir. 1991) (holding that entire weight of solution containing small amount of methamphetamine should be used to calculate mandatory minimum sentence under
II. DISCUSSION
On appeal Stewart argues that sentencing courts, when applying the statutory penalties of
A. Only usable or consumable mixtures or substances can be included in drug quantity under § 841(b)
Under
The Court noted that Congress had “adopted a ‘market-oriented’ approach to punishing drug trafficking.” Id. (citing H.R. Rep. No. 99-845, at 11-12, 17 (1986)). Under a market-oriented approach, “the total quantity of what is distributed, rather than the amount of pure drug involved, is used to determine the length of the sentence.” Id. The Court reasoned that this sentencing scheme was rational because it “assigns more severe penalties to the distribution of larger quantities of drugs,” including the “street weight” of diluted drugs. Id. at 465. The Court also noted that because carrier mediums (e.g., blotter paper for LSD) and cutting agents (i.e., substances added to decrease purity or increase amount of drugs for sale) aid in the distribution of drugs, their weight should be included for sentencing. Id. at 465-66. The Court explained that “Congress clearly intended the dilutant, cutting agent, or carrier medium to be included in the weight of those drugs for sentencing purposes. Inactive ingredients are combined with pure heroin or cocaine, and the mixture is then sold to consumers as a heavily diluted form of the drug.” Id. at 460.
Prior to Chapman, in the context of reviewing drug quantity findings under the sentencing guidelines, this court and several others had held that any “mixture or substance” containing a detectable amount of drug should be counted in the drug weight, without regard to whether it was usable or consumable. See, e.g., United States v. Garcia, 925 F.2d 170, 172-73 (7th Cir. 1991) (characterizing damp marijuana as a “mixture” of water and marijuana); Beltran-Felix, 934 F.2d at 1076-77 (holding that solution that had not yet been processed into usable methamphetamine was a “mixture” under
Chapman, though, sparked divergent views about calculating drug quantity, both under
In contrast, after Chapman this court and six others have generally applied what has come to be known as the “market-oriented” approach when defining “mixture or substance.” Under a “market-oriented” approach, only usable or consumable mixtures or substances are included in the drug quantity for sentencing purposes. See, e.g., United States v. Tucker, 20 F.3d 242, 244 (7th Cir. 1994) (including weight of moisture in
At the time Chapman was decided, the United States Sentencing Commission was explicit that the language of
In fact, in Johnson we explicitly interpreted Chapman to require a market-oriented approach in determining the meaning of “mixture or substance” under both
As Stewart argues, weighing everything for sentencing purposes can lead to irrational results. We said as much in Johnson, posing the hypothetical of a farmer plowing remnants of his marijuana crop into the topsoil or a defendant dumping drugs into the toilet and the sentencing court considering the earth in the field or the water in the toilet bowl as part of a mixture that should be weighed along with the drugs. Johnson, 999 F.2d at 1196 n.8. We reasoned that such results would be contrary to legislative intent because Congress was concerned with mixtures that eventually will reach the streets. Id. (citing Chapman, 500 U.S. at 463). And while we thus agreed that “cutting agents and dilutants can be factored into the weight calculation,” id. at 1197, we also concluded that substances which do not “‘facilitate the distribution,‘” should not be counted because “there is no rational basis to a sentence based on the entire weight of a useless mixture,” id. at 1196 (quoting Chapman, 500 U.S. at 466).
Although two circuits have declined to apply a market-oriented approach, nothing in those cases undermines our reasoning in Johnson. In fact, we made clear in Johnson that we disagreed with the First Circuit when that court included the entire weight of acrylic material combined with cocaine in Mahecha-Onofre and gave no consideration to the fact that the material was not ingestible. See Johnson, 999 F.2d at 1196 n.9.
B. No distinction for methamphetamine in market-oriented approach
Four of the seven circuits, including this one, that have read Chapman to permit counting only usable or consumable substances as part of drug weight have not yet had occasion to apply this approach to methamphetamine. The Sixth Circuit, one of the three courts that after Chapman have undertaken to decide whether methamphetamine presents a special situation warranting a unique rule, held in a case interpreting the pre-amendment version of
combined, precursor chemicals and waste materials in-volved in methamphetamine cases are not innocuous because they are necessary to manufacturing. Palacios-Molina, 7 F.3d at 53. The Ninth Circuit adopted similar reasoning when it stated that its pre-Chapman decision in Beltran-Felix, where the court endorsed including in drug quantity the entire weight of a solution containing both methamphetamine and unusable byproducts of the manufacturing process, is consistent with Chapman. Robins, 967 F.2d at 1390; see Beltran-Felix, 934 F.2d at 1076. According to the Ninth Circuit, the “solution facilitated the distribution of the methamphetamine” since the drug “could not have been produced without it,” and thus the entire solution was properly counted for sentencing purposes. Robins, 967 F.2d at 1390. The Eighth Circuit, although it has not affirmatively adopted a market-oriented approach, used similar reasoning when it counted for statutory purposes a partially processed solution containing methamphetamine because the solution would eventually be processed into a distributable product. See United States v. Kuenstler, 325 F.3d 1015, 1023 (8th Cir. 2003).
Though the government makes no argument that our adoption of the market-oriented approach in Johnson covers some drugs but not methamphetamine, we observe for the sake of completeness that we reject the Fifth and Ninth Circuits’ reasoning. The fact that Congress allows sentencing based on the pure amount of methamphetamine as an alternative to weighing a mixture containing the drug simply begs the question of what is meant by “mixture” in this context and in no way points to the conclusion that a special rule should be carved out for methamphetamine. Because Congress was concerned with distributable or usable drugs, it makes no sense that methamphetamine in an unusable and undistributable form be counted differently than cocaine in an unusable and undistributable form. Congress‘s concern as identified in Chapman was not combinations of unrefined or unfinished drugs and substances that will not be consumed and may even be toxic, but the amount of usable drug that will be available for distribution to consumers. Under the Fifth and Ninth Circuits’ reasoning, the waste water remaining after the production of crack in Johnson would have to be counted as “drug” weight because the crack “could not have been produced without it,” see Robins, 967 F.2d at 1390, but we instead held that this unusable byproduct does not count for sentencing, see Johnson, 999 F.2d at 1196.
C. Manufacturing versus distribution
Essentially, the government expresses no real disagreement with what we have
The government‘s argument fails for two reasons. Most fundamentally, the government mischaracterizes the nature of Stewart‘s conviction. Stewart was convicted not of distribution or manufacturing, but of conspiracy to do both. Although the government wants to call this a manufacturing case out of convenience, that is not how the government charged it. Moreover,
But what the government would prefer the rule to be as a policy matter is irrelevant, and we see no basis to read
D. Marketable versus usable
The government argues alternatively that, even under Johnson‘s market-oriented approach, the district court should be affirmed because it found that the 825-gram
The government offers no support for its argument that “marketable” as it uses the term is consistent with the “marketable” or “market-oriented” approaches as analyzed in the cases. All courts that have interpreted Chapman and applied a market-oriented approach have used “marketable” to mean “usable” or “consumable” or “ingestible” and have declined to include the weight of materials that must be separated from the drug before the drug can be consumed. See Johnson, 999 F.2d at 1196 (“Under a market-oriented approach, when the mixture is not ingestible and therefore not marketable there is no rational basis to a sentence based on the entire weight of a useless mixture.“); Tucker, 20 F.3d at 244 (Because users “need not wait until the water evaporates before using the drug,” the seized combination of water, cocaine and baking soda “comport[s] with the common understanding of ‘mixture’ recognized in Chapman.“); Rodriguez, 975 F.2d at 1007 (holding that a usable/unusable differentiation best follows the reasoning in Chapman). Further, at oral argument the government conceded that the 825-gram solution would likely have a lower value than the 2.4 grams of pure methamphetamine contained in the solution because of the labor yet to be expended in removing the unusable ingredients. It would be illogical to impose higher penalties for a solution that has less value than the pure drug contained in the solution merely because the solution arguably could be sold to someone at some price.
III. CONCLUSION
For the foregoing reasons, we reiterate our conclusion in Johnson that only usable or consumable mixtures or substances can be used in determining drug quantity under
A true Copy:
Teste:
Clerk of the United States Court of Appeals for the Seventh Circuit
USCA-02-C-0072—3-16-04
