In this rеgulatory takings case, the United States appeals the October 6, 1996 and November 25, 1997 judgments of the United States Court of Federal Claims on the issue of liability. Plaintiff Van Burén Mineral Corporation (“Van Burén”) cross-appeals the trial court’s judgment that its claims are unripe. Plaintiffs Eastern Mineral International, Inc. (“EMI”), Wilson Wyatt, Sr., and Anne D. Wyatt (“the Wyatts”) further cross-appeal the trial court’s award of damages.
After dismissing a variety of the plaintiffs’ claims as unripe, the trial court held that the federal government had effеcted a permanent regulatory taking of the property interests of EMI and the Wyatts. E. Minerals Int’l, Inc. v. United States,
I. BACKGROUND
This case concerns the administration of the Surface Mining Control and Reclamation Act of 1977 (“SMCRA” or the “Act”), 30 U.S.C. § 1201 et seq.. Concerned that “many surface mining operations result in disturbаnces of surface areas and adversely affect commerce and the public welfare,” 30 U.S.C. § 1201(b), Congress passed the Act to “establish a nationwide program to protect society and the environment from the adverse effects of surface coal mining operations.” 30 U.S.C.
The Act regulates surface coal mining through a two-phase program designed to balance both federal and state interests. See Hodel,
The initial phase is followed by a permanent phase, during which each state adopts its own regulatory program to provide for compliance with the various fеderal performance standards. Id. § 1253(a). The goal of the program is to allow states to tailor their permitting schemes to meet their own needs, within a general framework of federal oversight. If a state’s program does not meet basic federal standards, the Secretary is required to step in with his own program for assuring compliance. Id. § 1254(b). Under no circumstances may a person engage in surface coal mining without a permit from an appropriate regulatory agency. Id. § 1256(a).
The property at issue in this case is located in Bledsoe and Van Burén Counties in southeastern Tennessee, adjacent to the Fall Creek Falls State Park. On December 12, 1975, Wilson Wyatt, Sr. and Anne D. Wyatt sold the property to Milton J. Bernos, Jr. Under the conditions of the sale, as amended, the Wyatts were to receive $4.3 million in installments and retain a 3.5% royalty interest in all coal extracted from the property.
In December 1978, Bernos canceled his contract with the Wyatts. By this time, Bernos had acquired a portion of the property, but the majority remained in the Wyatts’ hands. In 1979, the Wyatts sold their remaining interest in the property to Cane Co., Ltd. (later Cane Tennessee, Inc.) (“Cane”). Once again, the Wyatts retained a 3.5% royalty interest in the minerals. Meanwhile, Bernos sold his interest in the property to Colten, Inc. (“Col-ten”). Colten then immediately entered into a lease with Van Burén, a company wholly owned by Bernos.
Thereafter, Cane granted an exclusive lease to mine the property to EMI, anothеr company wholly owned by Bernos. Although the term of this lease was set to expire on February 28, 1991, EMI had the right to extend the lease term for four ten-year terms upon 180 days notice to Cane. EMI could not, however, exercise the right to extend the lease term after August 1990.
After signing the lease, EMI set out to secure the necessary permits to begin mining the property. On February 4, 1980, the Division of Surface Mining and Reclamation of the Tennessee Department of Conservation (“DSM”) issued EMI a one-year pеrmit under DSM’s interim regulatory program. As required under the Act, DSM found that the proposed mine would-
Four months after the permit expired, on June 18, 1981, EMI again applied for a permit from the DSM. On September 14, 1981, DSM granted EMI another one-year permit. After this permit expired, EMI filed another application with DSM for still another permit.
Later that year, OSM determined that Tennessee had not effectively implemented its SMCRA program. Pursuant to its authority under the Act, OSM revoked the state’s authority, and assumed control of the Tennessee surface mining regulatory program. At the same time, under the regulations promulgated by the agency, the state retained joint reviewing authority-
OSM reviews permit applications in three stages. First, the agency reviews an application to determine if it is administratively complete. After the agency is satisfied that it has all the necessary information, it conducts a technical review to determine if the proposed mining operation meets all substantive legal requirements. Finally, OSM closes out the application, whereupon it addresses any final legal matters, such as the securing of any bonds.
In October of 1984, EMI applied for a new permit from OSM. In its application, EMI sought to disturb 26.3 acres of the Cane property and mine approximately 4,600 acres of coаl. On December 31, 1984, OSM notified EMI that its application was administratively incomplete. After EMI acknowledged and corrected the deficiencies, OSM informed EMI that it would need the approval of the Tennessee DOC if OSM determined that the proposed mine would adversely affect the Fall Creek Falls Park, pursuant to 30 U.S.C. § 1272(e)(3).
OSM then commenced its review of EMI’s application. On May 30,1985, OSM issued EMI a technical deficiency letter (“TDL”) outlining various concerns about the proposed mine. Among these concerns were the effect of the mine on Cane Creek and the impact of the mine on the “scenic and solitude values of Falls Creek Falls State Park.” On June 25, 1985, EMI responded to the TDL with a letter that included little of the information requested by OSM.
In August of 1985, the State of Tennessee exercised its joint-review authority, and objected to the permit application. The state believed that the mine would
This began a lengthy period of further review. Because OSM had not conclusively established a hydrological impact from the proposed mine, the ALJ asked the parties to work with one another to provide OSM the informаtion it needed for its hydrological 'assessment. OSM also agreed to review EMI’s claim that it enjoyed valid existing rights (“VER”) in the property that relieved it from any ban on mining near the park. At EMI’s request, OSM was ordered to decide the VER claim before EMI spent any additional funds on complying with OSM’s request for more information. On January 20, 1988, OSM denied the claim for VER. On February 1, 1988, OSM submitted a revised TDL to EMI outlining the information it still required.
EMI did not respond to the February 1, 1988 TDL. Instead, it elected to apply again for SOAP funds. The August 1990 deadline for extending the Canе lease came and went without EMI exercising its option. As provided under its terms, the lease expired on February 28, 1991. Meanwhile, OSM had determined that any mining on the Cane and Colten lands would “adversely affect” the park. OSM was concerned about both surface water and groundwater discharges, and had decided that EMI could not assuage these concerns.
On August 25,1993, OSM issued another TDL. Once again, OSM requested specific information from EMI necessary to complete its assessment. Although SOAP had funded drilling, a linеament study, and a fracture analysis, OSM found a number of deficiencies in the information supplied to the agency. On February 18, 1994, OSM again informed EMI that a response to the TDL was essential to the permit review. Finally, on April 13, 1994, OSM denied EMI’s permit request.
The plaintiffs then filed suit in the United States Court of Federal Claims. The plaintiffs contended that the government’s “extraordinary delay” in reviewing the permit application resulted in Bemos losing both long-term leases. After a trial, the court issued an opinion and order dated October 2, 1996 dismissing the claims of various plaintiffs for jurisdictional reasons. E. Minerals,
Addressing the merits of EMI and the Wyatts’ claim, the court held that “[e]x-traordinary government delay may result in a constructive permit denial,” and thus a permanent taking. Id. at 548. The court further held that the dеlay suffered by EMI and the Wyatts established a com-pensable economic impact and that EMI and the Wyatts had sufficient investment-backed expectations based on the two permits EMI had received earlier from DSM. Id. at 550-51.
In an order dated April 21, 1997, the court expounded on its earlier holding on the issue of liability. The government then moved for reconsideration. On November 25, 1997, the court granted the motion, but increased the compensation awarded to EMI and the Wyatts. Ultimately, on December 22, 1998, the court entered a final judgment awarding damages to both EMI and the Wyatts. The United States now appeals the judgment of the trial court, and the plaintiffs cross-appeal.
II. STANDARD OF REVIEW
In reviewing the judgments of the Court of Federal Claims, this court examines findings of fact for clear error and reviews legal conclusions completely and independently. Bass Enterprises Prod. Co. v. United States,
III. DISCUSSION
A. Scope of the Asserted Taking
The Fifth Amendment to the United States Constitution provides that private property shall not “be taken for public use without just compensation.” U.S. Const, amend. V. The Supreme Court has recognized that the government may “take” private property by either physical invasion or regulation. Lucas v. S.C. Coastal Council,
As discussed above, the plaintiffs in this case allege regulatory takings by the federal government. It is axiomatic that only persons with a valid property interest at the time of the taking are entitled to compensation. Almota Farmers Elevator & Warehouse Co. v. United States,
EMI attempts to sidestep this critical requirement by arguing that the government action constituting the taking occurred in 1990, before the April 13, 1994 final action. In other words, EMI argues
The fact remains that EMI сhose to relinquish its leasehold interest well before OSM’s final decision. If EMI had renewed its lease, it may have been able to assert a permanent taking of its leasehold interest to mine the Cane property. However, we cannot allow the voluntary relinquishment of a property interest to transform a temporary taking into a permanent taking.
B. Extraordinary Delay
EMI argues that as of 1990, extraordinary government delay in processing its permit application сonstituted a taking. However, we hold that any delay in processing the permit application was not sufficiently “extraordinary” to constitute a taking.
We note that the existence and initiation of permit proceedings does not itself constitute a taking. Indeed, government “could hardly go on if to some extent values incident to property could not be diminished without paying for every such change in the general law.” Pa. Coal Co.
However, it is true that a taking may occur by reason of “extraordinary delay in governmental decisionmaking.” Tabb Lakes,
Complex regulatory schemes often require detailed information before the issuance of a permit. The nature of the regulatory scheme is especially сritical when the permitting process requires detailed technical information necessary to determine environmental impacts. Governmental agencies that implement complex permitting schemes should be afforded significant deference in determining what additional information is required to satisfy statutorily imposed obligations. Finally, we must recognize that delay in the permitting process may be attributable to the applicant as well as the government.
A brief synopsis of the aрplication process demonstrates that OSM did not cause any extraordinary delay in this case. EMI applied for the permit at issue in October of 1984. In December of 1984, OSM informed EMI that the application was missing at least twenty-eight items of required administrative information. In March of 1985, after EMI provided the required information, OSM informed EMI that the application was administratively complete. Subsequently, OSM began its technical review of the application. In May of 1985, OSM informed EMI that its applicаtion did not contain all of the information necessary to complete the technical review. OSM requested at least eighteen specific items of information necessary to complete its technical review. Among other things, OSM requested that EMI provide documentation demonstrating that the mining operations (1) would not physically alter the flow of the nearby Cane Creek, (2) would not chemically alter the waters, (3) would not adversely impact the biological ecosystem оf Cane Creek, and (4) would not adversely affect the aesthetic and environmental integrity of the nearby Fall
In September of 1985, OSM informed EMI that its letter failed to include much of the information requested, and that additional “considerable information” would be necessary. In December of 1985, OSM informed EMI of at least twenty-nine specific pieces of information necessary to establish the environmental impact of mining on Cane Creek and the State Park. EMI did not respond to the request, and instead, in January of 1986, applied for SOAP funding. In July of 1986, OSM denied the permit application based on its conclusion that the mining operations would cause adverse impacts to the area due to excessive noise and adverse hydro-logic consequences. EMI then appealed this decision to an ALJ. Throughout 1987, the appeal progressed before the ALJ. In January of 1988, the ALJ orderеd OSM to provide another detailed TDL explaining exactly what information was required. OSM issued the additional TDL in February of 1988.
Again EMI did not respond to the request, and instead applied for SOAP funding. During the next year, EMI failed to respond to the February 1988 TDL. In May of 1988, OSM noted that EMI had not yet responded to the TDL, and informed EMI that its SOAP application was placed on hold due to the existence of administrative violations attributable to Bernos. In July of 1989, Bernos paid the civil penalties owed on the administrative violаtions. Over the next few months, SOAP funds were used to hire an engineering firm to investigate the hydrology of the area and prepare a geological report. In April of 1990, EMI submitted the report to OMS. In July of 1990, OMS informed EMI that the SOAP report was inadequate and did not address all of the deficiencies in the application. Specifically, OSM noted that “little useful data was collected from the phase 1 SOAP study” and informed EMI that additional testing would be necessary to judge the full hydrological impact of mining operations. In August of 1990, EMI chose not to extend its leasehold interest in the Cane property. On February 28, 1991, EMI’s leasehold interest in the Cane property was terminated.
Prior to this date, the record does not support a finding that there was “extraordinary” government delay. Indeed, the trial court determined that the delay did not become extraordinary until late 1990. E. Minerals,
IV. CONCLUSION
Because EMI voluntarily relinquished its leasehold interest on February 28,1991, it may only assert a takings claim prior to that date. There was no extraordinary government delay sufficient to constitute a taking. Accordingly, we reverse the judgment of the Court of Federal Claims, and dismiss the cross-appeals as moot. In view of this conclusion, we need not consider any of the other arguments submitted by the parties.
REVERSED.
COSTS.
No costs.
Notes
. A brief urging affirmance as to liability and partial reversal and remand as to damages was filed by Cane Tennessee, Inc. as amicus curiae.
. By this time, DSM was reassigned to the Tennessee Department of Health and Environment.
. DSM also noted that Mr. Bernos, the sole shareholder of Cane, had violated various coal mining regulations in the past. See 30 U.S.C. § 1260(c) (1994) (barring any applicant with outstanding environmental violations from receiving permit until agency receives assurances that violations have been resolved).
. SOAP's purpose "is to provide for eligible operators a determination of probable hydro-logic consequences and a statement of results of test borings or core samplings which are required components of the permit application." 30 C.F.R. § 795.1; 30 C.F.R. § 795.6 (listing eligibility requirements for SOAP).
. Having denied EMI's permit application, OSM then denied EMI’s SOAP application based on 30 C.F.R. § 795.6(a)(3) (2001) (limiting SOAP eligibility to applicants not restricted from obtaining permit).
. Temporary takings are not different in kind from permanent takings. First English Evangеlical Lutheran Church v. L.A. County, Calif.,
. We also note that some of the delay was due to EMI's pursuit of SOAP funding. It is important to point out that SOAP funding is not a guaranteed right in the permitting process. See 30 U.S.C. § 1257(c) (1994); 30 C.F.R. § 795 (2001). Applying for SOAP funding is
