Atchafalaya Basinkeeper v. U.S. Army Corps of Eng'rs
Atchafalaya Basinkeeper v. U.S. Army Corps of Eng'rs
Opinion of the Court
*713This matter is before the Court on the Motion for Preliminary Injunction
I. BACKGROUND
This matter arises out of the Corps issuance of permits to Bayou Bridge pipeline, to construct and maintain a pipeline across the Atchafalaya Basin capable of carrying nearly half a million barrels a day of crude oil The Corps performed two Environmental Assessments ("EAs"), one pursuant to Section 408 of the Rivers and Harbors Act ("RHA"),
II. FEDERAL AGENCY REVIEW
Under § 706 of the APA, a reviewing court must uphold the agency's action unless it is found to be "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law."
A. NEPA
The National Environmental Policy Act of 1969 ("NEPA"),
NEPA requires federal agencies to prepare a detailed EIS for all "major federal actions significantly [affecting] the quality of the human environment."
In making this determination, agencies are to consider both direct and indirect effects of its decision "which are caused by the action and are later in time or farther removed in distance, but are still reasonably foreseeable."
"The EA is a rough-cut, low-budget environmental impact statement designed to show whether a full-fledged environmental impact statement-which is very costly and time-consuming to prepare and *715has been the kiss of death to many a federal project-is necessary."
Notably, the NEPA statutory framework provides no substantive guarantees; it prescribes adherence to a particular process, not the production of a particular result.
Further, the Fifth Circuit has found that the fact that plaintiffs or their experts take great issue with the factual findings and ultimate conclusions of the agency does not render those findings and conclusions "arbitrary and capricious."
Where conflicting evidence is before the agency, the agency and not the reviewing court has the discretion to accept or reject from the several sources of evidence. The agency may even rely on the opinions of its own experts, so long as the experts are qualified and express a reasonable opinion.37
Moreover, even if a court was convinced that the plaintiffs' experts were more persuasive than those relied upon by the agency, the court would still be compelled to uphold the agency's finding so long as *716their experts were qualified and their opinions reasonable.
B. CWA
The Clean Water Act is a pollution control statute that establishes a comprehensive program designed to "restore and maintain the chemical, physical, and biological integrity of the Nation's waters."
Section 404 of the CWA authorizes the Corps to regulate discharges of dredged and fill material into wetlands through permitting procedures.
The 404(b)(1) Guidelines also provide that "no discharge of dredged or fill material shall be permitted unless appropriate and practicable steps have been taken which will minimize potential adverse impacts of the discharge on the aquatic ecosystem."
C. RHA
The principal purpose in enacting the Rivers and Harbors Act
III. STANDARD FOR A PRELIMINARY INJUNCTION
Plaintiffs "seek a limited preliminary injunction preventing construction of the pipeline through the Atchafalaya Basin" pending a merits challenge to the permit.
None of the four requirements has a fixed quantitative value.
The decision to grant or deny a preliminary injunction is discretionary with the district court.
The purpose of a preliminary injunction is limited to preserving the relative positions of the parties until a trial on the merits can be held.
A. Threat of Irreparable Harm
"Perhaps the single most important prerequisite for the issuance of a preliminary injunction is a demonstration that if it is not granted the applicant is likely to suffer irreparable harm before a decision on the merits can be rendered."
Plaintiffs must show that "irreparable injury is likely in the absence of an injunction."
In sum, even if a plaintiff demonstrates a strong likelihood of success on the merits, a preliminary injunction may not be granted unless the plaintiff has shown a likelihood-not just a possibility-of irreparable harm.
Plaintiffs content that numerous courts have found that the loss of trees constitutes irreparable injury, even where they constitute a relatively small part of a larger ecosystem.
Plaintiffs also claim that construction of the project has commenced and will start with clearing a 75-foot wide path through the unique and valuable cypress forest swamp, including countless trees over a century old. Trees in the path provide valuable habitat for wildlife and a variety of other ecological benefits.
Plaintiffs also contend that construction will also alter the Basin's hydrology and siltation rates, leading to the loss of yet more cypress-tupelo swamp due to sediment accretion.
Plaintiffs posit that these impacts are not just irreparable to the environment but have real consequences for Plaintiffs and their members. For example, hundreds of members of Louisiana Crawfish Producers Association-West will struggle to make a living in the Basin harvesting crawfish, a profession that once sustained Basin communities for generations.
In opposition, the Corps contends that Plaintiffs' delay in bringing their lawsuit and filing their motion for relief belies any harm that is immediate or irreparable. Preliminary injunctions are generally granted under the theory that there is an urgent need for speedy action to protect the Plaintiff's rights, and a plaintiff's delay in bringing suit thus undercuts allegations of irreparable harm.
BBP offers a more substantive opposition to Plaintiffs' suggestion of irreparable harm. BBP contends Plaintiffs have provided no evidence to support the suggestion that there are a great number of heritage trees that will be cut. For instance, one of Plaintiffs' declarants claims that there are many "old growth" trees in the surrounding "forest," but does not establish that there are "many" in the narrow right-of-way.
BBP claims that, during the tree survey conducted by BBP, the survey identified only five cypress trees with a 36 inches or greater dbh
BBP also contends Plaintiffs have conceded that mitigation is available to remedy past harm-the very antithesis of irreparable harm.
In reply, Plaintiffs argue that Defendants' claim that harm was not imminent based on Plaintiffs' alleged "delay" is without merit. Plaintiffs repeatedly visited the project site to look for signs that construction was imminent and saw none. Further, Plaintiffs reasonably anticipated construction would not begin until later in the year. As soon as Plaintiffs saw indications that construction was imminent, they filed the injunction motion within days. Further, in their post-hearing brief, Plaintiffs rely on the testimony of their fact and expert witnesses, which Plaintiffs contend was "virtually uncontested," in arguing they have established the threat of irreparable harm. Plaintiffs contend they presented testimony that the loss of forests would have grave ecological impacts, such as the loss of habitat and the destruction of legacy trees that could be thousands of years old. Dr. Conner explained how the claimed *721"temporary" impacts were not temporary in light of the fact that cypress forests can no longer regenerate themselves due to changed conditions of the Basin. Additionally, Plaintiffs contend they explained how the carving of yet another channel from one side of the Basin to the other would alter the Basin's hydrology and result in changes in sediment dynamics that would cause two kinds of irreparable harm: robbing the delta of the sediment necessary to sustain it and putting that sediment instead into the Basin where it would threaten cypress swamps.
The Court finds that Plaintiffs have established a threat of irreparable harm. First, the Court finds no unjustified delay in the timing of Plaintiff's motion. Further, the Court agrees that the impact of the loss of legacy trees cannot be mitigated against or restored to the same condition. The Court also finds that the project potentially threatens the hydrology of the Basin and poses the threat of destruction of already diminishing wetlands. The Court adopts by reference the comments and findings made during the preliminary injunction hearing in support of this ruling on this issue.
B. Likelihood of Success on the Merits
Plaintiffs must also demonstrate a substantial likelihood that they will prevail on the merits of their claims. Courts use "a bewildering variety of formulations of the need for showing some likelihood of success."
When the other factors weigh strongly in favor of an injunction, "a showing of some likelihood of success on the merits will justify temporary injunctive relief."
To show a likelihood of success, plaintiffs must at least present a prima facie case, but need not prove that they are entitled to summary judgment.
*7221. The Environmental Impact of Oil Spills and Incorporation of the RHA 408 EA analysis to support a FONSI relative to the CWA 404 Permit
A major dispute between the Parties is whether the Corps performed sufficient analysis of the environmental impact on the Basin of possible oil spills. It is undisputed that NEPA requires an assessment of direct and indirect effects which are reasonably foreseeable. The Corps must analyze even relatively unlikely events with significant impacts, like accidents.
a. Reliance on the testing, analysis, and findings in the Section 408 EA in coordination with the Section 404 EA to support its FONSI conclusion.
A careful reading of the Section 404 EA reveals that the environmental impacts of possible oil spills were not analyzed except in connection with the Environmental Justice review required by Executive Order 12989.
comments such as those pertaining to potential impacts to surface and ground water resources through leakage or rupture, [i.e. oil spills] while clearly important factors, are specifically regulated under the Pipeline and Hazardous Material Safety Administration, Office of Pipeline, and LDEQ, and not within the purview of the Corps.105
However, the Section 404 EA FONSI incorporates the "environmental assessment prepared as part of Section 408 review" by reference as part of its conclusory findings in the Section 404 EA. The Corps District Commander states:
Finding of No Significant Impact (FONSI). Having reviewed the information provided by the applicant, the comments received from the public in writing and at the public hearing, the environmental assessment prepared as part of the Section 408 review and this assessment of the environmental impacts, I find that this permit action will not have a significant impact on the quality of the human environment. Therefore, and Environment Impact Statement will not be required.106
Plaintiffs argue that this amounts to impermissible stacking. Plaintiffs argue that the Section 408 EA expressly states that it did not look at impacts to wetlands in the Basin. Plaintiffs are concerned about the risk of a spill in the Basin, but by its own terms, the Section 408 EA doesn't address this. Plaintiffs acknowledge that NEPA allows an agency to rely on, or "tier," to one NEPA document in another, but contend that this tiering is permissible only in specific circumstances. Further, Plaintiffs contend the segmentation of a single project into two separate environmental analyses *723under NEPA is strictly prohibited: "Proposals or parts of proposals which are related to each other closely enough to be, in effect, a single course of action shall be evaluated in a single impact statements."
At the hearing, the Corps explained the process of conducting the Section 408 EA in conjunction with the Section 404 EA. The New Orleans District Commander reviewed all of the environmental documentation, including the Section 408 EA, in reaching the NEPA FONSI as to the RHA permit and the CWA permit, and a single administrative record supports both determinations and is properly before the Court for consideration. The Corps cites the Supreme Court's decision in National Association of Home Builders v. Defenders of Wildlife ,
The Corps and BBP also addressed Plaintiffs' complaint that the Section 408 EA analyzed a very limited portion of the project such that it was insufficient to support the much broader Section 404 permit. The Corps and BBP explained at the hearing that both the Section 404 EA and the Section 408 EA relied on a spill model and analysis that considered the risk of oil spills every 200 feet along the entire pipeline route.
The Section 408 EA explained that "[t]he model shows how far an unabated plume could propagate in 6 hours from a release located generally every 200 feet along the pipeline route in accordance with PHMSA modeling protocols."
Considering both EAs and the explanations by the Corps and BBP at the hearing, the Court finds that it was not improper *724for the Corps to rely upon the Section 408 EA in reaching its FONSI determination in the Section 404 EA. Plaintiffs' claim that reliance on the Section 408 EA in support of the Section 404 EA is a post-hoc litigation tactic unsupported by the record is demonstrably unsupported by page 91 of the Section 404 EA, which clearly and explicitly references and incorporates the finding of the Section 408 EA.
b. Public Notice
Although the 408 EA was finalized in October 2017, Plaintiffs claim the Corps maintained its existence as a "highly guarded secret," and it was never released-notwithstanding Plaintiffs' vigorous efforts to gather the information. Also, the Section 408 EA was allegedly never released in draft form for public comment, and the final document was never posted on the website that the Corps maintains regarding the pipeline.
Regarding public notice, the Corps notes that the Section 408 EA was expressly referenced in the Section 404 FONSI,
c. Challenge to the Spill Analysis as pertaining to the Basin
Plaintiffs argue that, to the extent the Section 408 EA addresses oil spills, it doesn't say a word about the risk of a leak or spill in a pipeline buried a few feet below the surface of a unique aquatic ecosystem; it doesn't say a word about Energy Transfer Partner's ("ETP")
Plaintiffs contend that, because the scope of the RHA Section 408 EA was limited only to the federal projects and easements along the right of way, it lacks an analysis of the risk of spills specific to the unique ecosystems found in the Basin and is thus incompetent analysis under CWA Section 404. According to Plaintiffs, the Basin area of the right of way comprises only 10 percent of the total length of the right of way. Thus, Plaintiffs contend, if the Section 408 EA only covers 10 percent of the Basin, then the real risk of an oil spill incident is ten times as large as acknowledged in just the Basin-and likely more since the deep underground portions will have additional protections unavailable elsewhere. Plaintiffs maintain that the Section 408 EA's conclusion that an oil spill is unlikely is not supported and speculative for the pipeline as a whole and that much of the documentation upon which BBP relies is not in the record. Thus, the Corps' failure to address the full risks and impacts *725of oil spills renders its decision arbitrary and capricious.
In defense of its permit, the Corps contends that the Section 408 EA analyzed oil spill impacts based on a "worst case" spill scenario.
At the preliminary injunction hearing, the Corps responded to Plaintiffs' criticisms of the Section 408 EA oil spill analysis. The Corps maintains that Plaintiffs failed to understand the extent of the Corps' analysis because, even though the scope of Section 408 is focused upon federal easement along the right of way, the pipeline spill data that was reviewed was far broader in scope. Specifically, in analyzing the BBP pipeline, the Corps reviewed a model that examined oil spill risks every 200 feet for the length of the 162-mile pipeline.
Plaintiffs also took issue with the Section 408 EA for not adequately considering the "unique characteristics" of non-federal portions of pipeline route pursuant to
BBP explained at the hearing that the federal projects and easements to which the PHMSA model analysis was applied in the Section 408 EA are representative of the Basin as a whole. Further, the factors that bear on a spill-pipe corrosion, manufacturing and construction defects, operational errors, equipment failures, etc.
Plaintiffs expressed particular concern with the Corps' statement that it would defer issues "pertaining to potential impacts to surface and ground water resources through leakage or rupture," to the PHMSA as those issues "are specifically regulated by programs administered under the [PHMSA]."
The Court has considered the evidence presented and the arguments of all Parties on this issue, and the Court finds that, in connection with its Section 408 environmental analysis, the Corps gave extensive and appropriate consideration to the risk of oil spills along the entire route of the pipeline, which includes the Basin. Although the Corps' statement in the Section 404 EA that spill risks were "not within the purview of the Corps"
*727Further, Plaintiffs have provided the Court with no scientific or technical challenge to the PHMSA spill risk model utilized by the Corps. While the Court acknowledges Plaintiffs have not had access to the specific model, the Court agrees that the record in this matter is overwhelmingly sufficient for Plaintiffs to understand the analysis performed and provide the Court with any scientific or technical challenge to the model and analysis employed. Plaintiffs have failed to do so, and the Court finds that Plaintiffs are unable to demonstrate a likelihood of success on the merits as to the claims pertaining to the risk of oil spills. The Court finds that, on the record presently before the Court, the record is replete with evidence that the Corps did indeed take a "hard look" at the risk of oil spills; thus, the Court finds that the Plaintiffs have failed to demonstrate that they are likely to succeed on the merits of the claim that the Corps was arbitrary or capricious in its assessment of the risk of oil spills for this project.
2. Mitigation
a. Public Notice & Comment
Plaintiffs contend the opportunities for public input on the mitigation plan were insufficient under both NEPA and the CWA. Section 404 of the Clean Water Act authorizes the Secretary of the Army, acting through the Corps, to issue a permit for the discharge of dredged or fill material into navigable waters "after notice and opportunity for public hearings."
Because completion is defined by the sufficiency of the submitted materials to warrant public notice, it is controlled by the Corps' regulation that governs the content of a public notice.
Plaintiffs state that, under the CWA, the notice issued by the Corps must include "sufficient information to give a clear understanding of the nature and magnitude of the activity to generate meaningful comment."
The Corps maintains that the public received sufficient notice regarding proposed mitigation as it provided notice that BBP would be purchasing acreage credits from Corps-approved mitigation banks in the six watersheds that would be impacted by the project as required by
The record reflects that, following the public notice and comment period, the Corps conducted a joint public hearing with the LDEQ on January 12, 2017 and a second public hearing on February 8, 2017 in Baton Rouge, Louisiana, and officially fielded additional comments until January 30, 2017. Plaintiff Atchafalaya Basinkeeper submitted comments making the very arguments raised in this lawsuit: criticizing the use of mitigation bank credits and urging the Corps to instead require BBP to remediate historic spoil banks created by different companies. Indeed, in the same paragraph where Plaintiffs now allege they received insufficient notice, they also admit that they nonetheless were able to submit comments "highlight[ing] the inappropriateness of using either out-of-basin or out-of-kind mitigation."
The Corps attempts to distinguish the OVEC
The Court finds that the Corps provided sufficient public notice and opportunity to comment under both NEPA and the CWA. That Plaintiffs' complaints at that time are the same as the complaints raised in this lawsuit is telling. Further, the Court finds that the Section 404 EA contains 26 pages of public comments and the Corps' detailed responses thereto.
b. "Preferred Hierarchy" of Mitigation
The Fifth Circuit has "consistently accepted the proposition that reliance on mitigation measures may reduce a project's impacts below the level of significance."
*730The Fifth Circuit also recognized that the Supreme Court "has held that proposed mitigation measures need not be laid out to the finest detail, even within the more labor-intensive context of an environmental impact statement."
Mindful of that distinction, we have still required that an EIS involving mitigation must include "a serious and thorough evaluation of environmental mitigation options for [a] Project to allow its analysis to fulfill NEPA's process-oriented requirements [.]" We have, moreover, noted that "mere perfunctory or conclusory language will not be deemed to constitute an adequate record and cannot serve to support the agency's decision not to prepare an EIS." With these principles in mind, we examine the Corps' EA and the reasons set forth there for its conclusion that each significant environmental impact it had identified would be reduced to insignificance by its prescribed mitigation measure.163
With respect to compensatory mitigation under the CWA, the Code of Federal Regulations ("CFR") provides that:
The fundamental objective of compensatory mitigation is to offset environmental losses resulting from unavoidable impacts to waters of the United States authorized by DA permits. The district engineer must determine the compensatory mitigation to be required in a DA permit, based on what is practicable and capable of compensating for the aquatic resource functions that will be lost as a result of the permitted activity . When evaluating compensatory mitigation options, the district engineer will consider what would be environmentally preferable.
* * *
the environmentally preferable compensatory mitigation may be provided through mitigation banks
* * *
Compensatory mitigation requirements must be commensurate with the amount and type of impact that is associated with a particular DA permit.164
Plaintiffs argue that the Corps incorrectly describes controlling regulations as imposing a mechanical and rigid hierarchy under which the outcome here-mitigation credits miles away from the pipeline site that bear zero ecological or hydrologic relationship to the impacts of the project-was the only permissible one. Citing 33 C.F.R. 332.3(a), the Plaintiffs contend the regulations direct precisely the opposite: a careful and balanced analysis to arrive at the "environmentally preferable" approach that actually offsets the environmental impacts which result from permit issuance. Plaintiffs aver no such careful analysis ever took place, in violation of the CWA and NEPA.
Rather than working through the hierarchy as the regulations direct, Plaintiffs *731claim the Corps simply selected a mitigation banking approach under which off-site and out-of-kind mitigation credits would be used, without any consideration or analysis of whether other alternatives would be feasible. Plaintiffs submit that there appears to have been zero consideration given to the core question of whether the off-site credits would "successfully replace lost functions and services" in light of aquatic habitat, connectivity, and hydrology.
In opposition, the Corps argues that it must choose from a "limited menu" of compensatory mitigation options in a "strict priority" order.
The Court starts with the plain words of the regulation.
(b) Type and location of compensatory mitigation
(1) When considering options for successfully providing the required compensatory mitigation, the district engineer shall consider the type and location options in the order presented in paragraphs (b)(2) through (b)(6) of this section.
The regulation does not use the word "hierarchy," nor does the regulation specify a "strict priority" as argued by the Corps. A plain reading of the regulation proscribes the order of considering the "type and location of compensatory mitigation," but this is not the same as a "strict priority" as to the type of mitigation selected as the Corps suggests.
Section 332.3(b)(1) further provides:
In general, the required compensatory mitigation should be located within the same watershed as the impact site, and should be located where it is most likely to successfully replace lost functions and services.170
In terms of considering the "type and location of compensatory mitigation,"
33 C.F.R 332.3(b)(2) specifies that "the district engineer should give preference to the use of mitigation bank credits when [stated] considerations are applicable.
*732However, these same considerations may also be used to override this preference, where appropriate."
c. The Lack of Mitigation Analysis and Explanation is Arbitrary and Capricious
The Section 404 EA defines the proposed work as follows:
Clear rights-of-way, conduct trenching operations, temporarily stockpile approximately 1,525,897 cubic yards of native earthen material, dredge flotation ditches, dredge barge landings, install above-ground facilities and components, and perform horizontal directional drilling operations, all as necessary to install 163 miles of 24-inch crude oil pipeline. Project implementation would temporarily impact approximately 455.5 acres of jurisdictional wetlands and approximately 41.8 acres of other waters of the U.S. through temporary construction rights-of-way (ROWs) and workspaces. Approximately 142 acres of jurisdictional wetlands would be permanently converted from forested to herbaceous wetlands within the permanent right-of-way.178
It is undisputed that the construction and continued maintenance of the pipeline ROW will have unavoidable environmental impacts in the Atchafalaya Basin.
According to the Section 404 EA, the U.S. Fish and Wildlife Services ("USFWS") objected to the proposed clearing and maintenance of a 30 foot ROW "within forested wetlands due to their high ecological value."
The Louisiana Department of Natural Resources ("LDNR") complained about placing the pipeline in a location that "would add to the cumulative effect of ecologically detrimental hydrologic alteration, and the pipeline would obstruct planned efforts to restore hydrologic function."
In its discussion of the wetland impacts, the Corps notes that, in the permanent pipeline ROW, "existing forested wetlands will be cleared of all tree stratum and hence be converted and maintained as predominately a cleared herbaceous habitat."
The Section 404 EA describes the functionality and value of the wetlands which will be lost as a result of this project, as follows:
They are important natural communities for maintenance of water quality, providing a very productive habitat for a variety of fish and wildlife species, and are important in regulating flooding and stream recharge.
[F]reshwater wetlands act as filters to remove excess nutrients and toxic pollutants form the water. They are tremendous filters for human sewage, toxic metals, and other types of pollutants ... Wetlands also buffer coastal areas against wind and waves, and hold excess floodwater to help protect cities and towns during hurricanes and heavy rains ... Wetlands provid[e] a very productive habitat for a variety of fish and wildlife species.192
*734It is this value and functionality that is determinative of the nature and type of compensatory mitigation required. There is no analysis explaining how out-of-kind mitigation addresses these important functions.
The objective and purpose of compensatory mitigation for environmental harms is to "successfully replace lost functions and services."
The Corp concluded that 597.48 acres of wetlands will be impacted by the project, of which, 142.03 acres will be permanently impacted.
In support of its FONSI determination, the Corps concluded that "[a]ppropriate compensatory mitigation was purchased at [mitigation] banks to offset unavoidable impacts to wetlands that [will] result from permit issuance."
For the reasons set forth above, the Court finds that the Section 404 EA fails to demonstrate that the chosen mitigation measures effectively address and remediate the adverse impacts such that a FONSI was proper. As stated by the O'Reilly court, "the EA provides only cursory detail as to what those measures are and how they serve to reduce those impacts to a less-than-significant level. Because the feasibility of the mitigation measures is not self-evident ... the EA does not provide a rational basis for determining that the Corps has adequately complied with NEPA."
We recognize that an EA is meant to be a " 'rough-cut, low-budget', preliminary look at the environmental impact of a proposed project." Spiller , 352 F.3d at 240. The record before us, however, is simply not sufficient to determine whether the mitigated FONSI relies on " '... mitigation measures which ... compensate for any adverse environmental impacts stemming from the original proposal' " that, unmitigated, would be significant. Id. at 241 (quoting Cabinet Mountains Wilderness , 685 F.2d at 682 ). In other words, the EA fails to tell us "why the proposed agency action will not have a significant impact on the human environment." Coliseum Square [Ass'n Inc. v. Jackson] , 465 F.3d [215] at 224 [ (5th Cir. 2006) ] (citing40 C.F.R. §§ 1501.4 (e), 1508.13 ). We therefore agree with the district court's determination that, the Corps acted arbitrarily in relying only on the information in the current EA to support the issuance of its mitigated FONSI. In so holding, we pause to note that "[w]e have never said that deficiencies in an EA can only be cured by preparing an EIS, and that is not the law." Fritiofson v. Alexander ,772 F.2d 1225 , 1248 (5th Cir. 1985) (overruled on unrelated grounds by Sabine River Auth. v. U.S. Dep't of Interior ,951 F.2d 669 , 677 (5th Cir. 1992) ). Our review of the record today indicates only that we lack the information that would allow us to defer to the Corps's determination that mitigation will reduce the project's effects below the level of significance.208
For the reasons set forth above, the Court finds that the Corps failed to sufficiently justify its reliance on mitigation in reaching the FONSI. There is simply no assurance in the EAs that the mitigation plan will be successful in accomplishing the restorative goals of the CWA. Plaintiffs have demonstrated a likelihood of success on the merits regarding mitigation.
3. Failure to Consider Cumulative Effects/History of Noncompliance
Plaintiffs contend the Corps improperly ignored the long history of noncompliance with Corps permit conditions for other pipelines that have resulted in irreparable ecological damage to the Basin.
Further, virtually every commenter who participated in the permit process raised this history of noncompliance as a reason either to deny the permit or to conduct a full EIS. The Corps can only forgo such an analysis if compliance with the permit conditions is assured to occur. Being "hopeful" that compliance will occur is insufficient grounds to excuse the preparation of an EIS.
The Corps rejects Plaintiffs' arguments and claims it properly relied on mandatory permit conditions and project design features in assessing impacts. The Corps did not need to consider the possibility of non-compliance because the conditions are mandatory, and the Corps has regulatory power to enforce them. The Corps reasonably relied on those conditions and its regulatory power to enforce them in reaching its finding of no significant impact. Further, Plaintiffs' argument is contrary to Fifth Circuit case law and is speculative. Here, the permit issued by the Corps contains several mandatory conditions that, if not followed, allow the Corps to invoke suspension, modification, and revocation procedures contained in
The Corps maintains that both EAs respond to Plaintiffs' comments regarding possible spoil bank impacts. In light of the permit's extensive conditions, the permittees' repeated assurance of compliance with those terms and industry best practices, as well as the Corps' own regulatory authority to enforce the permit's conditions, it was reasonable for the Corps to consider the permits mitigation requirements in reaching a FONSI. Unlike the Friends of Back Bay case, the Corps is not merely "hopeful" that the permittee will adhere to the conditions in the permit-the Corps enjoys the regulatory authority to enforce those conditions should the permittee fail to uphold them, through actions up to and including revocation of the permit and recommending civil enforcement.
*737The Corps cites to the Fifth Circuit's decision in State of Louisiana v. Lee :
This is not an instance where the proposed mitigating conditions consist of vague statements of good intentions by third parties not within the control of the agency.... Rather, here the conditions are legally enforceable by the Corps. The dredging must be conducted in accordance with these restrictions. Therefore, the only realistic course of action is to consider the conditions in reviewing the Corps' decision not to file the impact statement.214
The Corps addressed Plaintiffs' claims that it failed to consider the cumulative impacts of permitting an additional pipeline crossing in an area impacted by historical unremediated spoil banks, including potential impacts from noncompliance by BBP. The Corps cites to both EAs where the Corps referenced historical spoil banks from past projects in analyzing cumulative impacts.
BBP contends under both NEPA and the CWA, the Corps' analysis is limited to the impacts of this pipeline.
In O'Reilly , the Fifth Circuit also addressed NEPA's specific requirements regarding cumulative impact analysis:
*738The CEQ's regulations define a project's cumulative impacts as "the impact on the environment which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency (Federal or non-Federal) or person undertakes such other actions."40 C.F.R. § 1508.7 ; see also40 C.F.R. § 1508.25 (requiring that agencies take cumulative impacts into consideration during NEPA review). The regulation states that "[c]umulative impacts can result from individually minor but collectively significant actions taking place over a period of time."40 C.F.R. § 1508.7 . In that vein, we have held that a consideration of cumulative impacts must also consider "[c]losely related and proposed or reasonably foreseeable actions that are related by timing or geography." Vieux Carre Prop. Owners, Residents, & Assocs., Inc. v. Pierce ,719 F.2d 1272 , 1277 (5th Cir. 1983).221
Having thoroughly read and considered the EAs and the Section 404 permit conditions placed on BBP, the Court finds that the Corps failed to sufficiently consider and address past noncompliance and cumulative effects in relation to this proposed project. The EA acknowledges that, "in the past, many actions were taken with little consideration [of] project related impacts on wetlands."
In short, the Corps concedes in the Section 404 EA that this project will "contribute cumulatively to wetland alteration and loss."
*739The Court finds that the Section 404 EA provides insufficient information to conclude that the Corps took a "hard look" at past, present, and future cumulative environmental impacts to permit a reasonable conclusion that its proposed mitigation measures would significantly reduce these effects. Thus, Plaintiffs have demonstrated a likelihood of success on the merits regarding the Corps' failure to adequately consider and address the cumulative impacts of the project. The Corps' and BBP's myopic view that they are only required to consider the impacts of this singular project is not consistent with the regulations or applicable jurisprudence.
C. Balance of Harms and Service of the Public Interest
Finally, in order to obtain a preliminary injunction, Plaintiffs must also establish that their substantial injury outweighs the threatened harm to the party whom they seek to enjoin and that granting the preliminary injunction will not disserve the public interest. This requires a balancing of harms to the parties, which involves an evaluation of the severity of the impact on the defendant should the temporary injunction be granted and the hardship that would occur to the plaintiff if the injunction should be denied. In addition, the court must consider whether an injunction would injure the public interest. However, there is no need to weigh relative hardships which a preliminary injunction or the lack of one might cause the parties unless the plaintiff can show some likelihood of ultimate success.
Plaintiffs contend the Corps relied on an arbitrary and unlawful balancing in which the benefits of operating the crude oil pipeline were expressly weighed, while the risks of such operations were ignored.
Thus, Plaintiffs contend that the balance of harms weighs in favor of an injunction. Further, there is no harm at all to the Corps from an injunction vacating a permit while this case proceeds.
As to the public interest, Plaintiffs state that, "[t]he public interest is always served by requiring compliance with Congressional statutes."
Contrary to Plaintiffs' allegations, the Corps contends it properly considered the likelihood and impact of oil spills, the beneficial effects of project design limitations and compensatory mitigation, and potential floodplain impacts. The Corps also properly declined, in the absence of credible supporting evidence, to base its review on the presumptions that BBP would violate the requirements of its Section 404 permit and that the Corps would entirely decline to enforce the CWA with respect to the project.
Further, the Corps claims it devoted a significant amount of time and attention to evaluating detailed assessments of the risk, potential scope and consequences of petroleum releases from the proposed project.
The Corps maintains that it did consider potential temporary and permanent impacts on the floodplain and current resource-dependent activities such as commercial and recreational hunting and fishing. With respect to the flood plain, the Corps found that the project design parameters would minimize impacts such that they would be minor and during construction.
Contrary to Plaintiffs' assertions, the Corps argues that it did consider their comments regarding alleged permit noncompliance; however, the Corps did not choose to base its public interest review on a worst case scenario in which BBP ignores *741the Permit requirements and the Corps subsequently refuses to enforce them. The particular Permit at issue serves an important public interest in development of domestic energy resources, and there is a strong public interest in the certainty and reliability of permits granted by the Corps. The ability of the Corps to fulfill those policies depends to some extent on the certainty that its permits represent. Thus, the Corps contends that a preliminary injunction clouding the permits issued to BBP could set precedent harmful to the public interest.
BBP contends it will suffer certain harm from a delay of the project at a cost of more than $950,000 per day, or $25 million per month. Cessation of all construction activities is alleged to cost more than $1.675 million per day, or $44 million per month. Cessation would also force BBP's contractors to lay off or furlough hundreds of workers. The work of suppliers, subcontractors, and vendors would also be brought to a halt, causing significant adverse impacts on the local economy and tax base.
The Court has considered the Parties' arguments and finds that the balance of harms and public interest considerations support a preliminary injunction in this case. The Court is mindful of the importance of local employment and the economic benefits this project may yield. However, the Court finds Intervenors' evidence of the monetary losses not supported by underlying data. The claimed financial losses are not supported by specific details or analysis justifying the vast amounts presented. Moreover, this injunction would only apply to the construction in the Basin, leaving a substantial area subject to continued work.
The Supreme Court has stated that, "[e]nvironmental injury, by its nature, can seldom be adequately remedied by money damages and is often permanent or at least of long duration, i.e. , irreparable. If such injury is sufficiently likely, therefore, the balance of harms will usually favor the issuance of an injunction to protect the environment."
IV. BOND
Plaintiffs have asked the Court to waive the bond requirement in this case given their non-profit status as public interest plaintiffs. The Corps does not appear to oppose this request; however, BBP maintains that there is no reason in this case to excuse the bond requirement. BBP contends Plaintiffs have significant resources, *742more than enough to pay a bond, and BBP will suffer financial harm if the project is delayed. BBP cites the Seventh Circuit's holding that "nonprofit entities should pay their way, reimbursing the losses incurred by entities who operations the nonprofits impeded by obtaining preliminary injunctions later dissolved."
In response, Plaintiffs contend that, in the event the Court should impose a bond, it should be nominal because the public interest plaintiffs in this case do not have the funds to pay a substantial bond and would be forced to withdraw their request for a preliminary injunction-effectively denying them the relief to which they are entitled. Plaintiffs claim that three of them are small, local non-profit organizations with one to thirteen staff members and mostly restricted funds that are not available for anything other than the specific work for which they were raised. For example, for its crude oil-related work, Sierra Club has to apply to a separate entity, Sierra Club Foundation, for restricted grants. Its total budget 2017 was $140,000, and all that money is currently devoted to the Club's advocacy work and therefore unavailable. Plaintiff also challenges BBP's "grossly inflat[ed]" potential injuries and argues that any economic loss to BBP would be BBP's fault.
Fed.R.Civ.Proc. 65(c) provides that a bond must be posted before a federal court may issue an interlocutory injunction and that the enjoined defendant may recover on the bond if a court later determines that it was "wrongfully enjoined." This bond requirement serves two functions: "(1) it assures the enjoined party that it may readily collect damages from the funds posted or the surety provided in the event that it was wrongfully enjoined, without further litigation and without regard to the possible insolvency of the assured,
The Fifth Circuit has held that, "[w]hile a district court's failure to require the posting of a bond or other security constitutes grounds for reversal of the injunction,"
The Court has considered the arguments of all Parties. The Court hereby Orders that Plaintiffs shall, in accordance with Rule 65(c) of the Federal Rules of Civil Procedure, provide security in the amount of $10,000.00. The Court finds that security in the amount of $10,000.00 is reasonable considering that the Plaintiffs are mostly non-profit agencies with limited resources, and the injunctive relief ordered is confined to construction activities in the Atchafalaya Basin, which is a small portion of the right of way permitted. Hence, the Court finds that the permittee can ameliorate the costs of the preliminary injunctive relief ordered through construction sequencing and management practices.
V. CONCLUSION
For the oral and written reasons assigned, the Court hereby GRANTS Plaintiffs' Motion for Preliminary Injunction
IT IS SO ORDERED.
Rec. Doc. No. 15. Plaintiffs initially filed a Motion for a Temporary Restraining Order (Rec. Doc. No. 16), which the Court denied (Rec. Doc. No. 24).
Rec. Doc. No. 37-2.
Rec. Doc. No. 36.
Rec. Doc. No. 51.
Rec. Doc. No. 65.
Rec. Doc. Nos. 73, 74, 75, & 76.
Rec. Doc. No. 37-7.
Rec. Doc. No. 15-31.
Citizens to Pres. Overton Park, Inc. v. Volpe ,
Camp v. Pitts ,
U.S. v. Garner ,
Sabine River Authority v. U.S. Dept. of Interior ,
Sabine River ,
City of Shoreacres v. Waterworth ,
Sabine River ,
Robertson ,
Sabine River ,
Robertson ,
Standing Rock Sioux Tribe v. U.S. Army Corps of Engineers ,
Spiller v. White ,
See
Plaintiffs have not brought a challenge under the RHA; however, the Section 408 EA upon which the Corps relied in the Section 404 EA was conducted pursuant to the RHA, thus it is summarily explained.
Board of Com'rs of Southeast Louisiana Flood Protection v. Tennessee Gas Pipeline Co., LLC ,
Rec. Doc. 15-1.
Munaf v. Geren ,
Planned Parenthood Ass'n of Hidalgo Cty. Tex., Inc. v. Suehs ,
Monumental Task Committee, Inc. v. Foxx ,
Klitzman, Klitzman & Gallagher v. Krut ,
Miss. Power & Light Co. v. United Gas Pipe Line Co. ,
Planned Parenthood v. Suehs ,
Miss. Power & Light Co. ,
Monumental Task Committee, Inc. v. Foxx ,
11A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure § 2948.1 (3d ed. 2013) [hereinafter Wright & Miller].
See Callaway ,
Daniels Health Scis., L.L.C. v. Vascular Health Scis., L.L.C. ,
Winter v. Nat. Res. Def. Council, Inc. ,
Holland Am. Ins. Co. v. Succession of Roy ,
Janvey ,
Morrell ,
See Winter ,
Rec. Doc. No. 15-1 at 44 (citations omitted).
Rec. Doc. No. 37-2 (citing Mylan Pharmaceuticals v. Shalala ,
Rec. Doc. No. 36 at 36 (citing Rec. Doc. No. 15-43 ¶ 15 (Conner Decl.) ).
Diameter at breast height, meaning at four and a half feet above ground.
Rec. Doc. No. 36 at 37.
See Section 408 EA at 56; Section 404 EA at 45.
Rec. Doc. No. 36 at 38 (citing Rec. Doc. 15-1 at 27-32).
Courts within the Fifth Circuit and the Fifth Circuit use both the "substantial likelihood" and the "sliding scale" standard for success on the merits. The Court notes that it would reach the same conclusion under application of either standard.
Wright & Miller, supra , § 2948.3.
See, e.g., Abdul Wali v. Coughlin ,
Fla. Med. Ass'n, Inc. v. U.S. Dep't of Health, Educ. & Welfare ,
Productos Carnic, S.A. v. Cent. Am. Beef & Seafood Trading Co. ,
Seatrain Int'l ,
Daniels Health Scis. ,
Sepulvado v. Jindal ,
Supra , n. 26. ? ? ?
Rec Doc. 15-31, pp 75-92.
Rec. Doc. 15-31, p. 31 (emphasis added).
Section 404 EA at 91.
Section 404 EA at 75-76; Section 408 EA at 17-19.
Government Exhibit 34.
Section 408 EA at 18.
Id. at 9-10.
There was no independent analysis in the Section 404 EA regarding the risk of oil spills, but the Court is satisfied that the scope of the spill analysis conducted for the Section 408 satisfies the Section 404 requirement.
Section 404 EA at 91.
Section 408 EA at 6.
ETP is Bayou Bridge's parent company.
Section 408 EA at 52-103.
Id. at 17-19.
Id. at 107.
Rec. Doc. No. 76 at 8-9 (citing Standing Rock ,
Section 408 EA at 18-19: "The model shows how far an unabated plume could propagate in 6 hours from a release located generally every 200 feet along the proposed pipeline route in accordance with PHMSA modeling protocols for determining the relative impact from a hypothetical release."
See Government Exhibit 19; Section 404 EA at 75.
Rec. Doc. No. 43-8 at 9.
Section 408 EA at 54, 60-61, 64, & 77.
Id. at 23, 25, 29, 69-70.
Id. at 17.
Id. at 1-3.
Id. at 109-110.
Id. at 111-115.
Section 404 EA at 30.
Rec. Doc. 15-31, p. 31.
Note 107 supra.
See
Id. at 37.
Rec. Doc. No. 15-1 at 26-27.
Rec. Doc. No. 37-2 at 34.
See Section 404 EA at 5-31.
O'Reilly ,
Id. at 231-32 (internal citations omitted).
Rec. Doc. No. 76 at 15.
Rec. Doc. No. 76 at 15-16, quoting
Emphasis added.
33 C.F.R. 332.3(b)(1).
33 C.F.R. 332.3(b)(2).
33 C.F.R. 332.3(b)(1).
Emphasis added.
"Since an approved instrument (including an approved mitigation plan and appropriate real estate and financial assurances) for a mitigation bank is required to be in place before its credits can begin to be used to compensate for authorized impacts, use of a mitigation bank can help reduce risk and uncertainty, as well as temporal loss of resource functions and services. Mitigation bank credits are not released for debiting until specific milestones associated with the mitigation bank site's protection and development are achieved, thus use of mitigation bank credits can also help reduce risk that mitigation will not be fully successful. Mitigation banks typically involve larger, more ecologically valuable parcels, and more rigorous scientific and technical analysis, planning and implementation than permittee-responsible mitigation. Also, development of a mitigation bank requires site identification in advance, project-specific planning, and significant investment of financial resources that is often not practicable for many in-lieu fee programs. For these reasons, the district engineer should give preference to the use of mitigation bank credits when these considerations are applicable." 33 C.F.R. 332.3(b)(2).
33 C.F.R. 332.3(b)(1).
Section 404 EA at 2.
The applicant, Intervenor BBP, concedes that there will be "unavoidable impacts" in the Section 404 EA at 22-30. The Corp notes in the EA "there will be permanent conversion and green impacts associated with construction and maintenance of the pipeline ROW." Section 404 EA at 46-50.
Section 404 EA at 2.
Section 404 EA at 63-64.
Mitigation bank credits.
Section 404 EA at 26, 28.
O'Reilly ,
Rec. Doc. No. 15-1 at 25.
See Friends of Back Bay v. U.S. Army Corps of Engineers ,
Rec. Doc. No. 15-1 at 32 (citing Friends of Back Bay ,
See Section 404 EA at 50; Section 408 EA at 119.
NEPA is concerned with the environmental impact of the "proposed action."
Section 404 EA at 23, 25, 28, 29, 36, 38, 40, 45, 51, 53, 55, 57, & 63. Likewise, the Section 408 EA mentions BBP's obligation to restore the right-of-way to "pre-construction contours" at least nine times. Section 408 EA at 56, 57, 63, 65, 81, 98, 119, 122.
Section 404 EA at 23.
BBP also argues that Plaintiffs failed to provide any evidence that BBP will not abide by these permit conditions. Plaintiffs' argument is entirely based on the behavior of other companies. Further, the Fifth Circuit's opinion in In re Louisiana Crawfish Producers ,
O'Reilly ,
Section 404 EA at 50-51.
For the reasons stated, the Court finds that the Corp failed to meaningfully analyze how the proposed mitigation "functionally compensates" for the impacts.
Section 404 EA at 51.
Seatrain Int'l ,
Rec. Doc. No. 15-1 at 25.
Id. at 43 (quoting Sigler , 695 F.2d at 976 ).
Id. at 44 (quoting
Rec. Doc. No. 15-1 at 47.
Id. at 49-50.
See Section 404 EA, Part 1.A.
Section 408 EA at 63.
Id. at 128.
The position of Intervenor Stupp also focuses on the alleged economic harm to its business, employees, and the local economy if the Court granted a preliminary injunction.
Amoco Production Co. v. Village of Gambell, AK ,
OVEC v. U.S. Army Corps of Engineers ,
Habitat Educ. Ctr. v. U.S. Forest Serv. ,
Rec. Doc. No. 65 at 34.
Continuum Co., Inc. v. Incepts, Inc. ,
Kaepa, Inc. v. Achilles Corp. ,
Rec. Doc. No. 15.
Rec. Doc. No. 83.
Reference
- Full Case Name
- ATCHAFALAYA BASINKEEPER, Louisiana Crawfish Producers Association-West, Gulf Restoration Network, Waterkeeper Alliance, and Sierra Club and Its Delta Chapter v. U.S. ARMY CORPS OF ENGINEERS
- Cited By
- 1 case
- Status
- Published