Case Name: STATE OF NORTH CAROLINA; Roanoke River Basin Association, Plaintiffs-Appellees, v. CITY OF VIRGINIA BEACH, Defendant-Appellant
Court: United States Court of Appeals for the Fourth Circuit
Jurisdiction: United States
Decision Date: 1991-12-06
Citations: 951 F.2d 596
Docket Number: No. 91-2314
Parties: STATE OF NORTH CAROLINA; Roanoke River Basin Association, Plaintiffs-Appellees, v. CITY OF VIRGINIA BEACH, Defendant-Appellant.
Judges: Before HALL, MURNAGHAN, and NIEMEYER, Circuit Judges.
Reporter: Federal Reporter 2d Series
Volume: 951
Pages: 596–613

Head Matter:
STATE OF NORTH CAROLINA; Roanoke River Basin Association, Plaintiffs-Appellees, v. CITY OF VIRGINIA BEACH, Defendant-Appellant.
No. 91-2314.
United States Court of Appeals, Fourth Circuit.
Argued April 11, 1991.
Decided Dec. 6, 1991.
As Amended Jan. 7, Jan. 13, and Feb. 12, 1992.
John F. Kay, Jr., Mays & Valentine, Richmond, Va., argued (M. Scott Hart, George A. Somerville, Samuel M. Brock, III, Mays & Valentine, Richmond, Va., Leslie L. Lilley, City Atty., Jeffry A. Sachs, Asst. City Atty., City of Virginia Beach, Virginia Beach, Va., John R. Jordan, Jr., Robert R. Price, Jordan, Price, Wall, Gray & Jones, Raleigh, N.C., on brief), for defendant-appellant.
Alan S. Hirsch, Sp. Deputy Atty. Gen., Raleigh, N.C., Patrick M. McSweeney, McSweeney, Burtch & Crump, P.C., Rich mond, Va., argued (Lacy H. Thornburg, Atty. Gen. of North Carolina, Timothy D. Nifong, Asst. Atty. Gen., Raleigh, N.C., Michael V. Hernandez, Richmond, Va., on brief), for plaintiffs-appellees.
Before HALL, MURNAGHAN, and NIEMEYER, Circuit Judges.

Opinion:
OPINION
NIEMEYER, Circuit Judge:
Once again we are confronted with the long-running dispute over the use of the waters of Lake Gaston, a man-made lake which lies partly in Virginia and partly in North Carolina, in the basin of the Roanoke River. The City of Virginia Beach, Virginia, which is situated in the James River Basin, seeks to satisfy its potable water needs by building an 85-mile pipeline extending from Lake Gaston to Virginia Beach through which it can withdraw up to 60 million gallons of fresh water per day. The State of North Carolina and the Roanoke River Basin Association (collectively hereafter, North Carolina) oppose the proposed diversion of water from the Roanoke River Basin, because they argue it will create a potential shortage there and stifle future development in the basin.
Although Virginia Beach has obtained a permit for construction of the pipeline from the Army Corps of Engineers, which was affirmed by the district court in North Carolina v. Hudson, 731 F.Supp. 1261 (E.D.N.C.1990), and by us in Roanoke River Basin Ass'n v. Hudson, 940 F.2d 58 (4th Cir.1991), it has not obtained approval from the Federal Energy Regulatory Commission (FERC), which is the licensor of the hydropower facility at Lake Gaston and the immediately surrounding land, known as FERC Project 2009.
On North Carolina's motion, the district court issued an injunction against Virginia Beach on December 10, 1990, that prevents it from commencing construction of any part of the pipeline project until the necessary approvals are obtained from FERC and until FERC has completed its environmental review. Relying on our decision in Maryland Conservation Council v. Gilchrist, 808 F.2d 1039, 1042 (4th Cir.1986), the district court concluded that any construction including even that outside FERC's jurisdiction, would impose public and political pressure on FERC to the point of usurping its ability to make a reasoned and independent environmental evaluation. The court also denied Virginia Beach's motion to alter or amend the injunction to allow Virginia Beach to proceed with two relatively small portions of the project outside of FERC's jurisdiction which are critical to maintaining a schedule and saving expense. From the district court's orders granting the injunction and denying the modification, this appeal is taken.
We are now presented with the questions of 1) whether the interest of FERC in approving changes at the hydropower facility at Lake Gaston (Project 2009) justifies an order prohibiting construction of other portions of the pipeline solely on the ground that FERC's review would improperly be influenced, and 2) whether FERC's intent to conduct an independent environmental review beyond its jurisdiction justifies an injunction prohibiting construction of those portions of the pipeline project not within its jurisdiction. Without reaching the question of whether all construction outside Project 2009 can proceed, we hold here that the commencement of construction of two relatively small portions of the pipeline project outside FERC Project 2009 does not apply such public and political pressure on FERC that it will be unable rationally to discharge its statutorily imposed responsibilities and that this construction will not interfere with FERC's responsibility in conducting an environmental review on other parts of the pipeline. Accordingly, we reverse the court's refusal to modify the injunction, without reaching the question beyond that modification of how much construction is too much.
I
Although the City of Virginia Beach, which is the most populous city in the State of Virginia, borders the lower Chesapeake Bay and the Atlantic Ocean, it has for many years suffered from fresh water shortages. At various times in the past decade, water-use restrictions and water rationing have been imposed, and with the unexpectedly rapid population growth of the Virginia Beach community, the shortage grows more severe. Virginia Beach does not have a water supply of its own, and it has had to purchase its water from the City of Norfolk under a contract that obligates Norfolk only to provide Virginia Beach with "surplus" water. That contract expires in 1993. After exploring various options for alleviating the problem, such as desalination of sea water and wastewater reuse, Virginia Beach concluded that the best solution was to draw water through a pipeline from Lake Gaston.
Lake Gaston was created by construction of a dam on the Roanoke River for use as a hydropower project. The project was constructed in the 1950's by Virginia Power Company (VEPCO (formerly the Virginia Electric & Power Company)) under a license obtained from FERC to construct, operate, and maintain the facility (Project 2009). VEPCO owns the hydropower generation facility and surrounding land that is included in Project 2009. Consequently, to obtain water from Lake Gaston, Virginia Beach must obtain easements from VEPCO to cross its land and VEPCO must obtain approval from FERC. North Carolina contends that VEPCO must also obtain a modification of its license from FERC to permit Virginia Beach to draw water from Lake Gaston.
In July 1983, Virginia Beach applied for a permit for the construction of the pipeline project from the Army Corps of Engineers, pursuant to 33 U.S.C. § 403 (1988). The pipeline project, which would lie wholly in the State of Virginia, would include six overhead river crossings, a pump station near Lake Gaston, and intake structures in and near the lake. The total cost of the project has been estimated at $218.9 million.
In December 1983, the Corps issued an Environmental Assessment (EA) and a Finding of No Significant Impact (FONSI), which concluded that there would be no significant impact on the quality of the human environment as a result of the pipeline project. Thus the Corps concluded that an Environmental Impact Statement (EIS), otherwise mandated by the National Environmental Policy Act (NEPA), 42 U.S.C. § 4332(2)(C) (1988), was not necessary. After a 30-day public comment period, the Corps issued a permit to Virginia Beach for the pipeline project.
Virginia Beach then, in 1984, approached VEPCO to obtain approval from FERC. VEPCO, however, declined to initiate the application to FERC until the permit from the Corps had been affirmed by the district court.
The issuance of the permit spawned two lawsuits. In the first, filed in the Eastern District of Virginia, Virginia Beach sought a declaratory judgment that the Corps' permit was valid. On appeal of an interlocutory order entered in that cáse, we held that the district court in Virginia had no personal jurisdiction over the Governor of North Carolina, who had been named as a defendant. City of Virginia Beach v. Roanoke River Basin Ass'n, 776 F.2d 484, 488 (4th Cir.1985). That case was thereafter transferred to the Eastern District of North Carolina where the second lawsuit, which was filed by the State of North Carolina and the Roanoke River Basin Association and challenged the issuance of the permit, was pending. The case transferred from Virginia was later dismissed when Virginia Beach was allowed to intervene in the North Carolina case and raise the same arguments it had made in the transferred case.
The district court issued two published opinions, North Carolina v. Hudson, 665 F.Supp. 428 (E.D.N.C.1987) (Hudson I), and North Carolina v. Hudson, 731 F.Supp. 1261 (E.D.N.C.1990) (Hudson II), the final effect of which was to reject North Carolina's challenge to the Corps' permit and to refuse to require that an EIS (environmental impact statement) be prepared. We affirmed the district court's ruling in Roanoke River Basin Ass'n v. Hudson, 940 F.2d 58 (4th Cir.1991), concluding that "[t]he Army Corps of Engineers properly considered all factors that it was required to consider before issuing a permit." 940 F.2d at 66.
After the district court decided Hudson II, but prior to our affirmance, Virginia Beach began the process of preparing an application, through VEPCO, to obtain FERC's approval of the grant of easements from VEPCO for use of the property within Project 2009. It also decided to commence construction of the portions of the pipeline project that were not under FERC's jurisdiction and awarded contracts toward that end. North Carolina, having learned that construction would commence on December 10,1990, filed another suit on November 30, 1990, in the Eastern District of North Carolina for a preliminary and a permanent injunction to prohibit any construction of the pipeline pending approval by FERC. Ten days later the district court issued an injunction and a final decision on the merits prohibiting construction of any part of the pipeline project until FERC has approved "the application by VEPCO for the Non-Project Use of Project Lands and Waters." Virginia Beach thereafter filed a motion to amend the injunction to allow it to proceed with what Virginia Beach considered two "critical path" tasks to keep the project reasonably on schedule: 1) six overhead river crossings and 2) certain portions of the pump station. Together, these tasks represented an estimated completion cost of $8.4 million. By beginning work on the critical path tasks immediately, Virginia Beach argued, invaluable time would be saved in completing the entire pipeline project and the potential for a severe water shortage could be lessened. The district court denied the motion, and this appeal followed.
II
Virginia Beach contends that there is no basis to enjoin pipeline construction outside the jurisdictional bounds of FERC Project 2009, which includes the hydropower facility and immediate environs at Lake Gaston licensed by FERC to VEPCO. It notes that the Army Corps of Engineers has already conducted an environmental review under NEPA for the remainder of the pipeline project, including the proposed critical path tasks at issue here, and the Corps' conclusions were approved by the district court. Virginia Beach further points out that it has already spent $18.1 million on the project and that the expenditure of an additional $8.4 million is insignificant compared to the overall project's estimated cost of $218.9 million. Although the expenditure of $8.4 million is relatively minor and Virginia Beach is apparently willing to forego it if FERC approval is not obtained, Virginia Beach points out that by proceeding with the critical path tasks at this time, it will avoid potential penalties on construction contracts already awarded and will save 12 to 15 months in overall project time should FERC give its approval. It notes that during three past droughts (in 1976-77, 1980-81 and 1986-87), the citizens of Virginia Beach were subjected to mandatory water-use restrictions and water rationing. Moreover, the population of Virginia Beach has grown significantly since those droughts, and Virginia Beach argues that, without progress on the project, the risk of a severe water shortage will increase significantly. It points to the district court's finding that "the possibility of hardship to [Virginia Beach's] citizens in the event of a drought is real." J.A. 400.
North Carolina contends that Virginia Beach is not authorized to commence con struction of any portion of the pipeline project that lies within the Gaston Reservoir boundary (Project 2009) until FERC has approved VEPCO's application. Moreover, it contends that FERC can only approve VEPCO's application after it conducts an environmental review of the entire pipeline project. It argues that if Virginia Beach is allowed to begin construction before this approval, the large expenditures of money by Virginia Beach will improperly influence FERC's decision on whether to approve VEPCO's application, in violation of the principles stated in Maryland Conservation Council v. Gilchrist, 808 F.2d 1039 (4th Cir.1986). It also argues that damage done to the environment by construction not approved by FERC will be irreparable.
The district court, relying principally on our decision in Gilchrist, 808 F.2d at 1042 ("We are committed to the proposition that when a major federal action is undertaken, no part may be constructed without an EIS [Environmental Impact Statement]."), agreed with North Carolina and enjoined all further construction stating:
The court holds, however, that the public interest in a FERC decision uninfluenced by the vast expenditures of public funds and a partial completion of the project outweighs any anticipated delay. The public interest favors avoiding irreversible damage to the environment, . even though compliance with NEPA may result in delays and cost increases,
(citations omitted). J.A. 403. In denying the motion to modify the injunction to authorize construction of the two critical path tasks lying outside Project 2009, the court added:
As this court interprets Gilchrist, federal regulatory agencies, such as FERC, should not be presented with public and political pressure brought on by partially completed projects in making important environmental decisions.... Defendant has already spent $18.1 million on this project. Although $8.4 million may be a small part of the total $218.9 million price, it at least becomes more significant when added to the $18.1 million already spent.
(emphasis in original). J.A. 589. Virginia Beach contends that both rulings were legally erroneous.
In reviewing an injunctive order, we accept the factual findings of the district court unless they are clearly erroneous. South Carolina Dep't of Wildlife & Marine Resources v. Marsh, 866 F.2d 97, 99 (4th Cir.1989). The district court's application of legal principles, however, presents a legal question that is reviewed de novo. See Blackwelder Furniture Co. v. Seilig Mfg. Co., 550 F.2d 189, 193 (4th Cir.1977) (review of lower court's application of the law not limited by the "clearly erroneous rule" governing questions of fact). Thus, while we must give due regard to the factual findings made by the court below, the application of the holding in Gilchrist to those facts is a question of law which we will review de novo.
In Gilchrist, Montgomery County, Maryland, planned to build a highway through a state park which had been created with federal funds from the Department of the Interior. Various groups challenged commencement of construction, even of portions of the project that lay outside the park, before an environmental review required by NEPA was completed. The district court dismissed the claim and on appeal we reversed, stating:
Because it is inevitable that the construction of the highway will involve a major federal action, it follows that compliance with NEPA is required before any portion of the road is built.... The decision of the Secretary of the Interior to approve the project, and the decision of any other Secretary whose authority may extend to the project, would inevitably be influenced if the County were allowed to construct major segments of the highway before issuance of a final EIS. The completed segments would "stand like gun barrels pointing into the heartland of the park." . It is precisely this sort of influence on federal decision-making that NEPA is designed to prevent. Non-federal actors may not be permitted to evade NEPA by completing a project without an EIS and then presenting the responsible federal agency with a fait accompli.
Gilchrist, 808 F.2d at 1042 (citations omitted). We then remanded the case to the district court to determine whether, in fact, the project would violate NEPA "by limiting 'the choice of reasonable alternatives' available to federal decision-makers." Id. at 1043 (citing 40 C.F.R. § 1506.1(a)(2) (1985)).
North Carolina relies on Gilchrist to argue that if construction of any part of the pipeline is allowed to go forward, an enormous amount of public and political pressure will be put on FERC to approve the project, and FERC will be unable to make a reasoned and independent decision regarding the effects of the pipeline project and the water withdrawal on the human environment and hydropower generation at Lake Gaston.
Nothing in the record, however, shows or suggests that proceeding with $8.4 million worth of construction of a $218.9 million project will unduly influence FERC, particularly when more than $18 million has already been spent on the project. On the contrary, the only facts presented on this subject point to a conclusion that FERC will not be influenced and that Virginia Beach has knowingly accepted the risk that $8.4 million of construction could be lost, along with the $18.1 million already spent, if the project is disapproved. In May 1987, FERC issued a Notice of Proposed Rule Making in which it proposed to adopt 40 C.F.R. § 1506.1 and stated:
[Any] applicant that takes steps to further an unapproved project or action and in the process endangers the environment and contravenes the purposes of NEPA, does so at its financial peril because the Commission may withhold or condition its approval. Any argument made by an applicant that its project should be approved because of prior expenditures of funds or resources would be disregarded by the Commission in making its decision on the merits of the proposal.
52 Fed.Reg. 20317 (1987). Through this announcement, FERC has placed applicants on notice that it will not be pressed into approving a project because an applicant has invested a great deal of money in it.
Moreover, in a June 1990 meeting with representatives of FERC, Virginia Beach confirmed that it fully accepted responsibility for the loss of preliminary construction costs if the project were not approved. It specifically communicated an awareness of that risk to FERC. J.A. 141. The knowing acceptance of the risk by Virginia Beach and its communication of the acceptance to FERC function as a protective barrier against any potential political pressure that otherwise might exist.
We recognize that if construction of the entire pipeline up to the border of FERC's jurisdiction were permitted, there may come a point where the construction and the concomitant expenditure of funds would create so much pressure that the completed portions of the pipeline would " 'stand like [a] gun barrel[ ]' " aimed at FERC. Gilchrist, 808 F.2d at 1042 (citation omitted). Thus, an injunction that prevents Virginia Beach from completing the entire pipeline before FERC has given its approval cannot be said to be invalid even if the construction itself will not violate NEPA.
However, Virginia Beach has not pressed that far with its principal ground for appeal. It seeks to perform relatively minor work on aspects of the pipeline outside FERC's jurisdiction that will save precious time and money if the project is approved. FERC's only interest, and derivatively North Carolina's, is in Project 2009. To argue that any work wherever planned in connection with the project should be enjoined because it unduly influences FERC's decision-making reaches far too broadly to justify the extraordinary writ of injunction, which " 'should be tailored to restrain no more than what is reasonably required to accomplish its ends.' " Marsh, 866 F.2d at 100 (quoting Consolidation Coal Co. v. Disabled Miners of Southern West Virginia, 442 F.2d 1261, 1267 (4th Cir.), cert. denied, 404 U.S. 911, 92 S.Ct. 228, 30 L.Ed.2d 184 (1971)). At some point, the pressure reduces to the level of background noise in the decision-making process.
If the rule were such that any construction that could, in even the smallest degree, bring public and political pressure on agencies is prohibited until final agency approval of all aspects of the project, the prohibition would logically extend to any de minimis construction. In this case, for example, it might extend even to surveying and unrelated construction which might increase the demand for water. That is not the intended reach of Gilchrist. Thus we hold that construction which lies beyond the boundaries of FERC's jurisdiction can be enjoined only when it has a direct and substantial probability of influencing FERC's decision. Against that standard, the reach of the injunction entered here, in prohibiting the two relatively minor phases of construction sought in Virginia Beach's motion to alter or amend, cannot as a matter of law be justified.
Without determining factually those circumstances when direct and substantial pressure would be felt, we reverse the order of the court refusing the amendment sought by Virginia Beach and remand the case for entry of an order permitting commencement of construction of at least the two portions covered by Virginia Beach's motion.
Ill
Apart from its argument that Gilchrist compels an injunction of all work on the Virginia Beach pipeline project, North Carolina also maintains that NEPA requires FERC to assess the environmental effects of all pipeline construction, including any potential effects resulting from construction outside of FERC's immediate decisionmaking jurisdiction. It is argued that until such a review can be conducted by FERC, an injunction of construction on all segments of the pipeline project must issue, because injury to the environment, which North Carolina contends may result from such construction, is irreparable. While we agree that our decisions have favored injunctions when a NEPA review is required and has not been conducted, see Arlington Coalition on Transp. v. Volpe, 458 F.2d 1323, 1326 (4th Cir.), cert. denied, 409 U.S. 1000, 93 S.Ct. 312, 34 L.Ed.2d 261 (1972) (enjoining highway construction pending Department of Transportation review), the issue in this case remains whether the NEPA assessment conducted by the Corps must be repeated by FERC.
The National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. § 4321 et seq. (1988) is "our basic national charter for protection of the environment." 40 C.F.R. § 1500.1(a) (1990). To achieve its purposes, NEPA requires federal agencies to consider the environmental implications of any proposed legislation or "major federal action":
The Congress authorizes and directs that, . (2) all agencies of the Federal Government shall— . (C) include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, a detailed statement by the responsible official on — (i) the environmental impact of the proposed action....
42 U.S.C. § 4332(2)(C). Additionally, FERC's own regulations call for it to conduct NEPA reviews. See 18 C.F.R. § 380.1-11 (1990); cf. Silentman v. Federal Power Comm'n, 566 F.2d 237, 241 (D.C.Cir.1977) ("It cannot be disputed . that whether or not an environmental statement is required, the [Commission] must consider environmental consequences at every stage of its decision.").
Furthermore, the Council on Environmental Quality, which was established pursuant to NEPA to serve as an advisory body for environmental matters, see H.R.Rep. No. 91-378, 91st Cong., 1st Sess. (1969), reprinted in 1969 U.S.Code Cong. & Admin.News 2751, has issued regulations to implement 42 U.S.C. § 4332(2)(C). See 40 C.F.R. § 1500-1517 (1990). Among these regulations is § 1506.1, which provides: "(a) Until an agency issues a record of decision . no action concerning the proposal shall be taken which would: (1) [h]ave an adverse environmental impact; or (2) [l]imit the choice of reasonable alternatives." FERC thus must conduct a NEPA review of the environmental impact of any "major federal action" within its jurisdiction. Although we are asked by the parties to assume, without deciding, that FERC's approval constitutes a major federal action, it remains necessary to decide the scope of its NEPA review. That analysis, in turn, must begin with the scope of FERC's jurisdiction, because only an authorized agency action need be examined for its environmental impact.
The Federal Power Act, 16 U.S.C. § 791a et seq. (1988), defines the scope of FERC's responsibility with respect to the pipeline project. The Act authorizes FERC, among other things, to issue licenses for "dams, water conduits, . or other project works necessary or convenient for the development and improvement of navigation and for the transmission, and utilization of power across, along, from, or in any of the streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce...." 16 U.S.C. § 797(e). The Act also provides that
the Commission, . whenever it finds that in conformity with a comprehensive plan for improving or developing a waterway or waterways for beneficial public uses all or part of any licensed project should no longer be used or adapted for use for power purposes, may license all or part of the project works for nonpower use.
16 U.S.C. § 808(f). The term "project works" is defined in the Act as "the physical structures of a project," 16 U.S.C. § 796(12), while a "project" is "the complete unit of development of a power plant." Chemehuevi Tribe of Indians v. FPC, 420 U.S. 395, 401, 95 S.Ct. 1066, 1071, 43 L.Ed.2d 279 (1975).
Given this authority, the litigants agree that FERC must approve the granting of easements by VEPCO to Virginia Beach prior to construction of any portion of the pipeline across VEPCO lands and prior to withdrawal of water from Lake Gaston. North Carolina argues, however, that, in essence, the necessity of this FERC decision to the completion of the entire pipeline project is sufficient to authorize it to analyze the environmental impact of any work on the entire pipeline project and therefore to require an injunction of all construction until FERC completes its review.
Of first importance is the fact that FERC has no licensing power or veto power over those parts of the pipeline that fall outside of Project 2009 (the hydropower facility at Lake Gaston). See Chemehuevi, 420 U.S. at 409, 95 S.Ct. at 1075 (" '[t]he Commission is limited to consideration of projects designed to produce water power. Structures or diversions having any other purpose, unless incidental to works constructed for power purposes or a necessary part of a comprehensive scheme of development, are not within [its] jurisdiction.' FPC, First Annual Report 51-52." (emphasis added by Supreme Court)). Indeed, if Virginia Beach were to build a pipeline, or any structure for that matter, up to the edge of Lake Gaston, it is doubtful that FERC would have any say in the matter. FERC has not contributed funds or other assistance to the construction of the Virginia Beach pipeline. Cf. Arlington Coalition, 458 F.2d at 1328-1330 (highway constitutes a major federal action when built as part of Federal Interstate Highway system with 90% funding by federal government). In fact, the only federal involvement in the project, aside from FERC's decision regarding the transfers of easements, is that of the Corps, which has already provided an environmental assessment to the fullest extent required by NEPA. See Roanoke River Basin Ass'n v. Hudson, 940 F.2d at 66 (4th Cir.1991) (the Corps "properly considered all factors that it was required to consider"). Simply put, NEPA requires agencies of the federal government, not private actors or states and municipalities, to consider the potential effects upon the environment of their proposed actions. Because FERC's responsibility is limited to overseeing only that portion of Virginia Beach's pipeline that directly affects Project 2009, it follows that FERC's NEPA review in this case should have a preclusive effect only on that por tion, even if FERC opts to analyze under NEPA the environmental impact of portions of the pipeline beyond its control.
Limiting the effect, but not the scope of FERC's NEPA review to only those portions of the pipeline that lie within FERC's jurisdiction is consistent with the authority exercised by the Corps, which has already performed an environmental assessment pursuant to NEPA. This is not a case in which we are asked to permit construction on property under FERC jurisdiction without a NEPA review; nor has Virginia Beach sought to initiate construction to bypass a NEPA review. On the contrary, it would appear that the parties and FERC agree that FERC will and should conduct a NEPA review in connection with Project 2009. Moreover, for non-Project 2009 property, over which FERC has no jurisdiction, the NEPA requirements were previously satisfied by the Corps. The Corps concluded that because there would be no significant impact on the human environment caused by the project, no EIS was necessary. North Carolina challenged that review, the district court upheld the decision of the Corps, and we affirmed in Roanoke River Basin. That issue has now been resolved.
Because a NEPA review has already been conducted by the Corps and FERC's required jurisdiction is limited, the fact that, as North Carolina notes, FERC may choose to conduct a NEPA review beyond its required jurisdiction does not mandate issuance of an injunction, unlike circumstances when a NEPA review is required and has not been conducted or where a supplemental review is required. Cf. Arlington Coalition, 458 F.2d at 1330, 1334 (injunction should issue where NEPA review required). Although a review of environmental impact by FERC of areas outside of its required jurisdiction might be desirable, NEPA case law requires only that an agency comply with the "statutory minima." Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 548, 98 S.Ct. 1197, 1214, 55 L.Ed.2d 460 (1978) (emphasis in original).
We thus conclude that in the particular circumstances presented in this case, where a NEPA review of the pipeline has already been completed properly by the Army Corps of Engineers, FERC's environmental review of the project is binding only on those aspects that lie within the purview of FERC. Until FERC has finished any NEPA review that it will conduct, no construction may begin, for environmental reasons, of those portions of the pipeline that will fall within its jurisdiction and which would "[h]ave an adverse environmental impact" or "[Ijimit the choice of reasonable alternatives." 40 C.F.R. § 1506.1(a) (1990). However, any analysis by FERC of aspects of the project that are outside its purview and within the jurisdiction of the Army Corps of Engineers cannot be viewed as overruling the Corps' findings or our decision in Roanoke River Basin. Construction of those portions of the pipeline that fall outside of FERC's jurisdiction will not run afoul of the "[ljimiations on actions during NEPA process," 40 C.F.R. § 1506.-1(a), because the NEPA review of those portions has already been completed properly by the Corps.
IV
Because commencement of the two aspects of construction which Virginia Beach seeks does not have a direct and substantial probability of influencing FERC's decision with respect to Project 2009 and an environmental review of those aspects not within FERC's jurisdiction has already been conducted, we reverse the order of the district court denying the motion to modify the injunction and direct it to permit the commencement of construction of at least the two portions described by Virginia Beach in its motion to alter or amend.
REVERSED AND REMANDED WITH INSTRUCTIONS.
. The Roanoke River Basin Association includes as members individuals, business entities, and political subdivisions in the basin, from both North Carolina and Virginia.
. The situation is suggestive of that irony often lamented:
"Water water every where,
Nor any drop to drink."
Samuel Taylor Coleridge, The Rime of the Ancient Mariner (1798), pt. II, st. 9.
. The license was first issued by the Federal Power Commission in 1951, and on October 1, 1978, FERC succeeded the Federal Power Commission pursuant to the Department of Energy Act, 42 U.S.C. § 7172(a)(1)(A) (1988).
. The court noted "that the facts are undisputed and that all arguments that could have been presented to the court have been and that, therefore, this decision is a final one on the merits of the action." J.A. 402 n. 4.
. We are informed that FERC may intend to conduct an environmental assessment of the entire pipeline project prior to rendering its permission to transfer the easements from VEPCO to Virginia Beach. Because we determine that no injunction need issue unless FERC is required by NEPA to conduct such an extensive assessment and that NEPA does not so require, we do not reach the issue of whether FERC may rely upon such an assessment in making its decision.