Opinion ID: 775611
Heading Depth: 2
Heading Rank: 2

Heading: Extraordinary Delay

Text: 28 EMI argues that as of 1990, extraordinary government delay in processing its permit application constituted a taking. However, we hold that any delay in processing the permit application was not sufficiently extraordinary to constitute a taking. 29 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. v. Mahon, 260 U.S. 393, 413 (1922). The mere requirement that a person obtain a permit before engaging in a certain use of his or her property does not itself 'take' the property in any sense: after all, the very existence of a permit system implies that permission may be granted. United States v. Riverside Bayview Homes, Inc., 474 U.S. 121, 126-27 (1985). Moreover, mere fluctuations in value during the process of governmental decisionmaking, absent extraordinary delay, are incidents of ownership. First English Evangelical Lutheran Church v. L.A. County, Calif., 482 U.S. 304, 320 (1987). 30 However, it is true that a taking may occur by reason of extraordinary delay in governmental decisionmaking. Tabb Lakes, 10 F.3d at 803. Other courts have recognized that extraordinary delay must be substantial and that the Supreme Court has condoned delays up to approximately eight years. Kawaoka v. City of Arroyo Grande, 17 F.3d 1227, 1233 (9th Cir. 1994) (citing Williamson County Reg'l Planning Comm'n v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985)); see also Tahoe-Sierra, 216 F.3d at 781-82 (holding that a temporary development moratorium of up to forty months did not constitute a temporary taking); Dufau v. United States, 22 Cl. Ct. 156, 163 (Cl. Ct. 1990) (holding that permit delay of sixteen months did not constitute a temporary taking). The length of the delay is not necessarily the primary factor to be considered when determining whether there is extraordinary government delay. Because delay is inherent in complex regulatory permitting schemes, we must examine the nature of the permitting process as well as the reasons for any delay. Moreover, it is the rare circumstance that we will find a taking based on extraordinary delay without a showing of bad faith. Cf. Tabb Lakes, 10 F.3d at 799. 31 Complex regulatory schemes often require detailed information before the issuance of a permit. The nature of the regulatory scheme is especially critical 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. 32 A brief synopsis of the application 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 application 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 of Cane Creek, and (4) would not adversely affect the aesthetic and environmental integrity of the nearby Fall Creek Falls State Park (State Park). One month later, EMI provided a letter response to the OSM request. 33 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 hydrologic consequences. EMI then appealed this decision to an ALJ. Throughout 1987, the appeal progressed before the ALJ. In January of 1988, the ALJ ordered OSM to provide another detailed TDL explaining exactly what information was required. OSM issued the additional TDL in February of 1988. 34 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 violations. 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. 35 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, 36 Fed. Cl. at 548. The trial court reasoned that after 1990, OSM's policy was to stop [EMI's] development without taking a final action. E. Minerals, 39 Fed. Cl. at 625. However, OSM's decision in July of 1990 to require additional information does not constitute extraordinary delay. As discussed above, we recognize that OSM has considerable technical expertise in determining the level of information necessary to provide an adequate hydrological study. OSM determined that the phase 1 SOAP study provided [v]ery little useful hydrogeologic data and that additional wells and pumping tests would be required. As noted, we must afford OSM significant deference in determining the extent of information necessary for a complete hydrogeologic report. Moreover, we also note that much of the delay through 1991 was caused by the failure of EMI to respond to OSM's requests for information, and the appellate process before the ALJ. 7 Finally, we observe that the trial court's finding of bad faith delay on the part of OSM throughout the entire permitting process is inadequately supported. For these reasons, we hold that the plaintiff failed to establish the requisite showing of extraordinary government delay to constitute a temporary taking prior to February 28, 1991. Any finding by the trial court to the contrary is clearly erroneous.