Opinion ID: 3053972
Heading Depth: 2
Heading Rank: 3

Heading: Necessity of a Revised EA or an EIS

Text: MMS has violated NEPA by failing to take a “hard look” at the impacts of Shell’s proposal on bowhead whales and Inupiat subsistence activities. MMS has not provided a convincing statement of reasons to justify its decision not to complete an EIS. See Blue Mountains, 161 F.3d at 1211. Moreover, several of the regulatory significance criteria are triggered here. See 40 C.F.R. § 1508.27; Sierra Club v. U.S. Forest Serv., 843 F.2d 1190, 1193 (9th Cir. 1988) (holding that an agency’s decision not to prepare an EIS was “unreasonable” because record demonstrated that four of the regulatory factors were implicated). Shell’s project is located in an increasingly fragile ecosystem and near the Arctic National Wildlife Refuge, an “ecologically critical area” under 40 C.F.R. § 1508.27(b)(3). The contentious nature of the agency’s internal communication during the review process demonstrates the controversy surrounding the project. See id. § 1508.27(b)(4); see also Native Ecosystems Council, 428 15586 ALASKA WILDERNESS v. KEMPTHORNE F.3d at 1240 (noting that a project is highly controversial if there is a substantial dispute about the effect of an action). As discussed above, the impact of activities at these particular sites poses an unknown risk to bowhead whales and Inupiat subsistence activities. See id. § 1508.27(5). The project could also have a serious effect on an endangered species: bowhead whales. See id. § 1508.27(b)(9). Finally, there is the potential for cumulatively significant impacts as the project continues through exploration and into the production phase, and the region continues to develop. See id. § 1508.27(b)(7). [19] In light of the potential for serious impacts on bowhead whales and Inupiat subsistence activities, the agency erred by not undertaking a more careful analysis before issuing a FONSI. Due to the inadequacies in this particular EA, there is uncertainty over whether the proposed project may have a significant impact. Accordingly we remand to the agency to either prepare a revised EA or, as necessary, an EIS. The statutory scheme does not preclude a finding that an EIS may be appropriate in these circumstances. MMS argues that the strict timelines in OCSLA indicate that an EIS is not a feasible option at the exploration stage. The agency only has thirty days to approve or disapprove of an exploration plan. 43 U.S.C. § 1340(c)(1). Respondents argue that thirty days is not enough time to generate a full EIS. However, in passing OCSLA, Congress specifically provided that it did not alter an agency’s obligations under NEPA. See 43 U.S.C. § 1866(a); see also 30 C.F.R. § 250.232(c) (“The [agency] will evaluate the environmental impacts of the activities described in your proposed EP and prepare environmental documentation under [NEPA].”). This court has recognized that “NEPA may require an environmental impact statement at each stage: leasing, exploration, and production and development.” Vill. of False Pass v. Clark, 733 F.2d at 614. The agency may be correct that it is difficult for an agency to conduct a full EIS in only thirty days, but its argument that ALASKA WILDERNESS v. KEMPTHORNE 15587 OCSLA precludes such a result is unconvincing. There is flexibility built into the regulatory scheme so that the agency can perform its full duties under NEPA. The thirty-day clock begins to run only when an exploration plan is deemed complete. 30 C.F.R. § 250.233(a). If the agency is able to identify gaps before that point, then it can request that information be added before the proposal is finalized. See 30 C.F.R. § 250.231(b). Additionally, at the end of the thirty-day review period, the agency may opt to require modifications to an EP if there are concerns that it does not comport with environmental standards. 30 C.F.R. § 250.233(b). These options give the agency additional time to consider a plan and compile an environmental impact statement, if necessary. To say simply that the agency only has thirty days to complete a full EIS is misleading. Here, since the agency’s decision to issue a FONSI without considering the environmental impacts to bowhead whales and subsistence resources was in error, MMS should prepare either a more thorough environmental analysis or an EIS, as necessary, examining the consequences of drilling at these specific locations. See Metcalf v. Daley, 214 F.3d 1135, 1146 (9th Cir. 2000). III. MMS’s Compliance With OCSLA [20] The agency’s approval of this project also violated OCSLA. OCSLA’s implementing regulations require that, when evaluating exploration plans, an agency should consider information about “proposed well location and spacing.” 30 C.F.R. § 250.203. Exploration plans must be “project specific” and describe the “resources, conditions, and activities” that could be affected. 30 C.F.R. § 250.227. In particular, an EP must include “[a] map showing the surface location and water depth of each proposed well and the locations of all associated drilling unit anchors.” 30 C.F.R. § 250.211(b). Shell submitted the locations of the 2007 drilling sites, but did not specify where it wished to drill in 2008 and 2009. Shell noted that future drilling locations will depend on what is found in the first Sivulliq exploration. Without specific infor15588 ALASKA WILDERNESS v. KEMPTHORNE mation about future well locations, the agency cannot meet its obligation to “review and approve proposed well location and spacing” in accord with 30 C.F.R. § 250.203. As a result, the agency erred by approving an EP for 2007-2009 without knowing where Shell would be drilling for the last two years. The agency is not saved by regulations that allow MMS to consider the impacts of drilling at subsequent locations when the company requests permits for those specific sites. See 30 C.F.R. §§ 250.410-250.418. These regulations stipulate that to obtain approval for a well, the applicant must have “[i]nclude[d] the well in [its] approved Exploration Plan.” 30 C.F.R. § 250.410(b). The wells for 2008 and 2009 were not included in Shell’s EP. The permit regulations are not an adequate mechanism enabling the agency to check Shell’s actions at a later date. MMS also points to 30 C.F.R. § 250.201(c), which enables the agency to relax certain informational requirements when: (1) Sufficient applicable information or analysis is readily available to MMS; (2) Other coastal or marine resources are not present or affected; (3) Other factors such as technological advances affect information needs; or (4) Information is not necessary or required for a State to determine consistency with their CZMA Plan. It is not clear how any of these sections would apply here. To the contrary, having specific information about well locations is critical to the agency’s ability to analyze the project’s environmental effects. MMS acted in contravention of the regulations by approving Shell’s three-year plan without determining the locations of the wells that would be drilled in ALASKA WILDERNESS v. KEMPTHORNE 15589 that period. In order to comply with the regulations, the agency needs to consider the location of the proposed wells before it can approve the project for all three years.