Opinion ID: 331837
Heading Depth: 2
Heading Rank: 1

Heading: First and Second Claims.

Text: 13 Standing and Laches. 14
15 Appellants base their standing to sue on § 10 of the Administrative Procedure Act (APA), 5 U.S.C. § 702, which provides: 16 A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. 17 The Supreme Court has held that persons have standing to seek judicial review of federal agency action under § 10 where they allege that the challenged action has caused them 'injury in fact' to an interest 'arguably within the zone of interests to be protected or regulated' by the statute which was allegedly violated. Data Processing Service v. Camp, 397 U.S. 150, 90 S.Ct. 827, 25 L.Ed.2d 184 (1970); Barlow v. Collins, 397 U.S. 159, 90 S.Ct. 832, 25 L.Ed.2d 192 (1970). Injuries of a noneconomic nature to widely-shared aesthetic and environmental interests, as well as economic injuries, can amount to an 'injury in fact' sufficient for standing under § 10. Sierra Club v. Morton, 405 U.S. 727, 734, 92 S.Ct. 1361, 31 L.Ed.2d 636 (1972), cited with approval in United States v. SCRAP, 412 U.S. 669, 689, 93 S.Ct. 2405, 37 L.Ed.2d 254 (1973). Appellants here allege injury to both environmental and economic interests which are within the 'zone of interests' to be protected by NEPA. United States v. SCRAP, supra, 412 at 686 n. 13, 93 S.Ct. 2405; cf. Lathan v. Brinegar, 506 F.2d 677 (9th Cir. 1974); National Forest Preservation Group v. Butz, 485 F.2d 408, 410 (9th Cir. 1973). 18 This conclusion is not altered either by the fact that Indians were parties to the leases being attacked or by the fact that the Secretary of the Interior acted in his capacity as a fiduciary for such Indians in approving the leases. NEPA's stated purpose is to 'assure for all Americans safe, healthful, productive, and esthetically and culturally pleasing surroundings . . .' 42 U.S.C. § 4331(b)(2). (Emphasis added). Prior judicial interpretations of NEPA, moreover, give no indication that major federal actions primarily pertaining to Indians were to be immune from environmental challenges by all but such Indians. This court has stated that '(e)nvironmental protection is a part of every federal agency's mandate; the Act requires 'agencies to consider environmental issues just as they consider other matters within their mandates. Lathan v. Brinegar, 506 F.2d 677, 689 (9th Cir. 1974), citing Calvert Cliffs' Coordinating Comm., Inc. v. Atomic Energy Comm'n, 146 U.S.App.D.C. 33, 449 F.2d 1109, 1112 (1971). (Emphasis in original). The Calvert Cliffs court concluded that agency duties under NEPA are 'not inherently flexible' but instead 'must be complied with to the fullest (statutory) extent, unless there is a clear conflict of statutory authority.' 449 F.2d at 1115. A like approach was taken by the Tenth Circuit in Davis v. Morton, 469 F.2d 593, 596 (10th Cir. 1972). 2 19 To restrict standing, as did the lower court, to institute an environmental challenge to the Crow Tribe would limit standing under the circumstances of this case to a group having a strong economic incentive to alter substantially the environment. NEPA is not such a false promise. 20
21 We also conclude that the trial court in its disposition of the first claim erred in its determination that the appellants were barred by laches. Laches, an equitable defense, 'requires proof of (1) lack of diligence by the party against whom the defense is asserted, and (2) prejudice to the party asserting the defense.' Costello v. United States, 365 U.S. 265, 282, 81 S.Ct. 534, 543, 5 L.Ed.2d 551 (1961); Lathan v. Brinegar, supra, 506 F.2d at 691--92. Neither element is present here. 22 The leases were granted in June, 1972 and the preparation of the EIS began early in 1973. We cannot say that it was a lack of diligence for appellants to refrain from commencing an action to challenge the adequacy of the EIS until they could ascertain its contents. Appellants were entitled to assume that federal agencies would comply with the requirements of NEPA. Environmental Defense Fund v. TVA, 468 F.2d 1164, 1182 (6th Cir. 1972). 23 Moreover, Westmoreland was put on notice of appellants' position well before this suit was instituted. Appellants presented their views with respect to the inadequacy in scope and content of the draft EIS during public hearings in November, 1973. Also several environmental groups, including Friends of the Earth, filed suit in the district court for the District of Columbia on June 13, 1973 to require the federal government to issue a comprehensive impact statement covering all aspects of coal and power development in the Northern Great Plains region, the effect of which would be to halt further mining development there pending such an analysis. Westmoreland and the Crow Tribe intervened in that litigation. (The Court of Appeals for the District of Columbia Circuit recently reversed a grant of summary judgment in favor of the defendants and remanded the case to the district court to give the Secretary of the Interior the opportunity to determine whether an EIS was required in light of certain tests enunciated by the appellate court. Sierra Club v. Morton, 514 F.2d 856 (D.C.Cir. 1975)). 24 Westmoreland also failed to prove that any prejudice to which it may be subjected by reason of this suit resulted from reliance on appellants' inaction. The ultimate basis for the sums expended by Westmoreland was its entry into the twenty-year contracts to supply 77,000,000 tons of coal; those obligations were incurred on the day after the leases were signed in June, 1972. Its commitments under the contracts to begin delivery of coal by July, 1974 necessarily locked Westmoreland into a construction and site development schedule which existed independent of any action or inaction by appellants. 25 On these facts the defense of laches is not available. This conclusion is strengthened by the fact that laches is not favored in environmental litigation. That is, 26 (Laches) . . . has received a lukewarm reception in suits presenting environmental questions, for not only will others than the plaintiff suffer the possible environmental effects, but the agency will escape compliance with NEPA, a result not to be encouraged. 27 Minnesota PIRG v. Butz, 498 F.2d 1314, 1324 (8th Cir. 1974). 28 The public has an interest in compliance with NEPA that should not be impaired lightly. 3 Liberal rules with respect to standing do not require that the doctrine of laches be treated more hospitably. 29
30 To succeed in their first claim the appellants must not only establish their standing to sue and surmount the defense of laches but also establish that the approval by the Secretary of Interior of coal leases covering 30,876 acres of land constituted 'major federal action' within the meaning of 42 U.S.C. § 4332(a)(C). The lower court avoided reaching this issue. This was error. We are persuaded by Davis v. Morton, 469 F.2d 593 (10th Cir. 1972) that the approval in this case was 'major federal action' which requires the preparation of an EIS that satisfies the mandate of NEPA. Neither the status of Indians nor the manner in which their lands are held in trust justifies removing from the 'major federal action' category the 1972 approval of the leases in this case. 31 Inasmuch as no EIS was prepared until 1973 and its coverage was limited to the 770 acres embraced in the mining plan, it becomes necessary to determine whether this EIS satisfies the mandate of NEPA with respect to the Secretary's approval of the leases. The heart of the appellant's second claim is that it does not. To this issue we now turn. 32
33
34 Our decisions make clear that the adequacy of an EIS must be reviewed against a procedural standard. Thus the 'without observance of procedure required by law' standard of 5 U.S.C. § 706(2)(D) rather than the 'arbitrary, capricious, an(d) abuse of discretion' standard of § 706(2)(A) is the proper measure. Lathan v. Brinegar, 506 F.2d 677 (9th Cir. 1974). We also have recognized that this procedural standard 'is less helpful in reviewing the sufficiency of an EIS than one might wish.' Trout Unlimited v. Morton, 509 F.2d 1276, 1282 (9th Cir. 1974). The standard presently is more ad hoc in character than might be thought proper. Nonetheless, we have no difficulty in applying it to this case. 35
36 NEPA requires that an EIS be prepared in 'every recommendation or report on . . . major Federal actions' and that the statement 'shall accompany the proposal through existing agency review processes.' 42 U.S. § 4332(2)(C). These requirements further the purpose of the Act to require officials to consider environmental issues in determining whether the actions they contemplate should be undertaken. An ex post facto justification generally is not an acceptable substitute, as 'NEPA . . . does not authorize defendants to meet their responsibilities by locking the barn door after the horses are stolen.' Lathan v. Volpe, 350 F.Supp. 262, 266 (W.D.Wash.1972), aff'd in part and rev'd in part, 455 F.2d 1111 (9th Cir. 1971); see 40 C.F.R. § 1500.7(a); Conservation Society of Southern Vermont, Inc. v. Sec'y of Transportation, 508 F.2d 927 (2d Cir. 1974). That the filing of an EIS should precede rather than follow federal agency action has been consistently recognized by the courts. 4 37 In this respect the EIS covering the 770 acres is not adequate. It did not 'accompany' the submission by the Secretary. This inadequacy is not excused by the existence of the lower court decision in Davis v. Morton which held approvals by the Secretary of leases of Indian land not to be 'major federal action.' Reliance on that decision in the face of the comprehensive language of the statute fails to elicit the sympathy which acceptance of the defendants' proffered excuse would require. 5 Nor does failure to accept the excuse constitute retroactive application of NEPA. All the significant actions in this case occurred subsequent to January 1, 1970, the effective date of NEPA. 6 38 Nonetheless the defendants insist that the EIS pertaining to the mining plan covering operations for five years on 770 acres of leased land is all that is required because numerous authorities recognize that under proper circumstances an EIS need not be prepared covering an entire project when an adequate EIS covering a discrete phase or segment thereof has been prepared. 7 This is such an instance, the defendants assert. Therefore, continue the defendants, the only issue is whether the EIS before us is adequate with respect to the mining plan to which it was addressed. 39 We disagree. While it is true that each mining plan prepared for tracts within the leased area is to a significant degree an independent project which requires a separate EIS with respect to each, it is no less true that the breadth and scope of the possible projects made possible by the Secretary's approval of the leases require the type of comprehensive study that NEPA mandates adequately to inform the Secretary of the possible environmental consequences of his approval. Westmoreland's massive capital investment and extended contractual commitments present a situation in which 'it would be irrational, or at least unwise, to undertake the first phase if subsequent phases were not also undertaken.' Trout Unlimited, supra, 509 F.2d at 1285. 8 However, even were this not true, it cannot be denied that the environmental consequences of several strip mining projects extending over twenty years or more within a tract of 30,876.45 acres will be significantly different from those which will accompany Westmoreland's activities on a single tract of 770 acres. 40 Under the circumstances of this case we, therefore, hold that an EIS must be prepared for the entire project contemplated by the leases which the Secretary approved in June, 1972. We also hold that each specific mining plan functionally equivalent to the 770-acre plan for which an EIS has been prepared must be accompanied by an adequate EIS. Our position is supported by numerous authorities. 9 D. Adequacy of EIS Covering 770 Acres for Approval of 41 Five Year Mining Plan. 42 Implicit in our determination that an EIS must be prepared in conjunction with each separate and distinct mining plan is the holding that any approval thereof by a federal agency constitutes 'major federal action.' The magnitude of the undertakings embraced within the five year 770 acre plan before us convinces us beyond any doubt that approval by a federal agency of a substantially equivalent plan is 'major federal action.' 43 This conclusion requires that we examined the EIS prepared by the BIA to determine its adequacy. The appellants assert that it is deficient in six respects, viz. in its treatment of reclamation, ground water supply, water pollution, air quality, alternatives, and cost-benefit analysis. 44 Appellants characterize destruction of the land as the 'most important single environmental impact' of the project and argue that in its discussion of reclamation, the EIS is lacking in data and is insufficiently analytical. We disagree. While we would have preferred a somewhat more detailed and better organized treatment of the proposed reclamation plans and although parts of the discussion are couched in the 'conclusory form' we consider less than optimal, 10 we cannot say that the EIS is inadequate in this regard. Nor are we dislodged from this position because of the conflict in expert testimony concerning reclamation procedures and prospects at trial. As was said in Life of the Land v. Brinegar, 485 F.2d 460, 472 (9th Cir. 1973), 'disagreement among experts will not serve to invalidate an EIS.' 45 Appellants' attack upon the treatment of ground water supply and water pollution highlights the fact that the EIS concedes that certain environmental effects are not known. This does not necessarily undermine the adequacy of the statement. This court has explained: 46 Neither § 102(2)(B) or (C) (42 U.S.C. § 4332(2)(B) or (C)) can be read as a requirement that complete information concerning the environmental impact of a project must be obtained before action may be taken. If we were to impose a requirement that an impact statement can never be prepared until all relevant environmental effects were known, it is doubtful that any project could ever be initiated. 47 Jicarilla Apache Tribe of Indians v. Morton, 471 F.2d 1275, 1280 (9th Cir. 1973). We conclude that the treatment of ground water supply and water pollution in the EIS is adequate, as is its discussion of air quality, also attacked by appellants. 48 We also decide that the EIS adequately deals with the subject of alternatives. See Trout Unlimited, supra, 509 F.2d at 1285--86. The EIS describes three basic alternatives--approval of the mining plan, modification of the present plan, and rejection of the plan--with subtopics where appropriate. For example, with respect to the 'rejection' alternative, there are listed two courses of action which might ensue, i.e., an agency determination that coal mining could not be permitted anywhere on the leased area, or submission of a new mining plan by Westmoreland. In connection with the former, the EIS discusses (1) alternate sources of tribe income, (2) alternate supplies of coal, (3) non-coal energy alternatives, and (4) other alternatives. In connection with the latter, the statement discusses site, mining method, coal use, and transportation alternatives. The process of fractionating alternatives need not be pursued to the brink of triviality. 49 Finally, appellants characterize the EIS as inadequate for want of a cost-benefit analysis. In Trout we held that the absence of a numerically expressed cost-benefit analysis was not fatal. Trout Unlimited, supra, 509 F.2d at 1286. It is also not fatal here and for the same reasons. Throughout the EIS is recognition and discussion of the various advantages and detrimental effects of the project. The failure to affix numerical weights to each of these does not make the EIS inadequate in this case. We conclude, in sum, that although the EIS could be 'improved by hindsight,' it has satisfied the intent of the statute. National Forest Preservation Group v. Butz, 485 F.2d 408, 412 (9th Cir. 1973). 50