Opinion ID: 311492
Heading Depth: 1
Heading Rank: 22

Heading: valdez tank farm issues

Text: 190 In June 1969 TAPS filed an application with the Department of Agriculture requesting a revocable special land use permit for construction and operation of an oil tank farm and terminal facility on an 802-acre site within the Chugach National Forest. On October 1, 1969 the Forest Service of the Department issued the requested permit. At the present time, while the first stage of construction of the tank farm, involving site clearing and survey, has been completed, actual construction has been deferred by Alyeska because of the present litigation. 191 Plaintiff-appellant Cordova District Fisheries Union, an unincorporated association of commercial fishermen in Cordova, Alaska, brought suit asking that the revocable permit be declared invalid. Since we do not reach the merits of the controversy, we merely summarize the competing contentions. Appellants contend that the permit exceeds the 80-acre limitation of 16 U.S.C. Secs. 497 and 497a (1970). Appellees concede that the permit is not authorized by these statutes, but claim that neither is it barred by them. They argue that the permit is lawful pursuant to the broad regulatory powers of the Secretary of Agriculture under 16 U.S.C. Sec. 551 (1970). In addition, they contend that the practice of issuing such permits has been acquiesced in by Congress, as recognized in Sierra Club v. Hickel, supra, 433 F.2d at 34-35. Appellants respond that Section 551 is inapplicable and that the project in this case is distinguishable from that approved in Sierra Club because it is not for recreation purposes. 192 In an affidavit filed with the District Court, the Attorney General of the State of Alaska informed the court that the State had filed an application with the Interior and Agriculture Departments for approval of the selection by the State of the 802-acre site pursuant to Section 6 of the Alaska Statehood Act, Pub.L. 85-508, 72 Stat. 339 (July 7, 1958). That section authorizes selection by the State of Alaska of approximately 400,000 acres of vacant and unappropriated public lands within national forests. 98 193 While the Secretary of Agriculture has not yet approved the selection, appellees expect that he will do so shortly. Applicable regulations provide that the Bureau of Land Management within the Department of the Interior shall then issue the State a patent for the land. 43 C.F.R. Sec. 2627.3 (1972). After title to the land is obtained by the State, Alyeska plans to obtain the site from the State. Appellees argue that in view of the imminent transfer of the land to the State of Alaska, we should not decide whether the permit is valid for upon that transfer the case will become moot. Appellants disagree, arguing that a decision on the validity of the permit may have significance even after the transfer because under Alaska law a lawful permittee will have priority in obtaining the land from the State. In any event, they argue that approval of the selection may not be obtained from the Department of Agriculture, there being some question about whether the selection is lawful under the Alaska Statehood Act, 99 and that we should reach the merits and hold the permit invalid. In response to this point, appellees ask that we decide in this litigation whether the anticipated transfer is in fact valid under the Alaska Statehood Act. The District Court reached the merits and held the permit valid, offering no opinion on the lawfulness of the pending selection.
194 At the outset we find it inappropriate in this litigation to offer our views with respect to the anticipated approval of Alaska's land selection by the Agriculture and Interior Departments. Not only is this an issue not properly raised in the pleadings of this lawsuit, but decision of this question by this court at the present time would be totally inconsistent with the settled doctrines of primary jurisdiction and exhaustion of administrative remedies. 100 See generally L. Jaffe, Judicial Control of Administrative Action chs. 4 & 11 (1965). 195 Turning to the central issue, we note that it is not contended by any party that the controversy over the permit is presently moot. To the extent the doctrine of mootness merely incorporates the doctrine that a federal court has jurisdiction only to adjudicate cases or controversies, see Powell v. McCormack, 395 U.S. 486, 496 n.7, 89 S.Ct. 1944, 23 L.Ed.2d 491 (1969), there can be no question but that this dispute is not technically moot. This lawsuit involves no mere abstract question of law. It challenges the lawfulness of a permit already issued which would permit activities clearly detrimental to the legal interests of plaintiffs-appellants. 196 The real question here is, for want of a better term, justiciability, or whether we should exercise our judicial discretion to dismiss the action without a determination on the merits, despite the existence of jurisdiction. See generally Davis v. Ichord, 143 U.S. App.D.C. 183, 193, 442 F.2d 1207, 1217 (1970) (Leventhal, J., concurring). Several factors lead us to exercise that discretion in this case. As noted above, Alyeska has to date held up construction under the tank farm permit, awaiting our decision as to the legality of the permits and rights-of-way necessary for construction of the pipeline itself. It appears likely that, in view of our decision on the pipeline construction SLUP, no further construction will take place until Congress resolves the Mineral Leasing Act problem so as to permit construction of the pipeline. By that time, the selection process under the Alaska Statehood Act will hopefully be resolved one way or the other. If selection of the disputed lands is lawfully completed, the legality of the permit will very likely become a moot point. That Alyeska might, because of the permit, have a preference under Alaska law for obtaining the land from the State does not affect this conclusion. It is questionable whether Alyeska will face competition in its attempt to obtain this land from the State after selection, and even if such competition appears, Alyeska might well choose not to exercise any preferential rights and instead might accept a position as a co-equal with other private parties seeking the land. Of course, if Alyeska does seek to exercise its preference, the legality of the permit can be litigated at that time. The likelihood of mootness and the availability of a forum when, if ever, the question becomes ripe for adjudication lead us to avoid a decision on the merits. The Supreme Court has cautioned against declaratory judgments on issues of public moment, even falling short of constitutionality, in speculative situations. Public Affairs Press v. Rickover, 369 U.S. 111, 112, 82 S.Ct. 580, 582, 7 L.Ed. 2d 604 (1962). See also Eccles v. Peoples Bank, 333 U.S. 426, 432, 68 S.Ct. 641, 92 L.Ed. 784 (1948). In the present case, where the speculation goes not merely to factual matters but to the very question of whether a decision on the merits will have any legal significance, caution would seem especially appropriate. 197 Justiciability not only involves an analysis of the appropriateness of the issues for decision by the court, but also concerns whether denial of judicial relief at a given time will cause hardship to the parties. See Abbott Laboratories v. Gardner, 387 U.S. 136, 149, 87 S.Ct. 1507, 18 L.Ed.2d 681 (1967); Joint Anti-Fascist Refugee Committee v. McGrath, 341 U.S. 123, 156, 71 S.Ct. 624, 95 L.Ed. 817 (1951) (Mr. Justice Frankfurther, concurring). Since it appears unlikely that any further construction of the tank farm terminal will take place until the Mineral Leasing Act problems are solved, we find that deferral of adjudication on the merits will not impose any significant hardships on plaintiffs-appellants in this case. 198 Finally, we take note of the fact that the issues on the merits are clearly substantial and raise important ramifications for the quality of the country's public land management. Sierra Club v. Morton, 405 U.S. 727, 757, 92 S.Ct. 1361, 1377, 31 L.Ed.2d 636 (1972) (Mr. Justice Blackmun, dissenting). In addition, as in many cases where it is claimed that an administrative agency has violated a legislative command, this case involves difficult questions concerning the relationship between the legislative and executive branches of our government. While the importance of the issues presented might seem to call out for judicial resolution, settled principles of adjudication suggest that a court avoid such difficult issues whenever a decision on the merits is not necessary to the outcome of the dispute then before the court. Especially where governmental action is involved, courts should not intervene unless the need for equitable relief is clear, not remote or speculative. Eccles v. Peoples Bank, supra, 333 U.S. at 431, 68 S.Ct. at 644. 199 In declining decision on the merits, we are not unmindful of our duty liberally to construe the Declaratory Judgment Act, 28 U.S.C. Sec. 2201 (1970). No doubt, avoidance of a decision on the merits thwarts to some extent that Act's laudable policy of providing speedy adjudication of legal disputes to remove uncertainty and insecurity from legal relationships. See Aetna Casualty & Surety Co. v. Quarles, 4 Cir., 92 F.2d 321 (1937). We do not lightly turn aside a suitor who seeks a hearing and decision of his federal rights. Davis v. Ichord, supra, 143 U.S.App.D.C. at 196, 442 F.2d at 1220 (Leventhal, J., concurring). Despite these concerns, however, we conclude that the instant case is an appropriate one for staying the judicial function until it becomes clear that resolution of the issues presented will be of real significance.