Legal Document

454 U.S. 151 102 Supreme Court Reporter 205 70 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 309 James G. WATT, Secretary of the Interior, et al., Petitioners,v.ENERGY ACTION EDUCATIONAL FOUNDATION al. Number 80-1464. Argued Oct. 5, 1981. Decided Dec. 1, Syllabus Under Outer Continental Shelf Lands Act 1953 (Act), Interior (Secretary) is authorized to lease tracts (OCS) for exploration for, and development of, mineral resources, including oil gas. As originally passed, Secretary, in his discretion, solicit bids either by fixing a royalty rate not less than 121/2%, requiring on an initial "cash bonus" be paid when was awarded, or amount cash bonus, rate. In practice, virtually all were leased basis fixed royalty, with bidding bonus. However, Amendments 1978 (1978 Amendments) increased number systems 10, retaining original system authorizing new systems, some which also involve bonus bidding, while others use factor other as variable. The direct develop 5-year plan experimentation him experiment traditional 20% but more 60% total area offered leasing each year, unless he determines that those percentage requirements are inconsistent Amendments' purposes. assure ongoing congressional oversight Secretary's activities frequent reports Congress. To date, has used two nontraditional leases covering 49% offered. experimented any using size Respondents, State California, brought suit declaratory injunctive relief, alleging, inter alia, abused discretion failing do District denied both parties' motions summary judgment, Appeals held, require at least Held: 1. California standing challenge choice systems. Because Federal Government turn over fair share revenues OCS neighboring coastal whenever own adjoining portions gas pool, financial stake federal off coast. alleging currently incapable producing market return, asserts kind "distinct palpable injury" required standing. And satisfies requirement there "fairly traceable" causal connection between injury it claims conduct challenges, so if relief sought granted, will redressed. Pp. 160-162. 2. erred compelling non-cash-bonus 162-169. (a) Nothing suggests Congress, committing goal obtaining value intended channel choosing among alternative nothing statute singles out special consideration. language requires leaves details discretion. 162-165. (b) Nor does legislative history compel conclusion Congress whole limit choose various experimental When viewed context, unfavorable references show dissatisfaction large front-end payments associated bid, then effect, forms bidding. 165-168. 210 U.S.App.D.C. 20, 654 Reporter, 2nd 735, reversed. Louis KF105 F3 Claiborne, Washington, D.C., petitioners. John Silard, respondents. Justice O'CONNOR delivered opinion Court. 1 We asked review decision Columbia Circuit certain statutorily defined awarding Shelf. below incorrectly construes 1978, 92 Statutes-at-Large 629, 43 Code KF62 § 1331 seq. (1976 ed. Supp.III), we reverse. 2 * (OCS Act), 67 462, amended, Supp. III), authorizes (OCS)1 sealed time 1337(a). vested complete these prior 162/3% gross production, See H.R.Rep.No.95-590, Page 138 (1977); S.Rep.No.95-284, 72 (1977), Cong. & Admin. News 1450. 3 During mid-1970's, Nation's increasing dependence imported focused public attention potential source domestic petroleum natural supra, 53-54. At same time, procedures came under close scrutiny because dramatic increases prices made existing bonuses seem miserly relative generated from wells leaseholds. Members began express reservations about ability return Government, principally appeared only major companies could risk paying tract unknown value. bidders often limited handful giant concerns, competition seemed tepid, no assurance ultimate adequate. See, e. g., id., 47, 54. 4 Responding pressures modernization Act, passed Amendments), Pub.L.95-372, 629.2 Through Amendments, alternatives system. this end, 1337(a)(1) ed., directed §§ 1337(a)(5)(B), 1344. Four newly bid (including system, specifically retained 1337(a)(1)(A)),3 three bid,4 one uses "profit-share" bid,5 "work-commitment" bid.6 5 Although like give select longer total. now nine non-traditional "not 20 per centum 60 year," "inconsistent purposes policies" Amendments.7 6 Interior's operation For example, Energy, who responsibility issuing regulations governing bidding,8 must report within six months end fiscal year "with respect [the] options," including, "if applicable, reasons why particular been utilized." 1337(a)(9). addition, submit includes "an evaluation competitive permitted [the Amendments], and, utilized," well such should 1343(2)(A) (B). 7 Energy issued four 10 Regulations 375, 376 (1981) (the sliding-scale system); 376, 390 net profit-share system), 390, work-commitment 46 Fed.Reg. 35614 (to codified 390). part, prepared program period June 1980 May 1985, calling 36 sales, involving tracts. Brief Petitioners 7. far offered, systems: Id., 8, n.12. experimented, however, variable.9 II 8 This litigation grows continued reliance respondents here, consumer groups, state governmental entities, private citizens, against States, Secretaries had their essence, they complained cannot generate adequate yield Amendments. They prohibiting further sales until promulgated low 9 Three days after filed before planned sale, motion preliminary injunction barring options contained shown likelihood prevailing merits, pace unlawfully slow light complexity involved preparing regulations.10 affirmed Court's ruling remanded case proceedings. Action Educational Foundation versus Andrus, 203 169, 631 751 (1979). On remand, parties moved renewed future additional issued. judgment respondents' injunction, once appealed. 11 extent refused enjoin scheduled September, October, November 1980. Turning underlying dispute, court concluded variable, issue appropriate systems.11 735 (1980). 12 granted Government's petition certiorari construction 450 1040, 101 1756, 68 237. III 13 Before examining consider petitioners' contention have 14 There groups plaintiffs litigation: (1) involuntary "partner" pool lies 3-mile belt controlled California; (2) city Long Beach, compete off-shore properties; (3) consumers oil-and gas-derived products.12 find standing, plaintiffs. Arlington Heights Metropolitan Housing Development Corp, 429 252, 264, n. 9, 97 555, 562, 50 Buckley Valeo, 424 12, 96 612, 631, 659 (1976) (per curiam). 15 pool. 1337(g)(4) III). thus clearly injury," Warth Seldin, 422 490, 501, 95 2197, 2206, 45 343 (1975), 16 demonstrate Corp., 261, S.Ct., 561, redressed, Simon Eastern Ky. Welfare Rights Org., 426 26, 41-46, 1917, 1925-1928, 48 (1976). petitioners argue seeks—experimental systems—will ensure try parcels According petitioners, even win its suit, might nevertheless still overlying California's pools. assert therefore lacks failed requested would cause parcels. 17 essence complaint, test breached statutory obligation determine through works best. testing can carry duty best thereby resources. argument, contends, improperly assumes perversely refuse adopt proved superior alternatives. 18 confidence that, experimentation, most successful suitable tracts, reason, agree refusal Therefore, proceed merits. IV 19 passing committed themselves proclaim intention,13 replete purpose.14 urge likely achieve objectives violates scheme. begin, always meaning issue, Congress' language. If meant restrain experimenting expect reflect intent. But not. 21 Despite concerning recorded repudiate specified 1337(a)(1)(A), affirmatively 40% plan. 1337(a)(5)(B). limitation put 80% year. Ibid. short, hardly said rejected Moreover, listed expressly variable systems.15 Most significantly, left "the Secretary," 1337(a)(1), alternatives, evidently leaving expert administrative determination complex, technical problem deciding statute's objectives. abandon policies. 22 1344(a)(4), directs "[l]easing shall conducted receipt lands rights conveyed Government." respondents, violating 1344(a)(4) refusing allegedly received 23 Section support weight attach it. 1344 "prepare periodically revise, maintain program" consistent "principles" enumerated 1344(a)(1)-(4). value, fourth principle, many general considerations commended attention.16 section entire principles enumerated. Yet elsewhere much 80%, 40%, acreage leased. So considered providing use. conclude fairly read constrain indirectly 24 check systems.17 recognizes circumstances, may used. Plainly, sufficient restraint options. 25 B 26 mandates constraints stated statute. particular, cite repeated, found throughout 27 What emerges history, rather payments. encourage regardless involved, reduce system.18 Such reduction achieved, life lease, since bidder willing pay "up front" expects "downstream." inverse relationship up-front downstream holds true, course, plainly understood relationship, included 28 Contrary suggestions, "bonus bidding" system," seen merely shorthand description extensively That term context refers evident pointedly repeatedly contrasted perceived disadvantages hopes 1337(a)(1)(B)-(G), although retain Congressional system" implicate described 1337(a)(1)(A).19 V 29 sum, unable anything, themselves, compels It us, Appeals, decide whether advised forgo question alone answer exercise powers. 30 reasons, hereby 31 ordered. mean "all submerged lying seaward outside beneath navigable waters . subsoil seabed appertain subject jurisdiction control." 1331(a). "lands waters" itself given extensive definition 1301, generally means undersea miles coastline. "basic purpose" "promote swift, orderly efficient exploitation our almost untapped resources Shelf," 53 1460, broadly designed aim. concerned provisions having leases. Title III) authorizes: 121/2 production saved, removed, sold," 1337(a)(1)(A); diminishing sliding based formulae equitable diminish, beginning 1337(a)(1)(C); profits derived area," 1337(a)(1)(D); (4) sold 1337(a)(1)(F). 1337(a)(1)(B) "variable sold, [1] work commitment dollar [2] determined [3] both." 1337(a)(1)(E) "fixed profit reserved variable." "work scale 1337(a)(1)(G). 1337(a)(9)(E) explained together program. Competitive carried pursuant "regulations advance," Department Organization 42 7152(b), 7153 gives consultation Interior. authority provided disapproved 1337(a)(1)(H), (a)(4)(A). course present litigation, affidavit stating intend believe interests nation served use" Affidavit Watt, 79-1633 (DC) (sworn 1981), reprinted App. Respondents 2a-3a. record disfavoring royalty-share well. 28, n.44, 743, n.44 reported during years follows. 218 Of those, 41 remainder Oil Gas Leasing: An Annual Report Leasing Production Program, Fiscal Year 1978. 1979, five 290 161 129 1979. 1980, 293 136 120 331/3% Report, 479 F.Supp. 62 (DC 1979). remand Court, stipulated entry order final 9; 1; see 35614, 35615 Thus, presented Energy's regulations. theory them, consideration here. individual claimed taxpayers, pressed claim contain provision permits "a valid legal interest." 1349(a)(1). states Pages 54 46, 73 (1977). Those 1337(a)(1)(C), 1337(a)(1)(D), Also included, "economic, social, environmental values renewable nonrenewable outer Shelf." 1344(a)(1). Conference indicates weigh: "The conferees utilizing variety taken into account, to: (i) Providing Government; (ii) competition; (iii) assuring competent safe operations; (iv) avoiding undue speculation; (v) unnecessary delays exploration, development, production; (vi) discovering recovering gas; (vii) developing timely manner; (viii) limiting burdens government industry." H.R.Conf.Rep.No.95-1474, (1978), 1691. House reiterates point, emphasizing striking proper balance factors up Interior: "One purpose Amendments] authorize arrangements them. enable administers program, strike securing lands, incentive companies, investment capital." 1461. 1337(a)(9)(D) "why Senate 46-47, way: "S. wide These front increase government's actual gas, make easier smaller enter business, availability funds exploration. "In used, bill limits bonus-fixed historical method basic thrust price public's property. committee wants allocation widest possible participation believes effective shifting revenue away deferred leaseholder's gas." H.Rep.No.95-590, 138-139 echoes Senate's conclusions, 1453, 1544-1545: "At present, exclusively. company vast amounts capital, set without full knowledge area. secure higher returns Treasury, amended allow methods profits; royalty; commitments amounts. "Witnesses indicated high created barrier small medium-sized firms exploiters, activity, types not, completion area, provide Government. "[T]he 1977 amendments [sic] bonus—fixed bidding." possible, single example drawn 1690, suffices point. summarizes 1337(a)(5)(B) follows: "Bidding profit, commitment, nonenumerated utilized percent areas next years." (Emphasis original.) reference 1337(a)(1)(A). Otherwise, simply wrong, Similar examples history. 138-139, 141 46-47 93.

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