W. Watersheds Project v. Bernhardt
392 F. Supp. 3d 1225 (2019)
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Rule of Law:
An agency's decision to renew a grazing permit without conducting required environmental analyses and without a reasoned basis for departing from prior factual findings, especially when current environmental conditions indicate potential harm, is likely arbitrary and capricious, warranting a preliminary injunction if other equitable factors are met.
Facts:
- Hammond Ranches, Inc. (HRI), a family ranch with Steven and Dwight Hammond as principals, began grazing on public Bureau of Land Management (BLM) lands in 1964.
- Steven Hammond was convicted of two counts (2001, 2006 fires), and Dwight Hammond of one count (2006 fire), for intentionally setting fires on public lands.
- The 2006 fire, more likely than not set by the Hammonds to increase grass for cattle, burned significant portions of the Mud Creek and Hardie Summer allotments.
- BLM's 2014 Rangeland Health Evaluations determined the Mud Creek and Hardie Summer allotments were not meeting Standard 5 (species) and Mud Creek also failed Standard 3 (ecological processes) due to fire damage, juniper encroachment, and invasive grasses.
- These allotments include Greater Sage-Grouse habitats designated as Priority Habitat Management Areas (PHMAs) and General Habitat Management Areas (GHMAs), with a breeding ground (lek) on Mud Creek, and streams with sensitive redband trout on Hardie Summer.
- On July 10, 2018, President Donald J. Trump issued Executive Grants of Clemency, pardoning Steven and Dwight Hammond for their crimes.
Procedural Posture:
- On February 14, 2014, the Bureau of Land Management (BLM) denied HRI's application for permit renewal, finding that HRI and its affiliates had an unsatisfactory record of performance due to the Hammonds' fire-setting activities.
- HRI appealed BLM's decision to the Office of Hearings and Appeals (OHA) and sought a stay of the decision.
- On April 28, 2014, OHA denied HRI's motion for a stay, which allowed BLM's decision to take effect.
- HRI further appealed the stay denial to the Interior Board of Land Appeals, which affirmed OHA's denial.
- On December 28, 2018, then-Secretary of the Interior Ryan Zinke assumed jurisdiction over HRI's pending appeal at OHA.
- On January 2, 2019, Secretary Zinke issued a decision remanding the matter to BLM with instructions to renew the permit, citing the Presidential pardons as "unique and important changed circumstances."
- On February 1, 2019 (signed Feb. 4-5), BLM issued a Categorical Exclusion (CX) environmental review, concluding that the renewed permit did not require further NEPA analysis.
- On February 13, 2019, BLM and HRI signed the renewed grazing permit.
- Plaintiffs filed a motion for temporary restraining order (TRO) and preliminary injunction to prevent grazing on four allotments.
- On June 4, 2019, the U.S. District Court for the District of Oregon granted Plaintiffs' motion for a TRO, enjoining grazing on the Mud Creek and Hardie Summer allotments through July 2, 2019, which was later extended by stipulation until July 17, 2019.
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Issue:
Should a preliminary injunction be issued to prevent the Bureau of Land Management from allowing grazing on two allotments, where the agency renewed a grazing permit without a proper NEPA analysis or a reasoned basis for finding a satisfactory record of performance, and where such grazing is likely to cause irreparable environmental harm?
Opinions:
Majority - Michael H. Simon, District Judge
Yes, a preliminary injunction is granted in part to prevent the Bureau of Land Management from allowing grazing on the Mud Creek and Hardie Summer allotments at the permitted level because the agency likely violated environmental laws and regulations, and such grazing would cause irreparable environmental harm. The court found that the Plaintiffs demonstrated a likelihood of success on the merits of their claims. First, Secretary Zinke's decision to renew HRI's permit was likely arbitrary and capricious under the Administrative Procedures Act (APA). Zinke explicitly stated he found "no fault" with BLM's 2014 finding that HRI had an unsatisfactory record of performance due to the Hammonds' conduct of setting fires. A presidential pardon only removes legal punishment; it does not negate the underlying conduct or its effect on qualifications like a "satisfactory record of performance" required by the Federal Land Policy and Management Act (FLPMA). Zinke failed to analyze HRI's compliance or explain how the pardons altered the factual findings of noncompliance, representing an unreasoned departure from prior agency norms and a disregard of statutory and regulatory directives. Second, the 2015 Oregon Greater Sage-Grouse Approved RMP Amendment (GSG-ARMPA) was applicable, as agencies must apply current law to future actions. Third, BLM's issuance of a Categorical Exclusion (CX) violated the National Environmental Policy Act (NEPA) and the GSG-ARMPA. The FLPMA allows a CX for grazing if it continues "current" grazing management, and the allotment meets health standards due to factors other than "existing" grazing. However, the allotments had not been grazed for five years, meaning neither "current" nor "existing" grazing was present. Furthermore, the CX failed to adequately analyze "extraordinary circumstances" like significant impacts on ecologically critical areas (PHMAs/GHMAs, sensitive species habitats) or the contribution to invasive species, despite evidence that allotments failed health standards due to invasive grasses. BLM's conclusory rationale lacked meaningful analysis. The court also found a likelihood of irreparable harm. Permitted grazing levels were likely to cause destruction of Greater Sage-Grouse habitat (by reducing tall grasses, spreading cheatgrass, hindering sagebrush recovery) and harm to redband trout habitat (by increasing water temperature, damaging streambanks, and removing riparian vegetation), with recovery taking decades. The procedural violation of NEPA itself constitutes irreparable harm because it thwarts the statute's purpose of informed environmental decision-making before actions are taken, especially when coupled with likely environmental harm. Additionally, Plaintiffs' members would suffer irreparable harm from the loss of personal use and enjoyment of the allotments in their ungrazed or recovering state. However, a reduced grazing plan proposed by Defendants (no AUMs on Mud Creek except for trailing, resting Fir Creek pasture on Hardie Summer, and 30% utilization on other Hardie Summer pastures) was deemed unlikely to cause irreparable harm by most experts. Balancing the equities, the court found they tipped in favor of Plaintiffs, as the irreparable environmental harm and procedural violations outweighed the harm to HRI, especially given HRI's history of noncompliance and the availability of federal subsidies. Lastly, the public interest weighed in favor of Plaintiffs, as there is a strong public interest in ensuring government agencies comply with federal environmental statutes and regulations. Defendants' speculative argument about increased fire danger without grazing was not supported by an imminent threat, and grazing itself could exacerbate fire risks by spreading cheatgrass.
Analysis:
This case serves as a crucial reminder to federal agencies that they must adhere strictly to environmental laws like NEPA and FLPMA, even in the face of political directives. It clarifies that a presidential pardon does not erase the underlying facts of an individual's conduct, which agencies must still consider when evaluating qualifications for public land permits. The ruling emphasizes the limited scope of categorical exclusions, requiring agencies to conduct thorough environmental reviews when conditions have changed or when an activity is not a continuation of existing management. This decision provides a significant check on arbitrary agency action and reinforces the judiciary's role in ensuring reasoned, data-driven decision-making in the management of public environmental resources.
