# Appendix — South Dakota v. Department of the Interior (No. 05-1428)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 2006

## Text

TABLE OF CONTENTS

South Dakota, et al. v. United States Department of
the Interior, et al., No. 04-2309, U.S. Court of
Appeals for the Eighth Circuit, Sept. 6, 2005

State of South Dakota, et al. v. United States
Department of the Interior, et al., No. Civ. 00-
3026-RHB, U.S. District Court for the District of
South Dakota, Apr. 19, 2004

Department of the Interior, et al. v. South Dakota, et
al., No. 95-1956, U.S. Supreme Court, Oct. 15,

State of South Dakota, et al. v. United States
Department of the Interior, et al., No. 94-2344-
SDRC, Order Denying Petition for Rehearing
and Suggestion for Rehearing En Banc, Feb. 2,

State of South Dakota, et al. v. United States
Department of the Interior, et al., No. 94-2344,
U.S. Court of Appeals for the Eighth Circuit, Nov.

State of South Dakota, et al. v. United States
Department of the Interior, et al., Civ. 92-3023,
U.S. District Court for the District of South Da-
kota, Memorandum Opinion, Apr. 1, 1994

Memorandum to Deputy Commissioner of Indian
Affairs from Assistant Secretary — Indian Affairs,
Ratification of Decision dated Apr. 6, 2000, to
take approximately 91 acres of land located in
Lyman County, South Dakoka [sic], in trust for
the Lower Brule Sioux Tribe of Indians of South
Dakota (“Tribe”), Jan. 18, 2001

Page

TABLE OF CONTENTS - Continued

Memorandum to Assistant Secretary — Indian
Affairs through Deputy Commissioner of Indian
Affairs from Director, Office of Trust Responsibili-
ties, Ratification of April 6, 2000, decision to
transfer approximately 91 acres of land into trust
for the Lower Brule Sioux Tribe, Jan. 18, 2001 ...App. 118

Memorandum to Great Plains Regional Director
from Assistant Secretary — Indian Affairs, Request
for Off-Reservation Fee-to-Trust Acquisition by
the Lower Brule Sioux Tribe of South Dakota for
90.94 Acres in Lyman County, South Dakota, Apr.

Memorandum to Assistant Secretary -— Indian

Affairs through Deputy Commissioner of Indian
Affairs from Director, Office of Trust Responsibili-
ties, Request by Lower Brule Sioux Tribe for Off-
Reservation Fee-to-Trust Acquisition of approxi-
mately 91 Acres of Land in Oacoma, South Da-
kota, Apr. 6, 2000

State of South Dakota, et al. v. United States
Department of the Interior, et al., No. 04-2309,
U.S. Court of Appeals for the Eighth Circuit,
Order Denying Petition for Rehearing and for
Rehearing En Banc, Feb. 6, 2006

App. 1

423 F.3d 790

United States Court of Appeals, Eighth Circuit.
State of SOUTH DAKOTA; City of Oacoma,
South Dakota; Lyman County, South Dakota,
Plaintiffs/Appellants,

v.

UNITED STATES DEPARTMENT OF THE
INTERIOR; Aurene Martin, Acting Assistant
Secretary, Indian Affairs; Bill Benjamin, Acting
Regional Director, Great Plains Regional Office,
BIA; Cleve Her Many Horses, Superintendent,
Lower Brule Agency, BIA; James McDivitt, Deputy
Assistant Secretary, Indian Affairs,
Defendants/Appellees,

Lower Brule Sioux Tribe, Interested Party.
No. 04-2309.

Submitted: March 14, 2005.
Filed: Sept. 6, 2005.
Rehearing and Rehearing En Banc Denied Feb. 6, 2006.’

John P. Guhin, argued, Assistant Attorney General,
Pierre, SD, for appellant.

Thomas L. Sansonetti, argued, Assistant Attorney
General, U.S. Department Of Justice, Washington, DC
(Judith Rabinowitz, Ellen Durkee and Liss. E. Jones, U.S.
Department of Justice on the brief), for appellee.

Before WOLLMAN, LAY, and HANSEN, Circuit
Judges.

WOLLMAN, Circuit Judge.

* Chief Judge Loken and Judge Gruender would grant the petition
for rehearing en banc.

App. 2

The State of South Dakota, City of Oacoma, and
Lyman County (collectively referred to as the State) appeal
from the district court’s’ grant of summary judgment in
favor of the Department of the Interior (the Department),
upholding the Secretary of the Interior’s’ decision to use
his authority based on section 5 of the Indian Reorganiza-
tion Act (IRA), 25 U.S.C. § 465, to take certain land into
trust for the Lower Brule Sioux Tribe. We affirm.

I.

In 1990, the Lower Brule Sioux Tribe sought to have
91 acres of off-reservation land that it had purchased
taken into trust. The land is located within the municipal
limits of the city of Oacoma, some seven or eight miles

south of the Tribe’s reservation and adjacent to Interstate
90 near exit 260. The Department approved its request,
and the Interior Board of Indian Appeals dismissed the
resulting appeal. The State filed a claim in the district
court, seeking review of the Secretary’s action and con-
tending that 25 U.S.C. § 465 was an unconstitutional
delegation of legislative power. The district court con-
cluded that the statute was constitutional, but held that it
was without jurisdiction to review the remaining claims
and dismissed the case. This court reversed, finding that
§ 465 constituted an unconstitutional delegation of legisla-
tive power. We concluded that the Department had inter-
preted its own power too broadly and was exercising that

* The Honorable Richard H. Battey, United States District Judge
for the District of South Dakota.

* The Secretary of the Interior at the time the land was taken into
trust was Bruce Babbitt. The current Secretary is Gale A. Norton, who
took office January 31, 2001.

App. 3

power in an unchecked manner because it had also inter-
preted the statute as delegating unreviewable discretion-
ary authority to the Secretary. South Dakota v. United
States Dep't of the Interior, 69 F.3d 878, 881-85 (8th
Cir.1995) (South Dakota I). The Department promulgated
a new regulation that provided for judicial review, 25
C.F.R. § 151.12(b), and then petitioned for writ of certio-
rari, asking that the United States Supreme Court vacate
our decision and remand the case to the Department. The
Supreme Court granted the writ and vacated the judg-
ment, directing that the matter be remanded “to the
Secretary of the Interior for reconsideration of his admin-
istrative decision,” Dep’ of the Interior v. South Dakota,
519 U.S. 919, 919-20, 117 S.Ct. 286, 136 L.Ed.2d 205
(1996) (South Dakota IJ), in light of the new regulation
allowing for judicial review. Some seven months later, the
Department removed the land from trust status.

In 1997, the Tribe submitted an amended application
to the Secretary, requesting that the United States take
the land into trust on the Tribe’s behalf. The Tribe submit-

ted a business plan describing its intent to use the land for
a cultural center and tourist attraction that would draw
tourists to further explore the South Dakota Native
American Scenic Byway.’ State’s App. (App.) 82A-82C. The
Bureau of Indian Affairs (BIA) gave notice to state, county,
and city officials, requesting information and comments. The
State responded by raising the following objections: the
statute unconstitutionally delegated legislative authority;

* The Tribe also attached a comprehensive plan of the goals for the
entire corridor of the Native American Scenic Byway that described
everything from the vision for the byway to the management and
marketing necessary to accomplish it. Supp.App. 112-275.

App. 4

the Tribe had not shown its need for the land to be taken
into trust; a significant loss in state revenue and numer-
ous jurisdictional problems would result if the land were
taken into trust; the distance between the land and the
reservation counseled against the acquisition; and the
land would likely be used for gaming purposes. The city ©
and county separately objected by alleging that the taking
of the land into trust could stifle the growth of the com-
munity and affect its income. ,

In its May 20, 1998, response to the objections, the
Tribe asserted that it would benefit from having the land
held in trust because of the resulting significant federal
protections that would facilitate the growth of tribal
industry and would assure tize Tribe’s future generations
the continued use of the land. The Tribe also asserted that
because the Tribe’s planned use of the land would result in
increased tourism, the local governments would suffer no
significant revenue loss. The response confirmed that the
Tribe’s business plan detailed its specific intentions for the
land and stated that the Tribe would not use the land for
gaming.

The Secretary evaluated the application in accordance
with the Department’s regulations, basing his conclusion
on the information provided by the parties involved and on
internal recommendations from various levels within the
Department. The Secretary concluded that it would be
appropriate to take the land into trust and published
notice in the Federal Register.

App. 5

The State again filed suit in federal court to challenge
the agency action.” The suit was delayed for the comple-
tion of an environmental assessment in accordance with
the National Environmental Policy Act, after which the
Secretary ratified his decision, finding that taking the
land into trust would have no significant impact on the
quality of the human environment. The State amended its
complaint and filed a motion to supplement the adminis-
trative record to provide support for its claim that the
Tribe in fact intended to use the land for gaming purposes.
The district court denied the motion to supplement the
record, finding that the record adequately reflected the
facts and concluding that the plaintiffs had not shown bad
faith or improper behavior sufficient to justify supplemen-
tation. The parties filed cross-motions for summary
judgment. The district court granted the Department’s
motion, once again finding 25 U.S.C. § 465 to be constitu-
tional and holding that the decision to grant trust status
was not arbitrary or capricious. South Dakota v. United
States Dept of the Interior, 314 FSupp.2d 935
(D.S.D.2004) (South Dakota III). It concluded that the
“Secretary's decision satisfactorily addressed all relevant
criteria” in its regulations. Jd. at 948.

II.

We review de novo the district court’s grant or denial
of a motion for summary judgment. Children’s Healthcare
Is a Legal Duty, Inc. v. De Parle, 212 F.3d 1084, 1090 (8th

* In July 2001, the Tribe moved to intervene in the State’s suit. The
district court denied the Tribe’s motion for intervention as of right and
for permissive intervention, and we affirmed. South Dakota v. United
States Dep't of the Interior, 317 F.3d 783 (8th Cir.2003)

App. 6

Cir.2000). Viewing the record in the light most favorable to
the nonmoving party, we ask whether a genuine issue of
material fact exists and whether the moving party is
entitled to judgment as a matter of law. Id. We also review
de novo questions of constitutional law. Coalition for Fair
& Equitable Regulation of Docks v. Fed. Energy Regulatory
Comm’n, 297 F.3d 771, 778 (8th Cir.2002).

A.

The State first claims that because 25 U.S.C. § 465
does not delineate any boundaries governing the execu-
tive’s decision to acquire land in trust for Indians, it
constitutes an unlawful delegation of legislative power in
violation of Article 1, Section 1, of the Constitution (“All
legislative Powers herein granted shall be vested in a
Congress of the United States.”). Congress may delegate
its legislative power if it “lay[s] down by legislative act an
intelligible principle to which the person or body author-
ized to [act] is directed to conform.” J.W. Hampton, Jr. &
Co. v. United States, 276 U.S. 394, 409, 48 S.Ct. 348, 72
L.Ed. 624 (1928). The Supreme Court has given Congress
wide latitude in meeting the intelligible principle require-
ment, recognizing that “Congress simply cannot do its job
absent an ability to delegate power under broad general
directives.” Mistretta v. United States, 488 U.S. 361, 372,
109 S.Ct. 647, 102 L.Ed.2d 714 (1989).

The Supreme Court has struck down statutes on
delegation grounds on only two occasions. Panama Refin-
ing Co. v. Ryan, 293 U.S. 388, 55 S.Ct. 241, 79 L.Ed. 446
(1935); A.L.A. Schechter Poultry Corp. v. United States,
295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570 (1935). The
statutes at issue in those cases were promulgated in a

App. 7

unique political climate and delegated to the President
exceptionally broad control over the national economy.
Section 9(c) of the National Industrial Recovery Act,
invalidated in Panama Refining, gave the President
blanket authority to prohibit transportation of petroleum;
neither its language nor its context provided any criteria
to guide the President or required any specific findings
before he acted. 293 U.S. at 415-16, 55 S.Ct. 241. Section 3
of the National Industrial Recovery Act, struck down in
Schechter Poultry, authorized the President to prescribe
and approve mandatory “codes of fair competition” for
various industries without additional congressional
approval. 295 U.S. at 521-23, 55 S.Ct. 837. The Court
warned that “Congress cannot delegate legislative power
to the President to exercise an unfettered discretion to

make whatever laws he thinks may be needed or advisable

for the rehabilitation and expansion of trade or industry.”
Id. at 537-38, 55 S.Ct. 837.

Since 1935, however, the Court has given “narrow
constructions to statutory delegations that might other-
wise be thought to be unconstitutional.” Mistretta, 488
U.S. at 373 n. 7, 109 S.Ct. 647. The Court has “almost
never felt qualified to second-guess Congress regarding
the permissible degree of policy judgment that can be left
to those executing or applying the law.” Whitman v. Am.
Trucking Ass’ns, 531 U.S. 457, 474-75, 121 S.Ct. 903, 149
L.Ed.2d 1 (2001) (quotation omitted). The Court has made
such narrow constructions by rejecting overly broad
interpretations of certain words and giving the words
content “by their surroundings.” Id. at 466, 121 S.Ct. 903.
The Court has found an intelligible principle, although
admittedly broad, even when an act simply stated that an
agency should promulgate regulations encouraging the

App. 8

effective use of radio in the “public interest, convenience,
or necessity,” noting that the meaning of “public interest”
was limited in light of the larger aim of the Act. Nat’
Broad. Co. v. United States, 319 U.S. 190, 215-17, 63 S.Ct.
997, 87 L.Ed. 1344 (1943). Broad phrases of purpose in an
act are not “utterly without meaning” when viewed in the
light of “the purpose of the Act, its factual background and
the statutory context in which [the phrases of purpose]
appear.” Am. Power & Light Co. v. Securities & Exch.
Comm’n, 329 U.S. 90, 104, 67 S.Ct. 133, 91 L.Ed. 103
(1946).

Congress fails to give sufficient guidance in its delega-
tions only if it “would be impossible in a proper proceeding
to ascertain whether the will of Congress has been
obeyed.” Yakus v. United States, 321 U.S. 414, 426, 64
S.Ct. 660, 88 L.Ed. 834 (1944). Its will is sufficiently
articulated “if Congress clearly delineates the general
policy, the public agency which is to apply it, and the
boundaries of this delegated authority.” Am. Power, 329
U.S. at 105, 67 S.Ct. 133. The statute does not have to
provide a “determinate criterion” for the exercise of the
delegated power, as long as a policy is articulated. Whit-
man, 531 U.S. at 475, 121 S.Ct. 903.

The IRA’s delegation of authority is set forth as
follows:

The Secretary of the Interior is hereby author-
ized, in his discretion, to acquire through pur-
chase, relinquishment, gift, exchange, or assign-
ment, any interest in lands, water rights, or sur-
face rights to lands, within or without existing
reservations, including trust or otherwise re-
stricted allotments whether the allottee be living

App. 9

or deceased, for the purpose of providing land for
Indians.

25 U.S.C. § 465. Section 465 also authorizes the
allocation of up to two million dollars each fiscal year for
that purpose. Jd. The State argues that § 465 provides no
practical boundaries to the Secretary's authority and that
the statute’s purposes are so broad that they could be
construed to justify almost any land acquisition.

As indicated above, we previously found § 465 to be
unconstitutional, South Dakota I, 69 F.3d 878, concluding
that the statutory language contained “no perceptible
‘boundaries,’ no ‘intelligible principles,’” Jd. at 882, a fact
that, together with the broad agency interpretation,
created “an agency fiefdom whose boundaries were never
established by Congress, and whose exercise of unre-
strained power is free of judicial review.” Jd. at 885. Judge
Murphy dissented, stating that the court had unnecessar-
ily reached the constitutional issue instead of reaching the
merits of the State’sAdministrative Procedure Act (APA)
claim. Jd. at 885. She also concluded that the statute
contained boundaries sufficient to bring it within the
broad range of acceptable delegations because the statute
was confined in scope, its text, when viewed in its histori-
cal context, limited the Secretary’s discretion, and its
legislative history revealed its purposes. Jd. at 887.

Because the Supreme Court vacated our 1995 opinion,
we are not bound by its conclusion.® Accordingly, we

* The Supreme Court issued what is known as a GVR (granting
certiorari, vacating the judgment below, and remanding the case with
minimal direction). A GVR does not compel a particular determination
or outcome, but occurs often when an intervening development may
affect the outcome of the case. See, e.g., Jackson v. United States,

(Continued on following page)

App. 10

reexamine the broader context of the Act to determine
whether the delegation in 25 U.S.C. § 465 includes guid-
ance sufficient to withstand a challenge based upon
nondelegation doctrine grounds. We may look solely to the
language and the context of the statute in determining its
constitutionality and may not consider any particular
agency interpretation as determinative in our constitu-
tional inquiry.’ See Whitman, 531 U.S. at 472, 121 S.Ct.
903 (stating that “[wle have never suggested that an
agency can cure an unlawful delegation of legislative
power by adopting in its discretion a limiting construction
of the statute”). Whether the agency is reasonably apply-
ing its delegated power is an inquiry distinct from the
question whether the delegation contains sufficient guid-
ance to pass constitutional muster. We will, if possible,

give “narrow constructions to statutory delegations,”
Mistretta, 488 U.S. at 373 n. 7, 109 S.Ct. 647, and then
proceed to evaluate the agency action under the APA.

__US. __, 125 S.Ct. 1019, 160 L.Ed.2d 1001 (2005) (issuing a GVR
“for further consideration in light of United States v. Booker, 543U.S.
220, 125 S.Ct. 738, 160 L.Ed.2d 621 (2005)”); Consolidated Foods Corp.
v. Unger, 456 U.S. 1002, 102 S.Ct. 2288, 73 L.Ed.2d 1297 (1982) (“for
further consideration in light of Kremer v. Chemical Constr. Corp., 456
U.S. 461, 102 S.Ct. 1883, 72 L.Ed.2d 262 (1982)”). Cf. Republican Party
of Minnesota v. White, 416 F.3d 738, 748 (8th Cir.2005) (en banc).

* This principle had not been clearly articulated in the past, as
evidenced by our prior opinion and the Department’s argument in its
petition for certiorari in this case. The Department asked the Supreme
Court to vacate and remand the case because our prior opinion was
based in part on the lack of judicial review available under the Depart-
ment’s regulations and the fact that the Department had since issued
new regulations acknowledging the availability of judicial review. The
Department contended that the challenge should be revisited in light of
the new regulation.

App. 11

We conclude that the purposes evident in the whole of
the IRA and its legislative history sufficiently narrow the
delegation and guide the Secretary's discretion in deciding
when to take land into trust. The IRA, 25 U.S.C. §§ 461-
479, enacted in 1934, “reflected a new policy of the Federal
Government and aimed to put a halt to the loss of tribal
lands through allotment. It gave the Secretary of the
Interior power to create new reservations, and tribes were
encouraged to revitalize their self-government.... ”
Mescalero Apache Tribe v. Jones, 411 U.S. 145, 151, 93
S.Ct. 1267, 36 L.Ed.2d 114 (1973); see also Chase v.
McMasters, 573 F.2d 1011, 1016 (8th Cir.1978) (highlight-
ing that the various sections of the act all reflected the
purpose of ensuring protection of Indian lands).

The Tenth and the First Circuits have both found that
§ 465 does not violate the nondelegation doctrine. United
States v. Roberts, 185 F.3d 1125 (10th Cir.1999); Carcieri v.
Norton, 398 F.3d 22 (1st Cir.2005). In Roberts, the Tenth
Circuit cited Judge Murphy’s dissent and concluded that
the statute places adequate limits on the Secretary's
discretion, namely, the requirement that the land be
acquired for Indians, the limitation on authorized funds,
and the goals identified in the legislative history. 185 F.3d
at 1137; see also Carcieri, 398 F.3d at 33-34 (adopting the

Roberts court’s reasoning).

We agree with the views expressed by Judge Murphy
in her dissent in South Dakota I: The scope of the power
conferred in § 465 is broad, but — unlike the powers
conferred in Panama Refining and Schechter Poultry — it
does not involve granting to the executive authority to
unilaterally enact a sweeping regulatory scheme that will
affect the entire national economy. We believe that it is
possible to “ascertain whether the will of Congress has

App. 12

been obeyed” when examining an application of the Secre-
tary’ authority under § 465 based upon the guidance in
the IRA and its legislative history. See Yakus, 321 U.S. at
426, 64 S.Ct. 660.

The language of § 465 itself provides guidance. As
Judge Murphy stated:

It directs that any land acquired must be for In-
dians as they are defined in 25 U.S.C. § 479. It
authorizes the appropriation of a limited amount
of funds with which land could be acquired and
specifically prohibits use of such funds to acquire
land for the Navajo Indians outside of their es-
tablished reservation boundaries in Arizona and
New Mexico.

South Dakota I, 69 F.3d at 887 (Murphy, J., dissent-
ing). The State argues that these claimed textual limita-
tions are artificial because any acquisition could be seen as
“for Indians,” regardless of who else it harms. Likewise,
because most of the land currently taken into trust has
been previously purchased by a tribe, the limit on appro-
priated funds for purchasing land is irrelevant. We dis-
agree that these limitations were meaningless when the
IRA was enacted, and we conclude that the context of the
entire act and its legislative history continue to give
meaning to the phrase “for the purpose of providing land
for Indians.”

The legislative history of the IRA indicates that “[t]he
intent and purpose of the Reorganization Act was ‘to
rehabilitate the Indian’s economic life and to give him a
chance to develop the initiative destroyed by a century of
oppression and paternalism.’” Mescalero Apache Tribe, 411
U.S. at 152, 93 S.Ct. 1267 (quoting H.R.Rep. No. 1804,

App. 13

73rd Cong., 2d Sess., at 6 (1934)). Numerous sections in
the act itself and in its legislative history indicate that
Congress believed that a critical aspect of that broad goal
was “to conserve and develop Indian lands and resources.”
H.R.Rep. No. 1804, 73rd Cong., 2d Sess., at 5 (1934) (the
first phrase included in the title of the bill); S.Rep. No.
1080, 73rd Cong., 2d Sess., at 1 (1934) (same). The act
includes six sections addressed to land policy. 25 U.S.C.
§§ 461-466 (providing means to preserve and increase the
amount of Indian lands). Representative Howard, the
sponsor of the bill in the House of Representatives, de-
scribed the tremendous loss of land that resulted from the
government’s allotment policy, begun in 1887, 78 Cong.
Rec. 11,726 (1934), and indicated that the act would help
remedy the problem by preventing “any further loss of
Indian lands” and permitting “the purchase of additional
lands for landless Indians.” Jd. at 11,727; see also 78 Cong.
Rec. 11,123 (June 12, 1934) (statement of Senator Wheeler,
sponsor of the bill in the Senate, echoing the remedial
goals in relation to Indian lands).

Congress believed that additional land was essential
for the economic advancement and self-support of the
Indian communities. S.Rep. No. 1080, at 2 (stating that
section 5 would “meet the needs of landless Indians and of
Indian individuals and tribes whose land holdings are
insufficient for self-support”); H.R.Rep. No. 1804, at 6
(noting that the purchase of lands would help “[t]o make
many of the now pauperized, landless Indians self-
supporting”); 78 Cong. Rec. 11,730 (statement of Rep.
Howard that section 5 would “provide land for Indians
who have no land or insufficient land, and who can use
land beneficially”). Although the legislative history fre-
quently mentions landless Indians, we do not believe that

App. 14

Congress intended to limit its broadly stated purposes of
economic advancement and additional lands for Indians to
situations involving landless Indians. The House and
Senate reports imply that members of Congress believed
that that would be the most common application of the
statute — giving land to landless Indians would enable
them to farm or work in stock grazing or forestry opera-
tions — but the statutory language and the expressions of
purpose for section 5 in the reports indicate that Congress
placed primary emphasis on the needs of individuals and
tribes for land and the likelihood that the land would be
beneficially used to increase Indian self-support. See, e.g.,
S.Rep. No. 1080, at 2; 78 Cong. Rec. 11,732 (statement of
Rep. Howard that a long-term goal is “to build up Indian
land holdings until there is sufficient land for all Indians

who will beneficially use it”).°

Accordingly, we conclude that an intelligible principle
exists in the statutory phrase “for the purpose of providing
land for Indians” when it is viewed in the statutory and
historical context of the IRA. The statutory aims of provid-
ing lands sufficient to enable Indians to achieve self-
support and ameliorating the damage resulting from the
prior allotment policy sufficiently narrow the discretionary
authority granted to the Department. We therefore affirm
the grant of summary judgment for the Department on the
nondelegation doctrine challenge.

* We have also previously concluded that the language and
legislative history did not limit the application of § 465 to landless
Indians. Chase, 573 F.2d at 1015-16.

App. 15

B.

We turn, then, to a review of the Secretary’s action
approving the taking of the 91 acres into trust. We review
the agency action under the APA. 5 U.S.C. §§ 701-706.°
“When reviewing the district court’s opinion upholding the
administrative agency’s decision, this court must render
an independent decision on the basis of the same adminis-
trative record as that before the district court.” United
States v. Massey, 380 F.3d 437, 440 (8th Cir.2004). We will
set aside the agency action if the Secretary acted in a
manner that is “arbitrary, capricious, an abuse of discre-
tion, or otherwise not in accordance with law.” 5 U.S.C.
§ 706(2)(A). When we apply an agency regulation, “we
accord substantial deference to an agency’s interpretation
of its own regulation,” unless the regulation violates the
Constitution or a federal statute, “or unless the interpreta-
tion is ‘plainly erroneous or inconsistent with the regula-
tion.’” Coalition for Fair & Equitable Reg., 297 F.3d at
778.

As the reviewing court, we engage in a substantial
inquiry, based on an examination of the administrative
record, in order to answer three questions: (1) whether the
Secretary acted within the scope of his authority, Citizens
to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 415,
91 S.Ct. 814, 28 L.Ed.2d 136 (1971); (2) whether the
decision was “based on a consideration of the relevant

* Such review of agency action is appropriate in most circum-
stances, absent the applicability of two narrow exceptions: where there
is a statutory prohibition on review or where agency action is commit-
ted to agency discretion by law. Citizens to Preserve Overton Park, Inc.
v. Volpe, 401 U.S. 402, 410, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971); 5
U.S.C. § 701. Neither of these exceptions applies here.

App. 16

factors,” Id. at 416, 91 S.Ct. 814; and (3) whether the
Secretary “follow[ed] the necessary procedural require-
ments.” Jd. at 417, 91 S.Ct. 814. Here, the Secretary acted
within the scope of his authority, for, as quoted above,
§ 465 specifically authorizes the Secretary to take land
into trust for Indians. The more relevant questions on
review are whether he considered the relevant factors and
followed the necessary procedural requirements.

We are to make a searching inquiry into the facts,
examining the full administrative record, 5 U.S.C. § 706,
but we do not substitute our judgment for that of the
agency, South Dakota v. Ubbelohde, 330 F.3d 1014, 1031
(8th Cir.2003), even if the evidence would have also
supported the opposite conclusion. Harrod v. Glickman,
206 F.3d 783, 789 (8th Cir.2000). We ask whether the
agency “‘articulateld] a rational connection between the
facts found and the choice made.’” Ubbelohde, 330 F.3d at
1031 (quoting Bowman Transp., Inc. v. Arkansas-Best
Freight Sys., Inc., 419 U.S. 281, 288, 95 S.Ct. 438, 42
L.Ed.2d 447 (1974)); see also Motor Vehicle Mfrs. Ass’n of
the United States, Inc. v. State Farm Mut. Auto. Ins. Co.,
463 U.S. 29, 48, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983)
(stating that “an agency must cogently explain why it has
exercised its discretion in a given manner”). We will not
try to identify failures in clarity or detail, State Farm, 463
U.S. at 43, 103 S.Ct. 2856, and will reverse “only when
there is no rational basis for the policy choice.” Ubbelohde,
330 F.3d at 1032. In other words, the agency need not
exhaustively analyze every factor, but must base its
determination “upon factors listed in the appropriate
regulations” and must use a “reasonable interpretation of
the regulation and the statute” in reaching its conclusion.
Harrod, 206 F.3d at 788. The burden is on the plaintiff to

App. 17

prove that the agency’s action was arbitrary and capri-
cious. Massey, 380 F.3d at 440.

The State challenges the adequacy of the Depart-
ment’s consideration of several of the required factors. In
order to meet its burden of proof, however, it must present
evidence that the agency did not consider a particular
factor; it may not simply point to the end result and argue
generally that it is incorrect. The regulations established
by the Department to implement the IRA are binding, and
they establish the process that the Secretary must follow
in deciding whether to take land into trust, 25 C.FR.
§§ 151.10 and 151.11, thereby guiding our inquiry.

For an off-reservation acquisition, described in 25
C.F.R. § 151.11, the Secretary must consider all but one of
the factors in 25 C.F.R. § 151.10 (considerations for on-
reservation acquisitions) plus three additional considera-
tions. The State claims that the following criteria in
§ 151.10 were not properly considered:

(b) The need of the individual Indian or the
tribe for additional land;

(c) The purposes for which the land will be
used;

(e) If the land to be acquired is in unrestricted
fee status, the impact on the State and its politi-
cal subdivisions resulting from the removal of the
land from the tax rolls;

(f) Jurisdictional problems and potential con-
flicts of land use which may arise.

The State also argues that § 151.11(b) was not ade-
quately analyzed. This provision states: (b) The location of

App. 18

the land relative to state boundaries, and its distance from
the boundaries of the tribe’s reservation, shall be consid-
ered as follows: as the distance between the tribe’s reser-
vation and the land to be acquired increases, the Secretary
shail give greater scrutiny to the tribe’s justification of
anticipated benefits from the acquisition. ...

The record reveals that the Department extensively
reviewed the Tribe’s application and the objections raised
in the State’s response. In light of the complex history of
the case, the Secretary’s final decision was issued by the
Assistant Secretary of Indian Affairs rather than by the
BIA’s Regional Director. The Regional Director had rec-
ommended final approval, stating that the Tribe would
greatly benefit economically and setting forth a brief
review of each of the relevant provisions in 25 C.F R.
§§ 151.10 and 151.11. App. 227-33. The Acting Deputy
Commissioner of Indian Affairs noted several deficiencies
in the application and asked the Regional Director for a
more detailed analysis of several factors. Id. at 234-35.
The Regional Director submitted another memorandum
and reconfirmed her recommendation. Jd. at 236-39. The
Director of the Office of Trust Responsibilities, through the
Deputy Commissioner of Indian Affairs, then provided a
memorandum in support of the Assistant Secretary’s
decision to take the land into trust that included a detailed
analysis of the factors in the regulations. Jd. at 242-48.

We conclude that the Secretary reasonably and
appropriately evaluated the relevant factors. The agency
“articulate[d] a rational connection between the facts
found and the choice made,” Ubbelohde, 330 F.3d at 1031
(quotation omitted), for each of the regulatory provisions,
and we do not require precise explanations that respond to
every contention. The record supports the conclusion that

App. 19

the expressed rationale in the Secretary’s conclusions was
consistent with the facts.

In analyzing the Tribe’s need for the additional land,
25 C.F.R. § 151.10(b), the Regional Director expressed her
belief that the particular tract of land would greatly
enhance the Tribe’s economic base and its ability to be self-
sufficient, thereby serving the purposes of the IRA. App.
236-37. The memorandum accompanying the final decision
also emphasized that the Tribe had great need for addi-
tional income and stated that “[t]he location of the land,
adjacent to Interstate No. 90, makes it more attractive to
business and would enhance the tribes [sic] economic
rehabilitation and support self sufficiency.” Jd. at 245. The
Tribe asserted that the protections of trust status were
essential to facilitate growth in tribal industry and ensure
the use of the land for future generations. Jd. at 192. We
agree with the district court that it would be an unreason-
able interpretation of 25 C.F.R. § 151.10(b) to require the
Secretary to detail specifically why trust status is more
beneficial than fee status in the particular circumstance.
South Dakota III, 314 F.Supp.2d at 943. It was sufficient
for the Department’s analysis to express the Tribe’s needs
ana conclude generally that IRA purposes were served. Its
conclusion that the Tribe needed the land to be taken into
trust was therefore reasonable.

The Tribe made its purpose for the land clear through
its business plan and the comprehensive plan for the
entire corridor of the Native American Scenic Byway. It
expressed its intent to establish a means of attracting
heritage tourism to its reservation by building an informa-
tion center and southern terminal entrance to the Native
American Scenic Byway on the 91l-acre parcel. App. 82C.
The business plan described a display that would include a

App. 20

“circle of teepees” to represent the seven Sioux tribes
located within South Dakota and that would attract
visitors to the historical byway. Jd. It was reasonable for
the Secretary to accept the Tribe’s representations in his
analysis of 25 C.F.R. § 151.10(c). Id. at 246. In addition,
the Secretary was not required to seek out further evi-
dence of possible gaming purposes in light of the Tribe’s
repeated assurances that it did not intend to use the land
for gaming” and the December 15, 1998, letter from then-
Governor Janklow that expressed his support for the
acquisition and which stated that he had been assured
“that the Tribe [would] not conduct gaming” on the land.
Id. at 204.

Because the Tribe owned the land in unrestricted fee
status prior to its application for trust status, the Secre-
tary also evaluated the impact of the loss of taxes on the
State in accordance with 25 C.F.R. § 151.10(e). The Secre-
tary found that the county and city would lose $2,587.02 in
taxes, and expressed his belief that the amount was
insignificant in light of the great benefit to the Tribe." /d.
at 238, 246-47. The State argues that its potential loss
would be much higher if the land, which currently houses
no businesses, were developed, and contends that the
Secretary should have to consider such potential loss. We

"* The Tribe also acknowledged that if it were later to seek to allow
gaming on the land, it would fully comply with the additional applica-
tion and approval requirements in the Indian Gaming Regulatory Act
(IGRA), 25 U.S.C. §§ 2701-2721. App. 197-98.

" The Tribe additionally asserted that it expected its plan to
increase tourism in the area and therefore believed that the city’s
businesses would benefit from the increased traffic, offsetting “any loss
in property taxes” resulting from the land being taken into trust. App.
241.

App. 21

disagree, and we adopt the district court’s reasoning that
it is a reasonable interpretation of the regulation to
require consideration of the tax impact only in relation to
the manner in which the land was being used at the time
of the application. South Dakota III, 314 F.Supp.2d at 945.

It was also appropriate for the Secretary to conclude
that no serious jurisdictional problems were likely to
result from taking the land into trust. The Secretary
appropriately considered the availability of law enforce-
ment services, noting that the BIA would provide such
services, as it does within the Lower Brule Reservation,
and indicating that the Tribe had expressed its intent to
pay for any additional services received from the City of
Oacoma. App. 238, 247. Moreover, we cannot say that it
was inappropriate for the Secretary to take into account

the fact that apparently no jurisdictional problems had
resulted from the Tribe’s acquisition in 1995 of some 3,400
acres of land lying west of the Lower Brule Reservation.
Id. at 247.

Finally, although the memoranda did not specifically
mention 25 C.F.R. § 151.11(b), the provision concerning the
location of the acquired land in relation to state and tribal
boundaries, we cannot say that the Secretary failed to
consider it. The distance between the reservation and the
91 acres is not so great as to make the land’s connection to
the reservation illogical or to require more exacting
scrutiny of the Tribe’s intent. As indicated earlier, the
property is located some seven to eight miles south of the
Tribe’s reservation. That distance, considering the circum-
stances of rural central South Dakota, is of no great
significance, and the tract’s location in close proximity to
Interstate 90, the major east-west route across the state,
holds the greatest potential for the accomplishment of the

App. 22

Tribe’s goals. The Secretary acknowledged the distance of
the land from the exterior boundaries of the reservation,
and his discussion of the location of the property reflected
his adequate consideration of § 151.11(b).

Accordingly, we conclude that the Secretary’s action
was not arbitrary, capricious, or an abuse of discretion,
and we affirm the grant of summary judgment in favor of
the Department.

ITI.

In addition to claiming that the Secretary acted
arbitrarily, the State also raises a separate claim that the
district court erred in not allowing supplementation of the
record with evidence that the Tribe’s actual intended use
for the property is that of conducting gaming operations.
We will defer to the district court’s conclusion that the
administrative record contained sufficient information
“absent a gross abuse of discretion.” Voyageurs Nat'l Park
Ass’n v. Norton, 381 F.3d 759, 766 (8th Cir.2004). The
State argues that the district court could not determine
whether the agercy properly analyzed the factors without
examining the State’s proffered additional evidence. “A
federal court is confined to the administrative record in
deciding an appeal under the APA,” Maxey v. Kadrovach,
890 F.2d 73, 77 (8th Cir.1989); see also Newton County
Wildlife Assoc. v. Rogers, 141 F.3d 803, 807 (8th Cir.1998),
in order to “preclude[] the reviewing court from conducting
a de novo trial and substituting its opinion for that of the
agency.” Voyageurs, 381 F.3d at 766. The very narrow
exceptions to this rule “apply only under extraordinary
circumstances” in which a strong showing can be made
that the record is so incomplete as to preclude effective

App. 23

judicial review or that there is clear bad faith or improper
behavior. Jd. No such extraordinary circumstances are
present here.

The State has failed to show that the Secretary’s
actions evidenced bad faith sufficient to justify the sup-
plementation. If there is any evidence of bad faith at all, it
“falls short of the strong showing of bad faith or improper
behavior necessary to permit discovery and supplementa-
tion of the administrative record.” Maxey, 890 F.2d at 77.
In his September 25, 1997, letter to the BIA, the Tribal
Chairman stated that it was not the Tribe’s current
intention to use the land for gaming. The letter further
stated that if gaming was eventually considered, “our
Council has passed a resolution indicating that we would
adhere to the provisions of the Indian Gaming Regulatory
Act (IGRA).”” App. 82. As. indicated above, the Tribe’s
December 1997 business plan for the land more specifi-
cally detailed its purposes and intended use for the land.
Likewise, in its May 20, 1998, response to the State’s
objections, the Tribe reasserted its commitment not to use
the land for gaming, again noting that IGRA ensured that
it could not change its mind without additional state and
federal approval. Jd. at 197.

We conclude that the district court did not err in
finding that the Tribe’s consistent representations that it
did not intend to use the land for gaming constituted

* IGRA establishes that a tribe must meet additional requirements
before it may use off-reservation land for gaming purposes. 25 U.S.C.
§ 2719. Even if the tribe obtained the land in trust for a non-gaming
purpose and then changed its mind, it would still have to comply with
the requirements detailed in IGRA before it could do so. /d.; see also 64 -
Fed.Reg. 17,578 (Apr. 12, 1999).

App. 24

sufficient evidence to support the Secretary’s conclusion in
that regard and that there was thus no need to supple-
ment the record.

The judgment is affirmed.

App. 25

314 F.Supp.2d 935

United States District Court, D. South Dakota,
Central Division.
State of SOUTH DAKOTA, City of Oacoma,
and Lyman County, Plaintiffs,

v.

UNITED STATES DEPARTMENT OF the
INTERIOR; Aurene Martin, Acting Assistant
Secretary-Indian Affairs; Bill Benjamin, Acting
Regional Director, Great Plains Regional Office, BIA;
and Cleve Her Many Horses, Superintendent,
Lower Brule Agency, BIA, Defendants.

No. CIV. 00-3026-RHB.

April 19, 2004.

John Pl. [sic] Guhin, Pierre, SD, Paul E. Jensen,
Oacoma/Lyman Co., Winner, SD, for Plaintiff.

Cheryl Schrempp Dupris, Pierre, SD, Judith Rabi-
nowitz, Juneau, AK, for Defendant.

MEMORANDUM OPINION AND ORDER
BATTEY, District Judge.

The state of South Dakota, city of Oacoma, and Lyman
County (“plaintiffs”), filed suit in this Court seeking
declaratory and injunctive relief to prevent the defendants
(“Interior”) from taking a 91-acre parcel of land (“Oacoma
parcel”) into trust for the Lower Brule Sioux Tribe (“the
Tribe”) pursuant to Section 5 of the Indian Reorganization
Act of 1934 (“IRA”), 25 U.S.C. § 465. Plaintiffs claim that
the unfettered authority bestowed upon the Secretary of
the United States Department of the Interior (“Secretary”
or “Agency”) via 25 U.S.C. § 465 equates to an unconstitu-
tional delegation of legislative authority to the executive

App. 26

branch. In the alternative, plaintiffs contend that the
decision to take the Oacoma parcel into trust was arbi-
trary and capricious because the Agency failed to consider
the requisite factors as listed in 25 C.F.R. pt. 151.

Interior argues that 25 U.S.C. § 465 is constitutional
because the text and underlying policy of the statute
establish sufficient boundaries on the Secretary’s discre-
tion and intelligible principles for courts to consider when
reviewing a decision by the Secretary under Section 5.
Interior also maintains that the decision was a reasonable
one made after considering all relevant factors. Accord-
ingly, Interior asks the Court to declare § 465 constitu-
tional and affirm the Agency’s decision to take the Oacoma
land into trust.

PROCEDURAL HISTORY

In 1990, the Tribe filed an application with the Secre-
tary to have the Oacoma parcel taken into trust pursuant
to 25 U.S.C. § 465. The Tribe’s application was subse-
quently approved. The state of South Dakota and city of
Oacoma appealed the decision to the Interior Board of
Indian Appeals; however, the appeals board dismissed the
appeal claiming it lacked jurisdiction to review decisions of
the Assistant Secretary — Indian Affairs. On November 30,
1992, the Oacoma parcel was transferred into trust for the
Tribe.

After the adverse decision by the Interior Board of
Indian Appeals, the state and city filed suit in this Court
requesting review of the Agency’s decision. This Court
determined that it was without jurisdiction to review the
decision for the reason that the Quiet Title Act, 28 U.S.C.
§ 2409a, forbids suits under the Administrative Procedures

App. 27

Act, 5 U.S.C. § 706, when plaintiffs, who do not claim a
property interest in land, seek review of a decision of the
Secretary to take land into trust for Indians pursuant to
25 U.S.C. § 465. South Dakota v. United States Dep’t of the
Interior, CIV. 92-3023 (D.S.D.1994). This Court also
concluded that 25 U.S.C. § 465 was not an unconstitu-
tional delegation of legislative power to the executive
branch. The state and city then appealed that decision to
the Eighth Circuit Court of Appeals. The Eighth Circuit
panel, in a plurality opinion with Judge Diana Murphy
writing a dissenting opinion, determined that 25 U.S.C.
§ 465 equated to an unconstitutional delegation of legisla-
tive power and reversed this Court’s decision. South
Dakota v. United States Dep’t of the Interior, 69 F.3d 878
(8th Cir.1995) (““Oacoma I”). Interior then filed a petition
for a writ of certiorari with the United States Supreme
Court. The Supreme Court granted Interior’s writ, vacated
the decision of the Eighth Circuit, and remanded the
matter back to the Secretary in light of Interior’s enact-
ment of regulations specifically permitting judicial review
of agency decisions that take land into trust for Indians.
United States Dep't of Interior v. South Dakota, 519 U.S.
919, 117 S.Ct. 286, 1386 L.Ed.2d 205 (1996); see 25 C.F.R.
§ 151.12(b) (stating that title will not transfer for 30 days
when the Secretary decides to take land into trust). On
December 18, 1996, the Eighth Circuit recalled its man-
date, vacated its earlier judgment, and remanded the
matter to this Court. South Dakota v. United States Dep't
of the Interior, 106 F.3d 247 (8th Cir.1996). On December
24, 1996, this Court, complying with the Circuit Court’s
order, remanded the matter to the Agency for reconsidera-
tion of its decision. Accordingly, the Oacoma parcel was
removed from trust status effective December 24, 1996.

App. 28

FACTS

On September 9, 1997, the Tribe issued Resolution 97-
408 requesting that Interior take the Oacoma parcel into
trust. Administrative Record (“AR”) 17. A copy of the
resolution was forwarded to the Office of the Solicitor in
Washington, D.C., however, a letter by Interior indicated
the Tribe needed to complete an amended resolution
setting forth the purposes for which the land will be used.
AR 20. A supplemental resolution was issued on Septem-
ber 25, 1997, stating that the Oacoma land will be used “to
enhance the economic development of the tribe, and to
provide a nexus to the Oacoma area which is of historical
importance to the tribe.” AR 29.

On February 12, 1998, the acting superintendent of
the Bureau of Indian Affairs (“BIA”), Lower Brule Agency,
sent letters to plaintiffs notifying them that the Tribe
submitted an application to have the Oacoma parcel
placed in trust and solicited comments from plaintiffs on
the application. AR 311-21. On March 13, 1998, the state
issued a letter in opposition to the Tribe’s application. AR
326-618. The city and county submitted a similar letter on
that same date. AR 619-744. The Tribe then issued a letter
to the acting superintendent in response to plaintiffs’
letters. AR 774-822.

On June 30, 1999, the regional director of the Great
Plains Regional Office of the BIA Office of Trust Responsi-
bilities, recommended that the acting secretary place the
Oacoma parcel in trust status. AR 837. Upon review,
however, the regional director noted that there were
numerous deficiencies in the Tribe’s application. AR 930-
44. To this end, the BIA informed the regional director
that additional information and further elaboration on

App. 29

various factors was needed before the BIA could process
the Tribe’s application. AR 1259-60. On February 18, 2000,
the regional director issued a memorandum decision
purporting to comply with the BIA’s request for additional
analysis of the Tribe’s application. AR 1271-74. The re-
gional director also recommended the deputy commis-
sioner of indian affairs grant trust status to the Oacoma
parcel. Jd. Finally, after requesting and receiving addi-
tional information relevant to the application, the BIA
issued a memorandum substantively addressing the 25
C.F.R. pt. 151 factors that the Secretary is required to
evaluate when considering whether an application for fee-
to-trust status should be granted. AR 1391-97. In concur-
rence, the deputy commissioner determined that title to
the Oacoma parcel should be transferred to the United

States in trust for the Tribe. AR 1397. On May 18, 2000,
Interior published in the Federal Register notice of its
intent to transfer the Oacoma parcel into trust for the
Tribe. AR 1409-10; see 65 Fed.Reg. 31,594 (Dep't of the
Interior May 18, 2000).

On June 16, 2000, plaintiffs filed suit against Interior,
requesting declaratory and injunctive relief to prevent
transfer of the property into trust for the Tribe. AR 1421-
44. After litigation commenced, this Court stayed the
matter pending completion of an environmental assess-
ment. On December 14, 2000, in accordance with the
environmental assessment, the deputy commissioner
issued a finding of no significant impact (“FONSI”). AR
1484. A Notice of Availability was then posted at the
Tribe’s office and published in The Chamberlain-Oacoma
Register weekly newspaper. AR 1551, 1553. On January
18, 2001, the deputy assistant secretary ratified its earlier
decision to include information on the environmental

App. 30

assessment and FONSI. AR 1559. The notice of ratification
decision was published in the Federal Register on January
26, 2001. AR 1566-67.

On March 19, 2001, plaintiffs submitted an amended
complaint. Then, on July 23, 2001, the Tribe filed a motion
to intervene in this matter. This Court denied the Tribe’s
motion to intervene. The Tribe appealed that Order and
the denial of intervention was affirmed by the Eighth
Circuit Court of Appeals. South Dakota v. United States
Dep't of the Interior, 317 F.3d 783 (8th Cir.2003). Plaintiffs
filed a motion for summary judgment on June 16, 2003.
Interior filed a cross-motion for summary judgment on
December 15, 2003. On January, 21, 2004, the Tribe filed a
brief of amicus curiae in support of Interior’s motion for
summary judgment.

SUMMARY JUDGMENT STANDARD

Under Rule 56(c) of the Federal Rules of Civil Proce-
dure, a movant is entitled to summary judgment if the
movant can “show that there is no genuine issue as to any
material fact and that [the movant] is entitled to a judg-
ment as a matter of law.” In determining whether sum-
mary judgment should issue, the facts and inferences from
those facts are viewed in the light most favorable to the
nonmoving party, and the burden is placed on the moving
party to establish both the absence of a genuine issue of
material fact and that such party is entitled to judgment
as a matter of law. See Fed.R.Civ.P. 56(c); Matsushita Elec.
Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 585-86, 106
S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). Once the moving
party has met this burden, the nonmoving party may not
rest on the allegations in the pleadings, but by affidavit or

App. 31

other evidence must set forth specific facts showing that a

genuine issue of material fact exists. See Fed.R.Civ.P.
56(e); Matsushita, 475 U.S. at 586-87, 106 S.Ct. at 1356.

“Only disputes over facts that. might affect the out-
come of the suit under the governing law will properly
preclude the entry of summary judgment.” Anderson uv.
Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505,
2510, 91 L.Ed.2d 202 (1986). The Supreme Court has
instructed that “[s)ummary judgment procedure is prop-
erly regarded not as a disfavored procedural shortcut, but
rather as an integral part of the Federal Rules as a whole,
which are designed ‘to secure the just, speedy and inex-
pensive determination of every action.’” Celotex Corp. v.
Catrett, 477 U.S. 317, 327, 106 S.Ct. 2548, 2555, 91
L.Ed.2d 265 (1986) (citations omitted). The nonmoving
party “must do more than simply show that there is some
metaphysical doubt as to the material facts,” and “[w]here
the record taken as a whole could not lead a rational trier
of fact to find for the non-moving party, there is no ‘genu-
ine issue for trial.’” Matsushita, 475 U.S. at 586-87, 106
S.Ct. at 1356 (citation omitted).

The teaching of Matsushita was further articulated by
the Supreme Court in Eastman Kodak Co. v. Image
Technical Servs., Inc., 504 U.S. 451, 468, 112 S.Ct. 2072,
2083, 119 L.Ed.2d 265 (1992), where the Court said,
“Matsushita demands only that the nonmoving party’s
inferences be reasonable in order to reach the jury, a
requirement that was not invented, but merely articu-
lated, in that decision.” The Court expounded on this
notion by reiterating its conclusion in Anderson that,
“{slummary judgment will not lie ... if the evidence is
such that a reasonable jury could return a verdict for the
nonmoving party.” Eastman Kodak, 504 U.S. at 468 n. 14,

App. 32

112 S.Ct. at 2083 n. 14 (quoting Anderson, 477 U.S. at 248,
106 S.Ct. at 2510). To survive summary judgment the
evidence must reasonably tend to prove the plaintiff’s
theory. Monsanto Co. v. Spray-Rite Serv. Corp., 465 U.S.
752, 768, 104 S.Ct. 1464, 1473, 79 L.Ed.2d 775 (1984).

DISCUSSION

Plaintiffs have raised two issues for review by the
Court: (1) whether the decision to grant trust status was
arbitrary and capricious; and (2) whether Section 5 of the
IRA, 25 U.S.C. § 465, is an unconstitutional delegation of
legislative authority. Interior disputes plaintiffs’ claims.
The Court treats the claims in plaintiffs’ amended com-
plaint that were not addressed in the summary judgment
briefs as conceded.

ARBITRARY AND CAPRICIOUS

This Court reviews agency action under the Adminis-
trative Procedures Act to determine whether it is “arbi-
trary, capricious, an abuse of discretion, or otherwise not
in accordance with law.” 5 U.S.C. § 706(2)(A) (1994). When
determining whether an agency’s decision is arbitrary and
capricious the Eighth Circuit has stated:

[T]he court must consider whether the decision
was based on a consideration of the relevant fac-
tors and whether there has been a clear error of
judgment. Although this inquiry into the facts is
to be searching and careful, the ultimate stan-
dard of review is a narrow one. The court is not
empowered to substitute its judgment for that of
the agency.

App. 33

South Dakota v. Ubbelohde, 330 F.3d 1014, 1031 (8th
Cir.2003) (quoting Citizens to Preserve Overton Park, Inc.
v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 214, 823-24, 28
L.Ed.2d 136 (1971), overruled on unrelated grounds by
Califano v. Sanders, 430 U.S. 99, 105, 97 S.Ct. 980, 984,
51 L.Ed.2d 192 (1977)). In order for the agency’s decision
to pass scrutiny it must explain a rational connection
between the choice made and the facts found. Jd. (citations
omitted). “[A] court may find an action to be arbitrary and
capricious only when there is no rational basis for the
policy choice.” Jd. at 1032.

25 C.F.R. § 151.1 “set[s] forth the authorities, policy,
and procedure governing the acquisition of land by the
United States in trust status for individual Indians and
tribes.” The relevant section of these regulations is 25
C.F.R. § 151.11, which deals with off-reservation acquisi-
tions of land. Section 151.11 sets forth the criteria the
Secretary must consider when determining whether a
request for the acquisition of land in trust should be
granted. It also expressly incorporates for consideration
several of the criteria listed in § 151.10. See 25 C.F.R.
§ 151.11(a) (indicating that the criteria listed in
§ 151.10(a) through (c) and (e) through (h) shall also be
considered by the Secretary).

Plaintiffs object to the Agency’s decision to grant that
Tribe’s application for a variety of reasons. These objec-
tions include: (1) the analysis of the criteria listed in 25
C.F.R. §§ 151.10 and 151.11 was flawed because it failed to
address relevant evidence and failed to explain how the
facts found supported the choice made, (Pls.’ Br. Supp.
Summ. J. at 34); (2) the decision failed to discuss
§ 151.3(A)(3), which in this case specifically pertains to the
finding that acquisition of the land will facilitate economic

App. 34

development of the Tribe, Jd. at 53; (3) the decision was a
clear error in judgment, Jd. at 54; (4) the decision failed to
adhere to the process which was promised to the Supreme
Court, Jd. at 55; (5) the construction of the Circle of Tipis
obviates the need to place the land in trust status, Id. at
60; and (6) there is no evidence supporting the decision to
place in trust status the acreage in excess of the nine acres
on which the Circle of Tipis sits, Jd. Interior contends the
Agency’s decision was reasonable and is supported by both
the memorandum decision and the Administrative Record.
(Defs.’ Mem. Opp. Summ. J. at 1-24.)

25 C.F.R. § 151.10(b)

Subsection 151.10(b) states that the Secretary shall
consider “(t]he need of the individual Indian or the tribe
for additional land.” The Secretary indicated that the
Tribe needed the Oacoma parcel “to diversify the tribe’s
economic development, expand their [sic] trust land base,
and to generate much needed income for the Lower Brule
Sioux Tribe for use in providing services to tribal mem-
bers.” AR 1394. The Secretary further said that the land
currently encompassed by the Lower Brule Sioux Indian
Reservation: (1) is diminished in size from what it once
was; (2) includes approximately 27,137 acres of wasteland;
and (3) includes approximately 40,000 acres of land owned
by non-Indians. Jd. The Secretary also noted that the
Oacoma parcel is “more attractive to business[es] and
would enhance the tribe[’]s economic rehabilitation and
support self-sufficiency.” Jd. Plaintiffs argue, however, that
the analysis of this criterion was incomplete because the
Secretary failed to discuss why the Tribe needs to hold the
Oacoma parcel in trust.

App. 35

Plaintiffs assert that “25 C.F.R. § 151.10(b) demands
that the ‘Governing Decision’ consider the ‘need of the
tribe for additional land’ to be in trust.” (Pls.’ Br. Supp.
Summ. J. at 39.) They further claim that the Tribe already
owns the land in fee and that form of ownership is suffi-
cient for the purposes in which they plan to use the land.
(Pls.’ Br. Supp. Summ. J. at 39.) In reading § 151.10(b),
however, there is no mention of the word “trust,” nor is
there any indication that the Secretary must evaluate an
applicant’s request in such a manner.

Plaintiffs are essentially arguing that the Secretary's
decision should be reversed because it fails to discuss the
benefits of holding land in trust, as opposed to fee, status.
The IRA, which authorizes the United States to acquire
land in trust for Indians, was enacted for the very reasons
plaintiffs want explained. Most notably, it was enacted “to
safeguard Indian lands against alienation from Indian
ownership and against physical deterioration.” H.R. 7902,
73rd Cong., tit. ITI, § 1 (1934); see also Chase v. McMasters,
573 F.2d 1011, 1016 (8th Cir.1978) (stating the purpose of
the IRA is to rehabilitate the Indian’s economic viability
and halt the loss of their lands that occurred as a result of
an inability to manage allotted land). Plaintiffs expansive
reading of §151.10(b) is unpersuasive. Regulation
§ 151.10(b) requires that the Secretary must merely
explain why the Tribe needs the additional land. As
indicated above, and as evidenced in the Secretary’s
decision, the Secretary listed several reasons why the
Tribe needs the Oacoma parcel. To require the Secretary to
discuss the history and purpose of the IRA each time the
United States is requested to take land into trust for an
individual Indian or tribe is not required and would be
unnecessary. Thus, the memorandum decision satisfactorily

App. 36

indicates that the Secretary reasonably considered the
criterion listed in § 151.10(b). There is a rational basis for
this decision.

25 C.F.R. § 151.10(c)

Subsection 151.10(c) states that the Secretary shall
consider “[t]he purposes for which the land will be used.”
The Secretary stated that the land was originally sched-
uled to promote economic development through the con-
struction of an industrial park. AR 1395. The Tribe has
since proposed that the land will be used as a Native
American Scenic Byway (“Byway”). Id. The opinion also
notes that the Tribe submitted a business plan for the
Byway project and that the Tribe is awaiting federal
funding. Jd. Plaintiffs argue that the Secretary’s discus-
sion of subsection (c) is deficient because it did not address
contentions submitted by plaintiffs and because “it did not
consider the high probability that the tribe plans to use
the land for gambling.” (Pls.’ Br. Supp. Summ. J. at 44-47.)

On December 15, 1998, the Honorable William Jank-
low, then Governor of the State of South Dakota, sent a
letter to the Secretary stating that he supports the Tribe’s
new business plan in light of its assurances that it would
not conduct gaming on the Oacoma parcel. AR 827. The
Secretary made note of this letter in the memorandum
decision (AR 1395), however, plaintiffs claim this “glancing
allusion” is insufficient for purposes of determining
whether “the agency has found that gambling is an in-
tended use.” (Pls.’ Br. Supp. Summ. J. at 45-47.) In support
of this contention, plaintiffs reference several statements
by Tribe Chairman Michael Jandreau that indicate gam-
ing on the Oacoma parcel is a consideration. /d.

App. 37

Although a reviewing court “may not supply a rea-
soned basis for the agency’s action that the agency itself
has not given,” the court “will uphold a decision of less
than ideal clarity if the agency’s path may reasonably be
discerned.” Mausolf v. Babbitt, 125 F.3d 661, 667 (8th
Cir.1997) (citation omitted). Additionally, “[i]f the adminis-
trative record contains evidence that supports the posi-
tions of both the agency and the party seeking relief, the
agency is entitled to rely on its experts’ tests and observa-
tions, and decisions made in such reliance are not arbi-
trary and capricious.” Cent. S.D. Coop. Grazing Dist. v.
Sec’y of the United States Dep't of Agric., 266 F.3d 889, 899
(8th Cir.2001) (citation omitted). The Secretary addressed
the purposes for which the Tribe intends to use the
Oacoma parcel. The Secretary also noted that the letter
from Governor Janklow indicated the Tribe assured him
that they would not conduct gaming on the land. It ap-
pears to this Court that what the Secretary is indicating is
that it does not consider gaming to be a purpose for which
the land will be used. Furthermore, even though there is
evidence in the record that indicates the Tribe considered
conducting gaming on the Oacoma parcel, it does not
overshadow the purposes expressly set forth in the Tribe’s
business plan. See Carcieri v. Norton, 290 F.Supp.2d 167,
i78 (D.R.1.2003) (affirming agency’s decision to take land
into trust even though there was evidence in the record
that indicated the land might be used for gambling pur-
poses); see also City of Lincoln City v. United States Dep’
of Interior, 229 F.Supp.2d 1109, 1124 (D.Or.2002) (stating
that the Secretary “does not have the authority to impose
restrictions on a Tribe’s future use of property taken into
trust, or to acquire fee-to-trust property conditionally”).

App. 38

The Indian Gaming Regulatory Act, 25 U.S.C.
§§ 2701-2721, permits gaming on lands acquired in trust if
the Secretary, and the governor of the state where the
gaming is to take place, determine that it “would be in the
best interest of the Indian tribe and its members, and
would not be detrimental to the surrounding community.”
25 U.S.C. §2719%a). Plaintiffs draw attention to the
possibility the Tribe may conduct gaming on the Oacoma
parcel by referencing the statements of Chairman Jan-
dreau and Governor Janklow. The possibility the Tribe
may conduct gaming on the Oacoma parcel, however, is
irrelevant to the present discussion concerning the Secre-
tary’s decision to take the land into trust. Although gam-
ing on the Oacoma parcel may develop into a cognizable
issue between the parties, it is a matter that must be
addressed on another day. See 25 U.S.C. § 2719(c) (stating
that “[nJothing in this section shall affect or diminish the
authority and responsibility of the Secretary to take land
into trust”). It should be noted, however, that this Memo-
randum Opinion is not to be construed as endorsing or
permitting gaming on the Oacoma parcel. Thus, the
memorandum decision satisfactorily indicates that the
Secretary reasonably considered the criterion listed in
§ 151.10(c). There is a rational basis for this decision.

25 C.F.R. § 151.10(e)

Subsection 151.10(e) states that “[i]f the land to be
acquired is in unrestricted fee status, [the Secretary shall
consider] the impact on the State and its political subdivi-
sions resulting from the removal of the land from the tax
rolls.” The Secretary noted that the Oacoma parcel gener-
ates $2,587.02 in tax revenue for plaintiffs. AR 1396. The
Secretary determined that the loss of such revenues would

App. 39

not have a significant impact on the local governments. Jd.
Plaintiffs argue that this analysis is insufficient because
the decision failed to take into account plaintiffs’ proposed
losses to the local governments if a truck stop or residen-
tial properties were to occupy the land. (Pls.’ Br. Supp.
Summ. J. at 47-48.) Again, this Court finds such argument
immaterial to the Secretary’s decision.

Plaintiffs submitted to the Secretary an analysis of
the tax losses if there were businesses on the Oacoma
parcel. In the memorandum decision, however, the Secre-
tary reported that there are no businesses on the Oacoma
parcel. Plaintiffs’ assertion that the memorandum decision
was arbitrary and capricious because it did not include the
projected tax losses if hypothetical businesses were later
constructed on the Oacoma parcel is without merit. A
reasonable interpretation of section 151.10(e) is that the
Secretary must consider the impact of removing the land
from the tax rolls at the time the application is filed. It
would be illogical to require the Secretary to speculate as
to every possible economic use for land that an applicant is
requesting the Secretary place in trust. See Lincoln City,
229 FSupp.2d at 1125 (stating that the BIA need not
speculate about revenues from potential ventures). Thus,
the memorandum decision satisfactorily indicates that the
Secretary reasonably considered the criterion listed in
§ 151.10(e). There is a rational basis for this decision.

25 C.F.R. § 151.10(f)

Subsection 151.10(f) states that the Secretary shall
consider the “[jjurisdictional problems and potential
conflicts of land use which may arise.” In the memoran-
dum decision, the Secretary noted that the Tribe did not

App. 40

expect any problems or conflicts with the use of the
Oacoma parcel. AR 1396. In support of this conclusion the
Secretary referenced an earlier land acquisition that was
west of the Lower Brule Reservation which did not cause
any problems. Jd. The memorandum also indicates the
BIA will supply law enfertement for the Oacoma parcel.
Id. Plaintiffs claim the memorandum decision is arbitrary
and capricious because it “entirely ignored” the informa-
tion they provided regarding jurisdictional problems. (Pls.’
Br. Supp. Summ. J. at 48.)

“The regulations only require that the BIA undertake
an evaluation of potential problems.” Lincoln City, 229
F.Supp.2d at 1124. The Secretary considered the fact that
minimal problems were created by a previous acquisition
of off-reservation property and that the Tribe did not

expect any problems with the acquisition of the Oacoma
parcel. AR 1396. Thus, the memorandum decision satisfac-
torily indicates that the Secretary reasonably considered
the criterion listed in § 151.10(f). There is a rational basis
for this decision.

25 C.F.R. § 151.10(g)

Subsection 151.10(g) states that “[i]Jf land to be ac-
quired is in fee status, [the Secretary shall consider]
whether the Bureau of Indian Affairs is equipped to
discharge the additional responsibilities resulting from the
acquisition of the land in trust status.” The Secretary
determined that the BIA will be staffed and equipped to
administer the Oacoma property. AR 1396. This includes
assisting in all real estate functions. Jd. The Secretary also
noted that the Great Plains Regional Office will provide
technical support to the Tribe. J¢. Plaintiffs again contend

App. 41

that because the memorandum decision did not included
an exhaustive analysis of the benefits and drawbacks of
placing the land in trust, the Secretary did not consider
the negative effects, and hence, the decision is arbitrary
and capricious. (Pls.’ Br. Supp. Summ. J. at 50-51.)

The Secretary is only required to consider whether the
BIA is equipped to handle the additional duties that will
arise if the property is taken into trust. The Secretary
considered these factors and determined the BIA will be
able to handle these additional duties. Thus, the memo-
randum decision satisfactorily indicates that the Secretary
reasonably considered the criterion listed in § 151.10(g).
There is a rational basis for this decision.

25 C.F.R. § 151.11(b)
Subsection 151.11(b) states:

The location of the land relative to state bounda-
ries, and its distance from the boundaries of the
tribe’s reservation, shall be considered as follows:
as the distance between the tribe’s reservation
and the land to be acquired increases, the Secre-
tary shall give greater scrutiny to the tribe’s jus-
tification of anticipated benefits from the
acquisition. The Secretary shall give greater
weight to the concerns raised pursuant to para-
graph (d) of this section.

The memorandum decision indicates that the consid-
erations set forth in subsection (b) were addressed previ-
ously in the decision. AR 1397. The decision reports that
the Oacoma parcel is not located within the boundaries of
the reservation, but is “approximately eight miles south of
the current Lower Brule Sioux Indian Reservation.” AR

App. 42

1392. Plaintiffs argue that because the Secretary did not
mention the standard set forth in paragraph (b), the
decision to grant the Oacoma parcel trust status is arbi-
trary and capricious. (Pls.’ Br. Supp. Summ. J. at 52-53.)

The memorandum decision establishes that the
Oacoma parcel will help the Tribe better develop its
economy because it is located on the interstate and more
attractive to businesses. AR 1394. Plaintiffs have submit-
ted no information negating the Secretary's finding on this
issue. Thus, the memorandum decision satisfactorily
indicates that the Secretary reasonably considered the
criterion listed in § 151.11(b). There is a rational basis for
this decision.

25 C.F.R. § 151.3(a)(3)

Subsection 151.3(a)(3) states that land may be ac-
quired in trust status for a tribe “[wlhen the Secretary
determines that the acquisition of the land is necessary to
facilitate tribal self-determination, economic development,
or Indian housing.” The Secretary determined that the
Byway will advance the economic growth of the Tribe. AR
1393-94. Plaintiffs argue that the decision is arbitrary and
capricious because it does not analyze the economic
growth of the Oacoma parcel if held in trust status versus
fee status. (Pls.’ Br. Supp. Summ. J. at 53-54.)

The regulation merely requires the Secretary to
“consider” whether the acquisition is “necessary.” Plaintiffs
argue that the decision is deficient because it fails to
explain why helding the land in trust is more beneficial
than holding it in fee. However, the Court has determined
that the Secretary is not required to delve into an in-depth
discussion of the purposes behind enactment of the IRA

App. 43

each time an application to acquire land in trust status is
considered. Thus, the memorandum decision satisfactorily
indicates that the Secretary reasonably considered the
criterion listed in § 151.3(a)(3). There is a rational basis
for this decision.

Clear Error In Judgment

Subsection 151.11(c) states that “[w]here land is being
acquired for business purposes, the tribe shall provide a
plan which specifies the anticipated economic benefits
associated with the proposed use.” Plaintiffs claim the
Secretary's decision is arbitrary and capricious because it
amounts to a clear error of judgment. (Pls.’ Br. Supp.
Summ. J. at 54-55.) In support of this contention plaintiffs
argue the business plan submitted by the Tribe is inade-

quate because it does not include a cost-benefit analysis.
Plaintiffs also point out that the plan could not provide the
agency any guidance because the Secretary noted the plan
was “strictly speculative.”

The Tribe issued a detailed business plan setting forth
the intricacies of the Byway. AR 127-296. The plan also
includes projections on attendance and the economic
impact the Byway will have on the community. AR 289.
The decision reported that the Tribe’s plan was specula-
tive, however, because the plan was created under the
premise the project would receive federal funding from an
agency which may or may not provide funding. AR 1397.
Plaintiffs claim this amounts to a clear error of judgment.
The Court disagrees. Although the plan may not be as
complete as plaintiffs would like, that is not the standard
by which a court reviews agency action. The plan stated
the anticipated economic benefits in conjunction with

App. 44

creation of the Byway. Thus, the memorandum decision
satisfactorily indicates that the Secretary reasonably
considered the criterion listed in § 151.11(c). There is a
rational basis for this decision.

Broken Promises

Plaintiffs also contend the decision should be reversed
because Interior did not adhere to the representations it
made to the Supreme Court. (Pls.’ Br. Supp. Summ. J. at
55-60.) Specifically, plaintiffs claim they were denied due
process because Interior denied them a “full and fair
hearing of its claims.” Jd. at 58. Review of Interior’s
petition for writ of certiorari reveals that Interior’s argu-
ments for remand were based on changes to the regula-
tions which now provide for judicial review of Agency
decisions as they pertain to acquisitions of land in trust.
However, at no place in Interior’s submissions to the
Supreme Court is it indicated that plaintiffs will be
provided a “hearing.” The regulations were amended to
supply state and local governments notice and an oppor-
tunity “to provide written comments as to the acquisition’s
potential impacts on regulatory jurisdiction, real property
taxes and special assessments.” Land Acquisitions, 61
Fed.Reg. 18,082 (Dep’t of the Interior April 24, 1996) (to be
codified at 25 C.F.R. § 151.12(b)). The Secretary provided
plaintiffs notice and an opportunity to submit comments
on the acquisition, which they did. Thus, having found
that Interior complied with the regulations and adhered to
its assertions to the Supreme Court, plaintiffs’ argument is
dismissed as being without merit.

Plaintiffs remaining arguments essentially reiterate
that which they advanced throughout their briefs in

App. 45

support of, and in opposition to, summary judgment.
Plaintiffs contend the decision is deficient in that it fails to
explain why the acreage on which the Circle of Tipis sits,
and the remaining acreage, needs to be placed in trust for
the Tribe. (Pls.’ Br. Supp. Summ. J. at 60-61.) Having
already explained why the Secretary need not explain the
benefits of holding land in trust versus fee status, plain-
tiffs’ arguments are dismissed as being without merit.

Finally, with regard to Interior’s motion for summary
judgment, it is contended that the Secretary’s decision
satisfactorily addressed all relevant criteria as listed in 25
C.F.R. pt. 151. (Def’s Mem. Supp. Summ. J. at 15-30.)
Plaintiffs do not rebut this contention with regard to 25
C.F.R. §§151.10(a), (h), and 151.11(d). Furthermore,
review of these uncontested criteria indicates they were
sufficiently considered by the Secretary, and a rational
conclusion was reached.

CONSTITUTIONALITY OF 25 U.S.C. § 465

A more expansive view of the substantive history of
this matter may reveal the peculiar nature of the issue the
parties contest. This Court addressed the constitutionality
of 25 U.S.C. § 465 when the issue was raised by the state
of South Dakota and city of Oacoma over ten years ago.
South Dakota, CIV. 92-3023 at 19-21. The Court explained
that the policy behind Cungress’s enactment of the IRA
was “to acquire land for Indians to help reverse the effects
of the Indians’ loss of land under the allotment policy and
to help Indians become more self-sufficient, both economi-
cally and otherwise.” Jd. at 21. Thus, the Court deter-
mined that the general policy and boundaries set forth
were sufficient to guide the Secretary in executing the

App. 46

authority that Congress had delegated. As a result, this
Court held that § 465 was constitutional.

On appeal, the Eighth Circuit reversed that decision.
Writing for the majority, Circuit Judge (now Chief Judge)
Loken, stated that “[t]here are no perceptible ‘boundaries,’
no ‘intelligible principles,’ within the four corners of the
statutory language that constrain this delegated authority
— except that the acquisition must be ‘for Indians.’”
Oacoma I, 69 F.3d at 382. The panel majority remarked
that the Secretarys “actions under § 465 may not be
judicially reviewed because the statute commits them
entirely to agency discretion.” Jd. at 881-82. The court said
that this factor necessitated closer scrutiny of plaintiffs’
contentions. Jd. at 883. The court also remarked that

“(t]he legislative history of § 465 suggests that Congress
did not intend to delegate unrestricted power to acquire
land ‘for Indians.’” Id. The pan»l majority maintained:

Those who drafted § 465 failed to incorporate the
limited purpose reflected in the legislative his-
tory. Presumably, they either drafted poorly or
ignored the delegation issue. The agency that re-
ceived this inartful delegation then used the ab-
sence of statutory controls to claim unrestricted,
unreviewable power. The result is an agency fief-
dom whose boundaries were never established by
Congress, and whose exercise of unrestrained
power is free of judicial review. It is hard to
imagine a program more at odds with separation
of powers principles.

Id. at 884-85.

Dissenting from the majority, Circuit Judge Murphy
remarked that “the Supreme Court has consistently
upheld statutes involving broad delegations of authority.”

App. 47

Id. at 886 (Murphy, J., dissenting). She further remarked
that the delegation doctrine has “evolved into a tool of
statutory construction, by which reviewing courts give
‘narrow constructions to statutory delegations that might
otherwise be thought to be unconstitutional.’” Jd. (quoting
Mistretta v. United States, 488 U.S. 361, 373 n. 7, 109
S.Ct. 647, 655 n. 7, 102 L.Ed.2d 714 (1989)). Finally, with
reference to the majority’s concern that § 465 could con-
ceivably permit the Secretary “to provide a lake home for a
politically faithful tribal officer,” Judge Murphy held that
those fears were insufficient to “strike down an act of
Congress.” Jd. at 889.

After this adverse decision, Interior amended
§ 151.12(b) to provide individuals such as plaintiffs with
notice of administrative decisions to acquire land in trust
pursuant to the IRA. See Land Acquisitions, 61 Fed.Reg.
18,082 (providing for a 30-day waiting period to allow for
judicial review of decision). Interior then filed a writ of
certiorari with the United States Supreme Court request-
ing that the matter be remanded to the Secretary in light
of its provision of notice and time in which parties may
obtain judicial review in such matters. Pet. for Cert. 15.
The Supreme Court granted the writ, vacated the decision
of the Eighth Circuit, and ordered that the case be re-
manded to the Secretary to reconsider his administrative
decision. Interior, 519 U.S. at 919-20, 117 S.Ct. at 286.
Accordingly, after traversing various procedural hurdles at
the administrative level, the issue of whether § 465 is an
unconstitutional delegation of legislative power is again
before this Court.

App. 48

Delegation of Power

Plaintiffs argue § 465 amounts to an unconstitutional
delegation of legislative power because a plain reading of
the statute fails te delineate its “general policy.” They also
assert that the legislative history of § 465 cannot be
referenced when attempting to discern Congress’s “general
policy” because it does not equate to a “legislative act.”
Plaintiffs further contend that the statute is deficient in
that it fails to set “boundaries” on the Secretary’s author-
ity. Consequently, in order to resolves [sic] these issues,
the Court must rely on the rules of statutory construction
and interpret the text and history of § 465 accordingly.

Plaintiffs’ request of the Court to declare § 465 uncon-
stitutional is a grave and delicate duty. Blodgett v. Holden,
275 U.S. 142, 148, 48 S.Ct. 105, 107, 72 L.Ed. 206 (1928)
(Holmes, J., concurring) (stating that “to declare an Act of
Congress unconstitutional, ... is the gravest and most
delicate duty that this Court is called on to perform”). “The
cardinal principle of statutory construction is to save and
not to destroy.” United States v. Menasche, 348 U.S. 528,
538, 75 S.Ct. 513, 520, 99 L.Ed. 615 (1955) (citation
omitted). Acts of Congress are presumed to be constitu-
tional. Rust v. Sullivan, 500 U.S. 173, 191, 111 S.Ct. 1759,
1771, 114 L.Ed.2d 233 (1991) (citation omitted). Finally,
“ambiguous statutes passed for the benefit of Indian tribes
are to be interpreted in a light most favorable to Indians.”
Chase, 573 F.2d at 1016 (citations omitted).

The United States Constitution provides that “alll
legislative Powers herein granted shall be vested in a
Congress of the United States.” U.S. Const., Art. I, § 1.
With this in mind, the Supreme Court has consistently
held “Congress generally cannot delegate its legislative

App. 49

power to another Branch.” Mistretta, 488 U.S. at 372, 109
S.Ct. at 654 (citing Field v. Clark, 143 U.S. 649, 692, 12
S.Ct. 495, 504, 36 L.Ed. 294 (1892)). This principle, how-
ever, is not designed to “prevent Congress from obtaining
the assistance of its coordinate branches.” Jd. Thus, when
Congress does delegate decision-making authority to an
agency it “must ‘lay down by legislative act an intelligible
principle to which the person or body authorized to [act] is
directed to conform.’” Whitman v. Amn. Trucking Ass’ns,
Inc., 531 U.S. 457, 472, 121 S.Ct. 903, 912, 149 L.Ed.2d 1
(2001) (alteration in original) (quoting J.W. Hampton, Jr.
& Co. v. United States, 276 U.S.:294, 409, 48 S.Ct. 348, 72
L.Ed. 624 (1928)). The “intelligible principle” test is
“constitutionally sufficient if Congress clearly delineates

the general policy, the public agency which is to apply it,
and the boundaries of this delegated authority.’” Mistretta,
488 U.S. at 372-73, 109 S.Ct. at 655 (quoting Amn. Power
& Light Co. v. SEC, 329 U.S. 90, 105, 67 S.Ct. 133, 142, 91
L.Ed. 103 (1946)).

General Policy

Plaintiffs concede that § 465 sufficiently identifies the
agency that is to apply it. (Pls.’ Br. Supp. Summ. J. at 23.)
Therefore, the only issues are whether the statute sets
forth its “general policy” and the “boundaries” of the
Secretary’s delegated authority. Section 5 of the IRA, 25
U.S.C. § 465, provides in relevant part:

The Secretary of the Interior is authorized, in his
discretion, to acquire, through purchase, relin-
quishment, gift, exchange, or assignment, any in-
terest in Jands, water rights, or surface rights to
lands, within or without existing reservations, in-
cluding trust or otherwise restricted allotments,

App. 50

whether the allottee be living or deceased, for the
purpose of providing land for Indians.

For the acquisition of su h lands, interests in
lands, water rights, and surface rights, and for
expenses incident to such acquisition, there is
authorized to be appropriated, out of any funds
in the Treasury not otherwise appropriated, a
sum not to exceed $2,000,000 in any one fiscal
year: Provided, That no part of such funds shall
be used to acquire additional land outside of the
exterior boundaries of Navajo Indian Reservation
for the Navajo Indians in Arizona, nor in New
Mexico, in the event that legislation to define the
exterior boundaries of the Navajo Indian Reser-
vation in New Mexico, and for other purposes, or
similar legislation, becomes law.

The unexpended balarczes of any appropriations
made pursuant to this section shall remain
available until expended.

Title to any lands or rights acquired pursuant to this
Act or the Act of July 28, 1955 (69 Stat. 392), as amended
(25 U.S.C. § 608 et seq.) shall be taken in the name of the
United States in trust for the Indian tribe or individual
Indian for which the land is acquired, and such lands or
rights shall be exempt from State and local taxation.

A plain reading of § 465 reveals that it was enacted
“for the purpose of providing land for Indians.” Although
the statute uses “purpose,” instead of “general policy,” to
describe its intention, the Court finds that such alleged
discrepancy does not invalidate the statute. Furthermore,
upon review of the historic context and legislative history
of the IRA, Congress’s “general policy” supporting enact-
ment of § 465 becomes apparent. See Crandon v. United
States, 494 U.S. 152, 158, 110 S.Ct. 997, 1002, 108 L.Ed.2d

App. 51

132 (1990) (stating that “[iJn determining the meaning of
the statute, we look not only to the particular statutory
language, but to the design of the statute as a whole and
to its object and policy”) (citations omitted); Nat Ass’n of
Broadcasters v. Copyright Royalty Tribunal, 675 F.2d 367,
376 n. 12 (D.C.Cir.1982) (relying on legislative history and
philosophy of Act to find that it did not amount to an
unconstitutional delegation of legislative power).

Prior to enactment of the IRA, Congress attempted to
assimilate Indians into the country’s mainstream through
an allotment policy. General Allotment Act of Feb. 8, 1887,
24 Stat. 388, as amended, 25 U.S.C. § 331 et seq. (1976
ed.) (§§ 331-33 repealed 2000). The policy of the General
Allotment Act was simple: “to extinguish tribal sover-
eignty, erase reservation boundaries, and force the assimi-
lation of Indians into the society at large.” County of
Yakima v. Confederated Trites and Bands of the Yakima
Indian Nation, 502 U.S. 251, 254, 112 S.Ct. 683, 686, 116
L.Ed.2d 687 (1992). This policy was a failure, which
resulted in a loss of more than 90 million acres of Indian
land. Brendale v. Confederated Tribes and Bands of the
Yakima Indian Nation, 492 U.S. 408, 436 n. 1, 109 S.Ct.
2994, 3011 n. 1, 106 L.Ed.2d 343 (1989). As a result,
Congress enacted the IRA in an “attempt to encourage
economic development, self-determination, cultural plural-
ity, and the revival of tribalism.” Felix S. Cohen, Hand-
book of Federal Indian Law 147 (1982 ed.). It was also
stated that the IRA was designed “to rehabilitate the
Indian’s economic life and to give him a chance to develop
the initiative destroyed by a century of oppression and
paternalism.” Mescalero Apache Tribe v. Jones, 411 U.S.
145, 152, 93 S.Ct. 1267, 1272, 36 L.Ed.2d 114 (1973)
(quoting H.R.Rep. No. 1804, 73d Cong., 2d Sess., 6 (1934)).

App. 52

In order to stem the staggering flow of land from Indian to
non-Indian hands, the IRA set forth that “no land of any
Indian reservation . . . shall be allotted in severalty to any
Indian.” 25 U.S.C. § 461. Congress also tried to replenish
Indian lands by permitting the Secretary of the Interior to
acquire land in trust for Indians, noting that land held in
trust is exempt from local and state taxation. 25 U.S.C.
§ 465.

In repudiating the function of the General Allotment
Act, the legislative history of the IRA states that its policy
is “[tlo conserve and develop Indian lands and resources.”
S. 3645, 73d Cong., 2d Sess., 1 (1934). Plaintiffs contend
that this policy is unconstitutional because it does not
leave room “for a narrowing interpretation of 25 U.S.C.
§ 465 so as to avoid the overbroad delegation of the plain
text of the act.” (Pls.’ Br. Supp. Summ. J. at 31.) Although
this policy is not as specific as the policies listed in a prior
version of the IRA, that fact alone does not render the
subsequent policy statement invalid. See H.R. 7902, 73d
Cong., 2d Sess., tit. III, § 1 (setting forth numerous policies
of the IRA). Thus, upon review of the text of § 465 and the
legislative history qusted above, it is the opinion of this
Court that Congress has clearly delineated the general
policy behind § 465.

Boundaries

Plaintiffs contend §465 does not establish any
“boundaries” on the Secretary's authority to take land into
trust for Indians. A plain reading of the text of the statute,
however, reveals that there are boundaries on the Secre-
tary’s authority. Moreover, when the text is read in con-
junction with the overriding policy of the IRA, these

App. 53

boundaries are further defined. Finally, the recent decision
in Whitman conclusively sets forth the Supreme Court’s
position on the delegation doctrine and effectively closes
the door on plaintiffs’ constitutional challenge.

Taken in its broadest terms, § 465 authorizes the
Secretary to “acquire land in trust for Indians.” However,
when that generality is read together with all of § 465, as
well as the other sections of the IRA and its history, limits
on the Secretary’s authority are revealed. First, the
preceding analysis on the general policy of § 465 estab-
lishes that it was enacted “[tlo conserve and develop
Indian lands and resources.” S. 3645, 73d Cong., 2d Sess.,
1 (1934). Thus, it can fairly be said that the acquisition of
land for Indians furthers this stated policy. See Roseville v.
Norton, 219 F.Supp.2d 130, 156 (D.D.C.2002) (stating that
the Auburn Indian Restoration Act’s policy to advance the
Tribe’s economic development is a limiting factor in dele-
gation doctrine analysis). Second, the Secretary may only
provide land for Indians. See 25 U.S.C. § 479 (defining who
qualifies as an “Indian”). Third, the Secretary is limited in
the amount of funds that can be appropriated to acquire
such land. 25 U.S.C. § 465 (setting forth a limit of
$2,000,000). Fourth, § 465 prohibits the Secretary from
using any of these funds to acquire land outside the
Navajo Indian Reservations in Arizona and New Mexico.
Solely considering these factors, it is the opinion of this
Court that these limitations satisfy the “boundaries”
portion of the “intelligible principle” test as it was recently
explained in Mistretta.

The Eighth Circuit panel opinion held that § 465 was
unconstitutional because it felt that the Secretary “had
unrestricted power to acquire land from private citizens for
the private use and benefit of Indian tribes or individual

App. 54

Indians.” Gacoma I, 69 F.3d at 882. This decision was
made, however, before the Supreme Court issued its
opinion in Whitman. The pertinent issue raised in Whit-
man was whether section 109(b)(1) of the Clean Air Act, as
added, 84 Stat. 1679, and amended, 42 U.S.C. § 7409(a), is
an unconstitutional delegation of legislative power to the
Administrator of the Environmental Protection Agency.
Whitman, 531 U.S. at 462, 121 S.Ct. at 907. It is the
ensuing analysis in Whitman that sets forth the Supreme
Court’s definition of the “intelligible principle” test and
clarifies the constitutional issue before this Court.

Section 109(b)(1) gives the Administrator the author-
ity to set air quality standards that “are requisite to
protect the public health.” The relevant part of that

statute in issue in Whitman were the words “requisite”
and “public health.” Jd. at 472-76, 121 S.Ct. at 911-14. The
parties contesting § 109(b)(1) argued that these words
were susceptible to various interpretations and indefinite.
Id. at 465-66, 468-69, 121 S.Ct. at 908-09, 910. The Su-
preme Court held, however, that the language in
§ 109(b)(1) was “well within the outer limits of our non-
delegation precedents.” Id. at 474, 121 S.Ct. at 913.

In explaining its holding in Whitman, the Supreme
Court noted that it has only found a statute lacking of an
intelligible principle in two situations. Jd. (citing Panama
Refining Co. v. Ryan, 293 U.S. 388, 55 S.Ct. 241, 79 L.Ed.
446 (1935); A.L.A. Schechter Poultry Corp. v. United
States, 295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570 (1935)).
The Supreme Court further noted that it “almost never
felt qualified to second-guess Congress regarding the
permissible degree of policy judgment that can be left to
those executing or applying the law.” Jd. at 474-75, 121
S.Ct. at 913 (citation omitted). Also, the Supreme Court

App. 55

held that it has “never demanded, ... that statutes pro-
vide a determinate criterion for saying how much ... is too
much.” Jd. at 475, 121 S.Ct. at 913 (internal quotations
omitted). As an example of this theory, the Supreme Court
cited a similar case where it noted that the statute need
not decree “how ‘imminent’ was too imminent, or how
‘necessary was necessary enough, or ... how ‘hazardous’
was too hazardous.” /d. (citing Touby v. United States, 500
U.S. 160, 165-67, 111 S.Ct. 1752, 1756-57, 114 L.Ed.2d 219
(1991)).

It is from this analysis in Whitman that similarities
can be seen between the text of § 465 of the IRA and the
text of § 109(b)(1) of the Clean Air Act. The Clean Air Act
permits the Administrator to set air quality standards that
“are requisite to protect the public health,” while the IRA
permits the Secretary to acquire land in trust for Indians
“to conserve and develop Indian lands and resources.” It is
conceded by the Court that the act of acquiring land is
different from the act of setting air quality standards,
however, the authority that these statutes bestow upon
executive branch officials is effectively the same. There-
fore, by extending the Supreme Court’s holding in Waiit-
man to the facts of this case, it must be concluded that
§ 465 sets forth sufficient “boundaries” on the Secretary’s
authority and that it is not an unconstitutional delegation
of legislative authority.

Finally, it is worthy of note that since the Eighth
Circuit’s panel opinion adjudging § 465 unconstitutional
was vacated, several other circuits have weighed in on the
matter and held that § 465 is not an unconstitutional
delegation of authority to the Secretary. See United States
v. Roberts, 185 F.3d 1125, 1136-37 (10th Cir.1999); Confed-
erated Tribes of Siletz Indians of Oregon v. United States,

App. 56

110 F.3d 688, 698 (9th Cir.1997) (stating that “[t]he gen-
eral delegation of power to the Executive to take land into
trust for the Indians is a valid delegation because Con-
gress has decided under what circumstances land should
be taken into trust and has delegated to the Secretary of
the Interior the task of deciding when this power should
be used”); see also Carcieri, 290 F.Supp.2d at 187 (finding
persuasive the Tenth Circuit’s delegation analysis in
Roberts). Thus, upon review of the text of § 465, its legisla-
tive history, and in light of the cases decided after the
Eighth’s Circuit opinion in Oacoma I, it is the opinion of
this Court that Congress has clearly delineated the
“boundaries” of the Secretary’s authority as bestowed upon
him by § 465.

CONCLUSION

For the foregoing reasons, it is the opinion of this
Court that the Secretary’s actions were not arbitrary,
capricious, or an abuse of discretion. Furthermore, in
conformity with the Court’s previous opinion, it remains
the decision of this Court “that 25 U.S.C. § 465 is constitu-
tional both on its face and as applied in this case.” See
South Dakota, CIV. 92-3023 at 22. Accordingly, it is hereby

ORDERED that plaintiffs’ motion for summary
judgment (Docket # 82) is denied.

IT IS FURTHER ORDERED that Interior’s motion for
summary judgment (Docket # 96) is granted. Judgment
shall be issued in favor of defendants and against plain-
tiffs.

App. 57

519 U.S. 919

Supreme Court of the United States

DEPARTMENT OF THE INTERIOR, et al.,
petitioners,

v.
SOUTH DAKOTA, et al.
No. 95-1956.

Oct. 15, 1996.
Case below, 69 F.3d 878.

The petition ‘or a writ of certiorari is granted. The
judgment is vacated and the case is remanded to the
United States Court of Appeals for the Eighth Circuit with
instructions to vacate the judgment of the United States
District Court for the District of South Dakota and re-
mand the matter to the Secretary of the Interior for
reconsideration of his administrative decision.

Justice SCALIA, with whom Justice O’;CONNOR and
Justice THOMAS join, dissenting.

This case arises from the 1990 action of the Depart-
ment of the Interior acquiring 91 acres in trust for the
Lower Brule Tribe of the Sioux Indians, pursuant to § 5 of
the 1934 Indian Reorganizations Act (IRA), 48 Stat. 985,
as amended, 25 US.C. § 465. Respondents challenged this
action in Federal District Court, contending both that the
Department’s particular action violated the Administrative
Procedure Act (APA), 5 U.S.C. § 706, and that the Secre-
tary’ statutory authority to acquire lands under the IRA
is unconstitutional as a delegation of legislative power.

Throughout this litigation, until now, it has been the
Department’s position that IRA land acquisitions are
unreviewable under the APA because they fall within the

App. 58

exception for matters “committed to agency discretion by
law.” § 701(a)(2). The District Court agreed that APA
review was unavailable, although on different grounds,
holding that since the United States had acquired title,
the Quiet Title Act (QTA), 28 U.S.C. § 2409a, provided the
sole statutory means of challenging the action, and that
the QTA explicitly prohibits actions challenging title to
Indian lands. The District Court also upheld the Secre-
tary’s constitutional authority to acquire land on behalf of
the United States under the IRA. The Court of Appeals for
the Eighth Circuit, however, reversed on the ground that
§ 5 of the IRA constitutes a delegation of legislative power
to the Secretary of the Interior and is hence unconstitu-
tional. 69 F.3d 878 (1995).

Following the Eighth Circuit’s sweeping decision, the
Department of the Interior did an about-face with regard
to the availability of judicial review under the APA. It
promulgated a new regulation providing that “the Secre-
tary shall publish in the Federal Register, or in a newspa-
per of general circulation serving the affected area a notice
of his/her decision to take land into trust,” and that “the
Secretary shall acquire title in the name of the United
States no sooner than 30 days after the notice is pub-
lished.” Department of the Interior, Land Acquisitions
(Nongaming), 61 Fed.Reg. 18083 (1996) (to be codified at
25 C.F.R. § 151.12). The preamble to that regulation
recites that it is being adopted “[i]n response to a recent
court decision, State of South Dakota v. U.S. Department
of the Interior, 69 F.3d 878 (8th Cir.1995),” and asserts that
the procedure it sets forth “permits judicial review before
transfer of title to the United States.” The Solicitor Gen-
eral now represents to us that it is the position of the De-
partment of the Interior, as well as that of the Department of

App. 59

Justice, that judicial review of an IRA land trust acquisi-
tion may be obtained by filing suit within the 30-day
waiting period, although action will continue to be barred
by the QTA after the United States formally acquires title.

The decision today — to grant, vacate, and remand in
light of the Government’s changed position -— is both
unprecedented and inexplicable. This Court has in recent
years occasionally entered a “GVR” in light of a position
newly taken by the Solicitor General where the United
States was the prevailing party below. See, e.g., Stutson v.
United States, 516 U.S. 193, 116 S.Ct. 600, 1383 L.Ed.2d
571 (1996) (per curiam); Schmidt v. Espy, 513 U.S. 801,
115 S.Ct. 43, 130 L.Ed.2d 5 (1994); Wells v. United States,
511 U.S. 1050, 114 S.Ct. 1609, 128 L.Ed.2d 337 (1994);
Reed v. United States, 510 U.S. 1188, 114 S.Ct. 1289, 127
L.Ed.2d 644 (1994); Chappell v. United States, 494 U.S.
1075, 110 S.Ct. 1800, 108 L.Ed.2d 931 (1990). Even that
extension of our earlier practice is in my view unsound.
See Lawrence v. Chater, 516 U.S. 163, 184-186, 116 S.Ct.,
604, 615-616, 133 L.Ed.2d 545 (1995) (SCALIA, J., dissent-
ing). But we have never before GVR’d simply because the
Government, having lost below, wishes to try out a new
legal position. The unfairness of such a practice to the
litigant who prevailed in the Court of Appeals is obvious.
(“Heads I win big,” says the Government; “tails we come
back down and litigate again on the basis of a more mod-
erate Government theory.”) Today’s decision encourages
the Government to do what it did here: to “go for broke” in
the courts of appeals, rather than get the law right the
first time.

What makes today’s action inexplicable as well as
unprecedented is the fact that the Government’s change of
legal position does not even purport to be applicable to the

App. 60

present case. The Government now concedes only that APA
review is available before the Secretary's taking of title
under the IRA; it has not altered its view that once title
has passed to the United States APA review is precluded
by the QTA. 28 U.S.C. § 2409a(a); Pet. for Cert. 7. Since in
this case title has passed, the Government’s position in the
present litigation remains what it was: ‘Judicial review is
unavailable.

The Government contends, however, that the Court of
Appeals’ determination that the IRA was a delegation of
legislative power was based in part upon the unavailabil-
ity of judicial review. I fail to see how the availability of
judicial review has anything to do with that question;
perhaps the Court of Appeals thought otherwise, though
its opinion on this point is somewhat contradictory.* If,
however, judicial reviewability was germane to the Court
of Appeals’ judgment, surely it was only such reviewability
as would exist of right, and not such as would be accorded
only at the discretion of the agency. It is merely the latter
that we have here: The Government concedes only that, if
the Secretary chooses to announce his acquisition decision
before the acquisition becomes effective (as the new regu-
lation graciously requires), judicial review is available. It

* At one point the court quoted approvingly its statement in
United States v. Garfinkel, 29 F.3d 451, 459 (CA8 1994), that “ ‘[j)udicial
review is a factor weighing in favor of upholding a statute against a
nondelegation challenge.’” 69 F.3d 878, 882 (1995). This seems incon-
sistent, however, with the approach the court takes elsewhere in its
opinion, when it says: “We doubt whether the Quiet Title Act precludes
APA review of agency action by which the United States acqu/res title.
But given our conclusion that § 465 is an unconstitutional delegation of
power, we need not decide this issue.” Jd., at 881, n. 1.

App. 61

is inconceivable that this reviewability-at-the-pleasure-of-
the-Secretary could affect the constitutionality of the IRA
in anyone’s view, including that of the Court of Appeals.

Finally, the existence of the new regulation does not
make this a case in which a postjudgment change in the
law applicable to the dispute warrants a remand. The
preamble to the regulation acknowledges that “the Eighth
Circuit decision precludes the Secretary from taking into
trust the land at issue in that particular case,” and explic-
itly states that “[t]he procedure announced in today’s rule
... will apply to all pending and future trust acquisitions.”
61 Fed.Reg. 18083 (1996) (emphasis added). Of course that
statement merely recites the obvious, since, title already
having been acquired in this case, it is quite impossible for
the Secretary to provide 30-day advance notice of intent to
take title. Evidently for that reason, the Government asks
this Court, if it declines to grant certiorari, not merely to
GVR, but to do so “with instructions that the judgment of
the district court sustaining the Secretary’s decision also
be vacated and that the matter, in turn, be remanded to
the Secretary of the Interior for reconsideration and
issuance of a new administrative decision.” Pet. for Cert.
25. I cannot imagine where we would derive the authority
for this. If, as the Government asserts in its brief, statu-
tory judicial review of a land-trust decision under § 5 of
the IRA is unavailable once title has passed to the United
States, then certainly federal courts cannot construct the
necessary conditions for judicial review by simply ordering
the land acquisition undone.

In sum, there is no basis in precedent or in reason for
a GVR in the present case. Since a federal statute has

App. 62

been held unconstitutional, I would grant the petition for
certiorari.

ace App. 63

UNITED STATES COURT OF APPEALS
FOR THE EIGHTH CIRCUIT

No. 94-2344SDRC

State of South Dakota, et al., *

*

Appellants, «x Order Denying Petition for
v. * Rehearing and Suggestion
* for Rehearing En Banc
*

United States Department

of Interior, et al., A
*

Appellees.

The suggestion for rehearing en banc is denied. Chief
Judge Arnold, Judge McMillian, Judge Beam, and Judge
Murphy would grant the suggestion for rehearing en banc.

The petition for rehearing by the panel is also denied.

February 2, 1996

Order Entered at the Direction of the Court:
/s/ Michael E. Gans
Clerk, U.S. Court of Appeals, Eighth Circuit

App. 64

69 F.3d 878

United States Court of Appeals,
Eighth Circuit.
STATE OF SOUTH DAKOTA; City of Oacoma,
South Dakota, Plaintiffs-Appellants,

v.
UNITED STATES DEPARTMENT OF the INTERIOR;
Eddie F. Brown, Assistant Secretary-Indian Affairs;
Jerry Jaeger, Acting Area Director,
Bureau of Indian Affairs, Defendants-Appellees.
No. 94-2344.

Submitted Feb. 15, 1995.
Decided Nov. 7, 1995.

John P. Guhin, Assistant Attorney General, Pierre,
South Dakota, argued (Steven R. Smith, on the brief), for
appellant.

Lisa E. Jones, U.S. Department of Justice, Washing-
ton, D.C., argued (Mikal G. Hanson, Edward J. Shawaker
and Andrea Nervi Ward, on the brief), for appellee.

Before MAGILL, LOKEN, and MURPHY, Circuit
Judges.

LOKEN, Circuit Judge.

The State of South Dakota and the City of Oacoma,
South Dakota, appeal the district court’s dismissal of their
challenge to the Secretary of the Interior’s acquisition of
commercial land in trust for the Lower Brule Tribe of
Sioux Indians. Concluding that 25 U.S.C. § 465, the
statute authorizing acquisition of the land, is an unconsti-
tutional delegation of legislative power, we reverse.

App. 65

I.

In March 1990, the Tribe submitted an application
under 25 U.S.C. § 465, asking the Secretary to acquire
ninety-one acres of land in trust for use by the Tribe. The
land is located seven miles from the Tribe’s reservation
and is partially within the City of Oacoma. The Tribe
stated that the land would be used to create an industrial

ark adjacent to an interstate highway, explaining that
“(t]his site, Trust status for the land, and tax advantages
are critically necessary for the development to occur.”

The State of South Dakota and the City of Oacoma
protested in writing to the Secretary’s Bureau of Indian
Affairs (“BIA”). When BIA’s Area Director notified the
State and the City in March 1991 that the Tribe’s applica-
tion would be approved, they appealed to the Interior
Board of Indian Affairs. BIA then disclosed that the
Assistant Secretary for Indian Affairs had approved the
application in December 1990, without notifying the
protestants. The Board dismissed the appeal because it
has no jurisdiction to review decisions by the Assistant
Secretary. State of South Dakota & Town of Oacoma v.
Aberdeen Area Director, BIA, 22 1.B.1.A. 126 (1992).

In July 1992, the State and the City filed this action
against the Department of the Interior and certain of its
officials seeking judicial review under the Administrative
Procedure Act, 5 U.S.C. §§ 701-706. For convenience, we
will refer to the defendants collectively as “the Secretary,”
because he is the Executive Branch official authorized to
act under § 465. We will refer to the State and the City
collectively as “plaintiffs.”

Plaintiffs allege that they are aggrieved by the Secre-
tary’s acquisition because it deprives them of tax revenues

App. 66

and may place the land beyond their regulatory powers.
They contend that the acquisition is invalid because § 465
is an unconstitutional delegation of legislative power.
Alternatively, they contend (i) that the agency violated its
internal rules of procedure and the Assistant Secretary
acted beyond the scope of his delegated authority; (ii) that
the approval was arbitrary and capricious and not in
accordance with the agency’s governing regulations, see 25
C.F.R. §§ 151.1-.14; and (iii) that the Tribe plans to develop
the land as a gaming casino and the Secretary was aware
of the Tribe’s true intentions but failed to comply with the
approval procedures of the Indian Gaming Regulatory Act,
25 U.S.C. §§ 2701-2721.

In November 1992, the Secretary took title to the
lands in trust for the Tribe. In January 1994, the Secre-
tary moved to dismiss on the ground that a § 465 acquisi-
tion is action “committed to agency discretion by law” and
therefore not subject to judicial review. See 5 U.S.C.
§ 701(a\(2); Heckler v. Chaney, 470 U.S. 821, 828-30, 105
S.Ct. 1649, 1654-55, 84 L.Ed.2d 714 (1985). The district
court granted the motion to dismiss, concluding that § 465
is not an unconstitutional delegation of legislative power
because the statute identifies the agency to which power is
delegated and “clearly delineates the general policy to be
applied and the bounds of that delegated authority.”
Without reaching the “committed to agency discretion”
issue, the court also held, sua sponte, that it had no

jurisdiction to review plaintiffs’ other claims because the
Quiet Title Act, 28 U.S.C. §2409a, which permits the

App. 67

United States to be sued to resolve real property disputes,
“does not apply to trust or restricted Indian lands.”

II.

On appeal, plaintiffs argue that § 465 provides no
legislative standards or boundaries governing the Secre-
tary’s acquisitions. The Secretary responds that the
statutory purpose of “providing land for Indians” suffi-
ciently defines the general policy and boundaries of the
delegated power. The Secretary notes that the Supreme
Court has not invalidated a federal statute on delegation
grounds since A.L.A. Schechter Poultry Corp. v. United
States, 295 U.S. 495, 542, 55 S.Ct. 837, 848, 79 L.Ed. 1570
(1935), and Panama Refining Cc. v. Ryan, 293 U.S. 388, 55
S.Ct. 241, 79 L.Ed. 446 (1935). Interestingly, the same
Congress enacted both the Indian Reorganization Act, of
which § 465 was a part, and the statutes invalidated in
Schechter Poultry and Panama Refining. It is appropriate
to consider whether § 465 satisfies the nondelegation

\

* The court relied on State of Florida v. United States Dep't of the
Interior, 768 F.2d 1248 (11th Cir.1985), cert. denied, 475 U.S. 1011, 106
S.Ct. 1186, 89 L.Ed.2d 302 (1986). Contra, City of Sault Ste. Marie v.
Andrus, 458 F.Supp. 465, 470-72 (D.D.C.1978). We doubt whether the
Quiet Title Act precludes APA review of agency action by which the
United States acquires title. But given our conclusion that § 465 is an
unconstitutional delegation of power, we need not decide this issue. The
court in Florida conceded that the Quiet Title Act does not bar claims
“that the Secretary acted unconstitutionally or beyond his statutory
authority when the United States acquired title to the land.” 768 F.2d
at 1255 n. 9.

App. 68

doctrine as it has evolved since 1935, particularly because
no other appellate court has done so.”

The nondelegation doctrine is easy to state: “Congress
may not constitutionally delegate its legislative power to
another branch of Government.” Touby v. United States,
500 U.S. 160, 165, 111 S.Ct. 1752, 1755, 114 L.Ed.2d 219.
(1991) (citation omitted). It is difficult to apply. A court
must inquire whether Congress “has itself established the
standards of legal obligation, thus performing its essential
legislative function.” Schechter Poultry, 295 U.S. at 530, 55
S.Ct. at 843. But the court must be mindful that the
doctrine does not prevent Congress from obtaining the
assistance of its coordinate Branches. Therefore, so long as
Congress “lay[s]) down by legislative act an intelligible
principle” governing the exercise of delegated power, it has
not unlawfully delegated its legislative power. J.W. Hamp-
ton, Jr., & Co. v. United States, 276 U.S. 394, 409, 48 S.Ct.
348, 352, 72 L.Ed. 624 (1928), quoted in Touby, 500 U.S. at
165, 111 S.Ct. at 1755, and Mistretta v. United States, 488
U.S. 361, 372, 109 S.Ct. 647, 655, 102 L.Ed.2d 714 (1989).
A delegation is overbroad “[o]nly if we could say that there
is an absence of standards for the guidance of the Admin-
istrator’s action, so that it would be impossible in a proper
proceeding to ascertain whether the will of Congress has
been obeyed.” Yakus v. United States, 321 U.S. 414, 426, 64
S.Ct. 660, 668, 88 L.Ed. 834 (1944).

* To our knowledge, only one other district court has considered the
nondelegation question in the sixty-year life of the statute, and its
perfunctory analysis is unpersuasive. See City of Sault Ste. Marie, 458
F.Supp. at 473.

App. 69

The Supreme Court has recognized that judicial
review is a relevant safeguard in considering delegation
issues:

It is “constitutionally sufficient if Congress
clearly delineates the general policy, the public
agency which is to apply it, and the boundaries of
this delegated authority. Private rights are pro-
tected by access to the courts to test the applica-
tion of the policy in the light of these legislative
declarations.”

Skinner v. Mid-America Pipeline Co., 490 U.S. 212, 219,
109 S.Ct. 1726, 1731, 104 L.Ed.2d 250 (1989), quoting
American Power & Light Co. v. SEC, 329 U.S. 90, 105, 67
S.Ct. 133, 142, 91 L.Ed. 103° (1946). Justice Marshall
eloquently stated this principle in his concurring opinion
in Touby: “judicial review perfects a delegated-lawmaking
scheme by assuring that the exercise of such power re-
mains within statutory bounds.” 500 U.S. at 170, 111 S.Ct.
at 1758. Thus, when the Secretary argued to the district
court that his actions under § 465 may not be judicially
reviewed because the statute commits them entirely to
agency discretion, he implicitly acknowledged that this
delegation issue requires a particularly close look. See
United States v. Garfinkel, 29 F.3d 451, 459 (8th Cir.1994)
(“[JJudicial review is a factor weighing in favor of uphold-
ing a statute against a nondelegation challenge”) (citation
omitted). ,

We begin by examining the very broad language of
§ 465:

The Secretary of the Interior is hereby authorized,
in his discretion, to acquire ... any interest in
lands ... within or without existing reservations
... for the purpose of providing land for Indians.

App. 70

* * *

Title to any lands or rights acquired ... shall be
taken in the name of the United States in trust
for the Indian tribe or individual Indian for
which the land is acquired, and such lands or
rights shall be exempt from State and local taxa-
tion.

By its literal terms, the statute permits the Secretary
to purchase a factory, an office building, a residential
subdivision, or a golf course in trust for an Indian tribe,
thereby removing these properties from state and local tax
rolls. Indeed, it would permit the Secretary to purchase
the Empire State Building in trust for a tribal chieftain as
a wedding present. There are no perceptible “boundaries,”
no “intelligible principles,” within the four corners of the
statutory language that constrain this delegated authority
— except that the acquisition must be “for Indians.” It
delegates unrestricted power to acquire land from private
citizens for the private use and benefit of Indian tribes or
individual Indians.

The Secretary's power to purchase land under § 465
triggers the complementary power to acquire land by
condemnation under 40 U.S.C. § 257. See United States v.
29 Acres of Land, 809 F.2d 544, 545 (8th Cir.1987). It is
therefore appropriate to consider the delegation question
in the context of the federal government’s extensive
condemnation powers.

The power to acquire land by condemnation for a
public purpose is an inherent aspect of sovereignty. See
Kohl v. United States, 91 U.S. 367, 371-72, 23 L.Ed. 449
(1875). In exercising that power, Congress need not select
the particular land to be taken; that function may be
delegated to the Executive Branch. See Chappell v. United

App. 71

States, 160 U.S. 499, 510, 16 S.Ct. 397, 400, 40 L.Ed. 510
(1896). So long as the condemnation serves a public use,
“the necessity or expediency of appropriating any particu-
lar property is not a subject of judicial cognizance.” Missis-
sippt & Rum River Boom Co. v. Patterson, 98 U.S. 403,
406, 25 L.Ed. 206 (1878). However, “a claim that a taking
is not ‘for public use’ is open for judicial consideration.”
United States ex rel. T-V.A. v. Welch, 327 U.S. 546, 557, 66
S.Ct. 715, 720, 90 L.Ed. 843 (1946) (Frankfurter, J.,
concurring).

It is settled that the United States may purchase land _
by condemnation for an Indian reservation as a public use.
See United States v. McGowan, 302 U.S. 535, 58 S.Ct. 286,
82 L.Ed. 410 (1938); State of Minnesota v. United States,
125 F.2d 636, 640 (8th Cir.1942). That same power author-
izes Congress to acquire non-reservation lands in trust for
a public use that benefits Indians or Indian tribes. But the
question under the nondelegation doctrine is, for what
public use does § 465 authorize the Secretary to acquire
land. By defining no boundaries to the exercise of this
power, the statute leaves the Secretary free to acquire for
a multitude of purposes, for example, to expand a reserva-
tion, to provide farm land for rural Indians, to provide a
factory for unemployed urban Indians, to provide a golf
course for tribal recreation, or

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386008_0752%3A2. Public record. Not legal advice.
