# Petition for Writ of Certiorari — Texas Water Conservation Ass'n v. Department of the Interior

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386011_0749%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1992
- **Citation:** 506 U.S. 823

## Text

D Aye 4:9 SQ i) [ mpnne cour, mm

FILED

IN THE JUN 2 1992
Supreme Court of the United Statma of tHe cers

OCTOBER TERM, 1991

SABINE RIVER AUTHORITY, ef al.
Pe tations rs,

VV.

UNITED STATES DEPARTMENT OF INTERIOR. et al.
Resvondents.

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Fifth Circuit

PETITION FOR A WRIT OF CERTIORARI

WILLEAM H. BURCHETTE*

CHRISTINE C. RYAN

VINCENT P. DUANE

JORDEN SCHULTE & BURCHETTE
1025 Thomas Jefferson Street, N.W.
Suite 400 East

Washington, D.C. 20007

(202) 965-8100

EARL ROBERTS

ROBERTS, HILL & CALK
2020 Bill Owens Parkway
Suite 200

Longwiew, Texas 75604
(903) 759-2020

Attormeys for Petitioner
Sabine River Authority

“Counsel of Record

June 2, 1992

BEST AVAILABLE COPY

QUESTION PRESENTED

Whether the taking by a federal agency of a con-
servation easement that forecloses in perpetuity the
use of land for any purpose inconsistent with its
terms, but which nevertheless may have a significant
adverse effect on the quality of the human environ-
ment, is a federal action exempt from the National
Environmental Policy Act, 42 U.S.C. § 4321 et seq.
(“NEPA”’), simply because it preserves the existing
physical characteristics of the land.

2

PARTIES IN THE COURT BELOW

Petitioner is the Sabine River Authority
(‘‘Petitioner’ or the ‘“‘Authority’’), an instrumentality
of the State of Texas charged by the Texas legislature
with responsibility, inter alia, for water supply and
conservation. Respondents are the United States De-
partment of Interior and the United States Fish and
Wildlife Service (the ‘‘FWS’’). In addition, the follow-
ing parties intervened in the proceedings before the
district court: Texas Water Conservation Association
(‘“‘TWCA’’), which intervened to support Petitioner’s
argument regarding the need for an Environmental
Impact Statement (‘‘EIS’’) to cover the easement ac-
quisition in this case and to argue its interests in
having FWS prepare a programmatic EIS for its
Texas Bottomland Hardwoods Preservation Program;
and the Sierra Club and the National Audubon Society
each of which intervened to support FWS’s Finding
of No Significant Impact (‘FONSI’) in connection
with the easement acquisition challenged here.

il

TABLE OF CONTENTS

REASONS FOR GRANTING THE PETITION ..........

3

IT.

ITI.

IV.

SRM MOPPLS RIMES ssssnassccssenscisesncesnnsersonceessecasse.,

THE ELEVATION OF PRESERVATION IN-
TERESTS TO THE EXCLUSION OF WATER
SUPPLY (AND OTHER) ENVIRONMENTAL
INTERESTS VIOLATES THE “OUTCOME
NEUTRAL” ANALYSIS REQUIRED BY
METHOW VALLEY ...........ccccccccccssoscssesseeees ss,

THE DECISION BELOW WILL EXCLUDE
FROM NEPA ACTIONS THAT ADVERSELY
AFFECT THE QUALITY AND SUPPLY OF

MINIT Wiiracahenihssainnhndnnadensarewedcadaporionasecakeancssc..

THE DECISION BELOW MISAPPLIED MET-
ROPOLITAN EDISON TO EXCLUDE FROM
NEPA FEDERAL ACTIONS WHICH PRE.
SERVE THE PHYSICAL ENVIRONMENT .....

A. Metropolitan Edison Does Not Turn On
The Causal Relationship Between The
Federal Action And A “Change In The
Physical Environment.” ..........................

o>)

13

B. Metropolitan Edison Does Not Exclude
From NEPA Risks Of Environmental
DIE ccicscsskcndannvensesnntecsandenencscassesntaceneretss 1g

COUINCLIUGIUIN scnccvccssnsccsccsccscoscssenscencesonsens svaiaeeenanens on

TABLE OF AUTHORITIES

CASES:

Aberdeen & R. R. Co. v. Students Challenging Reg-
ulatory Agency Procedures (SCRAP), 422 U.S.
Be SR VOD siienisanesinscaptmadieneunubisshinaeniembaceuaices

American Horse Protection Assoc. v. Andrus, 608
ef Bite. Be we... ees e een

Baltimore Gas & Electric Co. v. Natural Resources
Defense Council, 462 U.S. 87 (1983) ou...

Bob Marshall Alliance v. Hodel, 852 F.2d 1223 (9th
Cir. 1988), cert. denied, 489 U.S. 1066
ERIE ~wauccdausneubataoeubals neues sae knieiameaamanionaion

City of New York v. United States Dept. of Transp.,
715 F.2d 732 (2d Cir. 1983); cert denied, 465
CFa RN EIU sucesuskacalecduesscmenbecencunaraaanaieinn

Conner v. Burford, 848 F.2d 1441 (9th Cir. 1988),
cert. denied, 489 U.S. 1012 (1989) .........

Conservation Law Foundation v. General Services
Admin., 707 F.2d 626 (1st Cir. 1983) ............

Colorado River Water Conservation Dist. v. United
Semben, GEG UB. BOO COTS) ccvccscicoccnececssnancesess

Defenders of Wildlife v. Andrus, 627 F.2d 1238
RPA Reals. “UMUD nicissnnatiicdinsisnecancan banged

Environmental Defense Fund v. Andrus, 596 F.2d
Oe COU SE. DIIGO sasisickccssaseincksceaseienanss

Jones v. Gordon, 621 F. Supp. 7 (D.° Alaska 1985),
affd in part and rev'd in part, 792 F.2d 821
GUE ane POE vincudsnsccrentisatnnasessnnnieatae red asate.

La Flamme v. Federal Energy Regulatory Com.,
$52 F.2d 389 (9th Cir. 1988) ............cccccccesseese

Lockhart v. Kenops, 927 F.2d 1028 (8th Cir. 1991),
cert. denied, __. U.S. __., 112 S.Ct. 186
COUPEE

Petitioner-Intervenor, Texas Water Conservation As-
sociation (““TWCA’’), filed a timely petition to the
court of appeals for a panel rehearing. That petition
was denied by the court of appeals by order dated
March 4, 1992, reproduced in Appendix C, infra. Pur-
suant to Sup. Ct. Rule 13, the time for filing this
petition for writ of certiorari runs to and including
June 2, 1992. The jurisdiction of this Court is invoked
under 28 U.S.C. § 1254(1).

STATUTE INVOLVED

Sections 2, 101 and 102 of the National Environ-
mental Policy Act of 1969, 42 U.S.C. 4821, 4331 and
4332, reproduced in Appendix D, infra.

STATEMENT OF THE CASE

Fortunately, most people are able to take an ade-
quate supply of clean drinking water for granted. This
is due in large part, to the planning and conservation
efforts of state and local water districts or authorities.
Water authorities, such as Petitioner, administer a
complex process of conserving, purifying, piping and
delivering potable water to homes, farms and busi-
nesses across this nation. As a result, in most in-
stances, citizens of this country can turn on a faucet
without regard to the vital and sophisticated process
involved in sustaining safe and adequate water in the
human environment.

Although modern technology has been brought to
bear on the water supply process, the availability of
adequate and safe water is still very dependent on
the forces of nature. As graphically illustrated by
events in southern California over the last eighteen
months, a natural drought can debilitate the environ-
ment, for humans and wildlife alike. Through a so-

phisticated study of available supply, climate,
geography and population, water authorities project
the need for water and decide the best means to
satisfy it.

As the result of such studies, in the spring of 1985
the Authority announced its preliminary decision to
construct the Waters Bluff Reservoir (‘‘Waters Bluff’)
along the Sabine River in Smith, Upshur and Wood
Counties, Texas, to assure an adequate and safe sup-
ply of water in east Texas. Waters Bluff would entail
the inundation of portions of the Little Sandy Hunting
and Fishing Club (the ‘“‘Club”’), a private club serving
the recreational needs of a small and exclusive mem-
bership. After the Authority announced its intentions.
F'WS, in coordination with the Club and with little
regard for the Authority’s studies in support of
Waters Bluff, took a conservation easement over the
Club lands and deposited the land in the National
Wildlife Refuge System. FWS’s action precluded the
Authority, as an agency of the State of Texas. from
using the site to meet anticipated water supply needs
and safeguarded the Club lands for the continued ex-
clusive use of its members.

F'WS prepared an environmental assessment (‘‘EA’’)
in connection with the acquisition of the Club ease-
ment. The EA’s cursory and result-oriented review of
water supply reflected the agency’s inexperience in
water supply planning. Experts in water issues within
the Department of Interior, however, had a deeper
respect forthe vital importance of water supply plan-
ning and voiced concern that the easement acquisition
might jeopardize the future supply of water in the
environment. These experts strongly objected to ac-
quisition of the Club easement without the benefit of

an Environmental Impact Statement (‘‘EIS’’) to ad-
dress water supply and concluded that the EA was “‘a
biased document frequently lacking in data and evi-
dence but rich in negatives and superlatives.” (See App.
E, Letter From Bureau of Reclamation, Chief of the
Environmental Branch to FWS, Regional Planning Of-
ficer). FWS was indifferent to the concerns raised by
these experts. Consumed by its objective to preserve
the Club property, FWS dedicated much of the EA to
a discussion of how Waters Bluff would injure migra-
tory bird habitat. Yet, the EA should have addressed
how the agency’s action would impact water supply,
not how Petitioner’s proposed development of Waters
Bluff would impact migratory bird habitat. The limited
discussion of water supply issues that did appear in
the EA was fraught with factual errors, all of which
were fully discussed in Petitioner’s briefs below.

Accordingly, the Authority brought suit to chal-
lenge FWS’s easement acquisition under NEPA claim-
ing that the agency should have prepared an EIS to
consider the effect of its action on water supply for
the residents of Texas. The jurisdiction of the district
court over the Authority’s NEPA claims was prem-
ised on 28 U.S.C. §§ 1831 and 1861 and the Admin-
istrative Procedure Act, 5 U.S.C. §§ 701-706. At the
close of discovery, both the Authority and FWS moved
for summary judgment.

The district court, sharing FWS’s disregard for
water supply, affirmed the agency’s FONSI. Water
was discounted so drastically by the district court that
it was no longer even regarded as an environmental
issue within the “zone of interests’ protected by
NEPA. (See App. B at 39a (Authority’s claims ‘“‘con-
trary to purposes of NEPA” and “‘not within NEPA’s

Suede
ee sane

scope’’)). This predisposition heavily influenced the
district court, causing it to overlook the errors and
inadequacies of FWS’s EA pointed out by the Au-
thority. As far as the court was concerned, FWS’s
preparation of an EA was gratuitous because the
court determined that the Authority’s water supply
interests were contrary to, and unprotected by, NEPA
in the first instance. (See, é.g., App. B at 48a-49a
(FWS failure to consider controversial, precedential
and cumulative effects of action excused because
F'WS’s action beyond scope of NEPA anyhow)). The
district court so undermined the nature of the Au-
thority’s interest in water supply that the Authority

was even denied standing to assert a claim under
NEPA.

The Fifth Circuit Court of Appeals, unable to accept
that the supply of water, a life-sustaining element
critical to the human environment, was not protected
by NEPA, reversed the decision of the district court
on standing, stating:

the injuries alleged by the plaintiffs in their
complaints - harmful effects on the quality
and quantity of East Texas’ water supply -
“are among the sorts of interests” that
NEPA was specifically designed to protect.

(App. A at lla (emphasis in original), citing, Lujan
v. National Wildlife Federation, ___ U.S. In

ervation Program Concept Plan and Bottomland Hardwoods
Land Protection Plan.

* Both lower courts find great favor in the remark of one
district judge that “NEPA does not require a federal agency to
prepare an EIS in order ‘to leave nature alone.’ (App. A at
20a; App. B at 8la, citing, National Association of Property
Owners v. United States, 499 F. Supp. 1223, 1265 (D.Minn. 1980).
The Authority respectfully contends that this maxim is the prod-

12

certain circumstances, the most environmentally de-
structive option is to leave nature alone. Often what
is warranted is not preservation, but “environmental
management.’’® Environmental management entails
affirmative conduct to maintain a desired balance in
an ecosystem that has been unbalanced, often by some
human disruption. The progressive character of en-
vironmental management stems from a recognition
that mankind must exercise active stewardship over
the environment. By assuming that preservation is
always the most environmentally sound course of ac-
tion, the ruling in this case may contribute to future
environmental degradation by excluding from NEPA
environmentally harmful actions taken in the name of
preservation.

The court of appeals held that pure preservation
actions will never have an adverse impact on the hu-
man environment. (App. A at 22a (Where ‘“‘land is
earmarked as a wildlife habitat and migratory bird
refuge ... this intended ‘use’... has no significant
environmental impact.’’)). Plainly this holding is inac-
curate, where preservation would preclude a pro-active
plan of environmental management designed to pro-

uct of a simplistic, shortsighted and incomplete understanding
of environmental protection.

§ It is now recognized that wildlife management does not mean
absolute protectionism. One of the most important tasks of
the wildlife manager is to control the numbers of species
which become over abundant in limited park ecosystems be-
cause they are freed from the threats of predation and hunt-

ing.

Schectman, “The Bambi Syndrome:’’ How NEPA’s Public Par-
ticipation In Wildlife Management Is Hurting The Environment,
8 Envt’l L. 611, 642 (1978).

13

mote a balanced ecosystem. See, e.g., Defenders of

Wildivfe v. Andrus, 627 F.2d 1238, 1240 (D.C.Cir.
1980)(state plan to promote moose population entailed
killing wolves); American Horse Protection Assoc. v.
Andrus, 608 F.2d 811, 814 (9th Cir. 1979\action to
protect grasslands entailed relocation of wild horses).
If permitted to stand, the lower court’s ruling will
eliminate the need for agencies to consider NEPA at
all even when the preservation action precludes an-
other federal, state or private environmental body
from engaging in wildlife management.’

IV. The Decision Below Misapplied Metropolitan Edi-
son To Exclude From NEPA Federal Actions Which
Preserve The Physical Environment.

The court of appeals rests its decision excluding
preservation actions from NEPA on this Court’s hold-
ing in Metropolitan Edison Co. v. People Against Nu-
clear Energy, 460 U.S. 766 (1983). Based on
Metropolitan Edison, a case involving the re-start of

’ The fallacy in excluding preservation actions from NEPA is
also illustrated by actions outside the realm of wildlife manage-
ment. For instance, suppose the state in administering its forests
engaged in a practice of extinguishing naturally caused fires.
Suppose further that FWS then acquired a portion of these
forests for a refuge and, with respect to these lands, adopted
a contrary policy of allowing natural fires to burn themselves
out reasoning that fires from electrical storms would promote
the growth of sequoias. See, e.g., Sierra Club v. U.S. Forest
Service, 843 F.2d 1190, 1194 (9th Cir. 1988\testimony that min-
eral soil needed for sequoia reproduction was provided by light-
ning fires). FWS’s acquisition would escape NEPA review under
the ruling of this case because it ‘leaves nature alone” by merely
preserving the forest in its natural state, even though the prac-
tice of allowing fires to burn freely raises obvious environmental
concerns that should be fully explored in a NEPA review.

14

the Three Mile Island nuclear plant, the lower court
concluded that FWS was not obliged to prepare an
EIS because pure preservation actions do not change
the physical environment. (App. A at 21a (“The ac-
quisition of a negative easement ... does not result in
the requisite ‘change’ to the physical environment.’’)).
This holding is primarily the result of a misunderstand-
ing and misapplication of Metropolitan Edison.

A. Metropolitan Edison Does Not Turn On The Causal Re-
lationship Between The Federal Action And A ‘‘Change
In The Physical Environment.”’

It is elementary that NEPA governs (1) major fed-
eral actions that (2) may cause an adverse environ-
mental impact or effect. NEPA, § 102(C), 42 U.S.C.
§ 43832(C). In order for an environmental effect to
warrant consideration under NEPA there must be a
“reasonably close causal relationship between a
change in the physical environment and the effect at
issue.”’ Metropolitan Edison, 460 U.S. at 774 (em-
phasis added). The ‘“‘effect’’ at issue in Metropolitan
Edison was the psychological harm that allegedly
would result from people’s perceptions of the “risk
of a nuclear accident.’”’ Yet because ‘‘a risk, is, by
definition unrealized in the physical world,” this Court
held that there was no causal relationship between
the alleged effect, psychological harm, and a change
in the physical environment. Jd. at 775. For purposes
of the present case it is important to note that Met-
ropolitan Edison did not focus on the relationship
between the federal action and a “‘change in the phys-
ical environment,”’ but, rather, involved the relation-
ship between the alleged effect and a ‘‘change in the
physical environment.”’ Metropolitan Edison, 460 U.S.
at 774 (‘[T]he terms ‘environmental effect’ and ‘en-

15

vironmental impact’ ... (must) include a requirement
of a close causal relationship between a change in the
physical environment and the effect at = 1s-
sue.’’(emphasis added).*

Nonetheless, the opinion by the court below
states:

The Supreme Court’s decision in Metropoli-
tan Edison Co. v. People Against Nuclear En-
ergy makes clear that the inquiry in NEPA
cases is whether the federal action at issue
is “proximately related to a change in the
physical environment.” 103 S.Ct. at 1561
(emphasis added).

(App. A at 21a). Herein ‘ties the court of appeals’
fundamental analytical error. Contrary to the lower
court opinion, nothing in Metropolitan Edison sug-
gests that the federal action in and of itself must
constitute a change in the physical environment of
the specific site affected. Yet this is the holding be-
low. (See App. A at 21a)‘‘The acquisition of a neg-
ative easement...does not result in the requisite
‘change’ to the physical environment.’’)). The court of

* Thus, this Court in Metropolitan Edison did not require that
the re-start of Three Mile Island be proximately related to a
change in the physical environment, only that the alleged effect,
psychological harm, be related to such a change. Of course NEPA
requires one uninterrupted causal chain, beginning with (1) a
federal action that (2) causes environmental effects that, in turn
(3) are causally related to a change in the physical environment.
The point to emphasize, is that the “change in the physical
environment”’ elucidated by Metropolitan Edison need not be
contemporaneous with the taking of the federal action, but may
manifest itself later in time as the effects of a federal action
are felt.

16

appeals has shifted the causal requirement of a change
in the physical environment, from the environmental
effect alleged, to the federal action at issue. This
misreading of Metropolitan Edison gravely distorts
the law of NEPA.

Plainly, the focus of NEPA is on adverse environ-
mental effects, not on the metaphysical essence of
the federal action.’ If these effects are causally re-
lated to a change in the physical environment, they
are properly subject to NEPA, without regard to the
particular character of the federal action. Metropoli-
tan Edison, 460 U.S. at 774. Thus, title transfers -
federal actions that do not themselves change the
physical environment - are still subject to NEPA.”
Similarly, often an agency must prepare an EIS when
granting a lease, license or permit or before issuing
a recommendation or proposal, even though such ac-

*Instructive is City of New York v. United States Dept. of
Transp., 715 F.2d 732 (2d Cir. 1983); cert denied, 465 U.S. 1055
(1984). The second circuit noted that the federal action of trans-
porting radioactive waste did not appear to use a natural re-
source, Jd. at 742; in other words the federal action did not
“change in the physical environment.’’ While the court opined
that “‘the movement of radioactive material along highways
(could) be considered a ‘use’ of the surrounding air,” Jd. at 742,
n.9, the applicability of NEPA was not dependent on the federal
action having a close causal relationship to a ‘‘change in the
physical environment.” It was enough that the alleged effect, a
possible accident, would cause adverse change in the physical
environment.

10 See, e.g., Lockhart v. Kenops, 927 F.2d 1028, 1032 (8th Cir.
1991), cert. denied, ___ U.S.____ , 112 S.Ct. 186 (1991); Bob Mar-
shall Alliance v. Hodel, 852 F.2d 1223, 1227 (9th Cir. 1988),
cert. denied, 489 U.S. 1066 (1989); Conservation Law Foundation
v. General Services Admin., 707 F.2d 626, 633 (1st Cir. 1983).

17

tion likewise does not change the physical environ-
ment."’

Notwithstanding the absence of change in the phys-
ical environment, title transfers, leases, licenses, rec-
ommendations and proposals are subject to NEPA,
because they create a “‘risk’’ that subsequent action
may injure the physical environment. “The Supreme
Court has indicated that environmental risks are en-
vironmental effects that fall within NEPA.” D. Man-
delker, Law & Litigation, § 8.44 n.1 (1984)citing
Metropolitan Edison); see also Baltimore Gas & Elec-
tric Co. v. Natural Resources Defense Council, 462
U.S. 87, 100 (1983)(‘‘An agency must allow all sig-
nificant environmental risks to be factored into its
decision.”’); 40 C.F.R. § 1508.27(b\5\The ‘“‘signifi-
cance’’ of a major federal action depends in part on
‘(t]he degree to which the possible effects on the
human environment are highly uncertain or involve
unique and unknown risks.’’).'* Again, the failure of

‘1 See, e.g., Conner v. Burford, 848 F.2d 1441, 1446 (9th Cir.
1988\sale of leases created risk of substantial impact on envi-
ronment), cert. denied, 489 U.S. 1012 (1989); La Flamme v.
Federal Energy Regulatory Com., 852 F.2d 389 (9th Cir.
1988XFERC issuance of license for hydroelectric plant must com-
ply with NEPA); Aberdeen & R. R. Co. v. Students Challenging
Regulatory Agency Procedures (SCRAP), 422 U.S. 289, 320
(1975XEIS required at time agency makes a recommendation or
report on proposal for federal action).

‘2 See also; Weinberger v. Catholic Action of Hawaii, 454 U.S.
139, 146 (1981\dictum\proposal to store nuclear weapons would
trigger obligation to prepare EIS to consider environmental haz-
ards); Northwest Indian Cemetery Protective Ass’n v. Peterson,
764 F.2d 581, 587-88 (9th Cir. 1985XEIS must consider risk to
water quality arising from possible landslides triggered by road
construction), rev’d on other grounds sub. nom., Lyng v. North-

18

the court of appeals to recognize FWS’s duty to ad-
dress in an EIS the risk to water supply created by
the agency’s action was the product of a misreading
of Metropolitan Edison.

B. Metropolitan Edison Does Not Exclude From NEPA
Risks Of Environmental Injury.

The court of appeals has adopted the finding of the
district court that the ‘‘same element of risk is pres-
ent’’ in the instant case as was at issue in Metro-
politan Edison. (App. B at 36a).'° The lower courts
fail to appreciate that the ‘“‘risk’’ analysis presented
in this case is wholly distinct from that discussed in
Metropolitan Edison. The decisions below state that,
because environmental ‘“‘risks’’_are not “‘changes in
the physical environment,” the environmental injuries
that would result should such risks materialize, need
not be considered in an EIS."

west Indian Cemetery Protective Ass’n, 485 U.S. 439 (1988); City
of New York, 715 F.2d at 745 (action posed risks warranting
careful consideration under NEPA).

‘3 The court of appeals avoids explicitly discussing the question
of ‘environmental risk”’ raised in this case, instead choosing to
adopt the lower court’s reasoning. (App. A at 3a (‘‘Rather than
dilute the strength of the district court’s reasoning and pollute
the legal environment with an expansive discussion of our own,
we write only to express the depth of our commitment to the
district court’s fluid opinion.’’)).

‘4In this regard, Professor Mandelker apparently has pro-
phesied the lower courts’ misinterpretation of Metropolitan Edi-
son when he states:

The decision (Metropolitan Edison) could cast doubt on cases
which have required agencies to analyze the environmental
risks of their action although the Court did not appear to

19

The Authority has not asked FWS to prepare an
EIS to consider injury caused solely by the risk of a
water shortage. For instance, FWS was not asked to
prepare an EIS to consider any psychological harm
to the residents of east Texas arising from their per-
ception of the risk of a water shortage. The Authority
concedes that a risk of a water shortage, being “‘un-
realized in the physical world,” is not a change in
the physical environment and any injury flowing
therefrom would not trigger an EIS. Metropolitan
Edison, 460 U.S. at 775. To the contrary, the-
Authority asked FWS to consider the injury to the
physical environment should the risk of a water short-
age be realized. Although lost on the courts below,
the distinction between injury caused by a “risk qua
risk” and injury caused by the realization of a risk
was carefully noted by Justice Rehnquist in Metro-
politan Edison.

(In this case (Metropolitan Edison) we are
considering effects caused by the risk of an
accident. The situation where an agency is
-asked to consider effects that will occur if a
risk is realized . . . is an entirely different
case.

Metropolitan Edison, 460 U.S. at 775, n.9. This qual-
ification is wholly consistent with precedent that re-
quires an agency to consider the environmental injury
that would result if realization of a risk posed by

disagree with these cases.

D. Mandelker, NEPA Law & Litigation, § 8.43 (1984). This
petition should be granted to clarify that an EIS must consider
significant environmental risks when the realization of such risks
would adversely change the physical environment.

90)

agency action would manifest a change in the physical
environment. See note 12, supra and accompanying
text. The subtle, but critical, distinction between in-
jury caused by a “risk qua risk’ and injury caused
by realization of a risk, seems also to have escaped
other lower courts. See, e.g., No GWEN, Inc. v. Ald-
ridge, 855 F.2d 1380, 1385 (9th Cir. 1988)(discussion
of district court’s misplaced reliance on Metropolitan
Edison to place risk created by federal action outside
NEPA). It is beyond question that the realization of
a water supply crisis would entail a change in the
,physical environment (e.g., desertification, loss of
wildlife and foliage). The Authority presented to FWS
significant evidence demonstrating the likelihood of
such a shortage and the injury that would result
therefrom. The corollary in Metropolitan Edison to
the effect complained of in this case, the effect of a
nuclear accident, was considered by the Nuclear Reg-
ulatory Commission (the ‘“‘NRC’’) and this Court in-
dicated that this type of risk was cognizable under
NEPA.

As a final note, the environmental harm articulated
by the Authority is not comparable to the psycholog-
ical harm of concern in Metropolitan Edison. A water
shortage is causally related to a change in the en-
vironment and is unquestionably cognizable under a
statute designed to protect ‘‘the air, land and water
which support life on earth,” Metropolitan Edison,
‘460 U.S. at 778, citing, Leg. History, 115 Cong. Rec.
40416 (1969\remarks of Sen. Jackson). Unlike the
problem that would have faced the NRC had it been
required to study the questions of psychological health,
water supply, though not directly within FWS’s area
of expertise, is within the Department of Interior’s

bho

expertise. Requiring FWS to consider the water sup-
ply views of its sister agencies, such as the Bureau
of Reclamation, would not oblige FWS ‘‘to expend
considerable resources developing ... expertise that
is not otherwise relevant to (its) congressionally as-
signed functions.’”’ Metropolitan Edison, 460 U.S. at
776. The effect of a water supply crisis on the phys-
ical environment cannot be overstated. A lack of
water threatens all life in the affected area. The loss
of forest, crops and wildlife, the drying of streams,
lakes and springs and the scorching of land are phys-
ical changes that result from a water shortage - they
are not merely psychological effects that exist in the
minds of men.

While action taken to preserve the environmental
status quo, by its very terms, does not itself cause a
change in the physical environment of the specific site
affected, (App. A at 20a and 21a, citing, Ono v. Har-
per, 592 F. Supp. 698, 701 (D. Hawaii 1983)), it may
induce conditions that will result in deleterious change
to the surrounding physical environment. In other
words, such action creates the risk of significant en-
vironmental injury. This petition should be granted to
clarify the Court’s holding in Metropolitan Edison,
and, in particular, the aspect of that decision regard-
ing an agency’s obligations to prepare an EIS where
the realization of such a risk would result in an ad-
verse ‘‘change in the physical environment.”’

Under the facts of this case, FWS’s action to pre-
serve land for inclusion in the National Refuge Sys-
tem inhibits Texas’ management of its limited water
supply resources thereby creating the risk of a water
shortage. This risk of injury to the physical environ-
ment must be considered under NEPA.

ai a

CONCLUSION

The petition for a writ of certiorari should be
granted. By excluding FWS’s action in this case from
NEPA, the decision below has injected a substantive
bias in favor of preservation that is inconsistent with
NEPA’s outcome neutral application. By treating
preservation as wholly consistent with NEPA’s ob-
jectives, the decision below fails to appreciate that
preservation is not always the optimal environmental
response. Finally, the legal basis to support the ex-
clusion of preservation actions from NEPA, is derived
from a misapplication of the rule in Metropolitan Edi-
son that environmental effects be causally related to
a change in the physical enviroriment.

Respectfully submitted,

WILLIAM H. BURCHETTE*

CHRISTINE C. RYAN

VINCENT P. DUANE

JORDEN SCHULTE & BURCHETTE
1025 Thomas Jefferson Street, N.W.
Suite 400 East

Washington, D.C. 20007

(202) 965-8100

EARL ROBERTS

ROBERTS, HILL & CALK
2020 Bill Owens Parkway
Suite 200

Longview, Texas 75604
(903) 759-2020

Attorneys for Petitioner
Sabine River Authority

June 2, 1992

“Counsel of Record

APPENDIX

la

1
5
{
5
4
!
{

| APPENDIX A

United States Court of Appeals,
Fifth Circuit.

No. 90-4761.

Rares 8 ae

SABINE RIVER AUTHORITY,
Plaintiff-Appellant,
and
Texas Water Conservation Association,

Plaintiff-Intervenor-Appellant,
v.

z Tee) es ciaibing ahs Ib ei keS. 2. BRON A

U.S. DEPARTMENT OF INTERIOR et al.,
Defendants-Appellees.
and

The Sierra Club and the National Audubon Society,
Defendants-Intervenors-Appellees.

Jan. 28, 1992.
Rehearing Denied March 4, 1992.

j Action was brought challenging the Fish and Wildlife
Service’s compliance with the National Environmental Pol-
icy Act (NEPA) in connection with proposed acquisition of
conservation easement on wetlands habitat. On cross mo-
tions for summary judgment, the United States District
Court for the Eastern District of Texas, Paul N. Brown,
J., 745 F.Supp. 388, dismissed plaintiffs’ claims, and
plaintiffs appealed. The Court of Appeals, Goldberg, Cir-
cuit Judge, held that: (1) river authority and conservation
association that wanted wetlands area for construction of

Da SRIRAM ins UE Oi lr ois pe en tn WA

2a

reservoir suffered sufficient “injury in fact’’ from grant
of nondevelopment easement to have standing to challenge
acquisition of easement based on Service’s failure to pre-
pare environmental impact statement (EIS), but (2) actions
of the Service in acquiring nondevelopment easement which
prohibited any change in status quo did not amount to
“major federal action significantly affecting quality of hu-
man environment” so as to mandate preparation of EIS.

Affirmed.

William H. Burchette, Christine C. Ryan, Jorden Schulte
& Burchette, Washington, D.C., Earl Roberts, Jr., Rob-
erts, Hill & Calk, Longview, Tex., for Sabine River Au-
thority.

Michael J. Booth, Frank R. Booth, Booth & Newsom,
Austin, Tex., Ruth H. Yeager, First Asst. U.S. Atty., Ty-
ler, Tex., Lisa Hemmer, Atty., Robert L. Klarquist, Dept.
of Justice, Appellate Section, Environmental Natural Re-
sources, Washington, D.C., for Texas Water Conservation
Ass’n.

Jos. Irion Worsham, Worsham, Forsythe, Samples &
Wooldridge, Dallas, Tex., for Little Sandy Hunting & Fish-
ing Club.

Robert G. Dreher, Sierra Club Legal Def. Fund, Wash-
ington, D.C., for Sierra Club and Nat. Audubon Society.

Appeals from the United States District Court for the
Eastern District of Texas.

Before GOLDBERG and GARWOOD, Circuit Judges, and
BUCHMEYER,”* District Judge:

GOLDBERG, Circuit Judge:

* District Judge for the Northern District of Texas, sitting by des-
ignation.

3a

This case is for the birds—thousands of them. And we
mean that in no facetious sense.

At issue is a non-development easement on 3800 acres
of land in East Texas, containing high-quality wetlands
and wildlife habitat essential to migratory waterfowl. The
Little Sandy Hunting and Fishing Club donated the ease-
ment to the U.S. Fish and Wildlife Service in an effort
to guarantee that the wetlands would be preserved in their
pristine state without the corrupting effect of commercial,
agricultural, and industrial development. By accepting the
easement, the Fish and Wildlife Service has thus insured
that migratory birds and other wildlife can flourish there.

The Sabine River Authority and the Texas Water Con-
servation Association, though not unsympathetic to the
plight (and flight) of our fine feathered friends, filed a
lawsuit alleging that the Fish and Wildlife Service violated
the National Environmental Policy Act of 1969 (““NEPA’’),
42 U.S.C. § 4321 et seq., by failing to prepare an Envi-
ronmental Impact Statement (an ‘‘EIS’’) in connection with
the acquisition of the easement. When the district. court
dismissed their claims by way of summary judgment, Sa-
bine River Authority v. United States Dept. of Interior,
745 F.Supp. 388 (E.D.Tex.1990), they appealed. We affirm.

The district court correctly dismissed the claims brought
by the Sabine River Authority and the Texas Water Con-
servation Association, and we are hard-pressed to improve
upon its scholarly work. Its survey of the relevant case
law was extensive, its analysis persuasive. Rather than
dilute the strength of the district court’s reasoning and
pollute the legal environment with an expansive discussion
of our own, we write only to express the depth of our
commitment to the district court’s fluid opinion. We must
remediate in one area, however, filtering out the minute
particles of contaminant in the district court’s ‘‘standing’’
water.

— CL LL LOLOL LL

4a

PHASE I

Wetlands, with its swamps, marshes, bogs, mud flats
and other water-dependent community types, are an eco-
logical treasure. They play a vital role for wildlife by pro-
viding nesting and habitat for many species of fish, birds,
plants and other wildlife. For the bird community, wet-
lands foster high species diversity, density, and productiv-
ity by providing both food and habitat, in the form of
nesting sites, breeding and rearing areas, feeding grounds,
and cover from predators. Office of Technology Assess-
ment, Wetlands: Their Use and Regulation, at 5-6, 30, 52
(1984). Many endangered species rely on our wetlands for
their survival and reproductive success. Without the wet-
lands, we are all but assured of their extinction.

Beyond the direct import of wetlands to wildlife, they
also serve other equally significant environmental func-
tions. One of the more apparent is their favorable effect
on our water quality. By filtering contaminants out of
water before they can reach the open water, wetlands
serve as nature’s own water purifier. By absorbing large
amounts of water, wetlands protect us from potential
flooding.

As with many of our most precious natural resources,
our wetlands are threatened by commercial, agricultural,
and industrial development. In the last 200 years, thirty
to fifty percent of our nation’s wetlands have disappeared.
Because wetlands are critical to flood control, water sup-
ply, water quality, and, of course, wildlife, their rapid dis-
appearance is setting the stage for what may eventually
become a significant environmental catastrophe. The State
of Texas alone has lost 8 million acres, nearly half of its
original wetlands. With only some 7.6 million acres re-
maining, wetlands presently constitute a mere 4.4 percent
of Texas’ acreage. As the wetlands continue to shrink, the
threat to our environment escalates.

Recognizing that our nation’s wetlands are vital to the
environmental equilibrium, the Fish and Wildlife Service
embarked on a laudatory effort to preserve the existing
wetlands. The Fish and Wildlife Service is charged with
the responsibility of protecting and maintaining the pop-
ulation of migratory waterfowl, other wildlife resources,
and endangered species. Toward that end, it established
the National Wildlife Refuge System, a project that has
earned widespread approval from environmental groups.
Through the Refuge System, the Fish and Wildlife Service
has acquired millions of acres of environmentally rich lands,
lands which are to be preserved in their natural state: no
development, no mining, just mother nature’s original rec-
ipe without any artificial ingredients. These lands provide
a winter home to the thousands of migratory birds utilizing
the “Central Flyway”’ and support large populations of
Native North American wood ducks. U.S. Fish and Wildlife
Service, Wetlands of the United States: Current Status and
Recent Trends at 15 (1984).

Some of the land is acquired in fee simple; but since
the Fish and Wildlife Service merely seeks to prohibit
environmentally destructive activity on the land, much of
it is obtained in the form of leases and easements which
preclude development of the land. This method proves far
more economical in effectuating the goal of preventing
adulteration to the lands, because the government need
not buy the property and take title outright; it can accept
a nondevelopment easement—a promise by the owner to
refrain from developing the property in a manner incon-
sistent with wetland preservation—and thereby achieve the
goal of protecting the environmental status quo at a frac-
tion of the cost.

The Fish and Wildlife Service acquired the Texas wet-
lands at issue in this case precisely in this manner. Little
Sandy Hunting and Fishing Club donated a nondevelop-
ment easement on approximately 3800 acres of its land to
the Fish and Wildlife Service so that the character of the

6a

wetlands would remain unchanged, undeveloped, in per-
petuity. These lands had been targeted by the Fish and
Wildlife Service for several years because of its particu-
larly rich natural attributes. Some studies rated the veg-
etation on Little Sandy’s land as ‘‘one of the most pristine
bottomland areas i[n] the state [of Texas].’’ The lands con-
sist of “old-growth timber,’’ including willow, oak, hickory,
gum, elm, ash, hackberry, palmetto, switchcane, and pos-
sum haw understory, and its bottomlands play host to such
dwellers as mallards, gadwalls, ringnecks, and wood ducks.

The Sabine River Authority and the Texas Water Con-
servation Association, cognizant that the federal govern-
ment’s acquisition of this land foreclosed the State of Texas
from taking the property by means of eminent domain,
were less than pleased to learn of the donation. They had
given serious consideration to using that land to construct
the Waters Bluff Reservoir, a $ 158 million, forty-five
thousand acre project along the Sabine River in Smith,
Upshur, and Wood Counties. Their plans for the construc-
tion of the reservoir, aimed at satisfying the anticipated
need for additional water over the next forty years, were
still in the preliminary stages: they had obtained none of
the necessary federal and state permits, had secured no
funding, and had not yet entered into any firm contracts
for the 300 thousand plus acre feet of water that the
reservoir would generate each year. Nevertheless, they
were dissatisfied with the turn of events and filed suit in
the Eastern District of Texas alleging that the Fish and
Wildlife Service had failed to comply with the procedural
requirements of NEPA by not preparing an Environmental
Impact Statement (an “EIS’’) in connection with its ac-
quisition of the Little Sandy non-development easement.
They alleged that the easement was interfering with their
long-term plan to take the property by eminent domain,
construct the Waters Bluff Reservoir, and thus insure that
the state’s water supply would not be placed in jeopardy
in the calendar year 2030. Invoking NEPA, they asserted

that the Fish and Wildlife Service’s acquisition of the ease-
ment constituted a “major federal action significantly af-
fecting the quality of the human environment.” 42.U.S.C.
§ 4332(2\C), thereby necessitating the preparation of an
EIS.

In a comprehensive opinion, 745 F.Supp. 388
(E.D.Tex.1990), the district court dismissed their claims by
way of summary judgment. The court reasoned that the
Fish and Wildlife Service had prepared an adequate En-
vironmental Assessment (the “EA”) and had issued a
“Finding of No Significant Impact” (““FONSI’) as a pre-
cursor to acquiring the easement. Concluding that there
was no corresponding change in the physical environment
flowing from the acquisition of the non-development ease-
ment, the district court held that the Fish and Wildlife
Service’s decision to forego an EIS was not arbitrary and
capricious. Jd. at 392-97. It dismissed the lawsuit. and this
appeal followed.

PHASE II

A preliminary issue in this case, indeed in every case,
is whether the party bringing the lawsuit has standing.
After rejecting on the merits plaintiffs’ challenge to the
Fish and Wildlife Service’s decision to forego an EIS, the
court below remarked that plaintiffs had no standing to
bring this lawsuit in the first place. It reasoned that:

The Court’s finding that the plaintiffs’ claims are not
within NEPA’s scope and that they are contrary to
NEPA’s purpose compels the conclusion that the
plaintiffs lack standing to assert a claim under NEPA.
The plaintiffs’ interest in constructing a reservoir is
unquestionably an interest that is subject to the pro-
visions of NEPA, but it is not an interest that NEPA
was designed to protect.

745 F.Supp. at 397. In essence, the district court concluded
that because the Fish and Wildlife Service was not obli-

8a

gated under NEPA to prepare an EIS under the circum-
stances present in this case (a conclusion with which we
agree), the injuries alleged by the plaintiffs as a conse-
quence of the absence of an EIS were not within the zone
of interests protected by NEPA. With that conclusion we
disagree.

The standing inquiry has constitutional, statutory, and
judicially formulated components. North Shore Gas v. EPA,
930 F.2d 1239, 1242-43 (7th Cir.1991). It has as its origins
the constitutional requirement that federal courts only de-
cide cases or controversies. Constitution, Article III, § 2.
When we say that a particular plaintiff has no standing
to bring the lawsuit in the constitutional sense, we mean
that the plaintiff has not suffered an injury which is re-
dressible by the court. Allen v. Wright, 468 U.S. 737, 104
S.Ct. 3315, 82 L.Ed.2d 556 (1984). This inquiry pleces not
too heavy a burden on a prospective plaintiff because even
‘fa probabilistic benefit from winning a suit is enough ‘in-
jury in fact’ to confer standing’’ under the Constitution.
North Shore Gas, 930 F.2d at 1242.

From an Article III perspective, the plaintiffs have
standing. ‘‘Injury in fact is not confined to economic injury,
but may include injuries to aesthetics and well-being.” Save
Our Wetlands, Inc. v. Sands, 711 F.2d 634, 640 (5th
Cir.1983).

The procedural injury implicit in agency failure to
prepare an EJS—the creation of a risk that serious
environmental impacts will be overlooked—is itself a
sufficient ‘injury in fact’ to support standing, provided
this injury is alleged by a plaintiff having a sufficient
geographical nexus to the site of the challenged proj-
ect [such that they can] expect[ ] to suffer whatever
environmental consequences the project may have.

City of Davis v. Coleman, 521 F.2d 661, 671 (9th Cir.1975);
accord Friends of the Earth v. U.S. Navy, 841 F.2d 927,
932, modified, 850 F.2d 599 (9th Cir.1988); see also South

9a

East Lake View Neighbors v. Dept. of Housing and Urban
Development, 685 F.2d 1027, 1039 (7th Cir.1982) (constru-
ing City of Davis to hold that the “injury occurred with
the creation of a risk that potential environmental damage |
would go undiscovered’’); cf. North Shore Gas, 930 F.2d
at 1242 (‘fa probabilistic benefit from winning a suit is
enough ‘injury in fact’ to confer standing in the unde-
manding Article III sense’’); but see Greenpeace USA 1.
Stone, 748 F.Supp. 749, 755 (D.Hawaii 1990) (expressing
concern over whether a plaintiff with a geographical nexus
to project satisfies the injury in fact requirement by virtue
of a procedural injury alone), appeal dismissed as moot,
924 F.2d 175 (9th Cir.1991).

The Sabine River Authority has been charged by the
State of Texas with the weighty responsibility of man-
aging, conserving, and monitoring the waters of the Sabine
River in order to meet the ‘‘domestic uses of the people
in the district, including all necessary water supplies for
cities and towns.”’ Water Aux. Laws art. 8280-133, § 14(d).
It has alleged an economic injury (shortage of water sup-
ply) attendant to the Fish and Wildlife Service’s acquisition
of the Little Sandy Easement. The Texas Water Conser-
vation Association is an organization incorporated under
the laws of the State of Texas which has as its stated
mission the conservation of water resources of the state.
Its membership includes “river authorities, individuals,
firms, corporations, cities, water districts, public and pri-
vate agencies and groups dedicated to the task of con-
serving, developing, protecting and utilizing the water
resources of Texas for beneficial purposes.’’ This organi-
zational plaintiff has a “sufficient geographical nexus’ to
the Little Sandy property, and the interests at stake affect
the members of the organization such that the organization
has standing to bring the claims on their behalf. See Save
Our Wetland, Inc., 711 F.2d at 640 (organizational plaintiff
had standing because member of organization who fished
at site in question was “‘injured’’ by adverse aesthetic im-

10a

pact). The injuries that these parties allege relate to the
adverse environmental effects that they will experience as
a result of the Fish and Wildlife Service’s acquisition of
the Little Sandy easement. As the district court observed:

One effect of the [Fish and Wildlife Service]’s action
is that as long as the easement remains in the Na-
tional Wildlife Refuge System, [the Sabine River Au-
thority] cannot build the Waters Bluff Reservoir.
Although federal law provides certain procedures by
which land may be released from the Refuge System,
there is certainly a risk that [the Sabine River Au-
thority] may not convince either the Congress or the
Secretary of the Interior to relinquish the easement.

745 F.Supp. at 396 & n. 6. According to the plaintiffs,
the Sabine River Authority’s inability to condemn this
property and build the Waters Bluff Reservoir on that site
creates a substantial risk that the region will experience
water shortages some forty years in the future. Although
there is necessarily some speculation attendant to predic-
tions of this sort, the injuries alleged are not ‘‘too spec-
ulative to support their standing.” South East Lake View
Neighbors, 685 F.2d at 1035. While still in the early plan-
ning stages, plaintiffs were intent on going forward with
the construction of the Waters Bluff Reservoir to preter-
mit any potential water shortage problems; the Little
Sandy Easement has made that effort a virtual nullity.
We therefore find ‘‘a fairly traceable causal connection
between the defendant’s allegedly illegal conduct and the
plaintiffs purported injuries,’ id. at 1036, sufficient to
confer standing in the constitutional sense.

In the context of NEPA, however, the Supreme Court
has recently explained that beyond the constitutional
standing requirements, ‘“‘the plaintiff must establish that
the injury he complains of (his aggrievement, or the ad-
verse effect upon him) falls within the ‘zone of interests’
sought to be protected by the statutory provision whose

lla

violation forms the legal basis for his complaint.’’ Lujan
v. National Wildlife Federation, __U.S. —__, 110 S.Ct.
3177, 3186, 111 L.Ed.2d 695 (1990) (emphasis in original);
see also Greenpeace USA, 748 F.Supp. at 756 (Lujan “‘ap-
pears to heighten the requirements for establishing actual
injury for purposes of standing under NEPA.”’). ‘{T]he
only people who may sue to enforce a law are people who
belong to the class that the law was designed to protect.”
North Shore Gas, 930 F.2d at 1243. In other words, ‘‘only
intended beneficiaries of a statute can seek relief under
it.”’ Id. To illustrate, the Supreme Court posited that court
reporters are plainly aggrieved when an agency failed to
comply with a statutory provision that requires that all
proceedings be transcribed; nevertheless, because the par-
ties to the proceedings, and not the court reporters, are
the intended beneficiaries of the statutory provision, the
parties and not the court reporters would have standing
to challenge the agency’s non-compliance with the statute.
Lujan, 110 S.Ct. at 3186.

We are persuaded that the injuries alleged by the
plaintiffs in their complaints—harmful effects on the qual-
ity and quantity of East Texas’ water supply—’’are among
the sorts of interests’’ that NEPA was specifically de-
signed to protect. Lujan, 110 S.Ct. at 3187. These alleged
injuries fall squarely within the class of injuries that NEPA
safeguards: the circuit courts, to be sure, are flooded with
cases which elucidate that water quality and water supply
are prototypically matters of great environmental concern.
E.g., Olmsted Citizens for a Better Community, 793 F.2d
201, 205 (8th Cir.1986) (a federal action which ‘“‘poses a
threat to the physical resources of the area because of
anticipated ... water supply problems’’ must be preceded
by an EIS); Environmental Defense Fund, Inc. v. Andrus,
596 F.2d 848, 851-53 (9th Cir.1979) (holding that an EIS
was required ‘‘to evaluate the environmental consequences
of [the] decision [to divert water to industrial use]’’); City
of Davis v. Coleman, 521 F.2d 661, 671-72 (9th Cir.1975)

12a

(allegations in complaint ‘“‘that the planned industrial de-
velopment . . . may adversely affect the quality and quan-
tity of the city water supply’ established injury in fact
within the zone of interests of NEPA). Indeed, NEPA
itself articulates that the protection of the water quality
and supply is an important concern of the statutory
scheme. See 42 U.S.C. §§ 43821, 4331(c); see also Metro-
politan Edison Co. v. People Against Nuclear Energy, 460
U.S. 766, 103 S.Ct. 1556, 1560-61, 75 L.Ed.2d 534 (1983)
(quoting from statements of two principal sponsors of
NEPA which identify water supply and quality as a con-
cern of NEPA). Moreover, these plaintiffs are the proper
plaintiffs to raise these claims. Although ‘‘the intended
beneficiaries of NEPA are individual citizens ... the stat-
ute expressly contemplates that state and local govern-
ments are to play an important role in the effectuation of
national environmental policy.”” City of Davis, 521 F.2d at
672 (citing 42 U.S.C. §§ 4331(a), 43382(2\C), 4332(2\F),
4341(4), 4345(1)).

This is not a case brought by a disappointed contractor
who alleges that he has been injured because he would
have been hired to build the Waters Bluff Reservoir had
the Fish and Wildlife Service not accepted the negative
easement. Like the court reporter example posited in Lu-
jan, the contractor, though arguably aggrieved as a result
of the Fish and Wildlife Service’s acceptance of the neg-
ative easement, would not have standing under the ‘‘zone
of interests” test because NEPA was not designed to pro-
tect contractors’ rights: it was designed to protect the
environment. Perhaps the best way to illustrate the point
is to put the proverbial cart before the horse. If, contrary
to our holding on the merits, NEPA did require the Fish
and Wildlife Service to prepare an EIS in connection with
the Little Sandy easement, we would still have to consider
whether these plaintiffs have standing to challenge the
Fish and Wildlife Service’s non-compliance. We think it is
quite plain that the Sabine River Authority and the Texas

13a

Water Conservation Association would (and do) have
standing to bring a lawsuit because the alleged harm flow-
ing to these plaintiffs from the defendant’s non-compliance
with NEPA is of a kind with which NEPA is concerned.

PHASE III

This case arises under the network of NEPA, a statute
drafted to ensure that federal agencies “‘carefully consider
detailed information concerning significant environmental
impacts,’ and at the same time “guarantee{ ] that the
relevant information will be made available to the larger
audience that may also play a role in both the decision-
making process and the implementation of that decision.”’
Robertson v. Methow Valley Citizens Council, 490 U.S. 332,
109 S.Ct. 1835, 1845, 104 L.Ed.2d 351 (1989); accord North
Buckhead Civic Ass’n v. Skinner, 903 F.2d 15338, 1540
(11th Cir.1990). It is a procedural statute that demands
that the decision to go forward with a federal project
which significantly affects the environment be an environ-
mentally conscious one. The statute does not command the
agency to favor an environmentally preferable course of
action, only that it make its decision to proceed with the
action after taking a “‘hard look at environmental conse-
quences.”’ Robertson, 109 S.Ct. at 1846 (quoting Kleppe v.
Sierra Club, 427 U.S. 390, 410 n. 21, 96 S.Ct. 2718, 2730
n. 21, 49 L.Ed.2d 576 (1976)). Indeed, NEPA does not
prohibit the undertaking of federal projects patently de-
structive of the environment; it simply mandates that the
agency gather, study, and disseminate information con-
cerning the projects’ environmental consequences. ‘‘Other
statutes may impose substantive environmental obligations
on federal agencies, but NEPA merely prohibits unin-
formed—rather than unwise—agency action.” Jd.

How much information the agency must process is the
subject of this litigation. NEPA instructs that federal agen-
cles:

l4a

include in every recommendation or report on pro-
posals for legislation and other major Federal actions
significantly affecting the quality of the human en-
vironment, a detailed statement by the responsible
official on—

(i) the environmental impact of the proposed action,
[and]

(ii) any adverse environmental effects which cannot
be avoided should the proposal be implemented... .

42 U.S.C. § 4832(2\(C). Thus, NEPA directs federal agen-
-cies to prepare what is commonly known in the industry
as an Environmental Impact Statement (an “EIS’’) when
it engages in “major Federal action[ ] significantly af-
fecting the environment.”’

‘“‘An environmental impact statement is intended to
detail the environmental and economic effects of any
proposed federal action so that those not directly in-
volved can understand and give meaningful consid-
eration to and make appropriate comment on the
factors involved. It also ensures that the decision-
maker give serious weight to environmental factors
in making discretionary choices.”

State of Louisiana v. Lee, 758 F.2d 1081, 1084 (5th
Cir.1985). An EIS is “not required for non major action
or a major action which does not have significant impact
on the environment.” Sierra Club v. Hassell, 636 F.2d
1095, 1097 (5th Cir. Unit B 1981) (emphasis added).

To assist federal agencies in resolving whether they must
prepare an EIS, the federal Council on Environmental
Quality (““CEQ’’) has issued regulations to which these
agencies can turn for guidance. Sierra Club v. March, 769
F.2d 868, 870 (1st Cir.1985). These regulations are entitled
to substantial deference, Robertson, 109 S.Ct. at 1848, and
“are binding on federal agencies.”’ Fritiofson v. Alexander,
772 F.2d 1225, 1236 (5th Cir.1985).

15a

The CEQ regulations permit federal agencies to make
a preliminary “Environmental Assessment” (‘‘EA’’)
aimed at determining whether the environmental ef-
fects of a proposed action are “‘significant.’’ 40 C.F.R.
§§ 1501.3, 1501.4, 1508.9, 1508.27 (1984). According
to these regulations, the EA is a “‘concise’’ document
that ‘‘briefly’’ discusses the relevant issues and either
reaches a conclusion that preparation of an EIS is
necessary or concludes with a “Finding of No Sig-
nificant Impact’’ (called in environmental jargon, a
“FONSI’). Jd. §§ 1508.9, 1508.13.

Sierra Club v. March, 769 F.2d at 870. Thus, ‘t]he pur-
pose of an EA is to ‘provide sufficient evidence and anal-
ysis for determining whether to prepare an [EIS].’ ”’
Fritiofson, 772 F.2d at 1236 (quoting 40 C.F.R.
§ 1508.9(a\1)). The EA is “‘a rough- cut, low-budget en-
vironmental impact statement designed to show whether
a full-fledged environmental impact statement—which is
very costly and time-consuming to prepare and has been
the kiss of death to many a federal project—is necessary.”’
Cronin v. U.S. Dept. of Agriculture, 919 F.2d 439, 443
(7th Cir.1990). The EA will come to one of two findings:
either that the project requires the preparation of an EIS
to detail its environmental impact, or that the project will
have no significant impact (a “FONSI’’) necessitating no
further study of the environmental consequences which
would ordinarily be explored through an EIS. Fritiofson,
772 F.2d at 1236; Marsh, 769 F.2d at 870.

When, as in this case, the agency concludes that the
preparation of an EIS is not required based on a FONSI,
an aggrieved party may challenge the decision in federal
court under the Administrative Procedures Act. 5 U.S.C.
§ 706(2XA). Before today, our court instructed that a re-
viewing court should apply the moderately deferential
“reasonableness” standard—rather than the highly defer-
ential “arbitrary and capricious” standard adopted by other

16a

circuits—in reviewing an agency’s decision to forego an
EIS. See Fritiofson, 772 F.2d at 1237. However, in Marsh
v. Oregon Natural Resources Council, 490 U.S. 360, 109
S.Ct. 1851, 104 L.Ed.2d 377 (1989) (“Oregon Natural’)
the Supreme Court held that an agency’s decision not to
prepare a supplemental EIS is reviewable under the “ar-
bitrary and capricious” standard. This intervening decision
by the Supreme Court warrants the abandonment of the
“reasonableness” standard.' Even though Oregon Natural
involved an agency’s decision not to prepare a supplemen-
tal EIS as opposed to an agency’s decision not to prepare
the original EIS, the “legal standard for determining when
a supplemental EIS is required is ‘essentially the same as
the standard for determining the need for an original
KIS.’ ” Fritiofson, 772 F.2d at 1289 n. 8 (citation omit-
ted). Oregon Natural has plainly emasculated our prece-
dent applying the reasonableness standard with respect to
the review of an agency’s decision to forego a supplemental
EIS. See Oregon Natural, 109 S.Ct. at 1861 n. 23 (citing
with disapproval our decision in Sierra Club v. Froelhlke,
816 F.2d 205, 210 (5th Cir.1987)). We believe that it has
similarly undercut our precedent applying the reasonable-
ness standard with respect to an agency’s decision to for-
ego the original EIS. See Lockhart v. Kenops, 927 F.2d
1028, 1032 (8th Cir.) (holding that the intervening decision
of Oregon Natural undercut Eight Circuit precedent ap-
plying the reasonableness standard with respect review of
an agency’s decision to forego preparation of an original
EIS), cert. denied, __U.S. __, 112 S.Ct. 186, 116 L.Ed.2d
148 (1991). The standard of review is limited, therefore,
to the “arbitrary and capricious” standard. Id.; see also
North Buckhead Civic Ass’n, 903 F.2d at 1538 (adopting

‘The Fritiofson panel rejected an invitation to abandon the reason-
ableness standard in favor of the “arbitrary and capricious’ standard
adopted by other circuits, recognizing that it could only do so if an
intervening Supreme Court decision mandated as much.

17a

“the arbitrary and capricious standard when reviewing
agency action in NEPA cases’’).?

Under this highly deferential standard of review, a re-
viewing court has the “least latitude in finding grounds
for reversal.’’ North Buckhead Civic Ass’n, 903 F.2d at
1538. It may not substitute its judgment for that of the
agency, but must studiously review the record to ensure
that the agency has arrived at a reasoned judgment based
on a consideration and application of the relevant factors.
Id.; Oregon Natural, 109 S.Ct. at 1861. Where conflicting
evidence is before the agency, the agency and not the
reviewing court has the discretion to accept or reject from
the several sources of evidence. The agency may even rely
on the opinions of its own experts, so long as the experts
are qualified and express a reasonable opinion. The re-
viewing court may be inclined to raise an eyebrow under
such circumstances, but it must show the proper respect
for an agency’s reasoned conclusion even if the reviewing

* We recognize that the Eighth Circuit has held that Oregon Natural
does not control the standard of review in a case where the issue
involved is the threshold one of whether NEPA even applies at all.
Goos v. I.L.C., 911 F.2d 1283, 1292 (8th Cir.1990). If an agency de-
termines that NEPA does not apply in the first instance, and the agency
makes that determination without preparing an EA and without making
a finding of no significant impact, the Eighth Circuit applies a rea-
sonableness standard, not Oregon Natural’s arbitrary and capricious
standard. Id. We need not concern ourselves with these distinctions
even though there is a substantial question presented in this case as
to whether NEPA applies at all; the Fish and Wildlife Service decided
to forego an EIS ‘‘after assuming the applicability of NEPA, after
preparing an EA and after determining that there was no significant
[environmental] impact.” Goos, 911 F.2d at 1292. Thus, the arbitrary
and capricious standard of review applies. Although it is arguably a
more lenient standard than the reasonableness test, F'ritiofson, 772 F.2d
at 1237-38, the differences between the two standards is not “‘of great
pragmatic consequence.’’ Oregon Natural, 109 S.Ct. at 1861 n. 23
(“[Ojur decision today will not require a substantial reworking of
NEPA.’’). And under either standard, we would affirm the judgment
below.

18a

court finds the opinions of other experts equally or more
persuasive. Oregon Natural, 109 S.Ct. at 1861.

A reviewing court is to review the administrative rec-
ords as well as other evidence to determine whether
the agenc[y] adequately considered the values set forth
in NEPA and the potential environmental effects of
the project before reaching a decision on whether an
environmental impact statement was necessary. If the
agency[y] engaged in this analysis and reasonably con-
cluded on the basis of [its] findings that an impact
statement was not required, [its] determination[ ] will
be upheld.

Hassell, 636 F.2d at 1097-98.°

When a court like ours is asked to review the decision
of a district court which has sat as the reviewing court
of first instance, the standard of-review that we apply
will vary depending on the course of proceedings below.
If the district court has conducted an evidentiary hearing,
and has drawn factual inferences and made credibility de-
terminations, we must give great deference to the district
court’s conclusions.

A court of appeals review of a district court review
of an administrative agency’s record is indeed an
“awkward legal animal,” but when the district court’s
judgment turns on factual matters, or upon the tes-
timony of witnesses, or even upon lengthy evidentiary
proceedings, the court of appeals should hesitate to
reverse.

’ Hassell applied the “‘reasonableness’’ standard. Nevertheless, we be-
lieve that the inquiry under the “arbitrary and capricious standard”’ is
clearly not more rigorous (though also only slightly more deferential)
than that articulated in Hassell. See Oregon Natural, 109 S.Ct. at 1861
n. 23 (‘[T]he difference between the ‘arbitrary and capricious’ and
‘reasonableness’ standards is not of great pragmatic consequence.”’).

19a

North Buckhead Civic Ass’n, 903 F.2d at 1539. Where. as
here, the district court has resolved the case by way of
summary judgment, our review of the district court’s con-
clusions is plenary. We undertake the same task as the
district court: we review the materials submitted to the
district court (which will include the agency record) and
determine whether the agency’s conclusions were arbitrary
and capricious. Marsh, 769 F.2d at 872 (lst Cir.1985).
Because the district court’s review pursuant to a summary
judgment motion cannot turn on credibility determinations
or conflicting factual inferences, International Shortstop,
Inc. v. Rally’s, Inc., 939 F.2d 1257, 1264 (5th Cir.1991).
we are in precisely the same position as the district court
and can evaluate the record de novo.

PHASE IV
The Fish and Wildlife Service concluded that by ac-

‘cepting the easement from Little Sandy, it did not un-

dertake a major federal action which significantly affected
the environment. It prepared an EA which “adequately
considered the environmental consequences of its actions.”
745 F.Supp. at 402. The EA came to a finding of no
significant impact (FONSI), and accordingly, the Fish and
Wildlife Service did not find it necessary to prepare an
EIS in connection with the acquisition of the easement.
After a painstaking review of the agency record, the dis-
trict court concluded that there was no clear error in the
Fish and Wildlife Service’s decision. We agree. As the
district court observed:

The [Fish and Wildlife Service]’s action in this case
does not alter the environmental status quo; it does
not cause any change in the physical environment.
Indeed the purpose of the acquisition of the easement
is to foreclose any change in the physical environment
of a particular wetland site. As the Court observed
in National Association of Property Owners [v. United
States], NEPA does not require a federal agency to

OO

20a

prepare an EJS in order ‘‘to leave nature alone.’’ 499
F.Supp. [1223] at 1265 [D.C.Minn. 1980)]. NEPA may
require an EIS whenever a reservoir is built, but
NEPA does not require preparation of an EIS when-
ever a reservoir is not built.

745 F.Supp. at 394. The district court recognized that the
acquisition of the easement by the Fish and Wildlife Ser-
vice did not effectuate any change to the environment
which would otherwise trigger the need to prepare an EIS.
‘An “EIS is not required . . . when the proposed federal
action will effect no change in the status quo.”’ Burbank
Anti-Noise Group v. Goldschmidt, 623 F.2d 115, 116 (9th
Cir. 1980), cert. denied, 450 U.S. 965, 101 S.Ct. 1481, 67
L.Ed.2d 614 (1981). Simply put, we hold that the acqui-
sition of a negative easement which by its terms proiibits
any change in the status quo does not amount to ‘‘major
Federal action{ ] significantly affecting the quality of the
human environment.” 42 U.S.C. § 4332(2\(C); see Burbank
Anti-Notse Group, 623 F.2d at 116-17 (no EIS required
where FAA provided federal financial assistance in con-
nection with the purchase of an airport); Sierra Club ».
Marsh, 692 F.Supp. 1210, 1221 (S.D.Cal.1988) (‘It would
be inconsistent with NEPA’s purpose to allow the city to
use NEPA to obstruct the implementation of a settlement
which will protect endangered species.’’). An EIS need not
discuss the environmental effects of continuing to use land
in the manner which it is presently being used. Upper
Snake River v. Hodel, 921 F.2d 232, 235 (9th Cir.1980)
(citing Burbank Anti-Noise Group, 623 F.2d at 116); see,
e.g., Hassell, 636 F.2d at 1099 (rebuilding bridge destroyed
in hurricane did not require preparation of EIS under reg-
ulations then in effect); Committee for Auto Responsibility
v. Solomon, 603 F.2d 992, 1003 (D.C.Cir.1979) (no EIS
required when government leased parking lot to new park-
ing management because no change in the status quo),
cert. denied, 445 U.S. 915, 100 S.Ct. 1274, 63 L.Ed.2d
599 (1980).

2la

The Supreme Court’s decision in Metropolitan Edison
Co. v. People Against Nuclear Energy makes clear that
the inquiry in NEPA cases is whether the federal action
at issue is ‘‘proximately related to a change in the physical
environment.” 103 S.Ct. at 1561 (emphasis added). The
acquisition of a negative easement which prohibits devel-
opment does not result in the requisite ‘“‘change”’ to the
physical environment. Of course, when the government
conveys property to, or exchanges land with, a private
party that plans to develop the land, an EIS is necessary
because the conveyance of property is precipitating a
change in the physical complexion of the land. Lockhart
v. Kenops, 927 F.2d at 1033 (citing National Forest Pres-
ervation Group v. Butz, 485 F.2d 408, 411-12 (9th
Cir.1973)); Bob Marshall Alliance v. Hodel, 852 F.2d 1223.
1227 (9th Cir.1988), cert. denied, 489 U.S. 1066, 109 S.Ct.
1340, 103 L.Ed.2d 810 (1989); Conservation Law Foun-
dation of New England, Inc. v. General Services Admin-
istration, 707 F.2d 626, 633 (1st Cir.1983). But by merely
accepting title to the property—or, as in this case, ac-
cepting a negative easement which precludes any devel-
opment of the land whatsoever—the government is not
undertaking a project that changes the character or func-
tion of the land. See Ono v. Harper, 592 F.Supp. 698, 701
(D.Hawaii 1983) (no EIS required where proposed transfer
of title would not cause any change in the physical en-
vironment). We view the Fish and Wildlife Service’s ‘‘ac-
tion” in accepting the negative easement as tantamount
to “inaction.” See Defenders of Wildlife v. Andrus, 627
F.2d 1238, 1243 (D.C.Cir.1980) (no EIS required when fed-
eral government decides not to exercise its authority to
prevent the State of Alaska from killing wolves on federal
land); State of Alaska v. Andrus, 591 F.2d 587, 541 (9th
Cir.1979) (same); cf. Bunch v. Hodel, 793 F.2d 129, 135-
36 (6th Cir.1986) (abdication of the Fish and Wildlife Ser-
vice’s obligations under the terms of a lease and the Mi-

22a

gratory Bird Conservation Act could not be viewed as
‘‘inaction’’).

The agency came to a finding of no significant envi-
ronmental impact, and we detect no error in that forecast.‘
“The court finds it unlikely that a no impact finding would
be held unreasonable where the government seeks to ac-
quire some additional parcels of land for environmental
mitigation purposes.” Sierra Club v. March, 692 F.Supp.
at 1221. The land is earmarked as a wildlife habitat and
migratory bird refuge. We agree with the Fish and Wild-
life Service and the district court that this intended ‘‘use”’
of the Little Sandy property has no significant environ-
mental impact. On this point, we note that we are not
altogether persuaded that the anticipated harm to the East
Texas water supply can be precisely linked to the federal
action at issue here. Although for purposes of standing
we have held that the plaintiffs have established an injury
in fact sufficient to bring these claims, an EIS is only
necessary where there is “reasonably close causal rela-
tionship between a change in the physical environment and
the effect at issue.’ Metropolitan Edison, 103 S.Ct. at
1561. Aside from the absence of any “change’”’ in the
physical environment, we entertain serious doubts as to
whether the adverse impact on water quality and supply
expected in the year 2030 can be attributed to the Fish
and Wildlife Service’s acquisition of the Little Sandy ease-
ment. In our view, plaintiffs seek to stretch the parameters
of predictability to their limits. They ask for environmental
clairvoyance, though the agency personnel—and we
judges—are but mere mortals.

‘Ironically, neither does the defendant-intervenor Sierra Club, an
environmental group which for the first time, apparently, has advocated
against the need for an EIS.

23a

We have given the record more than just a birds-eye
view, and finding no reason to migrate from the district
court’s judgment, we take refuge in its nest.

AFFIRMED.

—

24a

APPENDIX B

United States District Court,
E.D. Texas,

Texarkana Division.

No. TX-87-36-CA.

SABINE RIVER AUTHORITY,
Plaintiff,

Texas Water Conservation Association,
Plaintiff-Intervenor,
V.

UNITED STATES DEPARTMENT OF INTERIOR, Donald
Paul Hodel, in his official capacity as Secretary of In-
terior, United States Fish and Wildlife Service, Frank
H. Dunkel, in his official capacity as Regional Director
of the Fish and Wildlife Service, and Little Sandy Hunt-
ing and Fishing Club,

Defendants,

The Sierra Club and the National Audubon Society,
Defendants-Intervenors.

Aug. 13, 1990.

Action was brought challenging the Fish and Wildlife
Service’s compliance with the National Environmental Pol-
icy Act in connection with the proposed acquisition of a
conservation easement on wetlands habitat. On cross mo-
tions for summary judgment, the District Court, Paul N.
Brown, J., held that (1) the proposed acquisition did not
change the status quo or have a detrimental impact on
the environment and, thus, no environmental impact state-

25a

ment was necessary; (2) the environmental assessment pre-
pared by the Fish and Wildlife Service gave adequate
consideration to the need for action, to alternatives, and
to comments received from other state and federal agen-
cies; and (8) the general plan under which the Service
would acquire easements to protect wetlands habitat was
not a “‘proposal’’ for major federal action that would re-
quire an environmental impact statement.

Claims dismissed.

William H. Burchette, Christine Ryan, Jorden Schulte
& Burchette, Washington, D.C., and Carl Roberts, Lo-
ngview, Tex., Frank R. Booth, Booth & Newsome, Austin,
Tex., for Sabine River Authority and Texas Water Con-
servation Ass’n, respectively.

Ruth Harris Yeager, First Asst. U.S. Atty., Tyler, Tex.,
Lisa Hemmer, U.S. Dept. of Justice, Washington, D.C.,
Joseph I. Worsham, Dallas, Tex., for Federal defendants
and Little Sandy Club, respectively.

Wendy S. Dinner, Washington, D.C., for Sierra Club
and National Audubon Society.

MEMORANDUM OPINION AND ORDER
PAUL N. BROWN, District Judge.

Pending before the Court are Motions for Summary
Judgment filed by all parties. After carefully reviewing all
of the motions and supporting briefs, the lengthy admin-
istrative record, and the applicable law, the Court finds
that the motions of the defendants should be granted and
those of the plaintiffs denied.

I. BACKGROUND

The dispute in this case concerns the decision of the
Department of the Interior’s Fish and Wildlife Service

es

26a

(‘“FWS’’) to accept a conservation easement on 3800 acres
of land owned by the Little Sandy Hunting and Fishing
Club (‘‘Club’’). The FWS’s acquisition of this easement
conflicts with the plans of plaintiff Sabine River Authority
(‘“SRA’’) to construct the Waters Bluff Reservoir. If con-
structed, the reservoir would inundate the lands encom-
passed by the easement.

Before acquiring the easement, the FWS prepared a
draft environmental assessment (‘“‘EA’’) of the proposed
acquisition pursuant to Department of Interior regulations
implementing the review process mandated by the National
Environmental Policy Act, 42 U.S.C. § 4832 (“NEPA’’).
(AR. P).! The FWS also conducted a public hearing on the
proposed acquisition. (AR. I). Thereafter, the FWS also
issued a “Finding of No Significant Impact” (“FONSIT’’)
setting forth the FWS to prepare an environmental impact
statement (“‘EIS’’) concerning its acquisition of the ease-
ment. (AR. G-79). The FWS then accepted the easement.

Plaintiffs’ Claims

SRA contends that the FWS’s FONSI and decision not
to prepare an EIS concerning its acquisition of the ease-
ment violated the provisions of NEPA. SRA claims that
the FONSI is erroneous because acquisition of the ease-
ment is a “‘major Federal action[ } significantly affecting
the quality of the human environment”’ that requires the
preparation of an EIS. SRA also claims that the FWS’s
EA is inadequate in several respects and that this matter
should be remanded tw the FWS for further consideration.
Finally, SRA alleges that the acquisition of the easement
violated the Fish and Wildlife Act, 16 U.S.C. § 742a et
seq. and the Refuge Recreation Act, 16 U.S.C. § 460k et
seq., because the terms of the easement do not provide
for a right of access for the public.

‘ “AR” refers to the Administrative Record.

27a

Plaintiff-Intervenor Texas Water Conservation Associ-
ation (““TWCA’’) also contends that the FWS should have
prepared an EIS concerning its acquisition of the ease-
ment. In addition, TWCA asserts that the FWS’s Texas
Bottomlands Hardwood Preservation Program (‘‘Preser-
vation Program’’) is itself a ‘“‘major Federal action{ ] sig-
nificantly affecting the quality of the human environment’”’
and that the FWS should have prepared an EIS concerning
the Preservation Program.

The FWS and the Defendant-Intervenors Sierra Club
and National Audubon Society contend that the FONSI is
correct since the easement preserves the ‘‘environmental
status quo” by prohibiting development on the land en-
compassed by the easement. The FWS also contends that
its EA was adequate and that it was not required to pre-
pare an EJS concerning the Preservation Program. Finally,
the FWS asserts that the terms of the easement do not
violate the provisions of either the Fish and Wildlife Act
or the Refuge Recreation Act.

Il. STANDARD OF REVIEW

The standard of review that this Court must apply to
this case is set forth in State of Louisiana v. Lee, 758
F.2d 1081 (5th Cir.1985), cert. den., 475 U.S. 1044, 106
S.Ct. 1259, 89 L.Ed.2d 570 (1986).

NEPA requires the preparation of an [EIS] whenever
a major federal action significantly affecting the qual-

ity of the human environment is proposed. . . . Judicial
review of an agency’s decision not to file an [EIS] is
governed by the rule of reasonableness ... whether

the agency[’s] decision not to develop an impact state-
ment is reasonable and made objectively and made in
good faith on a reviewable environmental record. ...
If the decision is reasonable, the determination must

be upheld.
Id. at 1083.

a

28a

The plaintiffs’ burden in presenting a NEPA claim is
also well- established.

[T]he court must determine whether the plaintiff has
alleged facts which, if true, show that the recom-
mended project would materially degrade any aspect
of environmental quality ... If the court concludes
that no environmental factor would be significantly
degraded by the project, [the] determination not to
file the [EIS] should be upheld. On the other hand,
if the court finds that the project may cause a sig-
nificant degradation of some human environmental
factor (even though other environmental factors are
atfected beneficially or not at all), the court should
require the filing of an impact statement. ...

Id. at 1084.

The plaintiff ‘‘must establish only that the [defendant] was
unreasonable in concluding there was no reasonable pos-
sibility that the proposed action would significantly de-
grade any environmental factor.” Jd. at 1085.

The Supreme Court has held that an agency’s decision
not to file an EIS should be reviewed under the ‘‘arbitrary
and capricious” standard. Marsh v. Oregon Natural Re-
sources Council, 490 U.S. 360, , 109 S.Ct. 1851, 1860,
104 L.Ed.2d 377 (1989). The Court suggested that there
is little or no difference between this standard and the
“reasonableness” standard that had been applied hereto-
fore by courts in most of the circuits, including the Fifth
Circuit. 490 U.S. at__., 109 S.Ct. at 1861 n. 23. In
applying this standard of review, a court ‘“‘must consider
whether the decision [not to prepare an EIS] was based
on a consideration of the relevant factors and whether
there has been a clear error in judgment’’. 490 U.S. at .
, 109 S.Ct. at 1861.

An agency’s decision not to prepare an EIS may be
erroneous for one of two different reasons. The evidence

29a

in the record may indicate that, “‘contrary to the FONSI,
the agency’s proposed action may have a significant impact
on the human environment’, or the record may show that
the agency’s NEPA review process was “flawed in such
a manner that it cannot yet be said whether the [proposed
action] may have a significant impact’’. F’ritiofson v. Alex-
ander, 772 F.2d 1225, 1238 (5th Cir.1985). If a court finds
that the proposed action may have a significant impact,
the court should order the agency to prepare an EIS. /d.
On the other hand, should the court determine that the
agency’s review was inadequate, the court should remand
the case to the agency for further proceedings to correct
the inadequacies. Jd.

III. REVIEW OF THE FONSI

An agency need not prepare an EIS for actions that do
not ‘‘significantly affect{ ] the quality of the human envi-
ronment’. Citizen Advocates for Responsible Expansion,
Inc. v. Dole, 770 F.2d 423, 432 (5th Cir.1985). In deter-
mining whether particular agency actions “‘significantly af-
fect[ ] the quality of the human environment’, courts have
analyzed an agency’s action to determine whether those
actions may alter the ‘environmental status quo”’ or cause
a “significant degradation of some human environmental
factor’.

A federal agency proposing an action must prepare an
environmental impact statement if that action may cause
‘“‘a change in the [environmental] status quo.” Sierra Club
v. Hassell, 636 F.2d. 1095, 1099 (5th Cir.1981).2 Any agency
action that “‘may cause a significant degradation of some
human environmental factor’’ also requires the preparation

2 See also Sierra Club v. F.E.R.C., 724 F.2d 1506, 1510 (9th Cir.19850;
Committee for Auto Responsibility v. Solomon, 603 F.2d 992, 1002-03
(D.C.Cir.1979), cert. den., 445 U.S. 915, 100 S.Ct. 1274, 63 L.Ed.2d
599 (1980); Burbank Anti-Noise Group v. Goldschmidt, 623 F.2d 115,
116-17 (9th Cir.1980, cert. den., 450 U.S. 965, 101 S.Ct. 1481, 67
L.Ed.2d 614 (1981).

|

30a

of an EIS. State of Louisiana v. Lee, 758 F.2d at 1086.
Lee and Hassell do not set forth different tests, however,
since any action that “‘may cause a significant degrada-
tion’ of the environment certainly may cause “a change
in the environmental status quo’’. Whether a federal agen-
cy’s action ‘‘may cause a significant degradation of some
human environmental factor’ is analyzed in light of the
“environmental status quo’ existing at the time of the
proposed action. Jd.

The principle underlying the determination of whether
an agency’s action may “‘significantly affect[ ] the quality
of the human environment’, by altering the “‘environmen-
tal status quo” or causing ‘‘a significant degradation of
some human environmental factor” is that NEPA applies
only to those federal actions whose effects may cause
changes in the physical environment. NEPA’s legislative
history shows that Congress was only concerned with the
effects of federal actions that may cause changes in the
physical environment. ‘‘What is involved [in NEPA] is a
congressional declaration that... . we will not intentionally
initiate actions which do irreparable damage to the air,
land, and water....’’ Metropolitan Edison Co. v. People
Against Nuclear Energy, 460 U.S. 766, 772-73, 103 S.Ct.
1556, 1560, 75 L.Ed.2d 534 (1983), citing, 115 Cong.Rec.
40416 (1969XEmphasis original). Indeed, a change in the
physical environment is the sine qua non of any action
that alters the “environmental status quo” or causes a
“significant degradation of some human environmental fac-

tor .

Courts have recognized that federal actions that do not
change the status quo of the physical environment do not
require the preparation of an EIS under NEPA.’ For ex-
ample, in Ono v. Harper, 592 F.Supp. 698, 701 (D. Hawaii
1983), local governmental authorities sued to block the

3 See Cases cited at note 2.

arrareet Sia «Sanna cael ann

3la

transfer of federally owned land to private individuals. The
Court stated that “‘the focus of an [EIS] is the change in
the physical environment caused by the federal action at
issue’’ and dismissed the local authorities’ NEPA claim
because the authorities had not alleged that the transfer
of title to the land would cause any change in the physical
environment. Jd. at 701. In National Association of Prop-
erty Owners v. United States, 499 F.Supp. 1223
(D.Minn.1980), affd, 660 F.2d 1240 (8th Cir.1981), cert.
den., 455 U.S. 1007, 102 S.Ct. 1645, 71 L.Ed.2d 876 (1982),
the district court rejected a challenge to the implemen-
tation of restrictions’ on recreational activities in a fed-
erally-designated wilderness area under the Boundary
Waters Canoe Area Wilderness Act, based upon the claim
that an EIS was required before the restrictions could be
implemented. 499 F.Supp. at 1264-66. The Court held that
implementation of the restrictions on activities in the wil-
derness area did not “significantly affect{] the quality of
the human environment”. Jd. at 1265.

(T]he Secretary’s implementation of the Act enables
no person to significantly affect the Wilderness. In
fact, plaintiffs’ major complaint is simply that Con-
gress’ mandate to the Secretary will effectively close
portions of the Wilderness. ... In essence, plaintiffs’
claim is that the Department of Agriculture must pre-
pare an EIS in order to leave nature alone. The Court
is not moved by this argument.

Id.

Finally, the principle that NEPA applies only to those
federal actions that may cause changes in the physical
environment is supported by the corollary principle that
NEPA does not require an agency to consider those pc-
tential effects of a proposed action that do not have a
“reasonably close causal relationship [to] a change in the
physical environment caused by the major federal action
at issue’’. Metropolitan Edison, 460 U.S. at 774, 103 S.Ct.

32a

at 1561. ‘T]he Congressional concerns that led to the
enactment of NEPA suggest{] that the terms ‘environ-
mental effect’ and ‘environmental impact’ in [NEPA] be
read to include a requirement of a reasonably close causal
relationship between a change in the physical environment
and the effect at issue.’ Jd. at 774, 103 S.Ct. at 1561.
Accordingly, any alleged effects of an agency’s action that
do not have a reasonably close causal relationship to a
change in the physical environment caused by the agency’s
action are not within the scope of NEPA and can not form
the basis of a NEPA claim.

In summary, whether the FWS should have prepared
an EIS concerning its acquisition of the conservation ease-
ment depends upon whether the FWS’s action is one that
may ‘“‘significantly affect{] the quality of the human en-
vironment”’, which, in turn, depends (1) whether the FWS’s
action may cause “a significant degradation of some hu-
man environmental factor” through a change in the phys-
ical environment, and (2) whether the allegedly significant
effects of the FWS’s action have a reasonably close causal
relationship to any change in the physical environment
caused by the FWS’s action.

No Change in the Status Quo

The FWS’s action in this case does not alter the en-
vironmental status quo; it does not cause any change in
the physical environment.‘ Indeed the purpose of the ac-
quisition of the easement is to foreclose any change in the

‘The FONSI issued by the FWS is also consistent with FWS reg-
ulations that categorically exclude from the NEPA review process

[t]he acquisition of land in accordance with the Service’s proce-
dures, when the acquisition is from a willing seller, the acquisition
planning process has been performed in coordination with the
affected public and continuance of essentially the existing use is
planned.

Department of the Interior Department Manual, 30 AM 2, Ex. 4, 516
DM 6 App. 1, 1.4A(4) (4/30/84).

33a

physical environment of a particular wetland site. As the
Court observed in National Association of Property Own-
ers, NEPA does not require a federal agency to prepare
an EIS whenever a reservoir is not built.

Under State of Louisiana v. Lee, the plaintiffs’ burden
in this case is to allege facts which, if true, would show
that the FWS’s action may cause ‘‘a significant degra-
dation of some human environmental factor” through a
change in the physical environment. The plaintiffs have
failed to sustain this burden. The Court finds that when
the FWS acquires an interest in land, such as a conver-
sation easement, for the express purpose of preserving the
land in its then-existing natural state, there is no reason-
able possibility that such action may cause “a significant
degradation of some human environmental factor” through
a change in the physical environment.

Absence of Causal Connection

As indicated by the Court in Metropolitan Edison, NEPA
requires that federal agencies consider only the effects of
actions that have a reasonably close causal relationship to
changes in the physical environment cause by those ac-
tions. The alleged “effects” of the FWS’s action in this
case are the “elimination” of a potential water supply-the
Waters Bluff Reservoir-and the risk that the area served
by the SRA will suffer water shortages in the future if
the reservoir is not built. The plaintiffs allege that

[a]lequisition of the Club easement and placement of
that easement in the refuge system immediately in-
jured the interests of the SRA and others of TWCA's
members by eliminating the Waters Bluff Reservoir
and setting in motion the effects that followed the
elimination of that water supply.

The harmful effect that the plaintiffs claim the FWS's
action will have on the environment is the result of what

——

the FWS’s action prevents SRA and others from doing.
Thus, the plaintiffs’ claim presents the converse of the
typical NEPA claim, which usually involves federal actions
that initiate or permit development of natural resources.
This case poses the novel question of whether NEPA re-
quires consideration of the effects of federal actions when
the effects of those actions are to foreclose development
or use of some natural resource. The answer to this ques-
tion is that NEPA does not require a federal agency to
consider such effects since those effects result from what
the federal action prohibits third parties from doing, arid
not from any ‘‘changes in the physical environment caused
by the federal action’’ itself. The cases cited by SRA and
TWCA to support their position are inapposite.

TWCA cites the case of Environmental Defense Fund,
Inc. v. Andrus, 596 F.2d 848 (9th Cir.1979) for the prop- |
osition that a change in the use of water resources caused
by federal action requires the preparation ef an EIS. In
Andrus, the Department of the Interior decided to imple-
ment a program of marketing substantial amounts of water
for industrial uses from two existing reservoirs. The di-
version of water resources affected both the prospects of
future industrial development and the amount of water
available for irrigation downstream from the reservoir. The
Court of Appeals held that the program was a “major
federal action” under NEPA that required the preparation
of an EIS. Jd. at 851-52. Andrus can be readily distin-
guished from this case on the following basis.

In Andrus, the diversion of existing water supplies from
two existing reservoirs had the effect of altering the
amount of water available to agricultural users in order
to allocate additional water resources for industrial users.
The federal action in Andrus clearly had an effect that
changed the physical environment. In this case, there is no
diversion of any existing water resources, and there is no
change in the physical environment as a result of the ac-
quisition of the easement by the FWS.

35a

The other cases cited by the plaintiffs for the proposition
that federal actions that may create ‘‘water-supply prob-
lems” always require the preparation of an EIS all concern
the potential effects that commercial or industrial devel-
opment may have upon water. supplies. See e.g. City of
Davis v. Coleman 521 F.2d. 661 (9th Cir.1975). Yet com-
mercial or industrial development can not take place ab-
sent some change in the physical environment. In Coleman,
the federal action at issue was the proposed construction
of a freeway interchange. The Court held in that case that
the City of Davis had standing to prosecute a claim under
NEPA since the city alleged that ‘‘the planned industrial
development which the interchange will make possible may
adversely affect the quality and quantity of the city water
supply because of increased use and the danger of con-
tamination by industrial wastes’’. Jd. at 671. Commercial
or industrial development and preservation are not syn-
onymous under NEPA, and the FWS’s acquisition of a
conservation easement does not pose a “‘water-supply prob-
lem” that requires the preparation of an EIS.°®

The alleged effects of the FWS’s action in this case are
analogous to the effects analyzed in Metropolitan Edison
and are likewise beyond the scope of NEPA. In Metro-
politan Edison, the Nuclear Regulatory Commission pre-
pared an EIS concerning the relicensing of a nuclear-
powered electrical generating station. Although the Com-
mission considered the risk of a nuclear accident in its
EIS, it decided not to consider the effect of this risk upon
the psychological health of those who lived near the power
plant. The Supreme Court observed that

a risk of an accident is not an effect on the physical
environment [and] is, by definition, unrealized in the

‘ Another case cited by the plaintiffs, Goodman Group, Inc. v. Dish-
room, 679 F.2d 182 (9th Cir. 1982) does not address ‘‘watersupply
problems”, but instead holds that socioeconomic impacts of a federal
action do not trigger NEPA’s requirement of an EIS. Jd. at 185-86.

36a

physical world. ... We believe that the element of
risk lengthens the causal chain beyond the reach of
NEPA.

Metropolitan Edison, 460 U.S. at 775, 103 S.Ct. at 1562.
The same element of risk is present in the alleged effects
of the FWS’s action in this case.

One effect of the FWS’s action is that as long as the
easement remains in the National Wildlife Refuge System,
SRA can not build the Waters Bluff reservoir. Although
federal law provides certain procedures by which land may
be released from the Refuge System, there is certainly a
risk that SRA may not convince either the Congress or
the Secretary of the Interior to relinquish the easement.®
According to SRA, failing to build the Waters Bluff res-
ervoir also creates a risk that SRA will face water short-
ages in the future that will adversely affect the economic
welfare of the region that SRA serves. Yet a risk that
the reservoir will never be built and that water shortages
may occur in the future as a result is not an effect on
the ‘“‘physical environment’’. Metropolitan Edison, 460 U.S.
at 775, 103 S.Ct. at 1562. There is no causal relationship
between such speculative effects and any change in the
physical environment caused by the acquisition of the ease-
ment. The element of risk inherent in the alleged effects
of the FWS’s action in this case “lengthens the causal
chain beyond the reach of NEPA”. Jd. The Court finds
that the effects of the FWS’s action upon the plaintiffs are

* No land that is a part of the Refuge System may be disposed of
except by Act of Congress unless (1) the Department of the Interior
and the Migratory Bird Conservation Commission determine that such
lands are no longer needed for wildlife refuge purposes and the De-
partment is paid the fair market value of the land, (2) the Department
acquires other lands by exchange, or (3) such land is transferred pur-
suant to the terms of a cooperative agreement with a state or local
government, by which agreement the land originally became part of
the refuge system. 16 U.S.C. § 668dd(aX3). _

37a

not within the scope of NEPA and can not form the basis
of a NEPA claim.

Plaintiffs’ Claims are Contrary to NEPA’s Purpose

The FWS’s EA reveals that the FWS adequately con-
sidered the fact that SRA wanted to acquire the Club’s
land for an alternative use, but the FWS nevertheless
chose to acquire the easement. (AR. D p. 20-21). A careful
analysis of the plaintiffs claims makes it abundantly clear
that the plaintiffs simply object to the FWS’s policy of
acquiring conservation easements on wetland habitat where
doing so poses a hindrance to the construction of reservoir
projects. The plaintiffs’ disagreement with the FWS is
more akin to a political dispute over policy choices than
a legal dispute over compliance with the procedural! re-
quirements of NEPA. Cf Foundation on Economic Trends
v. Lyng, 817 F.2d 882, 886 (D.C.Cir.1987). “Neither the
language nor the history of NEPA suggests that it was
intended to give citizens a general opportunity to air their
policy objections to proposed federal actions. . [t]he polit-
ical process, and not NEPA, provides the appropriate
forum in which to air policy disagreements.” Metropolitan
Edison, 460 U.S. at 777, 103 S.Ct. at 1563.7 To permit
the plaintiffs to use the provisions of NEPA to voice their
policy objections to the FWS’s actions and to hinder the
FWS’s attempts to fulfill its mandate from Congress would
be contrary to the purposes of NEPA.

An analogous situation was presented in the case of
Sierra Club v. Marsh, 692 F.Supp. 1210 (S.D.Cal.1988). In
that case, a city applied for an injunction to prohibit the
transfer of certain property from a private party to the
United States pursuant to an agreement to settle a law-
suit. The city desired to develop the property in accordance

’ Legislation that would withdraw the Club Easement from the Ref-
uge System is now pending before the Marine and Fisheries Committee
in the House of Representatives.

38a

with a local development plan. If transferred, the land
would be used as a wildlife refuge, in mitigation for other
land involved in the construction of a local highway/flood
control project. The city passed an ordinance that imposed
certain conditions upon the ttransfer which would have ren-
dered the land useless as & Wildlife refuge. Jd. at 1215.
The Court’s discussion of the city’s claim has particular
relevance to this case.

The federal government is trying to discharge its ob-
ligations under a high priority federal program to pro-
tect endangered species. A private landowner wants
to donate the land to the government to effectuate
these purposes. The City of Chula Vista has passed
a local resolution in an attempt to stymie any transfer
of the property which jit believes does not serve the
City’s interests, which iit has defined as development

in strict accordance wit}h its [local development plan].

Id. at 1215.

The Court found that the City’s NEPA claim presented
“the anomalous situation in Which a municipality is trying

to use federal environmental /aws as a means of protecting
a plan for desired local commercial and residential devel-

opment’”’. Jd. at 1221. The Court rejected the city’s NEPA
claim on the grounds that ‘“{ii]t would be inconsistent with
NEPA’s purposes to allow the city to use NEPA to ob-
struct [the land transfer] which will protect endangered
species.”’ Id.

In this case, the FWS is attempting to carry out an
express mandate from Congress to acquire and protect
wetland habitat.

It is the purpose of this Act to promote, in concert
with other Federal and State statutes and programs,
the conservation of the Wetlands of the Nation ...

by (2) intensifying effortS to protect the wetlands of

39a

the Nation through acquisition [of wetlands] in fee,
easements or other interests ...

Emergency Wetlands Resources Act of 1986, 16 U.S.C.
§ 3901(b)\(2).

This case also presents the anomalous circumstance of
a governmental entity attempting to use the provisions of
NEPA to protect its plan to develop natural resources in
a manner that will unquestionably result in substantial
changes in the physical environment. To permit the
plaintiffs to use the federal environmental laws to this end
and to hinder the FWS’s efforts to carry out its directive
from Congress would be contrary to the purposes of NEPA
and contrary to the FWS’s mandate under § 2(b)(2) of the
Emergency Wetlands Resources Act.

Plaintiffs lack Standing under NEPA

To have standing to challenge the FWS’s action under
NEPA, the plaintiffs must show that they have been ad-
versely affected by the FWS’s action within the meaning
of NEPA. See Lujan v. National Wildlife Federation, —
U.S. , 110 S.Ct. 3177, 3185-86, 111 L.Ed.2d 695
(1990). In other words, the plaintiffs must establish that
the injury of which they complain ‘‘falls within the zone
of interests sought to be protected by the statutory pro-
vision whose violation forms the legal basis of [the] com-
plaint”. Jd. 110 S.Ct. at 3186. The Court’s finding that
the plaintiffs’ claims are not within NEPA’s scope and
that they are contrary to NEPA’s purpose compels the
conclusion that the plaintiffs lack standing to assert a claim
under NEPA. The plaintiffs’ interest in constructing a res-
ervoir is unquestionably an interest that is subject to the
provisions of NEPA, but it is not an interest that NEPA
was designed to protect.

Summary

The Court finds that the FWS’s decision not to prepare
an EIS concerning the easement acquisition was not ar-

se

40a

bitrary and capricious; the FWS adequately considered all
relevant factors, and there is no clear error in its judg-
ment. Marsh v. Oregon Natural Resources Council, 490
U.S. at __, 109 S.Ct. at 1861. The FONSI issued by the
FWS is correct since there is “‘no reasonable possibility’’
that the FWS’s action will cause ‘‘a significant degradation
of some human environmental factor” through a change
in the physical environment. State of Louisiana v. Lee, 758
F.2d at 1085. Furthermore, the plaintiffs’ claims are not
within the scope of NEPA because (1) the alleged effects
of the FWS’s action lack the requisite causal relationship
to any change in the physical environment caused by the
acquisition of the easement, Metropolitan Edison, 460 U.S.
at 773, 103 S.Ct. at 1561; and (2) the plaintiffs’ claims
are an improper attempt to use the provisions of NEPA
to hinder the FWS in carrying out its mandate from Con-
gress to acquire and preserve wetland habitat. For these
same reasons, the plaintiffs also lack standing to assert a
claim under NEPA, since the plaintiffs’ alleged injury is
not within the ‘zone of interests’ that NEPA was de-
signed to protect.

IV. ADEQUACY OF THE EA

As an alternative to their contention that the FONSI is
incorrect, the plaintiffs contend that the EA prepared by
the FWS is inadequate in several respects and that the
case should be remanded to the FWS for further consid-
eration. The Court has carefully reviewed the EA in light
of the administrative record and the applicable law and
finds that the EA is adequate.

Preparation of an EA is the proper procedure for an
agency to utilize in determining whether to prepare an
EIS concerning a proposed action. Vieux Carre Property
Owners, Residents and Associates, Inc. v. Pierce, 719 F.2d
1272, 1281 (5th Cir.1983); 40 C.F.R. § 1508.9(aX1). Federal
agencies have a duty to prepare a reviewable administra-
tive record, and a court must review the reasonableness

4la

of the agency’s determination on the basis of the infor-
mation available to the agency at the time the EA was
prepared. Citizen Advocates for Responsible Expansion, Inc.
v. Dole, 770 F.2d at 433. NEPA does not mandate any
particular result of the review process but only requires
that federal agencies take a “hard look” at the environ-
mental consequences of a proposed action before such ac-
tion is undertaken. Robertson v. Methow Valley Citizens
Council, 490 U.S. 332, __, 109 S.Ct. 1835, 1846, 104
L.Ed.2d 351 (1989). As long as an agency adequately con-
siders the consequences of its proposed action, NEPA does
not prohibit the agency from concluding that the benefits
of its action outweigh its costs. Id. ‘NEPA merely pro-
hibits uninformed—rather than unwise—agency action.” Jd.

Consideration of the Need for Action

In this case, the FWS selected the land owned by the
Club for possible acquisition on the basis of the findings
of a biological survey conducted at the FWS’s request.
(AR. A). The survey identified the Club’s land as a par-
ticularly valuable site of wetlands habitat, habitat that nu-
merous studies had indicated was rapidly diminishing. (AR.
A-IV). The FWS used the findings of the biological survey
in compiling the Concept Plan and Land Protection Plan.
(AR. C, p. 3). The FWS’s reliance on the survey data to
evaluate the importance of acquiring the conservation ease-
ment on the Club land was clearly reasonable.

Consideration of Water-Supply Issues

Both the survey and the Concept Plan identified planned
reservoir projects as a principal source of conflict with
preservation of wetland sites in eastern Texas. (AR. B, p.
133). The survey specifically excluded wetlands sites that
might conflict with planned reservoir projects. (AR. A-II).
In evaluating the extent of the conflict between wetlands
sites and planned reservoir projects, the FWS relied upon
the 1984 Texas Water Plan developed by the Texas De-
partment of Water Resources. (AR. H). The FWS’s reli-

42a

ance on the Water Plan’s data and projections concerning
future reservoir projects and water supplies was reason-
able in light of the fact that the Water Plan is ‘designed
to be a state-wide comprehensive estimation of the future
water demands and supplies for all of Texas over a 50-
year planning period’’. (Amicus Brief of the State of Texas
at p. 8).

Although Waters Bluff was not listed as a planned res-
ervoir in the Water Plan, the FWS nevertheless reviewed
the SRA’s Master Plan Update which contained SRA’s
own water supply projections to support its conclusion that
Waters Bluff is a feasible and necessary reservoir project.
(AR. D, p. 18, 50; AR. L—N). SRA’s Master Plan Update
relied on the Water Plan to provide ‘‘some of the basic
data sources utilized in the projections of future basin
water requirements’’. (AR. M, p. 1-6). The record indicates
that the FWS fully considered the available data on future
water supply needs of the Sabine River Basin contained
in both the Water Plan and SRA’s Master Plan Update.
The final EA issued by the FWS contains an adequate
discussion of the water-supply issues raised by SRA in its
opposition to the proposed easement. (AR. D, p. 12-16).

There is no indication that the FWS failed to consider
pertinent data in reaching its conclusion. The plaintiffs
merely disagree with the FWS’s interpretation of the avail-
able data and the conclusion that the FWS reached. Yet
“the mere existence of differing opinions does not make
[the agency’s] decision erroneous.” State of Louisiana v.
Lee, 758 F.2d at 1085. This Court can not conclude that
the FWS’s review of the water-supply issues raised by
SRA was inadequate or that the FWS’s conclusion was
unreasonable, arbitrary or capricious.

Consideratien of Alternatives

The plaintiffs contend that the FWS failed to adequately
consider alternatives to acquisition of the easement. The
FWS considered four alternatives: (1) taking no action to

48a

preserve the Club’s land, (2) establishing a refuge in con-
junction with the Waters Bluff project, (3) acquiring the
Club’s land in fee simple, and (4) acquiring a less-than-fee-
simple interest in the Club’s land. (AR. D, p. 20-25). SRA
faults the FWS for not considering the acquisition of high
priority wetland habitat outside the area of SRA’s Waters
Bluff project and for failing to adequately consider estab-
lishing a refuge in conjunction with the Waters Bluff pro)-
ect.

Once an agency adequately addresses alternatives to its
proposed action, ‘‘the decision of which alternative to fol-
low is within the agency’s discretion”. South Louisiana
Environmental Council, Inc. v. Sand, 629 F.2d 1005, 1017
(5th Cir.1980). “[T]he range of alternatives that reasonably
must be considered decreases as the environmental impact
of the proposed action becomes less and less substantial”’.
Olmsted Citizens for a Better Community v. United States,
793 F.2d 201, 208 (8th Cir.1986). Although consideration
of some range of alternatives is essential to any environ-
mental assessment, it makes little sense to fault an agency
for failing to consider “more environmentally sound alter-
natives to a project which it has (properly]- determined,
through its decision not to file an impact statement, will
have no significant environmental effects anyway . Id.; see
also City of New York v. United States Dept. of Trans-
portation, 715 F.2d 732, 744 (2nd Cir.1983), cert. den., 465
U.S. 1055, 104 S.Ct. 1408, 79 L.Ed.2d 730 (1984). Since
the FONSI concerning acquisition of the easement is cor-
rect, the range of alternatives considered by the FWS was
adequate.

The FWS considered and rejected the no-action alter-
native for the simple reason that doing nothing to preserve
the highest priority site of wetland habitat would not be
consistent with the FWS’s preservation efforts and would
likely permit the irretrievable loss of the habitat. (AR. D,
p. 21). Similarly, establishing a refuge in conjunction with
the Waters Bluff project was rejected because that alter-

ce a

44a

native would not prevent destruction of the wetland hab-
itat. (AR. D, p. 20-21). The FWS also concluded that any
area set aside for refuge purposes would be of inferior
quality. (AR. D, p. 20-21). This conclusion is supported by
the report issued by the Texas Parks and Wildlife De-
partment which suggested that wetland sites established
in conjunction with reservoir projects are of only “‘mar-
ginal’’ value to waterfowl populations. (AR. K-I-7, p. 18-
19). Acquisition of the Club’s land in fee-simple was not
an available alternative because the Club was not willing
to sell, and the FWS was operating under budgetary con-
straints that made no-cost acquisitions especially attrac-
tive. (AR. D, p. 23-24). The Court finds that the FWS’s
consideration of these alternative courses of action was
adequate and reasonable.

Consultation with Other Agencies

The plaintiffs contend that the FWS failed to properly
consult with other federal and state agencies during the
NEPA review process. This claim is not supported by the
evidence in the record, and it is based on the erroneous

assumption that NEPA mandates inter-agency consultation
before a draft EA is prepared.

Although the applicable regulations do not address the
timing of inter-agency consultation in the preparation of
an EA, the regulations do provide that after preparing a
draft EIS and before preparing a final EIS the agency
shall obtain the comments of other Federal agencies and
request the comments of appropriate State and local agen-
cies. 40 C.F.R. § 1503.1(aX1, 2). The regulations further
provide that an agency shall respond to such comments.
Id. at § 1503.4(a). There is nothing in NEPA or the ap-
plicable regulations to suggest that the timing of consul-
tations should be any different when an agency prepared
a draft EA as opposed to a draft EIS.

The record indicates that the FWS circulated its draft
EA to all appropriate federal and state agencies. (AR. D,

45a

p. 49-50; AR. G- 84). The FWS then received a number
of written comments both critical and supportive of its
proposed action. (AR. K). The FWS also received oral and
written comments during the public meeting concerning
the easement. (AR. I). In response to these comments, the
FWS revised its draft EA to include a discussion of the
alleged controversial aspects of its acquisition of the ease-
ment. (AR. P, p. iii; AR. D, p. iii). While the draft EA
contained only a brief reference to SRA’s Waters Bluff
project, the final EA contains a responsive discussion of
the water-supply issues raised by SRA. (AR. P, p. 9; AR.
D, p. 12-16). The FWS also revised the EA to address
the alternative of establishing a refuge in conjunction with
the Waters Bluff project. (AR, P, p. 11-12; AR. D, p. 20).
Thus, the record demonstrates that the FWS considered
and responded to the comments raised in opposition to the
easement. The FWS’s action was consistent with the re-
quirement that an agency involve the public as well as
other government agencies in preparing an EA. See 40
C.F.R. § 1501.4(b). That the FWS chose not to agree with
the objections raised by SRA and others does not under-
mine the adequacy of the FWS’s NEPA review.

30-Day Comment Period

A related issue raised by the plaintiffs is the FWS’s
alleged failure to provide a 30-day comment period after
the FONSI was issued. See 40 C.F.R. § 1501.4(e)(2). This
regulation mandates such an additional comment period if
the agency’s proposed action (1) is, or is closely similar

* The case cited by the plaintiffs in support of their contention :s
readily distinguishable. In Simmans v. Grant, 370 F.Supp. 5, 18-19
(S.D. Tex.1974), the Court found that the federal agency had failed to
contact, or to consider the views of, several other agencies in preparing
an EA and a FONSI and that there had been little or no opportunity
provided for the public to express its views on the agency’s proposed
action. The record in this case reveals no similar deficiency in the
FWS’s NEPA review process.

| | ,

46a

to, action that “normally requires’ the preparation of an
EIS under regulations adopted by the agency, or (2) ‘‘the
nature of the action is one without precedent’.
§ 1501.4(e2\i-ii).

Whether the acquisition of the conservation easement is
or is similar to an action that ‘normally requires’ the
preparation of an EIS under Department of Interior reg-
ulations is the subject of somewhat conflicting provisions
in those regulations. On the one hand, the regulations
provide that an FWS proposal to establish “new refuges,
fish hatcheries, or research stations and major additions
to existing installations” will ‘‘normally require the prep-
aration of an EIS“. Department of the Interior Depart-
ment Manual, 516 DM 6, App. 1, 1.3A(1). The regulations
further provide that if an EIS is not prepared for such
proposals, “‘an EA will be prepared and handled in ac-
cordance with § 1501.4(e\2)**. Jd. at 1.8B. On the other
hand, the regulations categorically exclude from the NEPA
process “‘acquisition of land in accordance with the Ser-
vice’s procedures, when acquisition is from a willing seller,
the acquisition planning process has been performed in
coordination with the affected public and continuance of
essentially the existing use is planned”. Jd. at 516 DM 6,
App. 1, 1.4A(4). The resolution of this apparent conflict
lies in a common-sense interpretation of these provisions.

Although the effect of the FWS’s actions in this case
was to create a “new refuge’’, the other types of actions
described in section 1.3A(1) are sufficiently dissimilar to
the FWS’s action in this case to support the conclusion
that the acquisition of a conservation easement by the
FWS is not the “establishment of [a] new refuge [ ]’” for
purposes of section 1.3A(1). “Establishment of new ...
fish hatcheries, research stations and major additions to
existing installations’’ involves more than the mere ac-
quisition of a property interest such as a conservation
easement. This interpretation of section 1.3A(1) is thus
fully consistent with section 1.4A(4)’s categorical exclusion

47a

of land acquisitions by the FWS from a willing seller where
a continuation of the existing use of the land is planned—
an apt description of the FWS’s action in this case. That
the FWS prepared an EA concerning the easement ac-
quisition does not undermine this conclusion because the
regulations provide that an EA “‘may be prepared on any
action [even those covered by a categorical exclusion] at
any time in order to assist planning and decision-making’’.
Id. at 516 DM 3.2; see also 40 C.F.R. § 1508.4. Accord-
ingly, the FWS’s action in this case was not one that would
normally require the preparation of an EIS under regu-
lations adopted by the FWS, nor was it similar to such
an action.

The 30-day comment period must also be provided if
“the nature of the proposed action is one without prece-
dent”. 40 C.F.R. 1501.4(eX2Xii). Whether the “‘nature” of
the FWS’s action is ‘“‘without precedent” is largely a func-
tion of the definition one assigns to the term ‘‘nature’’.
If, as the plaintiffs argue, the “nature” of the FWS’s
action is the acquisition of a conservation easement in an
area where construction of a reservoir is planned, then
the action is “‘without precedent” since the FWS admits
that no other conservation easements have been acquired
in an area where a reservoir project is planned. Yet the
common understanding of the term “‘nature’’—the essential
character of something—illustrates that the FWS’s action
was not “without precedent”. The essential character of
the FWS’s action is the acquisition of a conservation ease-
ment under circumstances that pose a conflict with another
party’s desired uses of the same land. The ‘‘nature”’ of
the FWS’s action is not “without precedent” since the
FWS has heretofore acquired similar easements under cir-
cumstances that also posed a conflict with other potential
uses of the same land. (AR. D, p, iii). Because the FWS’s
acion was not without precedent, no additional comment
period under 40 C.F.R. § 1501.4(eX2) was required.

48a

Finally, even if the Court were to find that the 30-day
comment period applied to the FONSI in this case, the
plaintiffs have failed to identify any additional relevant
information that they or any other party would have pro-
vided the FWS. Accordingly, there is nothing to suggest
that the absence of the additional comment period deprived
the FWS of relevant information such as would undermine
the reasonableness or adequacy of the FWS’s NEPA re-
view process.

Consideration of Controversy, Precedent and Cumula-
tive Effects

The plaintiffs also contend that the FWS failed to con-
sider the extent of the controversy surrounding its action,
the precedential nature of the action, and the cumulative
effects of acquiring additional conservation easements. This
claim is based on regulations that provide that in deter-
mining whether a proposed action is “significant” under
NEPA, the “intensity” or severity of the environmental
“impact” of the proposed action must be considered. 40
C.F.R. § 1508.27(b). Among the several factors listed for
consideration in determining “‘intensity’’ are the degree to
which the effects on the quality of the human environment
are likely to be highly controversial’’, “the degree to which
the action may establish a precedent for future actions
with significant effects”, and whether the action is related
to other actions with individually insignificant but cumu-
latively significant impacts”. Jd. at § 1508.27(b\4, 6, 7).

The only “‘effects” or “impa

[Text truncated at 120,000 characters. The full text is on the page linked above.]

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386011_0749%3A1. Public record. Not legal advice.
