# Petition for Writ of Certiorari — City of Dallas v. Gould

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2010
- **Citation:** 559 U.S. 935

## Text

a

Supreme Court, U.S.
rite oO

081520 JUN 1 9 2009

‘°: —__ F106 OF THE CLERK

Jn The Supreme Court of the Anited States

Ciry OF DALLAS, TEXAS, Petitioner,
V.
RO'WAN W. GOULD, DIRECTOR OF TIE UNITED STATES
FISH AND WILDLIFE SERVICE, ET AL., Respondents.

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

PETITION FOR A WRIT OF CERTIORARI

JOHN C. MARTIN THOMAS P. PERKINS, JR
Counsel of Record CHRISTOPHER D. BOWERS
AMY B. CHASANOV City of Dallas

Pation Boggs LLP 1500 Marila Street

2550 M Street, NW Dallas, TX 75201
Washington, DC 20037 (214) 670-3519

(202) 457-6032

S. CASS WEILAND

ROBERT A. HAWKINS
Patton Boggs LLP

2001 Ross Ave., Ste. 3000
Dallas, TX 75201

(214) 758-1504

Counsel for Petitioner

sb ir atli eh mt see EIS ACS eR ERE MS BD BRE CDNTE AT INNA ACACIA ek YOO PRE A =

QUESTIONS PRESENTED FOR REVIEW

This case involves the U.S. Fish and Wildlife
Service’s (“FWS”) compliance with the National
Environmental Policy Act (“NEPA”) when it
established the boundaries for a new, permanent
25,28 1-acre national wildlife refuge along the upper
Neches River in East Texas.

1. When establishing a permanent wildlife refuge
covering thousands of acres, did FWS comply with
NEPA when it (i) established a short-term time
horizon that it knew would preclude consideration of
reasonably foreseeable effects beyond that time
horizon; (ii) excluded the known indirect impacts of
its actions on a reservoir project planned, pursuant
to Texas law, for the same area; and (iii) refused to
consider any alternative that would allow both the
wildlife refuge and the reservoir to proceed?

2. Whether the Fifth Circuit failed to follow this
Court’s “proximate causation” requirement, as
enunciated in Department of Transportation ov.
Pubiic Citizen, 541 U.S. 752 (2004), when it excused
FWS’s failure to assess, under NEPA, the indirect
impacts associated with the loss of a municipal
water source?

3. May acourt properly hold that FWS’s reliance on
20-year-old, inaccurate data did not affect its NEPA
decision ever though the data concerned the central
environmental issue in FWS’s decision, and despite
the absence in the administrative record of any
suggestion that FWS had accounted for the
inaccuracy in its decisionmaking?

ll
PARTIES INVOLVED

The respondents in this Court are:'

Rowan W. Gould, in his official capacity as Director
of the United States Fish and Wildlife Service

Ken Salazar, in his official capacity as the Secretary
of the United States Department of the Interior

Benjamin N. Tuggle, in his official capacity as the
Regional Director of the Southwest Region
(Region 2) of the United States Fish and Wildlife
Service

United States Department of the Interior

. — , ;

Rowan W. Gould is substituted for H. Dale Hall, and Ken
Salazar is substituted for Dick Kempthorne, pursuant to
Supreme Court Rule 35(3)

il

TABLE OF CONTENTS
QUESTIONS PRESENTED FOR REVIEW. ............... ]

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CRIP ee MIT o oicn cis cnccecsavevncsesessassenpasabhccunpsosnnser 1
JURISDICTION .......... eRe NMRA NN, oP Ad Ker 8. 1
STATUTORY AND REGULATORY
PR Vrs LEW VUE VED veneccsesncvessscevsssincocsosssevessves 1
Pe te IE Stel xk Scturscanscnuonriseaeadeiraskiua torres 2
STAT eee LCP TEED CAPREE ED vansesdiccccedsrccececsecnaceceses 3
A. The City’s and State’s Plans for
Designation of Fastrill Reservoir.. .............. 3
B. FWS’s Plans To Designate The Refuge........ 4
C. District Court's Decision ..............ccccccrscssesees 6
DD. FREER CRP CUEE © DIGGING oie ccc snccccenersssccosnnes 8

REASONS FOR GRANTING THE PETITION ........ 9

A. The Fifth Circuit’s Application Of
NEPA’s Environmental Impacts
Analysis Conflicts With The Holdings
Pe SM CN ogo sacccnickcacacteceesecccnivecceass 11
B. The Fifth Circuit's Decision That The
Refuge Was Not The Proximate Cause
Of ‘The Effects On The State’s Water
Supply Fails To Follow This Court's
tap OG eae k WAN A 9 Pon) FAN ah Aerie bt 26

1V

C. The Fifth Circuit’s Approval Of FWS’s
Outdated Data Conflicts With

Decisions By Other Circuits....................... 29
ITE 2,., 5 ares caccayoncesesdobin ay tans taesccoianseaGartaaa ae
APPENDIX

Opinion of the U.S. Court of Appeals for the
Fifth Circuit (March 12, 2009)

Opinion of the U.S. District Court of the

Northern District of Texas Granting Federal
Defendants’ Cross-Motion for Partial

Summary Judgment (June 30, 2008).................... 2la

Opinion of the U.S. District Court of the

Northern District of Texas Granting Plaintiffs’
Emergency Motion for Injunction Pending

PE CP i IE acs coca ccecsenvenes das scececcndssocseds 60a

Statutory and Regulatory Excerpts....................... 67a

Vv

TABLE OF AUTHORITIES

FEDERAL CASES PAGE(S)
American Bird Cons. v. Fed. Commce’ns
Comm'n, 516 F.3d 1027 (D.C. Cir. 2008)........... 13

Border Power Plant Working Group v. U.S.
Dep't of Energy, 260 F. Supp. 2d 997 (S.D.

I a Se 16
Bowen v. Georgetown Univ. Hosp., 488 U.S.
ES RR RAED MERU OR MIDI cae Uneasy 32

Brady Campaign to Prevent Gun Violence v.
Saiazar, -- F. Supp. 2d --, No. 08-2243,

2009 WL 763091 (D.D.C. Mar. 19, 2009)........... 13
California v. Block, 690 F.2d 753 (9th Cir.
| REE PE EAS Rie eee Heer Secale Hee 8 ak OR 22

Cape Hatteras Access Pres. Alliance v. U.S.
Dep't of the Interior, 344 F. Supp. 2d 108
NE MI ocd. oarsd un asenni eke ee ase 34

Catron County Bd. of Comm’rs, NM v. U.S.
Fish & Wildlife Serv., 75 F.3d 1429 (10th
ee I eet ik 0 ie ee ee 23, 34

Center for Biological Diversity v. Natl
Highway Traffic Safety Admin., 538 F.3d

re iiss cdsnckckscssicniceaeerences ovens 20
Citizens Against Burlington, Inc. v. Busey, 938

ie 8 fil oe te | erence minus 20
Citizens to Pres. Overton Park, Inc. v. Volpe,

er Pe I Sgn Sines cecntc ci nceataeaecco semicon 10
Citizens’ Comm. to Save Our Canyons v.

Krueger, 513 F.3d 1169 (10th Cir. 2008)............ 29

City of Davis v. Coleman, 521 F.2d 661 (9th
SA; Se evcaccidnesaishtsaarccctec aeons 12, 32, 24

lll ln l,l, alli, a, lll ll. lll. ll. lly. lll. lin. ll. ai. lll ll lla. sc

V1

City of New York v. U.S. Dep't of Transp., 715

Be ee IE i, BI vo vinesevunssccecaeeasveseseesensscen 20
City of Shoreacres v. Waterworth, 420 F.3d

GD Ce Ge, I oiccicceccekcssesscdiccerssacceces 12, 16, 27
County of Suffolk v. Sec’y of the Interior, 562

F.2G 1968 GG Cir. 1977) ......ccccocsscccces. aE Rane 22
Davis v. Mineta, 302 F.3d 1104 (10th Cir.

EE sR Perea nel aoe eae nC 19, 20
Dubois v. U.S. Dep’t of Agric., 102 F.3d 1273

SN no ecenausauniuababecnuawns seus 21
Environmental Def. Fund, Inc. v. Army Corps

of Eng’rs, 492 F.2d 1123 (5th Cir, 1974)............ 19
Environmental Def. Fund v. Marsh, 651 F.2d

I I BU ic, ci snuccanwevucesnucsuksiesutsewatonesuses 34
Flint Ridge Dev. Co. v. Scenic Rivers Ass’n,

IE Fe is cvtpnss cscnvdngertavasusiidessvansvaes 10
Florida Key Deer v. Paulison, 522 F.3d 1133

(11th Cir. 2008)................ Psd SPREE In
Catron County Board of Commissioners, New Mexico
uv. Fish and Wildlife Service, 75 F.3d 1429 (10th Cir.
1996), the Secretary of Interior sought to designate
74 miles of river as critical habitat under the
Endangered Species Act (“ESA”). The Secretary
claimed these ESA activities were exempted from
NEPA, but the Tenth Circuit disagreed: “[w]hile the
protection of species through preservation of habitat
may be an_ environmentally’ beneficial goal,
Secretarial action under ESA is not inevitably

1S The Department of the Interiors NEPA Departmental

Manual confirms the point, finding that a new refuge system
unit—whose purpose is undoubtedly to protect’ the
environment—‘normally” requires an EIS when there are

conflicts with state and local land use. App. 16a (citing 62 Fed
Reg 2375, 2382 (Jan. 16, 1997))

34

beneficial or immune to improvement by compliance
with NEPA procedure.” Jd. at 1437 (emphasis
added); accord High Country Citizens’ Alliance uv.
Norton, 448 F. Supp. 2d 1235, 124& (D. Colo. 2006);
Cape Hatteras Access Pres. Alliance v. U.S. Dep’t of
the Interior, 344 F. Supp. 2d 108, 134 (D.D.C. 2004).
See also Envtl. Def. Fund v. Marsh, 651 F.2d 983,
993 (5th Cir. 1981) (“NEPA is concerned with all
significant environmental effects, not merely adverse
ones.”). Given NEPA’s fundamental purpose to
inform the public and government officials of the
environmental consequences associated with an
agency's actions, FWS’s_ actions—even if the
designation of habitat is environmentally
beneficial—violated the Tenth Circuit's clear
precedent. See Catron, 75 F.3d at 1437.

35

CONCLUSION

The petition for a writ of certiorari should be
granted.

Respectfully submitted.

| JOHN C. MARTIN THOMAS P. PERKINS,
| Counsel of Record JR. CHRISTOPHER D.
AMY B. CHASANOV BOWERS
Pation Boggs LL? City of Dallas
2550 M Street, NW | 1500 Marilla Street
| Washington, DC 20037 | Dallas, TX 75201
| (202) 457-6032 | (214) 670-3519

|S. CASS WELLAND

| ROBERT A. HAWKINS

| Patton Boggs LLP |
2001 Ross Ave., Ste. |

3000 |

Dallas, TX 75201

(214) 758-1504

| Counsel for Petitioner

APPENDIX

la

Filed March 12, 1009

IN THE UNITED STATES COURT OF
APPEALS FOR THE FIFTH CIRCUIT

No. 08- 10890

CITY OF DALLAS, TEXAS
Plaintiff-Appellant

Vv.
H. DALE HALL, ET AL.
Defendant-Appellee
and

TEXAS WATER DEVELOPMENT BOARD
Plaintiff-Appellant

V.

UNITED STATES DEPARTMENT OF THE
INTERIOR, ET AL
Defendants-Appellees

Appeal from the United States District Court for the
Northern District of Texas

Before SMITH and SOUTHWICK, Circuit Judges,
and ENGELHARDT, District Judge.”

* District Judge of the Eastern District of Louisiana, sitting by
designation

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KURT D. ENGELHARDT, District Judge:

After preparing an Environmental Assessment
(“EA”) of the proposed Neches Wildlife Refuge in
East Texas, the U.S. Fish & Wildlife Service (“FWS’”)
announced its Finding of No Significant Impact
(“FONSI”), obviating the need to prepare an
Environmental Impact Statement (“EIS”). FWS then
set an acquisition boundary for the refuge and
accepted a conservation easement within that
boundary. These actions precluded a reservoir the
City of Dallas (“City”) and the Texas Water
Development Board (““TWDB”) had proposed for the
same site. The City and TWDB sued in federal
district court claiming that the EA that FWS
prepared was flawed, that under the National
Environmental Policy Act (“NEPA”) the agency was
required to prepare an EIS, and that the
establishment of the refuge violated the Tenth
Amendment. The district court dismissed several of
the Appellants’ claims and granted FWS’ motion for
summary judgment on others. We AFFIRM.

I. BACKGROUND

In 1961, the State of Texas first identified a site
along the Upper Neches River in Anderson and
Cherokee Counties as a potential reservoir to serve
the growing Dallas/t't. Worth Metroplex. Dubbed the
Fastrill Reservoir, the site was again included in a
state water agency resources plan in 1984, and in the
1997 and 2001 regional water plans issued by
TWDB. The City and TWDB’s plan envisioned
constructing the reservoir in 2050 and tapping it in
2060. There is nothing in the record pnor to 2005
that indicates that the City or TWDB took any steps

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to develop the site beyond including it—among other
possible reservoir. sites-in regularly updated
planning documents.

In 1985, FWS identified the same site as a
possible wildlife refuge, since its native bottomland
hardwood forest and wetlands provide an important
wintering habitat for migrating waterfowl. That
year, FWS listed the site as high-priority for
protection. FWS approved a preliminary refuge
proposal in 1988 and prepared a draft EA, but put
the project aside for lack of funding. The project was
revived in 2003 and the agency initiated public
comment in June 2004. Public workshops were held
in July 2004 and FWS made a presentation to the
regional water planning group in October of that
year. Another EA was prepared, which listed three
alternatives: no action, the recommended 25,281-
acre configuration, and a narrower 15,294-acre
configuration. The EA referenced the reservoir
proposal and noted that both the larger and smaller
refuge configurations would prevent the reservoir
from being built. The EA was distributed to public
officials and interested groups, open meetings were
held in May 2005, and it was open for public review
and comment for two weeks that same month. More
than 1,600 comments were received, but the EA was
not revised, and a “final” EA was not issued. On July
28, 2005, FWS concluded that an EIS’ was
unnecessary and prepared a FONSI.

By early 2005, the City was aware that FWS had
revived the refuge proposal. On March 9, 2005, the
Dallas City Council passed a resolution expressing a
desire to work with FWS on a plan that would allow
the reservoir and the refuge to coexist and
authorizing a feasibility study. On August 16th, the

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Texas legislature designated the Fastrill Reservoir
as a “critical resource,” and the January 2006
regional water plan recommended building the
reservoir as part of its water management strategy.
Meetings were also held between the director of FWS
and City representatives to discuss alternative sites
for the refuge, and state and FWS representatives
continued to communicate through the first half of
2006 about alternative plans that would allow a
refuge and a reservoir to coexist. The City and
TWDB scheduled—though did not actually begin-a
series of engineering and environmental studies. By
June 11, 2006, the day FWS designated an
“acquisition boundary” for the refuge encompassing
the larger 25,281-acre site, the feasibility study was
not completed nor had Appellants taken any
concrete steps toward planning the reservoir, such
as applying for permits. Accompanying’ the
designation was a Conceptual Management Plan
outlining how land within the boundary would be
acquired. The Neches Wildlife Refuge was set to
come into existence when FWS, by purchase or
donation, took title to or an interest in property
within the acquisitioi boundary. On August 23,
2006, FWS accepted a one-acre conservation
easement from a landowner within the acquisition
boundary.

TWDB and the City filed the instant suits on
January 10, 2007, arguing inter alia that the EA was
flawed, that FWS should have prepared an EIS, and
that the refuge violated the Tenth Amendment. On
October 24, 2007, the district court dismissed five of
the City’s claims, including the constitutional claim,
and two of TWDB’s claims, under Rule 12(b)(6). The
parties filed cross-motions for partial summary

judgment on the NEPA claims, and on June 30,
2008, the district court denied the Appellants’
motions and granted FWS’s motion. Relying heavily
on Sabine River Auth. v. U.S. Dep’t of the Interior,
951 F.2d 669 (5th Cir. 1992), the district court held
that an EIS was not required because the
establishment of the acquisition boundary did not
cause any change in the physical environment. The
court concluded that the refuge’s effect on the City’s
water supply was speculative and not within the
scope of NEPA. The court also found that the EA
considered a reasonable range of alternatives and
evaluated the necessary information. The City and
TWDB moved for an injunction pending appeal and
for entry of final judgment, which were granted on
July 28, 2008. The parties subsequently filed a joint
motion to amend the judgment, which was granted
on September 4, 2008. Notice of appeal was filed on
September 8, 2008, and the appeal was expedited on
September 22, 2008.

II. DISCUSSION
A, Standard of Review

We review the district court's grant of summary
judgment de novo. Terrebonne Parish Sch. Bd. v.
Mobil Oil Corp., 310 F.3d 870, 877 (5th Cur. 2002).
The court may only set aside an agency’s decision not
to prepare an EIS where a plaintiff establishes that
the decision was “arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.”
5 U.S.C. § 706(2)(A); see also Marsh v. Or. Natural
Res. Council, 490 U.S. 360, 375-76 (1989); Kleppe v.
Sierra Club, 427 U.S. 390, 412 (1976). Under this
highly deferential standard of review, a reviewing

6a

court has the least latitude in finding grounds for
reversal. Sabine River, 951 F.2d at 678. Courts may
not use review of an agency’s environmental analysis
as a guise for second-guessing substantive decisions
committed to the discretion of the agency. But “fi]n
conducting our NEPA inquiry, we must ‘make a
searching and careful inquiry into the facts and
review whether the decision . . . was based on
consideration of the relevant factors and whether
there has been a clear error of judgment.” Marsh,
490 U.S. at 378 (citation omitted).

We review de novo a district court’s dismissal
pursuant to Rule 12(b)(6). Ballard v. Wall, 413 F.3d
510, 514 (th Cir. 2005). “All of the plaintiffs
allegations must be accepted as true, and the
dismissal will be affirmed only if it appears that no
relief could be granted under any set of facts that
could be proven consistent with the allegations.” Jd.
at 514-15 (internal quotation omitted). However,
“conclusory allegations or legal conclusions
masquerading as factual conclusions will not suffice
to prevent a motion to dismiss.” Taylor v. Books A
Million, Inc., 296 F.3d 376, 378 (5th Cir. 2002)
(quotation omitted).

B. Sufficiency of the Environmental
Assessment

NEPA does not require federal agencies to favor
an environmentally preferable course of action, but
rather requires that they take a “hard look at
environmental consequences.” Robertson v. Methow
Valley Citizen s Council, 490 U.S. 332, 350 (1989)
(quoting Kleppe, 427 U.S. at 410 n.21). The statute
requires “all agencies of the Federal Government .. .
[to] include Jan EIS] in every recommendation or

Ta

report on proposals for . . . major Federal actions
significantly affecting the quality of the human
environment.” 42 U.S.C. § 4332(2). An EIS is not
necessary when the federal action is not major or
does not have a “significant impact on _ the
environment.” Sabine River, 951 F.2d at 677. To
determine whether an EIS is necessary, an agency
will perform an EA. Sierra Club v. Espy, 38 F.3d 792,
802 (5th Cir. 1994); 40 C.F.R. § 1508.9(a)(1) (defining
an FA as a “concise public document” that “[{b]jriefly
provide[s] sufficient evidence and analysis for
determining whether to prepare an environmental
impact statement or a finding of no significant
impact”). An EA is “a rough cut, low-budget
environmental 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.” Sabine River, 951 F.2d
at 677 (citing Cronin v. U.S. Dep't. of Agriculture,
919 F.2d 439, 443 (7th Cir. 1990)). An EA will result
in a finding that an EIS is necessary or in a FONSI,
indicating that no further study of environmental
impacts is warranted. La. Crawfish Producers Ass’n-
West v. Rowan, 463 F.3d 352, 356 (5th Cir. 2006).

l. Failure to Consider Alternatives

An EA must discuss alternatives to the planned
action, but need not discuss all proposed
alternatives. See 40 C.F.R. § 1508.9(b) (assessment
“fs)hall include brief discussions of the need for the
proposal, of alternatives ... of the environmental
impacts of the proposed action and alternatives, and
a listing of agencies and persons consulted”); see also
La. Crawfish Ass’n, 463 F.3d at 355 (NEPA “does not

Ra

require that all proposed alternatives, no matter
their merit, be discussed in the EA.”). “[T]he range of
alternatives that the fagency] must consider
decreases as the environmental impact of the
proposed action becomes less and less substantial.”
Sterra Club, 38 F.3d at 803; see also Highway J
Citizens Group v. Mineta, 349 F.3d 938, 960 (7th Cir.
2003) (“When ... an agency makes an informed
decision that the environmental impact will be small

. a less extensive search [for alternatives] is
required.”). The rejection of even viable and
reasonable alternatives, after an appropriate
evaluation, is not arbitrary and capricious. See Miss.
River Basin Alliance v. Westphal, 230 F.3d 170, 177
(5th Cir. 2000).

The EA in this case noted that “the area under
consideration was identified in a preliminary study
by the Texas Water Plan as an area with the
potential for development as a reservoir... .” It also
noted that the City was considering a feasibility
study of the reservoir. It analyzed the effects of three
different alternatives (no action, a larger refuge, and
a smaller refuge) along multiple lines such as
climate and air quality, water resources, vegetation,
land use, and cultural resources. In each instance,
the EA acknowledged and attempted to analyze the
effect the alternative would have on the reservoir
proposal. The EA also analyzed the cumulative
impact of the refuge in conjunction with other “past,
present, and reasonably foreseeable future actions,”
including the reservoir.

Appellants argue that FWS was required to
consider an alternative that would allow the refuge
and the reservoir to coexist. In the EA, however,
FWS noted that it was unable to evaluate fully any

9a

such dual proposal, since plans for the reservoir were
“speculative in the short-term, . . . not definitive in
scope or purpose, and .. . far beyond the planning
horizon for the refuge proposal (i.e., 20 years).”
Additionally, after several weeks of consultation
between staff at FWS, the City, and TWDB, a TWDB
biologist admitted to the director of TWDB that “an
alternative site that is equal to or bigger and/or
better than the North Neches site has not yet been
identified.” The director echoed this assessment in a
letter to FWS. Only after the closure of the public
comment period and the drafting of the FONSI did
FWS receive a proposal for alternative refuge sites.
The alternatives included four other sites that
Appellants claimed were of greater environmental
value, since there was more bottomland hardwood
extant at these sites. Each of these alternatives,
however, envisioned building the Fastrill Reservoir
and the resulting inundation of the Upper Neches
area, with destruction of vegetation in that region.
The record reveals no alternative that allowed
construction of the reservoir and served FWS’ goal of
preserving the bottomlands and wetlands of the
Upper Neches. Under the circumstances, and
especially given that FWS concluded that the project
had no significant environmental impact, see Sierra
Club, 38 F.3d at 803, this range of alternatives was
reasonable.

2. Failure to Consider Impacts

An EA must analyze both the direct and indirect
effects of the proposed action that are “reasonably
foreseeable,” 42 U.S.C. § 4332(C)(ii); 40 C.F.R. §§
1502.16(a) & (b); 40 C.F.R. § 1508.7, which we have
defined as effects that are “sufficiently likely to occur

10a

that a person of ordinary prudence would take
[them] into account in reaching a decision.” City of
Shoreacres v. Waterworth, 420 F.3d 440, 453 (5th
Cir. 2005). “Reasonable foreseeability” does not
include “highly speculative harms” that “distort[ ]
the decision making process” by emphasizing
consequences beyond those of “greatest concern to
the public and of greatest relevance to the agency’s
decision.” Robertson, 490 U.S. at 355-56 (nternal
quotation marks and citations omitted). “[A] ‘but for’
causal relationship is insufficient to make an agency
responsible for a particular effect under NEPA and
the relevant regulations. Rather, a _ plaintiff
mounting a NEPA challenge must establish that an
alleged effect will ensue as a ‘proximate cause,’ in the
sense meant by tort law, of the proposed agency
action.” City of Shoreacres, 420 F.3d at 452.
Appellants argue that FWS was required to
analyze the effect of establishing the refuge on the
City’s water supply and urban planning process,
given projected population growth. The cases cited by
Appellants are inapposite, however, since they
concern the _ effect of federal actions on
existing water sources, not proposed water sources.
See Sierra Club v. Marsh, 769 F.2d 868 (Ist Cir.
1985) (effect of port development runoff); City of
Davis v. Coleman, 521 F.2d 661 (9th Cir. 1975)
(effect of industrial development runoff); California
v. Dep’t of Transp., 260 F. Supp. 2d 969 (N.D. Cal.
2003) (effect of airport construction); Simmans uv.
Grant, 370 F. Supp. 5 (S.D. Tex. 1974) (effect of
eliminating water source). Plaintiffs do not cite to
any authority for the proposition that an agency
must account for the effects on a municipal water
supply of precluding a proposed but as-yet-

lla

nonexistent water source.

Further, the effects of establishing the refuge,
and thus precluding the reservoir, are highly
speculative and cannot be shown to be the proximate
cause of future water shortages in Dallas. The City
and TWDB never committed to constructing the
reservoir and may never have done so, or may have
constructed a reservoir at another site. Besides
including it in periodically updated planning
documents, the City and TWDB have never taken
any concrete steps toward constructing the reservoir,
such as seeking permits, acquiring property, or
commencing any of the hydrological, fiscal, or
environmental studies necessary to a major public
works project. In fact, the City and TWDB have
never even settled upon the exact position of the dam
or fvotprint of the reservoir. Thus, the City and
TWDB have never identified the precise role the
reservoir—even if constructed and tapped in 2060-—
will play in supplying the region’s future water
needs. Further, the City argues that water shortages
in the region will begin as early as 2010, yet the
reservoir would not be tapped earlier than 2060.
Given the uncertainty over whether the reservoir
will be constructed and its impact on water supplies,
and the long time frame for the project, the effects of
establishing the refuge on water supplies are not
concrete enough, nor closely enough related to the
federal action, to require that they be included in the
EA.

3. Reliance on Old Data

Appellants argue that FWS relied upon old data
in its EA. Properly analyzing the risks of an action
requires an agency to use updated information or

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data; reliance on _ out-of-date or incomplete
information may render the analysis of effects
speculative and uncertain, warranting’ the
preparation of an EIS. See Klamath-Siskiyou
Wildlands Ctr. v. U.S. Forest Service, 373 F. Supp.
2d 1069, 1081 (£.D. Cal. 2004). In this case much of
the data in the EA was lifted from the earlier EA
prepared in 1988. The City and TWDB note that
there has been degradation of the site and that a
significant portion of the Upper Neches bottomland
hardwoods have been cleared. However, the City and
TWDB have not shown that this information was so
flawed that it precluded assessment of reasonably
foreseeable impacts. Nor is it clear how, in this case,
additional information as to environmental
degradation of the Upper Neches would cause FWS
to conclude it should leave the site unprotected. In
this sense, the instant case differs from those cited
by Appellants, where additional or updated
information was needed before a reasoned decision
could be made as to whether to intrude on a site. See,
e.g., The Lands Council v. Powell, 395 F.3d 1019,
1031 (9th Cir. 2005) (additional information on
animal habitat needed before timber harvest could
commence)'; Idaho Sporting Congress v. Thomas,
137 F.3d 1146, 1150 (9th Cir. 1998) (additional
information on trout habitat needed before logging
could commence), overruled on different grounds, The
Lands Council v. McNair, 537 F.3d 981, 997 (9th Cir.
2008); Klamath-Siskiyou Wildlands Ctr., 373 F.
Supp. 2d at 1081 (additional information on owl

| Lands Council also differs from the imstant case in that it
involved an EIS, which is by design a more comprehensive
document than an EA

13a

population needed before logging could commence).

Undoubtedly, were a plaintiff to show that a site
had become so degraded—for example, by substantial
clearcutting of the bottomland hardwoods such that
it would not support migrating waterfowl even if
protected—such a showing may well render the
decision to rely on older data arbitrary within the
meaning of NEPA. No such showing has been made
in this instance. Here, the use of older data in an
EA-by definition a “rough cut, low-budget”
assessment of environmental impacts on the way to
determining whether an EIS is necessary, see Sabine
River, 951 F.2d at 677-cannot be said to be
unreasonable. Nor does the use of this data in this
instance support forcing the agency to engage in a
process likely, because of its lengthy timeline, to
permit further environmental degradation of the site
before a decision is reached.

4. The FWS Decision Making Process

Finally, the City and TWDB also argue that the
decision making process FWS engaged in was a
sham. Appellants point to several flaws: FWS’s
choice of a 20-year project horizon for analysis of
unpacts, its failure to coordinate with local and state
planning agencies in violation of CEQ regulations,
and its failure to publish a “final” EA. The record
reveals that FWS engaged in an extensive process of
public education and public comment and even
worked with officials from the City and TWDB to
identify an alternative site that weuld allow the
refuge and the reservoir to coexist. Emails between
various FWS officials reveal nothing more than an
appropriate advocacy for a favored § agency
alternative. In arguing that FWS was required to

14a

publish a “final” EA, Appellants cite only to non-
binding internal policy memos and not to any
binding regulation or statute. Appellants’ assertion
that FWS abused its discretion by failing to
“coordinate” with the local, regional, and state water
planning process falls short, since neither NEPA nor
any of the other statutes the City or TWDB cite
require an agency to insinuate itself into state
planning processes in the manner suggested. Finally,
Appellants fail to show that FWS’s 20-year planning
horizon was arbitrary and capricious under the
circumstances. As the district court noted, “FWS
must set some kind of time frame for its evaluations:
it cannot have an interminable planning period.”
City of Dallas, Tex. v. Hall, 2008 WL 2622809, at *14
n.10 (N.D. Tex. June 30, 2008).

B. Requirement ofan EIS

In arguing that an EIS was required, Appellants
attempt to distinguish this case from Sabine River.
In that case, strikingly similar to the present one,
FWS set an acquisition boundary for a wildlife
refuge on 3,800 acres in East Texas, and accepted a
negative, no-development easement from a
landowner inside the acquisition boundary. See
Sabine River, 951 F.2d at 674-76. The designation
precluded the construction of a proposed reservoir.
Id. at 673. The reservoir was in the preliminary
planning stage, and the state agency with
jurisdiction over it 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.” Jd. We
concluded that “the acquisition of a negative

a

easement which by its terms prohibits any change in
the status quo does not amount to ‘major Federal
action[ | significantly affecting the quality of the
human environment. ... The acquisition of a
negative easement which prohibits development does
not result in the requisite ‘change’ to the physical
environment.” /d. at 679-80 (citations omitted). The
acceptance of such an easement is “tantamount to
inaction,” and thus the acceptance “did not effectuate
any change to the environment which would
otherwise trigger the need to prepare an EIS.” 7d. at
680. In the instant case, the district court properly
set forth the factors to consider in applying Sabine
River. whether the agency action (1) precludes any
development of the land, (2) changes the character or
function of the land, and (3) prohibits any change in
the status quo of the land. City of Dallas, Tex., 2008
WL 2622809 at *5.

The City argues that three independent
authorities dictate that an EIS was required in this
instance: FWS’s own NEPA guidelines, the NEPA
implementing regulations issued by the USS.
Department of the Interior (“DOI”), and the NEPA
implementing regulations issued by the Council on
Environmental Quality (“CEQ”). The FWS guidelines
include a number of criteria to assist the agency in
determining whether an EIS is needed. Among these
are “increased safety or health hazards,” 550 FW
3.3(B)(2)(e), and “[a]ldverse effects on municipal,
industrial, or agricultural water supply or quality . . .
> id. at 3.3(B)(2)G). The City points to these
guidelines and argues that an EIS is required to
weigh adequately the health and water supply
effects of not building the reservoir. But these
guidelines have no binding force. See Coliseum

l6a

Square Ass'n, Inc. v. Jackson, 465 F.3d 215, 229 (5th
Cir. 2005) (“Generally, to be legally binding on an
agency, its own publications must have been
‘promulgated pursuant to a specific statutory grant
of authority and in conformance with the procedural
requirements imposed by Congress.”) (citation
omitted). When agency publications have not been
promulgated pursuant to a specific grant of statutory
authority, an agency’s decision to analyze impacts by
other methods is not automatically arbitrary and
capricious. /d. at 230. These guidelines were not
promulgated pursuant to law. Further, by their own
terms, they are meant to assist in determining
whether an EIS is necessary, not dictate when an
EIS is necessary, and carefully note that whether
any of the criteria triggers the need for an EIS
depends in each instance on “the severity and
duration of effects.” FW550 3.3(B)(2).

The DOI regulations the City points to are
binding on the agency, but they do not mandate the
preparation of an EIS in this case. In the
regulations, among the “Major Actions Normally
Requiring an EIS” are “major new refuge system
units . . . which involve substantive conflicts over
existing State and local land use [or] significant
controversy over the environmental effects of the
proposal.” 62 Fed. Reg. 2375, 2382. The City argues
that the refuge meets both these criteria. But by
their own terms, the regulations “normally” require
preparation of an EIS but do not dictate preparation
in each case. Further, the regulations clearly
envision that when, pursuant to an EA, the agency
determines that an action will have no major
environmental impacts, an EJS is not required even
when the action otherwise meets the criteria. /d. In

17a

this case, after preparing an EKA the agency made a
reasoned decision that there were no significant
environmental effects.

More importantly, by their own terms the
regulations only envision preparation of an EIS
when there is a conflict with “existing” State and
local land use or where there is “significant”
controversy over environmental effects. In this case,
while a feasibility study has been completed, the
City and TWDB have taken no concrete steps to
develop the reservoir (such as applying for permits),
much less put any land to use. The development of
an acquisition boundary does not conflict with
existing State and local use, but merely with a
potential future use. Further, the City and TWDB
have been unable to show with any specificity the
effects of setting the acquisition boundary. A
controversy such as this one-over the highly
speculative, uncertain effects of not building a
particular reservoir—cannot be “significant” within
the meaning of both the regulations and NEPA.

Similarly, while the CEQ regulations that the
City points to are binding on federal agencies, see
Fritiofson v. Alexander, 772 F.2d 1225, 1236 (5th Cir.
1985), they do not mandate the preparation of an
EIS in this case. The regulations merely require an
agency to determine whether an action is one that
normally requires an EIS. See 40 C.F.R. § 1501.4(a).
If the agency determines that the action does not
normally require an EIS, it then prepares an EA and
makes a finding as to whether the proposed action
has significant environmental impacts. ZJ/d. at
1501.4(b). In this case, as described above, FWS
properly prepared an EA and made a FONSI, as
envisioned by the CEQ regulations.

lRa

TWDB also argues that the instant case is
distinguishable from Sabine River because the
refuge designation in this case will cause changes in
the physical environment. As noted in the EA, FWS
envisions removing non-native tree species in the
refuge and reintroducing native hardwood and
evergreen species. TWDB_= argues that this
distinguishes the case from Sabine River, where
there was no evidence that the refuge site would be
changed in any way by the acceptance of an
easement. See Sabine River Auth. v. U.S. Dep’t of the
Intertor, 745 F. Supp. 388, 394 (F.D. Tex. 1990).
However, as the district court noted in its order
denying Appellants’ motion for partial summary
judgment, the action at issue here is the
establishment of an acquisition boundary for the
refuge. The establishment of that boundary does not
effect any change in the physical environment, but
merely authorizes the purchase of property from
willing buyers or the acceptance of conservation
easements. Once sufficient land is acquired, FWS
will be required to comply with NEPA in formulating
a Comprehensive Conservation Plan to guide refuge
forest management. If changes in the _ physical
environment are proposed in that plan, an EIS may
be required. But the present federal action will uave
no significant physical effects such that an EIS is
required.

As in Sabine River, where the acceptance of a
negative, non-development easement was
“tantamount to inaction,” Sabine River, 951 F.2d at
680, setting an acquisition boundary for the refuge
does not effect a change in the use or character of
land or in the physical environment. Thus, it is not a
“major Federal action[{] significantly affecting the

19a

quality of the human environment,” 42 U.S.C. §
4332(2), and no EIS is necessary under the
requirements of NEPA.

C. Tenth Amendment Claims

Finally, Appellants argue that the establishment
of the refuge is unconstitutional because it
impermissibly intrudes on state sovereignty and
violates the Property? and Necessary and Proper
Clauses.? Before ruling we must determine precisely
what, if any, issues are properly before us. In its
amended complaint, the City alleged that there was
not a sufficient nexus between the agency’s action
and interstate commerce, and that FWS violated the
City’s Tenth Amendment right to secure sufficient
water supplies for future residents. In its brief before
the district court, however, the City conceded that. it
could not challenge the constitutionality of the
statutes allowing for acquisition of property. The
City’s brief also did not argue a constitutional nmght
to secure water supplies, which the district court
nonetheless characterized as “a spurious argument
without legal basis.” City of Dallas, Tex. v. Hall, 2007
WL 3125311, at *11 (N.D. Tex. October 24, 2007).
Rather, the City asserted that FWS exceeded its
authority under the Tenth Amendment when it
established the acquisition boundary and accepted
the conservation easement, because it did so for the
purpose of commandeering the state’s water
planning process and thwarting the reservoir.
Because these were not the allegations pleaded in
the amended complaint, the district court declined to

ee — - —

2U.S. Const. art. 4, § 3, cl. 2
83U.S CONST. art 1,88, cl. 18

20a

consider them on the motion to dismiss for failure to
state a claim. The allegations in the amended
complaint, not having been appealed, are waived.

In its brief before this court, the City revises its
constitutional argument. In this iteration, the City
argues that FWS, by establishing the refuge, has
unconstitutionally invaded a traditional area of state
sovereignty—water and land use planning—without
clear authorization from Congress. Additionally, it
argues that establishing the refuge violates the
Tenth Ainendment by running afoul of the Property
and Necessary and Proper Clauses. These arguments
bear only a passing resemblance to the City’s
arguments on the motion to dismiss, and none at all
to its arguments in the amended complaint.
Accordingly, these arguments are not properly
presented and we decline to consider them. See
Singleton v. Wuff, 428 U.S. 106, 120 (1976) (“It is the
general rule, of course, that a federal appellate court
does not consider an issue not passed upon below.”):
Fed. Deposit Ins. Corp. v. Myalis, 15 F.3d 1314, 1327
(5th Cir. 1994) (“[I]f a litigant desires to preserve an
argument for appeal, the litigant must press and not
merely intimate the argument during the
proceedings before the district court. If an argument
is not raised to such a degree that the district court
has an oppurtunity to rule on it, we will not address
it on appeal.”).

Il. CONCLUSION

For the foregoing reasons, we AF‘'FIRM the
decisions of the district court.

Zla

Filed June 30, 2008

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

CITY OF DALLAS, TEXAS.
Plaintiff
-

H. DALE HALL et al CIVIL ACTION NO

Defendants 3:07-C V-0060-P

Consolidated with
THE TEXAS WATER

DEVELOPMENT BOARD,
CIVIL ACTION NO
Plaintiff,
3:07-CV-0213-P

V

THE UNITED STATES
DEPARTMENT
OF THE INTERIOR et al.,

CO? CO? CO. CO? CO

Defendants

bh
tr

MEMORANDUM OPINION AND ORDER

Now before the Court are (1) the City of Dallas’s
Motion for Partial Summary Judgment, filed
January 15, 2008; (2) the Federal Defendants’ Cross-
Motion for Partial Summary Judgment Concerning
City of Dallas’s NEPA Claims, filed February 15,
2008; (3) Plaintiff Texas Water Development Board’s
Motion for Partial Summary Judgment, filed
January 15, 2008; (4) the Federal Defendants’ Cross-
Motion for Partial Summary Judgment Concerning
the Texas Water Development Board’s NEPA
Claims, filed February 15, 2008; (5) the Federal
Defendants’ Motion to Strike Plaintiffs’ Extra-Record
Materials, filed February 15, 2008; (6) the Texas
Conservation Alliance’s Motion for Leave to File
Amicus Brief, filed February 15, 2008; (7) Friends of
the Neches River’s and Houston Audobon Society's
Motion for Leave to File a Letter in Support of Texas
Conservation Alliance’s Amicus Brief, filed March 7,
2008; (8) Texas Water Conservation Association’s
Motion for Leave to File Amicus Brief in Support of
Plaintiffs’ Motions for Partial Summary Judgment,
filed April 7, 2008.

DISCUSSION

The City of Dallas (the “City”) and the Texas
Water Development Board (the “TWDB” or the
“State”)! (collectively, “Plaintiffs”) have filed these

' The TWDB is responsible for administering a comprehensive

statewide planning process intended to develop, manage, and
conserve the water resources of the State of Texas. See Tex
Water Code § 16.05l(a) (Vernon 2007). The State of Texas's
regional planning groups report to the TWDB. The City of
Dallas is Region C

23a

consolidated lawsuits against the Federal
Defendants? (“Defendants”) seeking reversal of the
United States Fish and Wildlife Service’s (““FWS’)
decision to establish the Neches River National
Wildhfe Refuge (“Refuge”) without preparing an
Environmental Impact Statement or an adequate
Environmental Assessment as required by the
National Environmental Policy Act.

On June 11, 2006, FWS designated a 25,281-acre
site within Anderson and Cherokee Counties, Texas
as the Neches River National Wildlife Refuge.
Plaintiffs want to use the same land on the Upper
Neches River for development of a reservoir to serve
the future water needs of Dallas residents and other
customers. This proposed reservoir is known as the
Fastrill Reservoir (“Reservoir”). Defendants’ decision
to establish the Refuge on this land prompted
Plaintiffs to take legal action. Plaintiffs allege that
FWS’s administrative decision to establish the
Refuge was plagued with procedural flaws and
statutory violations.

A. National Environmental Policy Act.

The National Environmental Policy Act of 1969
(“NEPA”) was established to ensure that federal
agencies carefully consider the environmental
impacts of their projects and make information
about those impacts available to the public. See 42

2 The Federal Defendants include Defendant H. Dale Hall, in
his official capacity as Director of the United States Fish and
Wildlife Service: Dick Kempthorne, in his official capacity as
the Secretary of the United States Department of the Interior;
3ernyamin N. ‘Tuggle, in his offieial capacity as the Regional
Mnrector of the Southwest Region (Region 2) of the United
States Fish and Wildlife Service; and the United States
Department of the Interior

24a

U.S.C. §§ 4321-70(d) (1982); Spiller v. White, 352
F.3d 235, 237 (5th Cir. 2003). NEPA requires federal
agencies to prepare a detailed Environmental
Impact Statement (“EIS”) for all “major federal
actions significantly affecting the quality of the
human environment.” 42 U.S.C. § 4332(C). NEPA
does not mandate particular results. It imposes
procedural requirements on federal agencies by
requiring them to take a “hard look” at the
environmental impact of their actions. Sabine River
Authority v. U.S. Dept of Inierior, 951 F.2d 669, 676
(5th Cir. 1992); see also Coliseum Square Ass’n., Inc.
v. Jackson, 465 F.3d 215, 223 (th Cir. 2006).

NEPA requires a federal agency undertaking an
action to determine whether its proposal requires an
EIS. To make this determination, an agency must
first prepare a more limited Environmental
Assessment (“EA”), which is a concise public
document that serves to briefly provide sufficient
evidence and analysis for determining whether to
prepare an EIS. See 40 C.F.R. §§ 1501.4(b),
1508.9(a). If the agency determines based on the EA
that no EIS is needed because the action would not
significantly affect the environment, 1t must issue a
“finding of no significant umpact” (“FONSI”), which
briefly presents the reasons why the proposed
agency action will not have a significant impact on
the human environment. See 40 C.F.R. §§ 1501.4(e),
1508.13. Otherwise, the agency must prepare an
RIS.

Plaintiffs contend that FWS violated its NEPA
obligation by failing to prepare an EIS or an
adequate EA with respect to its decision to establish
the Refuge. First, Plaintiffs contend that Defendants
were required to prepare an EIS because the Refuge

25a

decision was a “major federal action. . . significantly
affecting the quality of the human environment.”
Second, Plaintiffs contend the EA was inadequate
because FWS failed to provide adequate evidence
and analysis of the indirect impacts of the Refuge
designation and failed to consider alternative refuge
sites. Third, Plaintiffs allege that FWS failed to take
a “hard look” at the environmental consequences of
its decision, as illustrated by its decisions to rely on
an obsolete study and ignore current data. Fourth,
Plaintiffs accuse FWS of violating NEPA by failing
to cooperate with state and local officials.

B. Standard of Review.

An aggrieved party challenging an agency’s
decision that an EIS is not required or challenging
the adequacy of an EA may assert its claims in
federal court under the Administrative Procedures
Act. See 5 U.S.C. § 702. The court reviews these
agency decisions under the highly deferential
“arbitrary and capricious” standard. See Sabine
River, 951 F.2d at 677-78. When applying this
standard, a reviewing court shall “hold unlawful and
set aside agency action, findings, and conclusions
found to be arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.”
5 U.S.C. § 706(2)(A); Gulf Restoration Network v.
U.S. Dep’t of Transp., 452 F.3d 362, 368 (5th Cir.
2006).

This Court cannot reconsider anew the facts
leading to the establishment of the Refuge or weigh
the evidence supporting or contradicting FWS’s
decision. This Court may only evaluate whether
FWS’s decision had evidentiary support based on the
administrative record at the time the it was made.

26a

Whether or not the Court would have decided
similarly is immaterial, so long as the agency
considered all relevant factors and had evidence
supporting its decision. Thus, Plaintiffs’ burden in
this case is to show that Defendants had no evidence
to support the decision not to produce an EIS or
Defendants disregarded or ignored a factor required
in conducting the EA. See Brenham Cmty. Prot.
Ass'n uv. U.S. Dep’t of Agric., 893 F. Supp. 652, 657-58
(W.D. Tex. 1995). This Court “must look at the
decision not as a chemist, biologist, or statistician
that [it is] qualified neither by training nor
experience to be, but as a reviewing court exercising
[its] narrowly defined duty of holding agencies to
certain minimal standards of rationality.” Gulf
Restoration, 452 F.3d at 368 (internal quotation
marks omitted).

C. Amicus Bricfs.

Three organizations move for leave from the
Court to present their perspectives on these issues.

1. Texas Conservation Alliance.

The Texas Conservation Alliance, which is a
conservation organization that works to protect
native wildlife habitat and address environmental
problems, moves for leave to file an amicus brief
which it believes “will bring to this case another
perspective, one not shared by the parties to this
case.” (Mot. for Leave at 2.) The Court hereby
GRANTS the Texas Conservation Alliance’s motion
and instructs the Clerk’s Office to file its
accompanying amicus brief [Docket No. 106-3].

In its amicus brief, the Texas Conservation
Alliance reiterates FWS’s Sabine River arguments

that establishment of the Refuge maintains the
status quo and there is no causal relationship
between establishment of the Refuge and risk of
water shortage. (See infra.) The brief goes on to
describe the value of the Refuge as a habitat for
wildlife, for public recreation, and for preserving the
environment. The brief also gives chronological
descriptions of the Refuge planning and _ the
Reservoir planning.

2. Friends of the Neches River and Houston
Audobon Society’s Motion for Leave to
File a Letter in Support of Texas
Conservation Alliance’s Amicus Brief.

Friends of the Neches River is a conservation
organization that was formed for the specific purpose
of protecting the Neches River and its bottomland
forests. Houston Audobon Society is a non-profit
organization that promotes the conservation and
appreciation of bird and wildlife habitats. Both
organizations support establishment of the Refuge
and formally move to file a letter expressing their
support of the Texas Conservation Alliance’s bnef
and adopting its amicus brief as their own. The
Court hereby GRANTS the motion and instructs the
Clerk’s Office to file their accompanying letter of
support [Docket No. 111-2].

3. Texas Water Conservation Association’s
Motion for Leave to File Amicus Brief in
Support of Plaintiffs’ Motions for Partial
Summary Judgment.

The Texas Water Conservation Association
(“T'WCA”) is a statewide association of governmental!
and private entities that are active and interested in

28a

long-term provision of safe and adequate water
resources. TWCA maintains that its amicus brief
will provide another viewpoint not represented by
the parties in this case. The Court hereby GRANTS
the Texas Water Conservation Association’s motion
and instructs the Clerk’s Office to file its
accompanying amicus brief [Docket No. 123-2].

In its amicus brief, the TWCA maintains that
the Administrative Record (“Record”) reveals that
the NEPA process conducted by FWS was cynically
manipulated and unobjective. Despite its assurance
that “the purpose of [its] amicus brief is not to
repeat, rehash, or oppose the precise legal
arguments made by the parties,” the amicus brief
goes on to reiterate the arguments made by
Plaintiffs: (1) that FWS failed to take a hard look at
the environmental consequences of its action; (2)
that FWS was biased and manipulative in
conducting its NEPA analysis; and (3) that FWS did
not adequately consider alternatives. The amicus
brief also includes a chronological timeline of events.
(Amicus Br. at 3-7.)

D. Failure to Prepare an Environmental
Impact Statement (EIS).

Both Plaintiffs and Defendants move _ for
s.r mary judgment on the issue of whether FWS
was sequired to prepare an EIS in this case. The
City argues that (1) FWS’s own guidelines mandate
preparation of an EIS; (2) the Department of Interior
manual requires FWS to prepare an EIS; and (3)
NEPA requires preparation of an EIS because the
Refuge may have. significant effects on the
environment. The State argues that (1)
establishment of the Refuge was a “major federal

29a

action” and (2) establishment of the Refuge would
have significant regional socio-economic effects and
significant indirect effects. Defendants argue that
the Fifth Circuit’s decision in Sabine River Authority
v. United States Department of the Interior, 951 F.2d
669 (5th Cir. 1992) governs this case and mandates a
ruling in their favor.

1. The Sabine River Case.

In Sabine River — a case strikingly similar to
this one — the Fifth Circuit held that FWS was not
required to prepare an EIS with regard to its
decision to accept a conservation casement on 3800
acres of land in East Texas even though acquisition
of the easement prevented the plaintiff from
constructing a water reservoir on the same land.
Like this case, Sabine River involved an effort by
FWS to preserve land for the sake of protecting
wildlife habitats and populations. Like this case, the
agency action in Sabine River foreclosed the plaintiff
from establishing a reservoir on the same land. Like
this case, the Sabine River plaintiff had “given
serious consideration to usimg [the] land to
construct” a reservoir. Jd. at 673. Like this case, the
Sabine River plaintiffs “plans for the construction of
the reservoir, aimed at satisfying the anticipated
need for additional watcr over the next forty years
[in our case, 50 years], were still in the preliminary
stages: fit] 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” water that the reservoir would generate each
year. /d. Like this case, the Sabine River plaintiff
filed suit in federal court, alleging that the federal
agency's decision interfered with the plaintiff's long-

30a

term plan to construct a reservoir, which would
ensure that the state’s water supply would not be
placed in jeopardy in the calendar year 2030 (in this
case, 2060 [TWDB 562]). And lke this case, the
Sabine River plaintiff invoked NEPA and argued
that FWS’s action constituted a “major federal action
significantly affecting the quality of the human
environment,” thereby necessitating preparation of
an EIS. Id.

Defendants argue that Sabine River controls the
outcome of this case by presuming this case is
indistinguishable from it. Defendants maintain that
Plaintiffs’ argumerts seeking to distinguish this case
from Sabine River are foreclosed by Sabine River
which controls the outcome of this case. (Defs.’
Cross-Mot. for Summ. J. on State NEPA Claims at
16.) As the State points out, this argument is
circular: it assumes that Sabine River is not
distinguishable, then uses that precedent to foreclose
the argument that it is distinguishable. (State Resp.
at 3.)

Sabine River requires the Court to conduct an
analysis of the facts of each particular case, as
governed by the law set forth therein. In order for
the Court to determine whether the agency action at
issue rises to the level of a major federal action
significantly affecting the quality of the human
environment under Sabine River, the Court may look
at whether the agency action at issue (1) precludes
any development of the land, (2) changes the
character or function of the land, and (3) prohibits
any change in the status quo of the land. See Sabine
River, 951 F.2d at 680. To do this, the Court must
decipher from the Administrative Record the scope of
the agency action taken and whether the agency

.

sla

action causes a significant change to the land. The
Court must also analyze the socio-economic impact
of the Refuge decision on the Reservoir and on
regional and state water planning generally, and
whether the indirect effects of the Refuge are
significant within the meaning of NEPA. See id.

a. Direct Effect on Physical
Environment.

In Sabine River the district and circuit courts
held that FWS’s act of acquiring the easement “d[id]
not alter the environmental status quo; it does not
cause any change in the physical environment.
Indeed, the purpose of the [action] [wa]s to foreclose
any change in the physical environment of a
particular wetland site.” Sabine Hiver, 951 F.2d at
679 (quoting Sabine River, 745 F. Supp. 388, 394
(E.D. Tex. 1990).). The courts also held there was no
causal connection between the federal agency action
and the alleged change to the physical environment.
See Sabine River, 745 F. Supp. at 394-95; Sabine
River, 951 F.2d at 680. The Fifth Circuit noted that
NEPA does not require a federal agency to prepare
an EIS in order to “leave nature alone.” Sabine
River, 951 F.2d at 679. “NEPA may require an EIS
whenever a reservoir is built, but NEPA does not
require preparation of an EIS whenever a reservoir
is not built.” Jd. The court reasoned that the agency
action “did not effectuate any change to the
environment which would otherwise trigger the need
to prepare an EIS.” Jd. The court concluded that an
agency action that “precludes any development of
the land whatsoever,” that dves not “change [ ] the
character or function of the land,” and that “by its
terms prohibits any change in the status quo” does

32a

not amount to a “major Federal action[] significantiy
affecting the quality of the human environment.” /d.
at 679-80 (quoting 42 U.S.C. § 4332(2)(C) (alteration
in Sabine River).

In this case, Defendants characterize the agency
action as the “establishment of an acquisition
boundary for a refuge,” which they argue is
analogous to Sabine River’s acquisition of the
conservation easement because it does not alter the
status quo of the land. (Defs.’ Mot. for Summ. J. on
State NEPA Claims at 18; AR 1963 [FONSI].) The
City argues that FWS’s action is distinguishable
from the Sabine River action because the agency
action in this case was to establish a refuge and
establishment of an actual refuge “normally
require[s] the preparation of an EIS.”” Sabine River,
745 F. Supp. at 400 (quoting Dep’t of Interior
Manual, 516 DM 6, App. 1, 1.3A(1)). This case is
arguably distinguishable because the negative
easement in Sabine River prohibited any change in
the physical environment, whereas here the “land
use within the [R]lefuge boundaries will be in flux.”
(City Resp. at 2.~

According to the FONSI, FWS’s agency action
resulted in the “establish[ment] of an [sic] land

3'To support its position that this federal action will result in
change to the physical environment, the State points to the EA
which states that FWS “would strive to replace introduced
loblolly pine or slash pine species with native hardwoods or
evergreens” (State Mot. at. 17 (citing AR 1194).) This argument
lacks merit because this is a management issue, not an
establishment issue and management of the Refuge will be
addressed comprehensively in the Comprehensive Conservation
Plan and im accordance with NEPA Additionally, these
changes will add more of what is sought to be protected —
bottomland hardwoods

33a

acquisition boundary.” (AR 1963.) It allows for
“establishment of the Neches River National Wildlife
Refuge” which allows FWS to make land purchases
“in fee and easement interests from willing sellers
and/or donors, and in coordination with the affected
public.” (AK 1961.) The “national wildlife refuge will
only exist after an interest in land is acquired by the
United States within an approved boundary.” (AR
1963.) Eventually, FWS will prepare a_ formal
Comprehensive Conservation Plan (“CCP”) that will
provide detail about Refuge management, with input
from the public and in accordance with NEPA. (AR
1973-81.)

The fact that this case involves establishment of
a 25,28l-acre refuge, not a 3800-acre non-
development easement is immaterial. The fact that
establishment of the Refuge will prevent the land
from being sold, subdivided, or cleared and used for
a reservoir, pastures, tree farms, oil and gas drilling,
natural gas pipelines, and residences does not mean
that establishment of the Refuge alters the status
quo. (City Mot. at 23-32.) The status quo is the
condition of the land as it is now. Establishment of
the Refuge will not alter the condition of the land as
it is today — in fact, it will effect no change in the
status quo. Establishment of the Refuge boundary
will not result in a change to the physical
environment and in fact, preserves the land at
issue.‘

‘ The City argues this is its “only opportunity to challenge
FWS's NEPA analysis for establishment of the Refuge” and
objects to FWS’s explanation that FWS will be required in the
future to conduct NEPA analyses in conjunction with
environmental impacts that may occur due to management of
the Refuge. (City Reply at 6.) The Citys objection does not

34a

b. Indirect Effects on Environment.

Plaintiffs argue that FWS violated NEPA by
failing to address the Refuge’s indirect effects on
Dallas's water supply, the Dailas economy, and
Dallas and Texas’s future water planning. (City Mot.
at 39; State Mot. at 12, 14-15.) Defendants maintain
that NEPA does not require FWS to evaluate the
Refuge’s potential impact on the City’s future water
supply or water-planning process for two reasons: (1)
those impacts would not be the proximate result of
the agency action, and (2) they would be too remote
and speculative to determine. (Defs.’ Resp. to City
Mot. at 34.)

An agency must review the direct, indirect, and
cumulative impacts of the proposed action when
deciding whether or not to prepare an EIS.° See
generally 40 C.F.R. § 1508.9(b).6 NEPA does not
require an exhaustive, detailed discussion of impacts
in an EA. See Joan E. Drake, Paper, The NEPA

make the City’s case for an EIS any more persuasive and is
immaterial to the Court's decision

6 “Direct effects” are caused by the action and occur at the same
tume and place. “Indirect effects” are caused by the action and
are later in time or farther removed in distance but are still
reasonably foreseeable. “Cumulative impacts” result from the
incremental impact of the action when added to other past,
present, and reasonably foreseeable future actions. See 40
CFR. 88 1508.8(b), 1508.7.

640 CF ® 1508.90) (|An] Environmental Assessment shall
include “brtef discussions of the environmental impacts of
the proposed action.” (emphasis added); id. § 15088
(environmental impacts include direct and indirect effects of
the proposed action), id. § 1508.27 (inquiry into whether action
has “significant” effect must include cumulative impacts)
NEPA uses the terms “effects” and “impacts” interchangeably
See 40 C_\ELR. § 1508 8

35a

Process - What Do We Need To Do and When?, 2006
Rocky Mountain Mineral Law Found. Paper 3
(2006). An EA must show the agency considered
relevant factors and made a reasoned evaluation.
See Utah Shared Access Alliance v. U.S. Forest Serv,
288 F.3d 1205, 1213 (10th Cir. 2002). NEPA requires
agencies to focus on reasonably-foreseeable impacts
“rather than distorting the sum _ process’ by
overemphasizing highly speculative harms.”
Robertson v. Methow Valley Citizens Council, 490
U.S. 332, 356 (1989). NEPA requires FWS to take
into account those effects that “are caused by the
action and are later in time or farther removed in
distance, but are still reasonably foreseeable.” City of
Shoreacres v. Waterworth, 420 F.3d 440, 452 (5th
Cir. 2005) Gnternal quotation marks omitted). “A
‘but for’ causal relationship is insufficient to make
an agency responsible for a particular effect under
NEPA and the relevant regulations.” /d. (internal
quotation marks omitted). “Rather, a _ plaintiff
mounting a NEPA challenge must establish that an
alleged effect will ensue as a ‘proximate cause,’ in
the sense meant by tort law, of the proposed agency
action.” Id.

Sabine River requires a court to evaluate
whether the agency action had an indirect adverse
impact on the environment, such as on the water
supply and planning, the local economy, or the
population. See Sabine River, 951 F.2d at 680. In
Sabine River, the court held that aside from the
absence of any change to the physical environment,
it doubted whether the adverse impact on water
quality and supply could be precisely attributed to
FWS's acquisition of the easement. See id. The court
believed any link between acquisition of the

36a

easement and adverse impact on water supply was
too unpredictable and speculative to be considered a
significant environmental impact. See id.

Plaintiffs argue FWS had much more
information about the effects of the Reservoir on the
City’s water supply than it did in Sabine River,
thereby rendering this Reservoir project non-
speculative. For example, in this case the Fastrill
Reservoir was listed as a planned reservoir in two
regional water plans, a potential construction date
has been set, the facility and unit costs are
calculated, and the economic consequences of not
adopting the proposed water management strategies
have been estimated. (State Resp. at 4-5.) Plaintiffs
also argue that this case is distinguishable from
Sabine River because the Sabine River reservoir was
not listed in the state water plan on which FWS
reasonably relied when conducting its EA. The State
argues that because the Fastrill Reservoir was listed
as a potential future reservoir site in two state water
plans, FWS was aware of the need for the Reservoir
and Plaintiffs’ plan to construct it.

Though the water plan in Sabine River did not
list the Sabine River reservoir as a_ planned
reservoir, FWS did review the Sabine River
Authority's Master Plan which contained its own
water supply projections to support the conclusion
that the reservoir at issue was necessary. See Sabine
River, 745 F. Supp. at 398. The district court found
that FWS “fully considered the available data on
future water supply needs’ of the relevant region. /d.
at 399. This is analogous to FWS having the two
Water Plans and corresponding data on future water
supply needs in this case

Plaintiffs further argue that this case is

37a

distinguishable from Sabine River because here,
Plaintiffs have a projected construction date for the
Reservoir and have calculated facility and unit costs.
Furthermore, Plaintiffs’ assert that the inability to
construct the Reservoir will have known and
significant impacts on the region’s water supply and
economy as set forth in the State’s 2006 Water Plan
for Region C.

The flaw in the Plaintiffs’ position is th..t these
adverse effects will not be caused by establishment
of the Refuge or Plaintiffs’ inability to develop the
Fastrili Reservoir. The drought conditions described
in the State’s 2006 Water for Texas Plan for Region
C presume no new water supplies being developed
over the next fifty years. (TWDB 280-83.) Plaintiffs
do not anticipate building the Reservoir until 2050
or tapping into the Reservoir until 2060 — long after
these alleged effects would be feit. (TWDB at 562.)
Additionally, there are many other factors that could
affect the water supply for the region that FWS
cannot control or foresee, for example, the City’s and
the State’s water planning processes, how Plaintiffs
choose to address the region’s future water supply
needs, from where the City purchases its water,
whether and to what extent the City adopts water
conservation measures, and whether and when the
City develops new sources of water. The Fifth Circuit
has noted that “it is doubtful that an environmental
effect may be considered as proximately caused by
[an agency action] if that effect is directly caused by
the action of another government entity over which
the [agency] has no control.” Shoreacres, 420 F.3d at
452. Establishment of the Refuge boundaries today
cannot be said to be the legal and proximate cause of
deficiencies in the City’s water supply fifty years

38a

from now. While it is reasonably foreseeable that
establishment of the Refuge will cause the Reservoir
to be thwarted, it is beyond FWS’s capability and
NEPA’s scope to require FWS to identify all possible
consequences that could be caused by the Reservoir
not being built. The Court finds that the effects of
FWS’s action upon the City’s and the State’s water
supplies are not within the scope of NEPA and can
not form the basis of a NEPA claim.

2. Department of Interior Guidelines,

The City argues that an EIS was required
pursuant to Department of Interior guidelines,
which mandate preparation of an EIS when a new
refuge system proposal conflicts with local land use
plans. (City Mot. at 4, 20.)

The Departmeni of Interior provides guidelines
for FWS to follow when implementing NEPA. See
NEPA Rev’d Implementing Procedures, 62 Fed. Ref.
2375 (Jan. 16, 1997)). These guidelines “provide
general guidance for NEPA compliance” for FWS
activities and lst those “major actions normally
requiring an environmental impact statement.” Id.
at 2376. The guidelines state that, “[mJajor proposals
establishing new refuge systems” “when determined
to be a major Federal action significantly affecting
the quality of the human environment, will normally
require the preparation of an EIS.” 7d. at 2382
(emphasis added). What the City fails to mention is
that establishment of a refuge requires an EIS only
when the action significantly affects the quality of
the human environment. Because the City has not
demonstrated that establishment of this Refuge will
significantly affect the human environment, no EIS
was required pursuant to the Department of Interior

39a

guidelines.
3. FWS Guidelines.

FWS has its own set of guidelines to help its staff
determine whether a particular agency action will
require preparation of an EIS. (City Mot. App. at
101-06.) FWS advises that certain criteria “may
trigger the preparation of an EIS,” “depending on the
severity and duration of [the] effects.” (City Mot.
App. at 102 (emphasis added).) Despite the
discretionary language of the guidelines, the City
alleges that in this case, the guidelines “compel|[] the
preparation of an SEIS.” (City Mot. at 18.)
Specifically, Plaintiffs argue that because the agency
action (1) “expos[es] existing or future generations to
increased safety or health hazards;” (2) “conflicts
with substantially proposed or adopted local,
regional, State, interstate, or Federal land use plans
or policies that may result in adverse environmental
effects;” and/or (3) has “adverse effects on municipal,
industrial, or agricultural water supply or quality; or
major consumptive use or other’ Jlong-term
commitment of water,’ FWS was required to conduct
an EIS. (City Mot. App. at 102-03.)

The Court is not persuaded by Plaintiffs’
arguments. The underpinning of the guidelines is a
showing of causation; the agency action must be
shown to cause adverse environmental effects. The
City has not established that establishment of the
Refuge will cause adverse effects to Dallas’s future
water supply. See, e.g., Sabine River, 951 F.2d at 680
(“[t}he inquiry in NEPA cases is whether the federal
action at issue is proximately related to a change in
the physical environment.”). It is too tenuous an
argument to say that establishment of the Refuge

40a

boundaries will be the proximate cause of hazardous
drought conditions or a shortage of water for future
Dallasites. The City has not established that the
Reservoir at this location is the only water source
available to meet Dallas’s future needs. Nor has the
City established with certainty that the Reservoir
would, in fact, be built; the Fastrill Reservoir was
not a substantially proposed or adopted land use
plan — planning was in its infancy — the feasibility
study had not yet been finalized and the City had
taken no concrete steps to construct the Reservoir,
such as official authorization, funding, permitting,
design studies or environmental studies. Cf. Sabine
River, 951 F.2d at 673 (finding reservoir project was
still in the preliminary stages when plaintiffs “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” water that
the reservoir would generate each year).’ Therefore,
the Court finds that the FWS guidelines did not
mandate preparation of an EIS in this case.

For all these reasons, the Court concludes that

? Plaintiffs characterization of their “planning” as “distinctly
more concrete’ than the Sabine River reservoir is not supported
by the record evidence. For example, the fact that
communication may have been initiated with officials who
would be involved in the process of obtaining permits for the
reservoir does not mean that the application process had begun
or that any permit had been obtained. In fact, initiation of
discussions 1s a far cry from actual acquisition of permits. (See
City Resp. at 5 (e1iting PWDBO595).) What the evidence
indicates is that virtually no real planning had been done
hetween 1961 and the time FWS announced its decision to
establish a refuge on the land. Even preliminary planning was
not initiated until 2005 — two years after FWS began taking
the necessary steps to establish the Refuge

Ala

FWS did not act arbitrarily and capniciously by
deciding not to issue an EIS in this case.

E. Adequacy of the Environmental
Assessment.

An EA is a “concise public document” that serves
to briefly provide sufficient evidence and analysis for
determining whether to prepare an EIS or a FONSI.
See 40 C.F.R. §1508.9. “An EA is ‘a rough cut, low-
budget environmental impact statement that is
designed to show whether ae 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.” La. Crawfish Producers Ass’n - W. v.
Rowan, 463 F.3d 352, 356 (th Cir. 2406) (quoting
Sabine River, 951 F.2d at 677).

An EFA must “include brief discussions of [1] the
need for the proposal, [2] alternatives as required by
section i102(2)(E), [3] the environmental impacts of
the proposed action and alternatives, and [4] a
listing of agencies and persons consulted.” 40 C.F.R.
§ 1508.9(b).

The thirty-eight page EA in this case evaluates
the “scope and dimensions of the proposed [refuge]
boundary.” (AR 1168.) The EFA lists three refuge
alternatives: (A) a “no action” alternative, (B) the
recommended 25,281l-acre configuration, and (C) a
smaller and narrower 15,294-acre configuration. (AR
1174-75.) The EA acknowledges that the Fastrill
Reservoir had been proposed for the Neches River
and that the City had contracted for a feasibility
study on its potential development. (AR 1178.) The
EA does nov include an alternative that discussed a
Refuge/Reservoir combination. The FA explains that

42a

FWS “considered the reservoir project speculative in
the short term, and not definite in scope and
purpose,” accordingly, FWS could not “formally
evaluate the combined or cumulative impacts or
details of how the two projects might interface while
not attenuating the mutual goals of each project.”
(AR 2971; see also AR 1185.) In discussing the “no
action” alternative, the EA recognizes that if the
Refuge is not established, the Reservoir “could
eventually be built.” (AR 1190, 1200.) In the other
two alternative discussions, the EA notes that
establishment of the Refuge would prevent
development of the Reservoir. (AR 1194, 1998.)

The City argues that the EA is deficient because
FWS failed to (1) assess a reasonable range of
alternatives; (2) analyze many of the indirect and
cumulative impacts; (3) use current information in
its analysis; (4) supplement the EA and FONSI in
light of new information and circumstances; (5)
consider the economic impacts on the city of Dallas:
and (6) coordinate and consult with State and local
agencies. FWS maintains it reasonably evaluated
each of these issues and appropriately issued a
finding of no significant impact.

1. Consideration of a Reasonable Range of

Alternatives.

NEPA mandates that the agency “study, develop,
and describe appropriate alternatives to
recommended courses of action in any proposal
which involves unresolved conflicts concerning
alternative uses of available resources.” 42 U.S.C. §
4332(2)(E). An EA must include a reasonable range
of alternatives, but NEPA does not require an
agency to discuss “all proposed alternatives, no

43a

matter what them ment.” See La. Crawfish
Producers, 463 F.3d at 356. “[T]he range of
alternatives that the [agency] must consider
decreases as the environmental impact of the
proposed action becomes less and less substantial.”
Id. at 357. “NEPA’s requirement with regard to an
agency's consideration of alternatives is subject to a
rule of reasonableness.” Davis Mountains Trans-
Pecos Heritage Ass’n v. U.S. Air Force, 249 F. Supp.
2d 763, 793 (N.D. Tex. 2003) (Cummings, J.). The
rule of reason applies to the range of alternatives
considered as well as the extent the EA must discuss
each alternative. Jd. There is no need for an agency
to analyze “the environmental consequences of
alternatives it has in good faith rejected as too
remote, speculative, or... impractical or ineffective.
See Fuel Safe Wash. v. Fed. Energy Regulatory
Comm'n, 389 F.3d 1313, 1323 (10th Cir. 2004)
(internal quotation marks omitted) (omission in
original). Alternatives that do not accomplish the
purpose of an action are not reasonable. See Davis
Mountains. 249 F.Supp.2d at 793. Where conflicting
evidence is before an agency, the agency and not the
court has the discretion to accept or reject from the
several sources of evidence. See Sabine River, 951
F.2d at 678.

Under the highly deferential standard of review
the Court must use, the Court may not substitute its
judgment for that of the agency, but must studious'y
review the record to ensure that the agency has
arrived at a reasoned judgment. See id. at 676.

44a

a. The Joint Refuge/Reservoir
Alternative.

The City argues that FWS acted arbitrarily and
capriciously by refusing to consider an alternative
that would include both the Refuge and the
Reservoir. FWS responds that it was not required to
evaluate a joint Refuge/Reservoir alternative
because such an alternative would have been
speculative. The EA concludes that because the
feasibility study had not yet been done and because
the Reservoir project was far beyond the planning
horizon for the Refuge proposal, it was too
speculative to determine how the two projects might
interface. (AR 1185, 1966.)

In Sabine River, FWS did consider in its EA the
alternative of establishing a refuge in conjunction
with the reservoir. See Sabine River, 745 F. Supp. at
399. FWS rejected that alternative because it would
not prevent destruction of the wetland habitat FWS
was trying to preserve. See id. FWS also concluded
that any area set aside for refuge purposes would be
of inferior quality. See id. This decision was
supported by a Texas Parks and Wildlife report
which suggested that wetland sites established in
conjunction with reservoir projects are of only
marginal value to the waterfowl populations. See id.

The Record establishes that Plaintiffs’ plans for
constructing the Reservoir were aimed at satisfying
an anticipated need for additional water in 2060.
The Reservoir would not even be constructed until
2050 and planning for its construction was in the
preliminary stages. Plaintiffs had not obtained any
of the necessary federal and state permits, had
secured no funding, and had not yet entered into any

45a

firm contracts for the water that the Reservoir would
generate each year. ‘I'he Court concludes that it was
not arbitrary and capricious for FWS to conclude
that a combined Refuge/Reservoir alternative would
be too speculative.

b. Alternate Refuge Site.

Plaintiffs also maintain that FWS violated
NEPA because it did not appropriately consider an
alternate site for the Refuge. (City Mot. at 35-37.) In
March 2006, FWS was presented with the draft
feasibility study which outlined some preliminary
alternate sites for the Refuge. (AR. 722-24.) On April
3, 2006, FWS Director Dale Hall met with the City
and the Upper Neches Regional Municipal Water
Authority (“‘UNRMWA”) in Washington, D.C. to
discuss co-existence of the Refuge and the Reservoir.
At this meeting, the Reservoir proponents gave a
presentation about the Reservoir and the City’s
water needs and requested that Director Hall not
approve the FONSI until both Parties have an
opportunity to work together to identify an alternate
refuge site of equal or greater value for preservation
of bottomland hardwood habitat. (AR 2077, 2128.)
Director Hall agreed to postpone his decision until
June 1, 2006. (AR 2067, 2076, 2154, 2219.) In the
interim, the parties established a
“technical/scientific team” that was comprised of an
FWS representative to work with the City, its
consultant HDR Engineering, Inc. (“HDR”), the
UNRMWA, and the State of Texas Parks and
Wildlife Department. Throughout May 2006, FWS
was kept informed of the progress of the
technical/scientific team. FWS was involved in phone
calls, emails and meetings with members of the

46a

technical/scientific team where the issue of
alternative sites for the Refuge was discussed. (AR
2062-64, 2067, 2075-80, 2175-77, 2531-33, 2579.)
According to the Texas Parks and Wildlife
Department, the technical/scientific team spent
considerable time mapping, researching, and
discussing alternate sites, yet as of May 31, 2006,
“an alternative site that is equal to or bigger and/or
better than the North Neches site has not yet been
identified.” (AR 2051-52, TWDB 1028-29.) The
alternate refuge sites had problems that made them
undesirable: i.e., forest conditions, conflicts with
previously identified reservoir sites, and land
ownership issues. (AR 2052.) “At this point in time,
there are too many unknowns regarding the
appropriateness of the alternative sites. Criteria
such as current forest condition and willingness of
owners to sell have not been identified.” (AR 2051;
see AR 2052, 2531.) On June 7, 2006, HDR sent an
email to FWS outlining the progress made to date,
but failing to present an alternative site that is
equal to or better than the Refuge site. (AR 2054-
57.) FWS reviewed the email and noted it did not
provide a viable alternative site. (AR 2054.) FWS
continued to meet with the technical/scientafic team
after the FONSI had been signed and the Refuge
boundaries had been established. (TWDB 982.) Even
assuming there were conflicting alternate Refuge
sites available, FWS had discretionary authority to
establish the Refuge in its current location.

In November 2007, HDR issued a final feasibility
study report (“2007 Report”) that analyzed four
potential alternative preservation sites in detail. In
its 2007 Report, HDR detailed its research findings
of land ownership, conflicts with reservoir sites,

47a

preliminary hydrologic comparisons of the proposed
Refuge and alternate sites, and land cover
summaries with information on _ bottomland
hardwood acreage. (2007 Report at 2-1.) According to
Plaintiffs, much of the underlying data for the report
was available to FWS before the Refuge decision was
made. (State Mot. at 24.) The 2007 Report concludes
that the Middle Neches River and Neches River
South are of “apparent value greater than or equal to
that of the” original Refuge site. (2007 Report at 4-1,
4-2.) The 2007 Report also states “there are
opportunities for managed co-existence of Fastrill
Reservoir and a significant portion of the planned
{Refuge} for the multiple objectives of water supply
and wildlife habitat management and preservation.”
(2007 Report at 4-1.)8 Plaintiffs claim this evidence
and these conclusions were available to FWS prior to
May 31, 2006, and that these sites were better than
the site chosen by FWS.

In Sabine River, the court stated that “where
conflicting evidence is before the agency, the agency

8 FWS objects to and moves to strike as extra-record evidence
created after the final agency decision was made the Affidavit
of William F. Mullican II] (TWDB Ex. 1); Affidavit of Samuel K.
Vaugh (TWDB Ex. 2); Affidavit of Samuel K. Vaugh (City App.
at 1-7), Fastrill Reservoir & Bottomland Hardwood
Preservation Opportunities, HDR Engineering, Inc., Nov. 2007
(“2007 Report’) (TWDB Ex. 3.). The Federal Defendants also
obect to Plaintiffs using their Complaints as summary
judgment evidence, ‘The Court DENIES FW3's motion to strike
to the extent the data contained in the Vaugh affidavits and
the 2007 Report is used for determining whether FWS took the
requisite hard look at the environmental consequences of its
dezision. Much of the data contained therein was available to
FWS or was in its possession at the time the agency decision
was made With respect to the Mullican Affidavit and the
verified Complaints, the motion to strike is DENIED as MOOT

18a

and not the reviewing court has the discretion to
accept or reject from the several sources of evidence.”
Sabine River, 951 F.2d at 678. The court may only
review its decision for arbitrariness and
capriciousness.,

FWS had before it its own evaluation of the
current site and its value for Refuge purposes.
Using its own expertise in evaluating the properties
of the land, FWS’s Concept Plan identified the
Neches River Refuge as “Priority 1" for conservation
as far back as 1985. (AR 1169.) FWS staff conducted
a site visit in January 2004 to evaluate the
composition and condition of the land for refuge
purposes. (AR 554-58.) It had evidence that no other
proposed site was equal to the current site and the
alternate refuge sites may have had problems that
made them undesirable: t.e., forest conditions,
conflicts with previously identified reservoir sites,
and land ownership issues. (AR 2051-53.) The fact
that the area’s bottomland hardwood cover is
diminishing does not mean FWS was arbitrary in
choosing the area for a refuge. (See AR 554
acknowledging deterioration of — bottomland
hardwoods in the region). In fact, it may be that.
FWS wants to preserve the bottomland hardwood
cover that remains. FWS was entitled to establish
the Refuge boundaries in the location it chose
instead of in the areas proposed in the 2007 Report.
The fact that FWS was faced with conflicting
evidence does not establish that FWS acted
arbitrarily or capriciously in choosing these
particular Refuge boundaries over others.

Although FWS did not analyze the alternative of
establishing a refuge in conjunction with the
reservoir in the EA, the Record evidence establishes

49a

that FWS did consider and reject that alternative
because the Reservoir would destroy the habitat
FWS was trying to preserve. See Sabine River, 745
F.2d at 399. The Record contains sufficient evidence
to support FWS’s conclusion that the Reservoir
project was speculative and inconsistent with FWS’s
objective. FWS did not act arbitranly = and
capriciously given the available data at the time of
the decision and in light of the fact that
establishment of the Refuge will have no significant
impact on the environment. Given the deferential
standard of review, the Court concludes that the
FWS adequately considered alternatives and was not
arbitrary or capricious in its decision to adopt
Alternative B.

3. Use of Current Information in
Environmental Assessment.

The City argues that FWS violated NEPA by
failing to use “current information” in its KA, instead
using a twenty-year-old analysis of the bottomland
nabitat. (City Mot. at 40-44; AR 19.)° The City
argues the KA did not use current data and accurate
scientific analysis in its discussions of the Refuge’s
alternatives or the Refuge’s impacts on wildlife,
vegetation, the environment, air, and socioeconomic
conditions. (AR 1178-82, 1184, 2987.) FWS does not
dispute that it relied on “certain older studies” and
responds that its reliance on those older studies does
not invalidate the EA. (Defs.’ Resp. to City Mot. at
38.)

In this NEPA challenge, Plaintiffs must show

’ The twenty-vear-old study to which the City refers is a 1985
FWS report entitled “Land Protection Plan for Bottomland
Llardwoods, Category 3, Texas and Oklahoma

50a

that FWS’s use of old data likely led to a flawed
assessment of environmental consequences and that
FWS’s use of such data resulted in a decision that
was arbitrary and capricious. The City contends that
FWS’s use of this outdated data caused FWS to
overlook the fact that the area’s bottomland
hardwood cover has diminished from seventy-one
percent to thirty-one percent since 1985. (2007
Report at 3-4.) The City presumes that the presence
of waterfowl and other migratory birds would have
changed in light of the diminishment of bottomland
hardwoods habitat. (City Reply at 18.) FWS’s own
2004 site visit no.ed that a portion of the land “had
been partially harvested since we looked at the site
in the late 1980s.” (AR 554.)

It is important to remember that “the ultimate
purpose of the EA is to lead 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 [environmental]
impact.” Spiller, 352 F.3d at 238 (internal quotation
marks omitted). Only when outdated information
affects an agency's ability to properly assess the
environmental impacts of its action does the NEPA
analysis come into question. Thus, the Court must
consider whether the data used by FWS was so
deficient as to lead to a flawed assessment of the
environmental consequences of the Refuge and an

inaccurate evaluation of = alternatives. The
challenging party has the burden of making this
showing.

The Record evidences that FWS met with the
City, the UNRMWA, and the State of Texas Parks
and Wildlife Department to discuss the Refuge
proposal and plans for a Reservoir. The Record

Dla

evidences that FWS evaluated the new information
provided during those meetings, including the draft
Feasibility Study, and decided to move forward with
its approval of the Refuge proposal. (AR 2054-55,
2067.)

The City’s briefing is replete with conclusions
and speculation, but is lacking in detailed discussion
of particular ways the new data and conclusions
affect the ultimate environmental assessment.
Despite spending considerable time mapping,
researching and discussing alternate sites for the
Refuge, Plaintiffs were unable to identify an area
that was equal to or better than the Refuge site as of
June 1, 2006. (AR 2052.) The City has not shown
that more current data would have revealed the
existence of a significant environmental impact or a
different set of alternatives. Even if the alternatives
set forth in the 2007 Report were considered by
FWS, as stated supra, FWS had the discretion to
decide between the conflicting evidence which it
would accept. See Sabine River, 951 F.2d at 678. The
City’s repeated arguments that FWS “should have”
done this, or “could have” done that is not enough to
show FWS acted arbitrarily and capriciously, given
the deferential standard the Court must apply.

4. Evaluation cf Economic Impacts on the
City of Dallas.

The City argues that FWS acted arbitrarily and
capriciously by failing to adequately consider the
economic impacts of the Refuge on the City of Dallas.
(City Mot. at 45-46.) The City reasons “there is
nothing speculative about the fact that if the refuge
is established it precludes the planned reservoir.”
(City Reply at 23.)

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Ry _ “ YOY S-Di gps ~w08 ~ ed ae" =
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_

52a

While this is true, what is speculative is the
hkelihood that the Reservoir would have been
constructed at all, and the effect that not having the
Reservoir at this location would have on the City’s
water supply. ‘he speculative nature of these issues
has been discussed at length, supra. FWS was not
arbitrary or capricious in. concluding that
establishment of the Refuge’s boundaries would not
have a directly ascertainable economic impact on the
City or the City’s water supply.

5. Coordination with State and Local
Agencies.

The City argues that FWS acted arbitrarily and
capriciously by “ignoring state and local concerns”
and by misleading state and local agencies into
believing they were engaging in_ cooperative
consultation with FWS. (City Mot. at 46.) The City
also argues FWS was under a mandatory obligation
to coordinate with affected state and _ local
governments. Plaintiffs believe FWS did not conduct
its NEPA analysis in good faith; that its apparent
willingness to cooperate and consider alternate sites
was a sham because FWS had prejudged the issue
and was unwilling to consider any other options.
(State Mot. at 27-28; City Mot. at 13-15.) The State
points to two statements made by FWS Director
Dale Hall. (State Mot. at 27-28.) In one email dated
February 2005, then-Regional Director Hall sent an
email to his staff giving them a “heads up” about the
proposed Reservoir in which he wrote, “it just doesn’t
make sense to flood out highly productive wetlands
like these for a water project that has found no
justified need.” (AR 574.) Hall’s second email, sent a
month later, says “the smart way to approach this is

ee om, i an ; OPT te EP on & we . "+ dae |

58a

not to be seen as saying ‘no way, but rather
emphasizing the difficulty in replacing such an
important, and limited bottomland hardwood
resource and that we simply don’t see how that could
be done through mitigation.” (AR 459.) The City also
cites an email from FWS’s Tom Baca in March 2005
that states “even if the full [City] council votes in
favor of a study for Fastrill, by the time they get a
study contracted and completed, we will hopefully
have received the director’s approval. (Trying to be
an optimist :).” (AR 1768.) The City also quotes a
portion of an email from Tom Baca who wrote in
April 2006 that “to agree to some compromise
mitigation proposal is not only biologically
unsupportable, it is unconscionable in the realm of
responsibility to the local citizenry. Just between us,
a total betrayal.” (AR 2191.)

These emails do not vitiate the good faith or
reasonableness of the NEPA analysis. According to
the Record, Tom Baca was not involved in the
meetings with the reservoir proponents and was not
the final decision-maker with authority to approve
the Refuge boundaries. In fact, in an April 2006
email to Tom Baca, another FWS official wrote that
“Jim Neal [is] on the team” to review the Reservoir
proponents’ proposal and he “will certainly look at
their proposal very objectively.” (AR 2191.) Then-
Regional Director Dale Hall’s email excerpts show
that Hal!, as an FWS official, was working to
promote establishment of the Refuge which was
his job to do. The Record does not establish that
FWS was participating in a scheme to feign
cooperation in an attempt to appear in compliance
with NEPA. Director Hall was a participant in phone
calls and meetings with the Reservoir proponents

54a

at the request of Plaintiffs and after the EA had
been drafted — to give them an opportunity to have
their collective voice heard on the Refuge/Reservoir
issue. FWS reviewed the materials and heard the
arguments. FWS representatives traveled to attend
meetings about alternative sites after the FONSI
and EA were issued. Though there is evidence that
FWS was very committed to this Refuge project, the
evidence does not establish that the agency avoided
conducting a proper NEPA analysis.

Plaintiffs also argue that FWS was _ not
cooperative because Director Flall’s June 1, 2006
deadline was arbitrary. They intimate that Director
Hall unreasonably hurried the scientific/technical
team in their task of identifying a viable alternate
refuge site. Plaintiffs argue that FWS unreasonably
placed the onus cf identifying an alternate site onto
the Reservoir proponents.!°

FWS officially introduced its proposal for the
Refuge to the public in June 2004. This was followed
by the scoping phase, during which FWS identified

0 The Citys conclusory statement that the FWS
“manufactured an arbitrary twenty-year planning horizon to
avoid consideration of the reservoir in its alternatives analysis”
is unsupported by the Record. (City Mot. at 36.) There is no
evidence that using a twenty-year window for planning
purposes is manufactured or arbitrary; nor is there evidence
that FWS used that time frame to avoid consideration of the
reservoir in its alternatives analysis. The State argues there is
no basis in law or policy for FWS's twenty-year planning
horizon for its Refuge. (State Mot. at 13-14.) The State notes
that the Refuge is designed to last. “essentially forever.” (State
Mot. at 13.) Yet FWS must set some kind of time frame for its
evaluations; it cannot have an interminable planning period.
Plaintiffs have not estabhshed that FWSs_ twenty-year
planning period ts arbitrary and capricious

qn

the important issues to be analyzed in the EA. After
conducting public meetings about the proposal, the
EKA was drafted in March 2005. The EA and FONSI
were signed by Director Dale Hall in June 2006. It
bears mentioning that during this time, the City
worked to apply political pressure on FWS through a
letter-writing campaign and by having local and
state governmental bodies pass resolutions. (AR
1852-93, 1899-1900.) The City does not appear to
have spent its time and resources during this period
researching the feasibility of a joint Refuge/Reservoir
project, an alternate refuge site, or an alternate
reservoir site. There is no evidence in the Record
and no mention in the briefing of any willingness or
effort on the City’s part to find an alternate reservoir
site. Had Plaintiffs been working diligently on any of
these objectives from June 2004 through April 2006,
their request for more time might seem reasonable.
But to complain that more time is needed to conduct
research that could have and should have been done
earlier seems disingenuous. Long after the scoping
period had expired, the EA was drafted, and the
public hearings concluded did Plaintiffs ask for more
time to conduct their own research. After waiting
nearly two years, FWS gave Plaintiffs an additional
two months. It ended up taking Plaintiffs another
year and five months to collect and analyze the data.

Plaintiffs implicitly argue that FWS should have
waited another year and five months after the EA
was signed for the remainder of the data to be
collected and analyzed before making its decision to
establish the Refuge boundarnes. NEPA does not
require an agency to delay a final agency decision
indefinitely while others work to develop § an
alternative that will meet everyone's needs. Nor does

hha

NEPA require an agency to spend an unreasonable
amount of time searching for an alternative.

NEPA does not mandate 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, they 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
agencies. See 40 C.F.R. § 1503.1(a)(1), (2). The
regulations further provide that an agency shall
respond to such comments. See itd. at § 1503.4(a).
There is nothing in NEPA or the applicable
regulations to suggest that the timing of
consultations should be any different when an
agency prepares a draft EA as opposed to a draft
EIS.

FWS officially introduced its proposal for the
Refuge to the public in June 2004. (AR 1971.) This
phase, known as the “scoping” phase, was designed
to assist FWS in identifying the “important issues to
be analyzed in the environmental assessment for
potential impacts of the proposal.” (/d.) Before the
proposal went public, elected officials including U.S.
Senators, U.S. Congressional representatives, State
Senators, State Representatives, and County Judges
were notified of the proposal by letter. Ud.) FWS
notified the affected landowners of the proposal by
letter in July 2004. Ud.) FWS held two “scoping
workshops” in July 2004 to provide information,
answer questions, and elicit affected landowners’
issues and concerns about the proposed Refuge. (/d.)
FWS also notified the Texas Parks and Wildlife
Department, the two County Farm Bureau

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presidents, and the Texas State Railroad. (AR 1971.)
FWS conducted a presentation for the East Texas
Regional Water Planning Group in October 2004.
(AR 1971.)

After the EA was drafted in March 2005, it was
publicly circulated to public officials; affected
federal, state and local agencies; conservation
organizations; academic. institutions; affected
landowners; and others expressing interest in the
Refuge. (AR 1204, 1999.) These documents
underwent public review from March 1, 2005 to May
31, 2005 and public hearings were held on May 10
and 11, 2005. (AR 1999.) A Fiscal Impact Analysis
was conducted and distributed to the public. (AR
1972.) Both the City and the State were invited to
voice their concerns and meet with FWS during that
comment period (AR 567, 816).

During the comment period, FWS recorded and
responded to 1693 written comments, many of which
concerned the future of the Reservoir. (AR 1999-
2028.) FWS received and responded to dozens of
letters fiom state, federal, and local officials about
the Refuge and the Reservoir. (AR 1337, 1344-45,
1358-59, 1366-67.)

After FWS’s then-Regional Director Dale Hall
approved the EA and issued the FONSI in July
2005, City and State officials asked FWS to delay its
final decision and to meet with its representatives.
(AR 1854, 1859-60.) FWS accommodated these
requests, and on April 3, Apml 20 and May 10, 2006

long after the comment period had passed — the
then-Director Hall met with City and State
Reservoir proponents about the future of the Refuge
and the Reservoir. (TWDB 557-74; AR 2175-77,
2531-33, 2579.) The attendees at the meetings

58a

included representatives of the City, HDR, the
UNRWA, the State, and FWS.

The Record demonstrates that FWS considered
and responded to comments raised by other
governmental agencies, including Plaintiffs,
concerning the future of the Reservoir. The Record
indicates that FWS took into account Plaintiffs’
concerns before making its final decision and
involved other government agencies before preparing
its EA. (AR 1299, 1306-11); See 40 C.F.R. §
1501.4(b). That FWS did not agree with the
objections raised by the City and the State and
others does not undermine the adequacy of FWS'’s
NEPA review.

The record reveals that FWS adequately
considered that Plaintiffs wanted to use this land for
a Reservoir, but FWS nevertheless chose to establish
the Refuge boundaries in the area. A review of the
claims and the record indicate that Plaintiffs’
disagreement with FWS is more akin to a political
dispute over policy choices than a legal dispute over
compliance with the procedural requirements of
NEPA. “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. The political process, and
not NEPA, provides the appropriate forum in which
to air policy disagreements.” Metro. Edison Co. v.
People Against Nuclear Energy, 460 U.S. 766, 777
(1983). To permit Plaintiffs to use the provisions of
NEPA to voice their policy objections to I"WS's
actions and to hinder FWS’s attempts to fulfill its
mandate from Congress would be contrary to the
purposes of NEPA.

59a

CONCLUSION

After careful consideration of the briefing and
applicable law, the Court hereby DENIES the City of
Dallas’s Motion for Partial Summary Judgment and
GRANTS the Federal Defendants’ Cross-Motion for
Partial Summary Judgment Concerning City of
Dallas’s NEPA Claims. The Court hereby DENIES
the Texas Water Development Board’s Motion for
Partial Summary Judgment and GRANTS the
Federal Defendants’ Cross-Motion for Partial
Summary Judgment Concerning the Texas Water
Development Board’s NEPA Claims. The Court
DENIES in PART and DENIES as MOOT in PART
the Federal Defendants’ Motion to Strike Plaintiffs’
Extra-Record Materials. The Court GRANTS the
Texas Conservation Alliance’s Motion for Leave to
File Amicus Brief and the Amicus Brief. The Court
GRANTS Friends of the Neches River’s and Houston
Audobon Socicty’s Motion for Leave to File a Letter
in Support of Texas Conservation Alliance’s Amicus
Brief. The Court GRANTS Texas Water
Conservation Association’s Motion for Leave to File
Amicus Brief in Support of Plaintiffs’ Motions for
Partial Summary Judgment. The Clerk’s Office is
hereby instructed to file Docket Numbers 106-3, 111-
2 and 123-1 in accordance with this Order.

It is SO ORDERED, this 30th day of June 2008.

/s/ Jorge A. Solis

JORGE A. SOLIS

UNITED STATES DISTRICT
COURT JUDGE

60a

Filed July 28, 2008

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
CITY OF DALLAS, TEXAS,
Plaintiff,
v.
H. DALE HALL et al., CIVIL ACTION NO.

3:07-C V-0060-P

Defendants.

Consolidated with:
THE TEXAS WATER
DEVELOPMENT BOARD, CIVIL ACTION NO.

Plaintiff, 3:07-CV-0213-P

i

THE UNITED STATES
DEPARTMENT OF THE
INTERIOR et al.,

LO? CO? CO? CO? (OR? CO? CO? 6? (OR? C2 62 6G? (CO? (COR CO) (OR LO? C2 COR CO? O22 KN

Defendants.

Hla

ORDER

Now before the Court is Plaintiffs’ Emergency
Motion for Injunction Pending Appeal or, in the
Alternative, Motion for Temporary Restraining
Order and Preliminary Injunction, filed July 1, 2008.
In their motion, Plaintiffs the City of Dallas (“City”)
and the Texas Water Development Board (“State”)
(collectively, “Plaintiffs”) argue that injunctive relief
is necessary pending appeal of this Court’s partial
summary judgment ruling to prevent the U.S. Fish
and Wildlife Service (“FWS”) from accepting a
transfer of land into the Neches River National
Wildlife Refuge (“Refuge”) because such a transfer
would irreparably harm Plaintiffs.

On June 11, 2006, FWS designated a 25,281-acre
site within Anderson and Cherokee Counties, Texas
as the Neches River National Wildlife Refuge.
Plaintiffs want to use the same land on the Upper
Neches River for development of a reservoir to serve
the future water needs of Dallas residents and other
customers. Plaintiffs filed this legal action against
the Federal Defendants! (“Defendants”) seeking
reversal of FWS’s decision to establish the Refuge
without preparing an Environmental Impact
Statement (“EIS”) or an adequate Environmental

| The Federal Defendants include Defendant H. Dale Hall, in
his official capacity as Director of the United States Fish and
Wildlife Service; Dick Kempthorne, in his official capacity as
the Secretary of the United States Department of the Interior;
Benjamin N. Tuggle, in his official capacity as the Regional
Director of the Southwest Region (Region 2) of the United
States Fish and Wildhfe Service; and the United States
Department of the Interior

62a

Assessment (“EA”) as required by the National
Environmental Policy Act. On June 30, 2008, this
Court issued an order granting partial summary
judgment in favor of the Federal Defendants
(“Defendants”) and found that FWS was not required
to prepare an EIS and that its EA was adequate.

Rule 62(c) of the Federal Rules of Civil
Procedure authorizes district courts to suspend,
modify, restore or grant an injunction pending
appeal. See Fed. R. Civ. P. 62(c). The purpose of an
injunction pending appeal is to maintain the status
quo of the parties and ensure the effectiveness of the
eventual judgment. See Coastal Corp. v. Tex. Eastern
Corp., 869 F.2d 817, 819 (5th Cir. 1989). The status
quo in this case is memorialized by a standstill
agreement the Parties have been complying with
since early in this litigation.

In making a determination about whether to
grant injunctive relief pending appeal, courts must
consider whether the movant has made a showing
that (1) it is likely to succeed on the merits on
appeal; (2) it is likely to suffer irreparable injury if
the stay is denied; (3) the non-movant will not be
substantially harmed by the granting of a stay or
injunction; and (4) the granting of an injunction will
serve the public interest. See Drummond v. Fulton
Co. Dep’t of Family and Children’s Serus., 532 F.2d
1001, 1002 (5th Cir. 1976). The Fifth Crreuit has
held that in cases where a serious legal question is
presented, the court may use an equitable approach
and enter an injunction even if the movant has not
shown a high likelihood of success on the merits. See
Estelle v. Ruiz, 650 F.2d 555, 565 (5th Cir. 1981).
“[T]he movant need only present a substantial case
on the merits when a serious legal question is

63a

involved and when the balance of the equities weighs
heavily in favor of granting the stay.” Jd. The Fifth
Circuit recognized that “if a movant were required in
every case to establish that the appeal would
probably be successful, the Rule would not require as
it does a prior presentation to the district judge
whose order is being appealed. That judge has
already decided the merits of the legal issue. The
stay procedure .. . affords interim relief where
relative harm and the uncertainty of final
disposition justify it.” Jd. at 565-66.

Defendants contend that the Fifth Circuit's less-
stringent Estelle standard for granting an injunction
pending appeal was rejected by the United States
Supreme Court earlier this year and that the
traditional “likelihood of success on the merits”
standard applies to this case. See Munaf v. Geren,
U.S. — 128 S.Ct. 2207, 2210 (2008). Defendants
argue that the injunction should not be issued
because Plaintiffs have not established a likelihood
of succeeding on the merits or irreparable harm and
because Defendants will be harmed by entry of an
injunction.

In Munaf, Plaintiff Omar was an American
citizen who was accused of committing crimes while
traveling in Iraq. He was captured and placed in
custody by military forces operating as part of a
multi-national coalition force, under the command of
U.S. military officers. His family filed a habeas
petition on his behalf in federal district court in the
United States. When Omar’s criminal case was
referred to the Lraqi criminal court system, Omar's
attorney sought and obtained a_ preliminary
injunction from the United States District Court
barring Omar’s transfer from United States custody

64a

to Iraqi custody. The Supreme Court found that the
district court erred by failing to analyze whether
Omar had established that his habeas petition was
likely to succeed on the merits. The Supreme Court
held that the district court's finding that the
jurisdictional issues in the case were “serious,
substantial, difficult, and doubtful” was insufficient
to warrant injunctive relief. Jd. at 2218-19.

Unlike this case and the cases governed by
Estelle v. Ruiz, Munaf does not involve a preliminary
injunction pending appeal.2 Therefore, whereas the
traditional preliminary injunction standard applied
in Munaf, the Court in this case may enter an
injunction if Plaintiffs can meet the less-stringent
Estelle standard.

Under Estelle and its progeny, Plaintiffs must
show they will probably succeed on the merits in
their appeal of this Court’s order or, if a serious legal
question is involved, that they have presented a
substantial case on the merits and that the balance
of equities weighs heavily in favor of granting a stay.

Plaintiffs argue correctly that the de novo
appellate issue of whether FWS complied with
NEPA will depend on the Fifth Circuit's
interpretation and application of Sabine River
Authority v. U.S. Department of the Interior, 951
r.2d 669 (5th Cir. 1992). Defendants argued to this
Court that Sabine River controlled the outcome of
this case because it held as a matter of law that this
type of EA was adequate under this set of
circumstances. FWS believes it was not required to

The Nichols case cited by Defendants ts distinguishable from
this case and Estelle for the same reason(s). See Nichols
Alcatel USA, Inc, Fe38d -, No O7-40477, 2008 WL 2469407
th Cir. Jun. 20, 2008)

6aa

consider or discuss certain direct or indirect effects
of the Refuge on the region in light of the speculative
nature of the Reservoir and the holding in Sabine
River. In its partial summary judgment order, this
Court held that Sabine River does control the
outcome of this case as a matter of law, but provides
guiding principles under which FWS and the courts
must analyze the facts of each particular case. After
engaging in its analysis, this Court held, inter alia,
that FWS did not act arbitrarily and capriciously in
its consideration of alternatives or in its ultimate
conclusion that the Reservoir was speculative. On
appeal, the Fifth Circuit will have an opportunity to
decide, inter alia, whether NEPA requires the EA to
analyze and discuss the indirect effects of the Refuge
on the region’s water supply and on its economy in
making its determination that the Reservoir was
speculative. The Court finds this to be a serious legal
issue that may affect how this and other agencies
conduct future Environmental Assessments under
NEPA. Plaintiffs have presented a substantial case
on the merits, as evidenced by the Court’s orders at
both the motion to dismiss and partial summary
judgment stages.

Ilaving satisfied the first prong, the Court must
determine whether Plaintiffs are lkely to suffer
irreparable injury if the injunction is denied. The
Record indicates that FWS believes that once it
acquires an interest in property within the
boundaries of the Refuge, the federal land cannot be
subjugated by any local or state project and cannot
be divested from the Refuge except through an act of
Congress. Thus, allowing FWS to acquire any land
within the Refuge boundaries could possibly render
Plaintiffs’ claims moot, which constitutes irreparable

66a

harm. Additionally, the Court does not believe
Defendants will suffer substantial harm by the
granting of an injunction. Maintaining the status
quo of the land while bringing this case to a
conciusion will not harm Defendants or the land
they seek to preserve. Finally, granting this
injunction will serve the public interest — it will
ensure the status quo is maintained so the legal
system can resolve this important dispute about the
future of this valuable land. The Court finds that the
balance of equities weighs heavily in favor of
sranting an injunction an. therefore, Plaintiffs’
motion for injunction pending appeal is hereby
GRANTED. The parties are to abide by the terms of
the standstill agreement currently in place until
further order of this court or of the Fifth Circuit
Court of Appeals.

Itis SO ORDERED, this 28th day of July 2068.

/s/ Jorge A. Solis

JORGE A. SOLIS

UNITED STATES DISTRICT
COURT JUDGE

67a

NATIONAL ENVIRONMENTAL POLICY ACT

42 U.S.C. § 4321

Congressional declaration of purpose.

The purposes of this chapter are: To declare a
national policy which will encourage productive and
enjoyable harmony between man _ and_ his
environment; to promote efforts which will prevent
or eliminate damage to the environment and
biosphere and stimulate the health and welfare of
man; to enrich the understanding of the ecological
systems and natural resources important to the

Nation; and to establish a Council on Environmental
Quality.

REKEEKSE

42 U.S.C. § 4331 (excerpted)

Congressional declaration of national!
environmental policy.

(a) The Congress, recognizing the profound
impact of man's activity on the interrelations of all
components of the natural environment, particularly
the profound influences of population growth, high-
density urbanization, industrial expansion, resource
exmioitation, and new and expanding technological
auvances and recognizing further the critical
importance of restoring and maintaining
environmental quality to the overall welfare and
development of man, declares that it is the
continuing policy of the Federal Government, in

68a

cooperation with State and local governments, and
other concerned public and private organizations, to
use all practicable means and measures, including
financial and technical assistance, in a manner
calculated to foster and promote the general welfare,
to create and maintain conditions under which man
and nature can exist in productive harmony, and
fulfill the social, economic, and other requirements of
present and future generations of Americans... .

kk&ke KK

42 U.S.C. § 4332 (excerpted)

Cooperation of agencies; reports; availability
of information; recommendations;
international and national coordination of
efforts.

The Congress authorizes and directs that, to the
fullest extent possible: (1) the policies, regulations,
and public laws of the United States shall be
interpreted and administered in accordance with the
policies sei forth in this chapter, and (2) all agencies
of the Federal Government shall— ...

(C) include in every recommendation or report
on proposals for legislation and other major Federal
actions significantly affecting the qualty of the
human environment, a detailed statement by the
responsible official on—

(i) the environmental impact of the
proposed action,

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

(iii) alternatives to the proposed action,

69a

(iv) the relationship between local short-
term uses of man's’ environment and_ the
maintenance and enhancement of long-term
productivity, and

(v) any irreversible and _irretrievable
commitments of resources which would be involved
in the proposed action should it be implemented.

Prior to making any detailed statement, the
responsible Federal official shall consult with and
obtain the comments of any Federal agency which
has jurisdiction by law or special expertise with
respect to any environmental impact involved.
Copies of such statement and the comments and
views of the appropriate Federal, State, and local
agencies, which are authorized to develop and
enforce environmental standards, shall be made
available to the President, the Council on
Environmental Quality and to the public as provided
by section 552 of Title 5, and shall accompany the
proposal through the existing agency review
processes;...

(E) study, develop, and describe appropriate
alternatives to recommended courses of action in any
proposal which involves’ unresolved conflicts
concerning alternative uses of available
PeSOUICES, ...-«

NRKRERE

70a

TEXAS WATER CODE
§ 16.051 (excerpted)

State Water Plan: Drought, Conservation,
Development, and Management.

(a) Not later than January 5, 2002, and before
the end of each successive five-year period after that
date, the board shall prepare, develop, formulate,
and adspt a comprehensive state water plan that
incorporates the regional water plans approved
under Section 16.053. The state water plan shall
provide for the orderly development, management,
and conservation of water resources and preparation
for and response to drought conditions, in order that
sufficient water will be available at a reasonable cost
to ensure public health, safety, anc welfare; further
economic development; and protect the agricultural
and natural resources of the entire state. ...

kk Kk we *
§ 16.053 (excerpted)

Regional Water Plans

(a) The regional water planning group in each
regional water planning area shall prepare a
regional water plan, using an e

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_0625%3A1. Public record. Not legal advice.
