Independent Petroleum Ass'n of America v. Babbitt

No. 98-5131 (235 F.3d 588) (D.C. Cir. January 5, 2001)

ELR Digest

The court affirms a district court holding that an oil producers association contesting the U.S. Department of the Interior's (DOI's) take-or-pay royalties policy failed to challenge a final agency action and, therefore, the court lacked subject matter jurisdiction over the association's complaint. The association sought to prevent the DOI from collecting royalties on unrecoupable take-or-pay settlements. Thereafter, an oil company challenged the DOI's attempt to collect royalties on settlement payments made to the company. Eventually, the association's and the company's challenges were consolidated. The court previously held that a DOI letter requiring royalties for take-and-pay settlements did not constitute a DOI rule, but in light of this letter and precedent, the DOI acted arbitrarily and capriciously when it sought royalties from the company. On remand, the district court implemented the circuit court's mandate to the company, but the district court held that the circuit court decision only addressed the association's claim regarding the DOI's letter, not the association's wide-ranging complaint challenging the DOI's royalty policy.

The court first holds that the district court properly dismissed the association's claim because the association did not face any final actions that it may challenge. The association's complaint states that it challenges the DOI's efforts to collect royalties on take-or-pay settlement payments. It is not clear what efforts are challenged, but it is clear that these efforts are not final agency actions for judicial review. The efforts that the association seeks to challenge do not refer to any particular DOI action, order, or regulation. Instead, the association seeks an improper generic challenge. In addition, the association never sought to join or intervene in the company's case, and there is no evidence that the company and the association impliedly consented to jointly litigate the company's challenge.

[A prior decision in this litigation is published at 28 ELR 20010.]

The full text of this decision is available from ELR (9 pp., ELR Order No. L-323).

Counsel for Appellants
L. Poe Leggette
Fulbright & Jaworski
801 Pennsylvania Ave. NW, Washington DC 20004
(202) 662-0200/4646

Counsel for Appellees
Ronald M. Spritzer
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

[31 ELR 20367]

[OPINION OMITTED BY PUBLISHER IN ORIGINAL SOURCE]