CHRISTEN, Circuit Judge:
The Pit River Tribe and several regional environmental organizations (collectively Pit River) appeal from the district court's order granting judgment on the pleadings on Pit River's action challenging the Bureau of Land Management's (BLM) continuation of 26 geothermal leases in northeastern California's Medicine Lake Highlands. Pit River's complaint alleged that BLM's decision violated the Geothermal Steam Act, the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA), and the government's fiduciary trust obligation to Indian tribes. The district court concluded Pit River lacked prudential standing to bring its Geothermal Steam Act claims because the claims did not fall within the zone of interests of the Act's lease-continuation provision, 30 U.S.C. § 1005(a).
We conclude that the district court incorrectly treated Pit River's claims as arising under only § 1005(a) of the Geothermal Steam Act. BLM's 1998 decision to continue the 26 unproven leases in the Glass Mountain unit under § 1005(a) was issued simultaneously with its decision to reverse and vacate its earlier decision to extend those leases on a lease-by-lease basis under § 1005(g). Thus, Pit River's challenge to the decisions issued on May 18, 1998 implicates both § 1005(a) and § 1005(g). Because BLM must conduct environmental, historical, and cultural review under NEPA and NHPA before granting lease extensions under § 1005(g), Pit River Tribe v. U.S. Forest Serv., 469 F.3d 768, 780-84, 787-88 (9th Cir.2006) ("Pit River I"), Pit River's claim falls within § 1005(g)'s zone of interests and Pit River has stated a claim under § 1005(g). Accordingly, we reverse the district court's decision.
The Medicine Lake Highlands are part of the Pit River Tribe's ancestral homeland. Tribal members "consider the region sacred and continue to use numerous important spiritual and cultural sites within the highlands." Pit River I, 469 F.3d at 772. The complaint alleges that exploration of and development on geothermal leases will interfere with tribal members' use of the Medicine Lake Highlands "for a variety of spiritual and traditional cultural purposes" that "depend on the physical, environmental, and visual integrity of these areas, and their quietude." The complaint alleges that the non-tribal plaintiffs have environmental, recreational, aesthetic, and scientific interests in the Medicine Lake Highlands that are inconsistent with geothermal development.
When interest in geothermal power development first began to grow in the 1960s, the United States Department of the Interior determined that it lacked statutory authority to dispose of geothermal resources on federal land. Robert B. Keiter, The Old Faithful Protection Act: Congress, National Park Ecosystems, and Private Property Rights, 14 Pub. Land L.Rev. 5, 9 (1993). Congress recognized the necessity of creating a legal framework governing the development of geothermal resources on federal land, see Wagner v. Chevron Oil Co., 321 F.Supp.2d 1195, 1198 (D.Nev.2004), and in 1970 it enacted the Geothermal Steam Act for the express purpose of "promot[ing] the development of geothermal leases on federal lands."
The Geothermal Steam Act authorizes "the Secretary of the Interior to `issue leases for the development and utilization of geothermal steam' on federal land and
The Geothermal Steam Act also authorizes the Secretary to approve "cooperative or unit plan[s]" under which multiple leases are managed as a unit. 30 U.S.C. § 1017 (1998); 43 C.F.R. § 3280.0-2 (1997). The purpose of cooperative or unit plans is to "conserv[e] natural resources," 43 C.F.R. § 3280.0-2 (1997), and "provide for more efficient development and production of geothermal resources." Geo-Energy Partners-1983, 613 F.3d at 949. The Secretary has relatively broad discretion to set the terms of a unit plan and to regulate the leases within the plan. 30 U.S.C. § 1017 (1998). The Secretary must review unit plans every five years "and, after notice and opportunity for comment, eliminate from inclusion in such plan any lease or part of a lease not regarded as reasonably necessary to cooperative or unit operations under the plan." Id.
The Department of the Interior issued a programmatic environmental impact statement (EIS) in 1973 addressing nationwide implementation of the Geothermal Steam Act. Pit River I, 469 F.3d at 773. With several exceptions not relevant here, the EIS did not address geothermal development in particular locations. Rather, the EIS suggested that issuing individual leases may require subsequent, more particularized EISs. Id. In 1981, BLM and the Forest Service issued an Environmental Assessment (EA) evaluating "whether to allow geothermal leasing and casual use exploration on approximately 266,800 acres of National Forest land in the Medicine Lake Planning Unit, and an adjacent 26,750 acres." Id. After completion of this EA, the Forest Service issued a Finding of No Significant Impact for potential geothermal leasing in the Medicine Lake Planning Unit of the Modoc, Klamath, and Shasta-Trinity National Forests.
In 1982, BLM entered into a "Unit Agreement for the Development and Operation of the Glass Mountain Area," which eventually included the 26 unproven leases at issue in this appeal. The Unit Agreement included exhaustive rules governing the management of leases within the unit. Among many other provisions, the Unit Agreement required the unit operator to submit a plan of operation establishing deadlines for progress in exploration and ensuring "proper protection of the environment and conservation of the natural resources of the Unit Area." Article 17.4 of the Unit Agreement provided that "[d]rilling and/or producing operations performed... upon any tract of Unitized Lands will be accepted and deemed to be performed
BLM and the Forest Service issued a supplemental EA in 1984, this time addressing "the exploration, development and production phases of the geothermal program." Id. at 774. This document recognized the cultural and historical importance of the Medicine Lake area to modern Native American groups. Id. at 774-75. Following completion of the 1984 EA, BLM issued the "Glass Mountain Geothermal Decision Record," authorizing leasing on an additional 41,500 acres within the Medicine Lake Highlands.
Between 1982 and 1988, BLM granted the 26 leases that are the subject of this appeal. In 1989, BLM determined that a different lease within the Glass Mountain Unit was capable of producing geothermal steam in commercial quantities (the "paying-well determination"). In November 1990, one of Calpine Corporation's predecessors
In the course of processing this lease-extension application, BLM's California State Office communicated with the Nevada State Office, which advised that 40-year lease continuations should be granted to all of the unproven Glass Mountain leases pursuant to Article 17.4 of the Unit Agreement. The California Office disagreed, concluding that under § 1005 and its implementing regulations, "the 40 year extension [under § 1005(a)] may only be applied to the lease with the well capable of production and not to the other committed leases in the unit." The California Office reasoned that the statute and its "implementing regulations refer specifically to individual leases ..., not leases within a `cooperative plan, communitization agreement, or a unit plan of development or operation' as provided for lease extensions under 43 CFR 3203.1-4(b)." See 43 C.F.R. §§ 3203.1-3, 3203.1-4 (1997). The California Office requested an opinion from the Department of Interior Solicitor General to resolve this difference of interpretation, but it appears that such opinion was never issued.
In July 1991, under § 1005(a), BLM continued for up to 40 additional years the one lease in the Glass Mountain Unit on which the paying-well determination had been made. Under § 1005(g), it also continued for five years the 22 other leases in the Glass Mountain Unit owned by Calpine's predecessor. In September 1991, Calpine requested five-year extensions for two other leases it held within the Glass Mountain Unit.
In 1995, BLM found Calpine's predecessor "in default of meeting reasonable diligence in the unit," but approved the 1994/1995 plan of operation on the condition that the unit operator "will drill at least one well on a federal lease within and committed to the Glass Mountain Unit" before May 17, 1996. BLM later rescinded the requirement to drill a well, but noted that the unit operator should have submitted a Participating Area designation based on the 1989 paying-well determination by February 13, 1994. Though that date had passed, BLM gave the unit operator 60 days to submit a participating area designation.
In November 1996, Calpine's predecessor again requested that BLM rescind its lease extensions and retroactively grant 40-year continuations of the unproven Glass Mountain leases pursuant to Article 17.4 of the Unit Agreement. In two decision letters, BLM reversed course and granted this request on May 18, 1998. One letter vacated the 24, five-year lease extensions granted in 1991 and 1992:
The other letter granted 40-year continuations to the 26
(Emphasis in original.). BLM did not explain its legal rationale for this changed statutory interpretation in either of the
In 2002, some of the plaintiffs here, including the Pit River Tribe, filed suit challenging a separate decision made by BLM in 1998 granting five-year extensions under § 1005(g) to two leases in a different unit not at issue here. Pit River I, 469 F.3d at 777-78. The plaintiffs alleged that granting these extensions without conducting environmental review violated NEPA, NHPA, the Geothermal Steam Act, the National Forest Management Act, and the federal government's trust obligations to the Pit River Tribe. Pit River Tribe v. BLM, 306 F.Supp.2d 929, 934 (E.D.Cal. 2004). The district court entered summary judgment in favor of BLM on all claims. Pit River I, 469 F.3d at 778.
On appeal, a panel of our court first considered whether Pit River had Article III standing to bring its claims. Id. at 778-80. BLM argued that Pit River suffered no injury in fact and that its claims regarding the 1998 lease extensions were not redressable because the 1998 lease extensions were supplanted by new extensions in 2002. Id. at 779. We rejected these arguments, holding that Pit River adequately demonstrated injury in fact and redressability.
On remand, the parties disputed whether the leasing process would need to begin anew, thereby necessitating a new competitive bidding process. Pit River Tribe v. U.S. Forest Serv., 615 F.3d 1069, 1074 (9th Cir.2010). The district court concluded that the lease extensions should not be vacated, but remanded the case to the agencies to conduct proper NEPA and NHPA review, and to permit tribal consultation. Id. Pit River appealed, but we upheld the district court's order.
In 2004, while Pit River I was pending, the plaintiffs here filed two separate complaints challenging BLM's May 18, 1998
Pit River's amended complaint alleged that BLM's 1998 decision to continue the leases violated the Geothermal Steam Act, NEPA, NHPA, and the agency's fiduciary trust obligation to Indian tribes. Pit River's Geothermal Steam Act claims, which are set out in Paragraph 107 of the amended complaint, specifically alleged:
The amended complaint also alleged that BIA violated the Freedom of Information Act (FOIA). Defendant Calpine moved for summary judgment on Pit River's FOIA claims and for judgment on the pleadings under Federal Rule of Civil Procedure 12(c) on all other claims.
The district court granted summary judgment on Pit River's FOIA claims,
This court reviews a motion for judgment on the pleadings under Rule 12(c) de novo. Goldstein v. City of Long Beach, 715 F.3d 750, 753 (9th Cir.2013). "Analysis under Rule 12(c) is `substantially identical' to analysis under Rule 12(b)(6) because, under both rules, a court must determine whether the facts alleged in the complaint, taken as true, entitle the plaintiff to a legal remedy." Chavez v. United States, 683 F.3d 1102, 1108 (9th Cir.2012) (citations and internal quotation marks omitted).
Because the Geothermal Steam Act does not expressly provide for a private right of action, Pit River relied on the Administrative Procedure Act (APA) to bring its challenge to BLM's 1998 decisions to vacate its lease extension decisions and continue the 26 unproven Glass Mountain leases as a unit. Under § 10(a) of the APA "[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof." 5 U.S.C. § 702. BLM does not dispute that Pit River has Article III standing to bring its claims.
The Supreme Court first articulated the zone-of-interests test in 1970 in Data Processing. 397 U.S. at 153, 90 S.Ct. 827. The Court stated that standing "concerns, apart from the `case' or `controversy' test, the question whether the interest sought to be protected by the complainant is arguably within the zone of interests to be protected or regulated by the statute or constitutional guarantee in question." Id. In 1987, the Supreme Court explained in
479 U.S. 388, 399-400, 107 S.Ct. 750, 93 L.Ed.2d 757 (1987) (footnotes omitted). The zone-of-interests test should be applied consistent with Congress's intent "to make agency action presumptively reviewable" under the APA. Match-E-Be-Nash-She-Wish, 132 S.Ct. at 2210 (quoting Clarke, 479 U.S. at 399, 107 S.Ct. 750).
The Supreme Court has often characterized the zone-of-interests test as a "prudential standing" requirement. See, e.g., Fed. Election Comm'n v. Atkins, 524 U.S. 11, 20, 118 S.Ct. 1777, 141 L.Ed.2d 10 (1998); Bennett v. Spear, 520 U.S. 154, 163, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997). But last year, in Lexmark International, Inc. v. Static Control Components, Inc., the court rejected the "prudential standing" label and made clear that whether a plaintiff's claims are within a statute's zone of interests is not a jurisdictional question. ___ U.S. ___, 134 S.Ct. 1377, 1387-88, 188 L.Ed.2d 392 (2014); see also Chaudhry v. City of L.A., 751 F.3d 1096, 1109 (9th Cir.2014) ("[U]nlike standing, `the absence of a valid ... cause of action does not implicate subject-matter jurisdiction.'" (quoting Lexmark, 134 S.Ct. at 1387 n. 4)). The Court explained:
Id. at 1387 (citations omitted) (quoting Ass'n of Battery Recyclers, Inc. v. EPA, 716 F.3d 667, 675-76 (D.C.Cir.2013) (Silberman, J., concurring)).
Because Lexmark addressed a claim arising under the Lanham Act rather than under § 10 of the APA, the Supreme Court did not directly revisit its APA zone-of-interests precedent. Id. at 1383. But in discussing the Court's prior APA decisions, Lexmark reaffirmed its consistent statement "that the [zone-of-interests] test `forecloses suit only when a plaintiff's interests are so marginally related to or inconsistent with the purposes implicit in the statute that it cannot reasonably be assumed' that Congress authorized that plaintiff to sue." Id. at 1389 (quoting Match-E-Be-Nash-She-Wish, 132 S.Ct. at 2210).
The pivotal question here is whether Congress intended to create a cause of action encompassing Pit River's claims when it enacted the Geothermal Steam Act. See id. at 1387. The parties dispute whether the court may look to the Geothermal
In 2012, when Pit River's two cases were consolidated into one, Pit River stipulated that it would "only assert causes of action related to the May 18, 1998 lease extensions" in its amended complaint. At the hearing on BLM's and Calpine's motions for judgment on the pleadings, Pit River explained that the amended complaint's allegations regarding inclusion of the unproven leases within the Glass Mountain Unit were pleaded only as facts, not as distinct legal challenges. The district court interpreted this explanation as meaning that Pit River waived all of its Geothermal Steam Act claims except those in Paragraph 107(d) of the amended complaint, which alleged BLM "[u]nlawfully and retroactively continued the 26 Leases... for an additional period of 40 years in May 1998 in the absence of any commercial production." The district court concluded that Pit River's remaining Geothermal Steam Act claim relied on only the Act's lease-continuation provision, § 1005(a). But neither the stipulation nor the amended complaint expressly limited Pit River's claims to any particular provision of the Geothermal Steam Act, and Pit River never limited its claims only to § 1005(a). The transcript from the hearing on the motion for judgment on the pleadings makes this clear.
First, the district court inquired about the nature of the claims in Pit River's amended complaint. Pit River's counsel stated that Pit River was not merely challenging BLM's lease continuation decision under § 1005(a), but was also challenging BLM's decision to reverse course and decide that the leases could be continued under § 1005(a) as a unit rather than being subject to lease-by-lease extensions under § 1005(g). As counsel explained:
(Emphasis added.).
The district court acknowledged this argument, asking BLM's counsel: "Why don't the plaintiffs have a right to challenge
BLM's counsel's answer was not especially responsive:
The district court concluded that Pit River had actually abandoned its challenge to BLM's decision to apply § 1005(a) rather than § 1005(g). The court said to Pit River's counsel:
But Pit River did not concede that it had abandoned its challenge to BLM's May 18, 1998 change of course; instead, it made clear, as it stated in the district court hearing, that it thought "the court needs to look at what was done here in order to determine whether the BLM's last-minute reversal to make this a ministerial, rather than a discretionary decision, was proper under the law." Additionally, contrary to the district court's suggestion, Pit River could not have challenged the decision earlier because it appears that BLM first communicated its changed interpretation of § 1005 and the implementing regulations when it issued the 1998 letter retroactively continuing the unproven Glass Mountain leases.
Pit River's challenge plainly included whether BLM lawfully vacated its earlier § 1005(g) extension decisions and changed its interpretation of § 1005 to continue the leases for up to 40 years. Because Pit River's operative complaint challenges BLM's announcement that the leases were subject to continuation rather than extension, we conclude that Pit River's claims include a challenge under § 1005(g). Pit River I held that BLM must conduct NEPA and NHPA review before granting discretionary extensions under the 1998 version of § 1005(g).
Pit River argues it is entitled to judgment on the merits of its Geothermal Steam Act claims, in particular its claim that BLM improperly continued other leases within the Glass Mountain Unit rather than addressing the leases within the Unit one-by-one to determine whether extensions of those leases should be granted. Pit River asks our court to remand to the district court with instructions to enter judgment in its favor. We decline to do so. The district court did not consider the merits of Pit River's Geothermal Steam Act claims, and determining whether BLM violated provisions of the Geothermal Steam Act will require careful analysis. The district court should undertake that task in the first instance. See, e.g., U.S. Auto Parts Network, Inc. v. Parts Geek, LLC, 692 F.3d 1009, 1021 (9th Cir.2012) (directing district court to examine in the first instance issues not previously reached that might require factual development). Moreover, under Federal Rule of Civil Procedure 12(c), a plaintiff is not entitled to judgment on the pleadings if the defendant's answer raises issues of fact or affirmative defenses. Gen. Conference Corp. of Seventh-Day Adventists v. Seventh-Day Adventist Congregational Church, 887 F.2d 228, 230 (9th Cir.1989). In this case, the defendants' answers do both. We therefore decline Pit River's invitation to rule on the merits of its Geothermal Steam Act claims.
The district court concluded that Pit River's NEPA, NHPA, and fiduciary duty claims failed because § 1005(a) is non-discretionary — BLM is not permitted to consider environmental factors in making lease continuation decisions and any environmental review would be superfluous. We agree with the district court that § 1005(a) is non-discretionary, see Pit River I, 469 F.3d at 780 (citing Dep't of Transp. v. Pub. Citizen, 541 U.S. 752, 768, 124 S.Ct. 2204, 159 L.Ed.2d 60 (2004)), but, as discussed, the district court incorrectly circumscribed Pit River's claims. If Pit River prevails on its claim that the leases here were eligible only for extension under § 1005(g), BLM will be required to comply with NEPA and NHPA, including by consulting with affected tribes. Id. at 787-88. Therefore the district court erred by granting judgment on the pleadings on Pit River's NEPA, NHPA, and fiduciary duty claims.
We