NANCY B. FIRESTONE, Judge.
Pending before the court is the United States' motion to dismiss the claims of plaintiff RNR Resources LLC ("RNR") set forth in Count V the amended complaint in the above-captioned case.
Mr. Freeman has alleged a taking of the mining claims that were made in his name and that were declared null and void by the government. As discussed in detail below, Mr. Freeman's taking claim has been stayed pending the outcome of litigation in the United States District Court for the District of Columbia upholding the government's decision to void Mr. Freeman's mining claims.
This motion deals with the mining claims made in RNR's name. RNR alleges that the government took those mining claims when the Forest Service refused to allow RNR to mine the claims after RNR filed a plan of operations.
In its motion to dismiss, the government argues that RNR's takings claim is not ripe for review because the Forest Service has not yet disapproved RNR's plan of operations. According to the government, the Forest Service has not issued a final decision with regard to RNR's plan of operation because RNR has not submitted all of the information needed for the Forest Service to approve or disapprove RNR's application. The government further alleges that RNR cannot demonstrate that completing its application to the Forest Service would be futile. In this connection, the government alleges that the takings claim also is not ripe because RNR has not yet applied to the Department of the Interior ("DOI") for permission to use approximately 20 acres of DOI lands administered by the Bureau of Land Management ("BLM") that are adjacent to the mining area and that RNR plans to use to process the minerals. The Forest Service argues that it must take into account the environmental impacts on Forest Service lands from RNR's proposed operations on BLM lands in making its decision on RNR's plan of operation.
For the reasons stated below, the court agrees with the government that RNR has not filed a completed application and that it would not be futile for RNR to complete the application process with the additional information requested by the Forest Service. Because the Forest Service has not yet ruled on RNR's application, the claim is not ripe for review and this court lacks subject matter jurisdiction over RNR's claims. Therefore, the government's motion to dismiss Count V of the amended complaint pursuant to Rule 12(b)(1) is
The original complaint in this case was filed in 2001.
In
In 2011, after the DOI found Mr. Freeman's original claims invalid for lack of valuable mineral discovery, and during the pendency of the litigation in the district court, RNR "located eight new mining claims covering the same minerals and 1280 acres of the same area where the mining claims declared invalid are located." Am. Compl. ¶ 38. RNR alleges in the amended complaint that regardless of whether Mr. Freeman's mining claims contained a valuable mineral deposit for the years in question, RNR had a valuable mineral discovery in 2011.
On June 2, 2011, RNR filed a plan of operations with the Forest Service. The project description indicates that RNR intends to mine 60,000 tons of nickeliferous limonite iron ore.
On about June 5, 2011, Kevin Johnson, the Area Mining Geologist for the Rogue River-Siskiyou and Freemont-Winema National Forests, received a copy of the RNR plan and was directed by District Ranger Roy Bergstrom to evaluate the proposal. Def.'s Mot. to Dismiss Ex. 3 ("Johnson Declaration"), at ¶ 5.
On June 20, 2011, Ranger Bergstrom had a telephone conversation with Mr. Freeman regarding RNR's plan and the possibility of RNR conducting a bulk sample of minerals on the mining claims covered by the proposed plan. Def.'s Mot. to Dismiss Ex. 4 at ¶ 7. Ranger Bergstrom suggested that Mr. Freeman submit a written proposal because bulk sampling was not included in RNR's proposed plan.
On October 24, 2011, counsel for Mr. Freeman and RNR wrote a letter to Ranger Bergstrom inquiring about the status of the RNR plan review. Ranger Bergstrom responded by letter dated November 17, 2011, explaining that the Forest Service would need more time to evaluate the RNR plan because of the complexity of the issues and because it was a very busy season. Def.'s Mot. to Dismiss Ex. 4B.
On March 13, 2012, Mr. Johnson provided his review of the RNR plan to Ranger Bergstrom. Def.'s Mot. to Dismiss Ex. 4C. Mr. Johnson concluded that RNR's plan was not reasonable and did "not represent the logical or sequential step in the development of this deposit in a mine of this size and scope."
On July 24, 2012, Ranger Bergstrom informed Mr. Freeman by letter that the RNR plan was "not reasonable and therefore will not be processed until [RNR] provide[s] additional information and changes to the plan as outlined in Mr. Johnson's memorandum." Def.'s Mot. to Dismiss Ex. 4D ("July 24, 2012"). According to the letter, "the most compelling [reason why the application could not be processed] is the lack of a pilot processing plant that would be part of a logical sequence in scaling up to a full production processing facility."
On September 5, 2012, counsel for Mr. Freeman and RNR replied to the July 24, 2012 Letter, noting that Mr. Freeman and RNR were "unsure whether the [July 24, 2012 Letter] is appealable," but stated that "[i]n the event that the decision is appealable," Mr. Freeman and RNR wished to file a "Notice of Appeal." Def.'s Mot. to Dismiss Ex. 6. On September 19, 2012, the Forest Service responded and stated that the July 24, 2012 Letter did "not constitute an appealable decision pursuant to 36 CFR § 251.82(a) because it does not issue, deny or administer a written instrument to occupy National Forest System lands"; but noted instead that the July 24 Letter said the proposed plan of operations could not be processed because the District Ranger lacked sufficient information to evaluate it. Def.'s Mot. to Dismiss Ex. 7.
On September 18, 2012, Ranger Bergstrom and Mr. Johnson met with Mr. Freeman to discuss steps Mr. Freeman would need to take to address the concerns raised by Ranger Bergstrom in the July 24, 2012 Letter, including the need for a pilot processing plant. Def.'s Mot. to Dismiss Ex. 4 ¶ 16 ("Bergstrom Decl."). Mr. Freeman stated that he had satisfied himself that RNR's proposed project was technically possible and that he did not need to bother with the construction of a pilot plant.
On October 3, 2012, counsel for Mr. Freeman and RNR sent a letter to the Forest Service's Regional Forester, Kent Connaughton, stating that while still "unsure whether the [July 24, 2012 Letter] is appealable," they were going to file the appeal anyway "[b]elieving it may be appealable." Def.'s Mot. to Dismiss Ex. 8. On October 19, 2012, Mr. Connaughton responded and affirmed what the Forest Service had said: the July 24 Letter was not an appealable decision pursuant to 36 C.F.R. § 251.82(a). Def.'s Mot. to Dismiss Ex. 9. Mr. Connaughton reiterated that the plan of operations had not been denied and that an appeal would only be appropriate after RNR had submitted a complete plan of operations that was evaluated and denied.
On June 19, 2013, shortly before the pending motion to dismiss was filed, Mr. Johnson sent another memorandum to Ranger Bergstrom outlining the deficiencies in RNR's proposed plan of operations. The memorandum identifies the issues RNR would need to address before the Forest Service would approve or disapprove RNR's plan. Def.'s Mot. to Dismiss Ex. 10. The memorandum notes, among other deficiencies, that RNR's plan does not include details regarding construction of the road and the proposed stream crossings to be used to transport the product from the mines. It also notes that if RNR does not submit a plan of operations to BLM regarding the construction a processing plant on their land, the BLM will not be able to provide an analysis of the potential effects to Forest Service lands. Without that information, the Forest Service will not be able to evaluate the environmental issues associated with building a processing facility adjacent to a national forest. The memorandum reiterates the value of building a pilot processing facility to determine whether the minerals at issue can be profitably developed. In this connection, the memorandum notes that one of RNR proposed products, ferronickel (as opposed to a master alloy of nickel, iron, and chrome to be sold as stainless steel), could generate hazardous waste and that RNR's plan does not include details regarding where and how that waste would be properly stored. In the concluding section of the memorandum, Mr. Johnson recommends that Mr. Freeman be notified that RNR's "proposed plan of operations is incomplete and cannot be further processed because it does not comply with the content requirements of 36 CFR § 228.4." The memorandum further states:
Def.'s Mot. to Dismiss Ex. 10.
Mr. Freeman contends in his declaration that none of the Forest Service's objections to RNR's plan are justified and that none of the deficiencies identified in the June 19, 2013 memorandum have merit. Pl.'s Opp. Ex. 1. He contends that a separate pilot plant is not needed because he proposes to build a small plant that will fit the purposes of pilot testing. He also contends that none of the environmental issues are valid and that he does not need BLM's permission before the Forest Service can process [RNR's] application. He concludes by stating his belief that the Forest Service never intends to make a final decision:
"[I]n deciding a motion to dismiss for lack of subject matter jurisdiction, the court accepts as true only uncontroverted factual allegations in the complaint."
In the amended complaint, RNR argues that the Forest Service effectively "denied [RNR's] Plan of Operations in its entirety . . . ." Am. Compl. ¶ 56. The government disputes this statement, asserting that the Forest Service has not yet made a determination on RNR's plan because the application is incomplete, and thus the claim is not ripe. The Federal Circuit has found that this court does not have jurisdiction over takings claims that are not ripe.
The Supreme Court and the Federal Circuit have found that a regulatory takings claim, as is alleged here, "is not ripe until the government entity charged with implementing the regulations has reached a final decision regarding the application of the regulations to the property at issue."
Here, there is no dispute that the Forest Service has the authority to approve, approve with conditions, or deny RNR's proposal to conduct mining operations on Forest Service lands.
The government lists a number of deficiencies that it argues make RNR's application incomplete, making approval of the plan pursuant to 36 C.F.R. § 228.5 not possible. One of the key points of contention is over the need for a pilot processing plant to determine whether mining and smelting of the minerals at issue can be done on a production scale. The Forest Service argues that information about the pilot plant is necessary to evaluate the environmental impact of the proposed operations. In addition, though RNR's proposal includes plans to build a processing and smelting facility on BLM-administered lands, RNR has not submitted any plan of operation to the BLM. The Forest Service states that to complete its review of RNR's proposal, the Forest Service needs to be able to evaluate the impacts on Forest Service land of the proposed operations on adjacent BLM land. The government also argues that the additional information identified in the June 13, 2013 letter with regard to deficiencies in RNR's air quality, water quality, and waste analyses are legitimate deficiencies in RNR's plan of operations.
RNR argues that the construction of a pilot plant is not necessary and is simply a means for the government to delay processing its application. With respect to the other supposed deficiencies in RNR's plan, RNR first argues that by the time the Forest Service issued the June 19, 2013 memorandum, it was "simply too late to request additional information over two years after the plan of operations [was] filed." Pl.'s Opp. 31 (citing 36 C.F.R. § 228.5). RNR also characterizes the listed deficiencies as "hyper-technicalities designed to make sure that, not only will these claims never be mined, [but also] that Freeman and RNR will never be compensated for them."
Forest Service regulations require the agency to "analyze the proposal, considering the economics of the operation along with . . . other factors in determining the reasonableness of the requirements for surface resource protection . . . ." 36 C.F.R. § 228.5. While RNR disputes the need for the information the Forest Service has asked for, RNR does not have the final say on what the Forest Service requires. The Federal Circuit has found that "[g]overnmental agencies that implement complex permitting schemes should be afforded significant deference in determining what additional information is required to satisfy statutorily imposed obligations."
The Forest Service has raised a number of concerns about information relating to environmental issues missing from RNR's 2011 application, perhaps most notably RNR's failure to submit any information regarding the effects of its processing facility on BLM-managed lands. The BLM informed Mr. Freeman in July of 2011 that he would need to provide BLM with a plan of operations for that facility, which he has still not done.
In discussing the requirement that an agency make a final decision before a takings claim can be ripe for review, the Supreme Court has explained that:
RNR argues that "the Forest Service's entire course of conduct in regard to the mining of these claims . . . is designed to make sure they are never actually mined." Pl.'s Opp. 35. Therefore, RNR argues, submitting the additional information to the Forest Service would be futile.
The Federal Circuit has found that "a claimant can show its claim was ripe with sufficient evidence of the futility of further pursuit of a permit through the administrative process."
Plaintiff argues that the Forest Service denied Mr. Freeman's initial plan of operations in 1999, which was functionally identical to the plan RNR submitted in 2011, and thus it is futile for RNR to comply with the Forest Service's request for additional information. The court is mindful that Mr. Freeman needed to address some of these same issues in his prior efforts to obtain Forest Service approval of his (not RNR's) earlier plan of operations. However, the issues of environmental concern in the 1990s may well be different in 2011, just as Mr. Freeman, on behalf of RNR, now argues that mining claims on the same land declared invalid in 1999 should now be deemed valid in 2011 due to changing conditions in the outside world. The court cannot assume that the environmental issues are identical and that the Forest Service's environmental concerns in 2011 are not legitimate.
Plaintiff further argues that complying with the Forest Service's request is futile because the government has made it clear that it will not permit RNR to commence mining operations without a plan for a pilot plant and bulk sampling, which RNR maintains is unnecessary. Plaintiff's sole focus on the pilot plant is misguided. Even if RNR is correct about pilot plant issue, RNR still must address the concerns the government has raised regarding the information needed to evaluate environmental impacts, particularly with respect to the operation of a processing plant on BLM-managed land along with the potential need to store and transport hazardous waste. The Forest Service identified these issues early on to RNR and RNR has simply ignored the requests for more information on these issues.
To the extent that RNR is arguing that the government never intends to issue a decision to authorize mining its argument also fails. First, the government in this case has explained the additional steps that RNR must take to complete its application and receive a final decision. Thus this case is different from
Second, RNR has not shown that the Forest Service's requests are merely a pretext to extend the process and prevent RNR from ever mining on Forest Service land.
For the reasons stated above, the government's motion to dismiss Count V of the amended complaint pursuant to Rule 12(b)(1) is