Impact Energy Resources, LLC v. Salazar
ELR Citation: 42 ELR 20183 No(s). 11-4043, -4057 (10th Cir. Sep 5, 2012)
The Tenth Circuit upheld the DOI Secretary's decision to rescind 77 oil and gas leases on federal land around national parks in Utah. BLM auctioned the oil and gas leases to energy companies in late 2008 during the last weeks of the George W. Bush administration. After the auction but before the leases were issued, the newly appointed Secretary of the Interior decided not to lease the parcels at issue. His decision was memorialized in a February 6, 2009, memorandum to BLM's state director for Utah. On February 12, BLM mailed letters to the highest bidders indicating that the leases would not be issued. Ninety days later, the energy companies filed suit challenging the Secretary's authority to withdraw the leases. Their suit, however, is time barred under the Mineral Leasing Act's 90-day statute of limitations for oil and gas leases. The companies filed suit exactly 90 days after the February 12 letter was sent. But a majority of the court agreed that the Secretary's final decision occurred no later than February 6, the date of the memorandum. Nor are the energy companies entitled to equitable tolling. BLM notified the high bidders just six days after the Secretary made his decision. And the government notified the energy companies of its position that February 6 was the operative date during agency proceedings. The energy companies therefore had time to prepare their claims before the limitations period expired.