ELR Citation: 52 ELR 20025
No(s). 20-16401 (9th Cir. Feb 22, 2022)

The Ninth Circuit affirmed summary judgment for the Forest Service in a challenge to the Service’s determination that a mining company held a valid existing right to operate a uranium mine in the Kaibab National Forest. Environmental groups argued that sunk costs should have been considered when evaluating whether discovery of a “valuable mineral deposit” was made under the Mining Act. The appellate court found DOI’s interpretation that sunk costs are not considered when determining whether a mine is profitable was permissible and consistent with established economic principles, and that it was neither arbitrary nor capricious for the Forest Service to rely on that interpretation in making its determination. It affirmed summary judgment for the Service.