ELR Citation: ELR 20191
No(s). 09-15385 (9th Cir. Aug 2, 2010)

The Ninth Circuit affirmed in part and reversed in part a lower court decision that leases between a power company and various governmental agencies for a geothermal power plant near Medicine Lake, an area of spiritual significance to Native American tribes in the region, could be extended. The original leases were issued in 1988 but were extended in 1998. A Native American tribe filed suit, arguing that the agencies had violated various federal laws during the leasing and development process and that the leasing process should begin anew due to past NEPA violations. Contrary to the tribes' assertion, the district court did not "reinstate" the original 1988 leases when it ruled that the leases were capable of extension on remand to the agencies. Instead, the district court placed the parties as closely as possible to where they would and should have been in 1998: the company seeks extensions of its leases, and the agencies must now properly act on that request. Accordingly, the district court did not abuse its equitable powers in ordering that the original 1988 leases be treated as capable of extension. However, the judgment was reversed in part with instructions to correct an inconsistency in the district court's order.

[A prior decision in this litigation can be found at 36 ELR 20223.]