Ninth Circuit
Holds the United States Need Not Get Approval from
Landowner before Implementing a Conservation Plan on Land Subject to a
Permanent Conservation
Easement
BIG MEADOWS GRAZING ASSOCIATION, Plaintiff-Appellant,
v. UNITED STATES OF AMERICA, by and through; ANN M. VENEMAN, in her
capacity as Secretary of the Department of Agriculture; SHIRLEY GAMMON, in her
capacity as State Conservationist (for the State of Montana) with the Natural
Resources and Conservation Service, an agency of the Department of Agriculture,
Defendants-Appellees.
No. 02-35764
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
344 F.3d 940; 2003 U.S. App. LEXIS 19002; 2003
Cal. Daily Op. Service 8392
August 6, 2003, Argued and Submitted,
Seattle, Washington
September 15, 2003, Filed
PRIOR
HISTORY: [**1] Appeal from the United States District Court for the
District of Montana. D.C. No. CV-01-00204-DWM. Donald W. Molloy, District
Judge, Presiding.
DISPOSITION: Affirmed.
COUNSEL:
Kent P. Saxby, Johnson, Berg, McEvoy & Bostock, PLLP, Kalispell, Montana,
for the plaintiff-appellant.
Robert R. Klotz, Appellate Section,
Environment & Natural Resources Division, United States Department of
Justice, Washington, D.C., for the defendants-appellees.
JUDGES:
Before: James R. Browning, Arthur L. Alarcon, and Richard R. Clifton, Circuit
Judges. Opinion by Judge Clifton.
OPINIONBY: Richard R.
Clifton
OPINION: [*941] CLIFTON, Circuit Judge:
No
less than half of the wetlands n1 in the continental United States have been
destroyed since 1600. n2 To counter this trend, the Natural Resource
Conservation Service of the Department of Agriculture established the Wetlands
Reserve Program (the "WRP") to provide landowners an opportunity to protect,
restore, and enhance wetlands on their property." n3 Big Meadows Grazing
Association ("Big Meadows") sold the United States a conservation easement so
that part of Big Meadows' property could be enrolled in the WRP. When Big
Meadows and the United States subsequently disagreed on what conservation[**2]
activities would occur on the property, the government began unilaterally
implementing its proposed conservation plan. Big Meadows sued, seeking in
pertinent part a declaratory judgment that implementation of the conservation
plan without its approval would violate 16 U.S.C. § 3837a. The district
court granted summary judgment for the government, ruling that the government
need not obtain Big Meadows' approval before implementing the conservation
plan. Big Meadows [*942] timely appealed. Because § 3837a neither requires
Big Meadows' assent to the conservation plan nor requires that the agreement to
implement a conservation plan be made apart from the easement, we
affirm.
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - -
- -
n1 Wetlands are home to nearly 5,000 species of plant life and
numerous species of animal life (including such endangered species as the
whooping crane, bald eagle, red wolf, and fatmucket mussel).
See
http://www.nrcs.usda.gov/feature/highlights/wetlands/life.html
(last visited August 19, 2003). Wetlands also help prevent floods, control
erosion, protect shorelines, and filter water pollutants.
See
http://www.nrcs.usda.gov/feature/highlights/wetlands/places.html
(last visited August 19, 2003). [**3]
n2
See
http://h2osparc.wq.ncsu.edu/info/wetlands/intro.html
(last visited August 19, 2003).
n3
See
http://www.nrcs.usda.gov/programs/wrp/
(last visited August 19, 2003);
see also 16 U.S.C. § 3837(a) (2000)
(the WRP was established "to assist owners of eligible lands in restoring and
protecting wetlands").
- - - - - - - - - - - - End Footnotes- - - - - -
- - - - - - - -
I. BACKGROUND
Ever since December 1999,
the government has held a permanent conservation easement on approximately
1,812 acres of land that Big Meadows owns in Flathead County, Montana. The
government paid Big Meadows approximately $ 1.9 million for the easement, the
purpose of which is to "restore, manage, maintain, and enhance" wetlands and to
conserve "natural values." Before the easement was conveyed, the government
allegedly informed Big Meadows that the conservation plan would cost around $
80,000 to implement. However, the government's latest conservation plan, from
September 2001, is projected to cost over $ 486,000. The government did not
provide Big Meadows with a Preliminary Restoration Plan ("PRP") before
obtaining the easement.[**4]
Insisting that the latest conservation plan
is "radically different" from representations that were made both before and
after the easement was conveyed, Big Meadows has refused to agree to its
implementation. Big Meadows disagrees with the scope and type of restoration
activities that are to take place. For example, according to Big Meadows, the
conservation plan originally envisioned restoring a streambed, but now proposes
impounding water via a dam, which Big Meadows finds objectionable. Unable to
obtain Big Meadows' agreement, the government informed Big Meadows that its
agreement was not necessary and began unilaterally implementing the
conservation plan in November 2001.
Litigation ensued. Big Meadows
sought in district court a declaratory judgment that the government had
violated § 3837a by attempting to implement a conservation plan without
Big Meadows' agreement, and an injunction preventing the government from
performing any restoration activities until Big Meadows approved of a
conservation plan. The district court denied Big Meadows' requests for a
temporary restraining order and for a preliminary injunction. The government
then moved to dismiss for failure to state[**5] a claim, arguing in relevant
part that § 3837a had not been violated. Construing the motion as one for
summary judgment, the district court granted summary judgment for the
government, holding that § 3837a did not require the government to obtain
Big Meadows' agreement before implementing the conservation plan. Big Meadows
timely appealed from that decision.
II. DISCUSSION
A. Section
3837a Does Not Require the Government to Obtain Big Meadows' Agreement to the
Terms of the Conservation Plan.
Leaning on § 3837a, Big Meadows
argues that the government may not implement on the easement property a
conservation plan to which Big Meadows has not assented. The statute provides
in relevant part:
(a) In general. To be eligible to place land into the
wetland reserve under this subpart, the owner of such land shall enter into an
agreement with the Secretary --
(1) to grant an easement on such land to
the Secretary; [and]
- (2) to implement a wetland easement conservation plan as provided
for in this section . . . .
- 16 U.S.C. § 3837a(a) (2000).
- There is no dispute that subpart (1) has been satisfied. Big
Meadows argues, [**6] [*943] however, that subpart (2) has not been met. Big
Meadows reads subpart (2) as requiring the government to obtain Big Meadows'
assent to the particular conservation plan to be implemented. We find no
support for this construction in the statute. The language of subpart (2)
plainly does not require agreement on the specific terms of the conservation
plan. All subpart (2) requires is that Big Meadows enter into an agreement "to
implement a wetland easement conservation plan" of some kind. Big Meadows did
that when it conveyed the conservation easement here.
Scrutiny of the particular terms of this easement reveals that Big
Meadows agreed to the implementation of a wetland easement conservation plan.
Specifically, Big Meadows relinquished all rights not expressly reserved in
Part II of the easement:
- The Grantor(s), hereby grants and conveys with general warranty of
title to the UNITED STATES OF AMERICA and its assigns . . . forever, all
rights, title and interest in the lands comprising the easement area . . . and
appurtenant rights of access to the easement area, but reserving to the
Landowner only those rights, title and interest expressly enumerated in Part
II. It is the intention[**7] of the Landowner to convey and relinquish any and
all other property rights not so reserved.
- Part II expressly reserved in Big Meadows only record title, the
right of quiet enjoyment, the right to prevent trespass and control public
access, the right to undeveloped recreational uses, and the right to subsurface
resources. Big Meadows did not reserve, for instance, the right to veto the
conservation plan.
Expressly granted, in fact, was the right for the government to
undertake "any" restoration activities: "The United States shall have the right
to enter unto the easement area to undertake . . .
any activities to
restore, protect, manage, maintain, enhance, and monitor the wetland and
other natural values of the easement area." (Emphasis added.) The purpose of
the easement was "to restore, protect, manage, maintain, and enhance the
functional values of wetlands," and the easement expressly recognized that
"restoration and management activities on the easement area" would occur. This
language demonstrates that, in conveying the easement and pursuant to its
terms, Big Meadows "entered into an agreement with the Secretary . . . to
implement a wetland easement conservation[**8] plan." n4 16 U.S.C. §
3837a(a) (2000).
- - - - - - - - - - - - - - Footnotes - - - - - - - - -
- - - - - -
n4 Although the easement does express an "intent of [the
United States] to give the Landowner the opportunity to participate in the
restoration and management activities on the easement area," it nowhere grants
Big Meadows the power to veto a conservation plan of which it
disapproves.
- - - - - - - - - - - - End Footnotes- - - - - - - - -
- - - - -
Notably, § 3837a(c) reserves no role for the landowner in
developing a conservation plan, supporting our conclusion that Big Meadows'
approval is not required:
- (c) Restoration plans. The development of a restoration plan,
including any compatible use, under this section shall be made through the
local Natural Resources Conservation Service representative, in consultation
with the State technical committee.
Guidance in support of the government's position is further provided
by § 3837a(b), which reads in pertinent part:
(b) Terms of easement. An
owner granting an easement under subsection (a) of this section shall be
required to provide for[**9] the restoration and protection of the functional
values of wetland [*944] pursuant to a wetland easement conservation plan that
--
***
- (4) includes such additional provisions as the Secretary determines
are desirable to carry out this subpart or to facilitate the practical
administration thereof.
- Subpart (b)(4) vests in the Secretary discretion to include any
desirable provisions in the conservation plan. It does not require the
Secretary to obtain Big Meadows' assent.
- Nor must the conservation agreement be made separate and apart from
the easement. While § 3837a(a) requires that Big Meadows both agree to
grant an easement and agree to the implementation of a conservation plan, it
nowhere prohibits the latter agreement from being contained in the easement.
Section 3837a(b) suggests no such prohibition either. Big Meadows relies on the
portion of that section stating, "An owner granting an easement under [ §
3837a(a)] shall be required to provide for the restoration and protection of
the functional values of wetland pursuant to a wetland easement conservation
plan . . . ." 16 U.S.C. § 3837a(b) (2000). But that language nowhere
indicates that[**10] agreement to the conservation plan cannot be contained in
the easement. In fact, § 3837a(b) is titled "Terms of easement,"
suggesting that the agreement to implement a conservation plan may well be part
of the easement.
- Federal regulations prompt no different result. Seven C.F.R. §
1467.4(a) (2003) states in pertinent part, "To participate in WRP, a landowner
will agree to the implementation of a Wetlands Reserve Plan of Operations
(WRPO) . . . ." Like 16 U.S.C. § 3837(a), this regulation requires only
that Big Meadows agree to the implementation of a conservation plan. It does
not require that Big Meadows assent to the terms of the particular conservation
plan chosen.
Neither does 7 C.F.R. § 1467.10(d) (2003), which provides in
relevant part (emphasis added):
(d) The landowner shall:
(1) Comply
with the terms of the easement;
- (2) Comply with all terms and conditions of any associated
contract;
- ***
- (4) Agree to the long-term restoration, protection, enhancement,
maintenance, and management of the easement in accordance with the terms of the
easement and related agreements. . . .
- Far from[**11] indicating that a separate agreement is required,
the emphasized portions actually suggest the contrary. Subpart (d)(2)'s
reference to "any associated contract" indicates that a separate contract may,
but need not, exist. Subpart (d)(4)'s reference to "related agreements" does
not indicate that separate related agreements must exist, but merely
acknowledges that they may.
Finally, we turn to 7 C.F.R. § 1467.12(b) (2003), which
specifies in relevant part, "Modifications to the WRPO which are substantial
and affect provisions of the easement will require agreement from the landowner
and require execution of an amended easement." At most, this regulation may
suggest that the conservation plan (the WRPO) is to exist apart from the
easement (though we offer no opinion on this matter). It nowhere indicates that
the
agreement to implement a conservation plan must exist apart from the
easement.
In sum, the plain language of § 3837a (with which the
underlying regulations are consistent) does not require that Big Meadows assent
to a conservation plan before it may be implemented. Nor does [*945] it require
that the agreement to implement a conservation plan be made[**12] separate and
apart from the easement. All it requires is that Big Meadows agree to the
implementation of a wetland easement conservation plan. Big Meadows did so
under the specific terms of the easement it conveyed to the
government.
We do not hold that the conveyance of an easement pursuant
to § 3837a(a)(1) obviates the requirement of § 3837a(a)(2) that there
be an agreement "to implement a wetland easement conservation plan." Rather,
our holding is that when, as here, the particular terms of the easement
demonstrate an agreement to implement a wetland easement conservation plan,
subpart (a)(2) is met. Subpart (a)(2) neither requires the agreement to be made
separate and apart from the easement, nor does it require agreement on the
specific terms of the conservation plan.
Because the plain language of
the statute unambiguously forecloses Big Meadows' argument, our inquiry ends
here.
See Cal. Franchise Tax Bd. v. Jackson (In re Jackson), 184 F.3d
1046, 1051 (9th Cir. 1999) ("When the statutory language is clear and
consistent with the statutory scheme at issue, the statute's plain language is
conclusive and this Court need not inquire beyond the plain language[**13] of
the statute.").
B. We Decline to Review Big Meadows' Allegations of
Noncompliance with the Manual.
Big Meadows also argues that its
assent to the conservation plan is required by the Manual. n5 Yet Big Meadows
concedes that the Manual cannot bind the government because it is neither
substantive in nature nor was promulgated according to the Administrative
Procedure Act.
See W. Radio Serv. Co. v. Espy, 79 F.3d 896, 902 (9th
Cir. 1996) (requiring "agency rules to be substantive and to be promulgated
according to certain procedural requirements before they can bind an agency").
Because the Manual is nonbinding, we do not review Big Meadows' allegations of
noncompliance.
See 79 F.3d at 900 ("We will not review allegations of
noncompliance with an agency statement that is not binding on the
agency.").
- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - -
- - -
n5 Big Meadows raised this argument in its brief before the
district court. We therefore decline the government's invitation to disregard
the argument on the ground that it was raised for the first time on appeal.
See United States v. Oregon, 769 F.2d 1410, 1414 (9th Cir. 1985)("The
rule is well-established that absent exceptional circumstances, an issue not
raised below will not be considered on appeal.").
- - - - - - - - - - -
- End Footnotes- - - - - - - - - - - - - -
[**14]
III.
CONCLUSION
For the foregoing reasons, the judgment of the district court
is AFFIRMED.