Historic Green Springs, Inc. v. Bergland

Decision Date11 August 1980
Docket NumberCiv. A. No. 77-0230-R.
Citation497 F. Supp. 839
CourtU.S. District Court — Eastern District of Virginia
PartiesThe HISTORIC GREEN SPRINGS, INC., Plaintiff, v. Bob BERGLAND et al., Defendants.

COPYRIGHT MATERIAL OMITTED

Emanuel Emroch, Emanuel Emroch & Associates and Thomas W. Williamson, Jr., Richmond, Va., for plaintiff.

Gerald L. Baliles, D. Patrick Lacy, and John A. Gibney, Jr., Richmond, Va., for defendant Va. Vermiculite and intervenor landowners.

Stephen C. Harris, Atty. for the Commonwealth of Louisa County, Louisa, Va., for intervenor Louisa County Bd. of Supv.

Raymond A. Carpenter, Asst. U.S. Atty., Richmond, Va., Gary W. Wilburn, Lars Hanslin, Dept. of Justice, Land and Natural Resources Div., Washington, D.C., for defendants Andrus and Murtagh.

MERHIGE, Jr., District Judge.

MEMORANDUM

This case involves the controversy surrounding the designation of approximately 14,000 acres of land in Louisa County, Virginia, known as the Historic Green Springs District, as a National Historic Landmark, its listing in the National Register of Historic Places (hereinafter "National Register"), and the acceptance by the Secretary of the Interior of preservation easements over half of the District. An explanation of the posture of the case requires a review of the proceedings, both administrative and judicial, since this suit was filed on April 26, 1977.

This action was originally filed in this Court by Historic Green Springs, Inc. (hereinafter "HGSI"), a local organization dedicated to the preservation of the District's historical qualities. HGSI filed its complaint against Virginia Vermiculite, Ltd. (hereinafter "VVL"), Secretary of Agriculture Bob Bergland, the Farmers Home Administration, and United Virginia Bank. HGSI sought to prevent the Farmers Home Administration from guaranteeing a loan from United Virginia Bank to VVL, the proceeds of which loan were to be used by VVL to finance mining operations in the Historic Green Springs District (hereinafter "District"). The basis of the complaint was that the District's listing in the National Register required compliance with certain protective procedures before such a loan guarantee could be effected.

On May 4, 1977, VVL filed a counterclaim and third-party complaint against defendant Bergland, Secretary of the Interior Cecil Andrus, and Keeper of the National Register William Murtagh. VVL challenged the District's listing in the National Register on the basis of the allegedly defective nomination of the property to the National Register by the Virginia Historic Landmarks Commission. A similar challenge was asserted by intervenors Louisa County Board of Supervisors and various owners of land within the District. Shortly thereafter, the Secretary of the Interior conceded that the state nomination of the District to the National Register was defective due to inadequate notice, but determined that because of its national historic significance, the District would remain on the Register as a National Historic Landmark. Upon motion by HGSI on May 16, 1978, the Court dismissed HGSI's complaint.

VVL and the intervening landowners (hereinafter "plaintiffs") as well as the Louisa County Board of Supervisors supplemented and amended their pleadings in order to challenge the actions of the Department of the Interior taken since the filing of the counterclaim and third-party complaint. A trial in this matter was held, at which time the federal defendants' motion for summary judgment was denied. The parties filed post-trial memoranda with the Court addressing the issues raised at trial. After reviewing such memoranda and the administrative record submitted to the Court, and finding further argument in this matter unnecessary, the Court finds the matter ripe for disposition.

I. FACTUAL BACKGROUND

The factual background that follows, regrettably, is necessarily detailed. The Historic Green Springs District comprises an area of approximately 14,000 acres, described as roughly the size of New York's Manhattan Island. The District lies within Louisa County, Virginia, about midway between Richmond and Charlottesville. While the national significance of the District's historic qualities is disputed, the area does constitute a beautiful and remarkably well-preserved concentration of eighteenth and nineteenth century buildings of architectural merit. Most of its land is used for agricultural purposes, although some commercial development may be found there, such as a lumber company, motel, meat processing plant, and used car dealership. Most importantly, two mining companies, VVL and W. R. Grace Co., Inc., have acquired mining rights over much of the land in and around the District for the mining and processing of vermiculite. Vermiculite is used in the production of plaster and lightweight concrete construction materials, fertilizers, paints, and insulation in both residential and commercial structures. The extent of the vermiculite deposits in the District has been termed significant.

The instant controversy over the district's historic value began as early as 1972, when the Commonwealth of Virginia proposed the construction of a new prison in the District. HGSI, with the support of the District's residents, organized a successful effort to block the construction. HGSI's efforts at promoting the District's historical qualities to state officials resulted in its recognition as a Virginia Historic Landmark by the Virginia Historic Landmarks Commission. This state commission in February, 1973, nominated the District to the National Register. On March 1, 1973, the Department of the Interior (hereinafter "the Department") approved the state nomination and listed the District on the National Register.1

HGSI also acquired "preservation easements" over approximately half of the land in the District, which preserved the affected land by prohibiting new industrial and commercial development, limiting in some instances any construction around various historic structures, and requiring proper maintenance of historic buildings. Once acquired by HGSI, these preservation easements were offered in 1973 to the Department of the Interior. Although the Department initially rejected the proffered easements, the offer itself led to consideration of the adoption of a national program of acquiring preservation easements over national historic landmarks.

Despite the Department's rejection of the easements, its interest in the District continued. In 1974, the Secretary considered designating the District a National Historic Landmark. In April, 1974, the Department's Advisory Board on National Parks, Historic Sites, Buildings & Monuments had presented to it a report on the District by Benjamin Levy, a Department historian. Levy's report, after noting a modicum of historical events and persons associated with the District, focused on the District's architectural qualities. Replete with photographs and diagrams, the report discussed in detail the characteristics of the various manor houses and outbuildings said to "constitute a textbook of Virginia architecture up to the period following the Civil War." Based upon this report, the Secretary designated the District a National Historic Landmark in 1974.

After HGSI renewed its offer of the preservation easements to the Department, the Department made clear in a letter to HGSI that the easements would be accepted only as part of a national easements program then under consideration. By September, 1975, the Secretary had decided to proceed with such a national program for accepting easements on selected historic landmarks. Evidence of the Secretary's interest in accepting the Green Springs easements as part of that program can be found in his letter to the Chairman of the Board of W. R. Grace Company, Inc., in which he emphasized the Department's interest in the area in relation to the easements program and suggested that the mining company utilize its vermiculite holdings outside the District.

Although funding for a national easements program was ultimately denied, the Department proceeded with consideration of acceptance of the Green Springs easements. The Department assigned its Senior Historian, Benjamin Levy, to prepare an evaluation of the proffered easements. Levy's report, submitted in November, 1976, noted many flaws in the terms and extent of the easements, such as their failure to grant public use and access, and to prohibit in all cases subdivision and development of the land. Notwithstanding the incomplete protection facilitated by the preservation easements, Levy concluded that their acceptance was a necessary first step in preserving the District. This belief was shared by Assistant Secretary of the Interior Ronald Coleman, who by memorandum dated January 4, 1977, recommended a quick acceptance of the easements without the benefit of an environmental impact statement pursuant to the National Environmental Policy Act of 1969 (hereinafter "NEPA"), 42 U.S.C. § 4321 et seq., or of the promulgation of regulations to govern easement acceptance.

On January 19, 1977, Assistant Secretary of the Interior Nathaniel Reed informed HGSI President, Elizabeth Nolting, that adoption of a policy of accepting the easements was underway. By notice in the Federal Register on March 18, 1977, the Department publicly announced the proposed acceptance of the Green Springs easements. The announcement gave notice of a public hearing on the merits of the proposal to be held on April 22, 1977, and provided for a fact sheet to be made available on request for that hearing. The hearing was held on April 22 in Louisa County at which both proponents and opponents of the proposal stated their respective positions.

Immediately following this hearing, Assistant Secretary of the Interior Robert Herbst requested that the Farmers Home Administration not guarantee a loan to VVL to finance mining operations until the Department could review the proposed...

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