South Dakota v. U.S. Dept. of Interior, No. CIV. 00-3026-RHB.

• Decision Date: 19 April 2004
• Docket Number: No. CIV. 00-3026-RHB.
• Parties: State of SOUTH DAKOTA, City of Oacoma, and Lyman County, Plaintiffs, v. UNITED STATES DEPARTMENT OF the INTERIOR; Aurene Martin, Acting Assistant Secretary-Indian Affairs; Bill Benjamin, Acting Regional Director, Great Plains Regional Office, BIA; and Cleve Her Many Horses, Superintendent, Lower Brule Agency, BIA, Defendants.
• Court: U.S. District Court — District of South Dakota

314 F.Supp.2d 935

State of SOUTH DAKOTA, City of Oacoma, and Lyman County, Plaintiffs, v. UNITED STATES DEPARTMENT OF the INTERIOR; Aurene Martin, Acting Assistant Secretary-Indian Affairs; Bill Benjamin, Acting Regional Director, Great Plains Regional Office, BIA; and Cleve Her Many Horses, Superintendent, Lower Brule Agency, BIA, Defendants.

No. CIV. 00-3026-RHB.

United States District Court, D. South Dakota, Central Division.

April 19, 2004.

COPYRIGHT MATERIAL OMITTED

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John Pl. Guhin, Pierre, SD, Paul E. Jensen, Oacoma/Lyman Co., Winner, SD, for Plaintiff.

Cheryl Schrempp Dupris, Pierre, SD, Judith Rabinowitz, Juneau, AK, for Defendant.

MEMORANDUM OPINION AND ORDER

BATTEY, District Judge.

The state of South Dakota, city of Oacoma, and Lyman County ("plaintiffs"), filed suit in this Court seeking declaratory and injunctive relief to prevent the defendants ("Interior") from taking a 91-acre parcel of land ("Oacoma parcel") into trust for the Lower Brule Sioux Tribe ("the Tribe") pursuant to Section 5 of the Indian Reorganization Act of 1934 ("IRA"), 25 U.S.C. § 465. Plaintiffs claim that the unfettered authority bestowed upon the Secretary of the United States Department of the Interior ("Secretary" or "Agency") via 25 U.S.C. § 465 equates to an unconstitutional delegation of legislative authority to the executive branch. In the alternative, plaintiffs contend that the decision to take the Oacoma parcel into trust was arbitrary and capricious because the Agency failed to consider the requisite factors as listed in 25 C.F.R. pt. 151.

Interior argues that 25 U.S.C. § 465 is constitutional because the text and underlying policy of the statute establish sufficient boundaries on the Secretary's discretion and intelligible principles for courts to consider when reviewing a decision by the Secretary under Section 5. Interior also maintains that the decision was a reasonable one made after considering all relevant factors. Accordingly, Interior asks the Court to declare § 465 constitutional and affirm the Agency's decision to take the Oacoma land into trust.

PROCEDURAL HISTORY

In 1990, the Tribe filed an application with the Secretary to have the Oacoma parcel taken into trust pursuant to 25 U.S.C. § 465. The Tribe's application was subsequently approved. The state of South Dakota and city of Oacoma appealed the decision to the Interior Board of Indian Appeals; however, the appeals board dismissed the appeal claiming it lacked jurisdiction to review decisions of the Assistant Secretary — Indian Affairs. On November 30, 1992, the Oacoma parcel was transferred into trust for the Tribe.

After the adverse decision by the Interior Board of Indian Appeals, the state and city filed suit in this Court requesting review of the Agency's decision. This Court determined that it was without jurisdiction to review the decision for the reason that the Quiet Title Act, 28 U.S.C. § 2409a, forbids suits under the Administrative Procedures Act, 5 U.S.C. § 706, when plaintiffs, who do not claim a property interest in land, seek review of a decision of the Secretary to take land into trust for Indians pursuant to 25 U.S.C. § 465. South Dakota v. United States Dep't of the Interior, CIV. 92-3023 (D.S.D.1994). This Court also concluded that 25 U.S.C. § 465 was not an unconstitutional delegation of legislative power to the executive branch. The state and city then appealed that decision to the Eighth Circuit Court of Appeals. The Eighth Circuit panel, in a plurality opinion with Judge Diana Murphy writing a dissenting opinion, determined that 25 U.S.C. § 465 equated to an unconstitutional delegation of legislative power and reversed this Court's decision. South Dakota v. United States Dep't of the Interior, 69 F.3d 878 (8th Cir.1995) ("Oacoma I"). Interior then filed a petition for a writ of certiorari with the United States Supreme Court. The Supreme Court granted Interior's writ, vacated the decision of the Eighth Circuit, and remanded the matter back to the Secretary in light of Interior's enactment of regulations specifically permitting judicial review of agency decisions that take land into trust for Indians. United States Dep't of Interior v. South Dakota, 519 U.S. 919, 117 S.Ct. 286, 136 L.Ed.2d 205 (1996); see 25 C.F.R. § 151.12(b) (stating that title will not transfer for 30 days when the Secretary decides to take land into trust). On December 18, 1996, the Eighth Circuit recalled its mandate, vacated its earlier judgment, and remanded the matter to this Court. South Dakota v. United States Dep't of the Interior, 106 F.3d 247 (8th Cir.1996). On December 24, 1996, this Court, complying with the Circuit Court's order, remanded the matter to the Agency for reconsideration of its decision. Accordingly, the Oacoma parcel was removed from trust status effective December 24, 1996.

FACTS

On September 9, 1997, the Tribe issued Resolution 97-408 requesting that Interior take the Oacoma parcel into trust. Administrative Record ("AR") 17. A copy of the resolution was forwarded to the Office of the Solicitor in Washington, D.C., however, a letter by Interior indicated the Tribe needed to complete an amended resolution setting forth the purposes for which the land will be used. AR 20. A supplemental resolution was issued on September 25, 1997, stating that the Oacoma land will be used "to enhance the economic development of the tribe, and to provide a nexus to the Oacoma area which is of historical importance to the tribe." AR 29.

On February 12, 1998, the acting superintendent of the Bureau of Indian Affairs ("BIA"), Lower Brule Agency, sent letters to plaintiffs notifying them that the Tribe submitted an application to have the Oacoma parcel placed in trust and solicited comments from plaintiffs on the application. AR 311-21. On March 13, 1998, the state issued a letter in opposition to the Tribe's application. AR 326-618. The city and county submitted a similar letter on that same date. AR 619-744. The Tribe then issued a letter to the acting superintendent in response to plaintiffs' letters. AR 774-822.

On June 30, 1999, the regional director of the Great Plains Regional Office of the BIA Office of Trust Responsibilities, recommended that the acting secretary place the Oacoma parcel in trust status. AR 837. Upon review, however, the regional director noted that there were numerous deficiencies in the Tribe's application. AR 930-44. To this end, the BIA informed the regional director that additional information and further elaboration on various factors was needed before the BIA could process the Tribe's application. AR 1259-60. On February 18, 2000, the regional director issued a memorandum decision purporting to comply with the BIA's request for additional analysis of the Tribe's application. AR 1271-74. The regional director also recommended the deputy commissioner of indian affairs grant trust status to the Oacoma parcel. Id. Finally, after requesting and receiving additional information relevant to the application, the BIA issued a memorandum substantively addressing the 25 C.F.R. pt. 151 factors that the Secretary is required to evaluate when considering whether an application for fee-to-trust status should be granted. AR 1391-97. In concurrence, the deputy commissioner determined that title to the Oacoma parcel should be transferred to the United States in trust for the Tribe. AR 1397. On May 18, 2000, Interior published in the Federal Register notice of its intent to transfer the Oacoma parcel into trust for the Tribe. AR 1409-10; see 65 Fed.Reg. 31,594 (Dep't of the Interior May 18, 2000).

On June 16, 2000, plaintiffs filed suit against Interior, requesting declaratory and injunctive relief to prevent transfer of the property into trust for the Tribe. AR 1421-44. After litigation commenced, this Court stayed the matter pending completion of an environmental assessment. On December 14, 2000, in accordance with the environmental assessment, the deputy commissioner issued a finding of no significant impact ("FONSI"). AR 1484. A Notice of Availability was then posted at the Tribe's office and published in The Chamberlain-Oacoma Register weekly newspaper. AR 1551, 1553. On January 18, 2001, the deputy assistant secretary ratified its earlier decision to include information on the environmental assessment and FONSI. AR 1559. The notice of ratification decision was published in the Federal Register on January 26, 2001. AR 1566-67.

On March 19, 2001, plaintiffs submitted an amended complaint. Then, on July 23, 2001, the Tribe filed a motion to intervene in this matter. This Court denied the Tribe's motion to intervene. The Tribe appealed that Order and the denial of intervention was affirmed by the Eighth Circuit Court of Appeals. South Dakota v. United States Dep't of the Interior, 317 F.3d 783 (8th Cir.2003). Plaintiffs filed a motion for summary judgment on June 16, 2003. Interior filed a cross-motion for summary judgment on December 15, 2003. On January, 21, 2004, the Tribe filed a brief of amicus curiae in support of Interior's motion for summary judgment.

SUMMARY JUDGMENT STANDARD

Under Rule 56(c) of the Federal Rules of Civil Procedure, a movant is entitled to summary judgment if the movant can "show that there is no genuine issue as to any material fact and that [the movant] is entitled to a judgment as a matter of law." In determining whether summary judgment should issue, the facts and inferences from those facts are viewed in the light most favorable to the nonmoving party, and the burden is placed on the moving party to establish both the absence of a genuine issue of material fact and that such party is entitled to judgment as a matter of law. See Fed.R.Civ.P. 56(c); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 585-86, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). Once the moving party has met this burden, the nonmoving party may not rest on the allegations in...