Oregon Ex Rel. Department of Environmental Quality v. Federal Energy Regulatory Commission

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT STATE OF OREGON, by and through  its Department of Environmental Quality, Department of Land Conservation and Development, and Department of Energy, No. 09-70269 Petitioner, FERC Nos. v.  CP06-365-002 CP06-366-002 FEDERAL ENERGY REGULATORY CP06-376-002 COMMISSION, CP06-377-002 Respondent, NORTHERNSTAR ENERGY LLC; BRADWOOD LANDING LLC, Intervenors.  3035 3036 STATE OF OREGON v. FERC COLUMBIA RIVERKEEPER; SIERRA  CLUB; LANDOWNERS AND CITIZENS FOR A SAFE COMMUNITY; WAHKIAKUM FRIENDS OF THE RIVER; WILLAPA HILLS AUDUBON SOCIETY; GAYLE KISER, No. 09-70442 Petitioners, FERC Nos. NEZ PERCE TRIBE, Intervenor,  CP06-365-002 CP06-366-002 v. CP06-376-002 FEDERAL ENERGY REGULATORY CP06-377-002 COMMISSION, Respondent, NORTHERNSTAR ENERGY LLC; BRADWOOD LANDING LLC, Intervenors.  THE STATE OF WASHINGTON,  No. 09-70477 DEPARTMENT OF ECOLOGY, FERC Nos. Petitioner, CP06-365-000 v. CP06-366-000 CP06-376-000 FEDERAL ENERGY REGULATORY COMMISSION,  CP06-377-000 Respondent, CP06-365-002 CP06-366-002 NORTHERNSTAR ENERGY LLC; CP06-376-002 BRADWOOD LANDING LLC, CP06-377-002 Intervenors.  OPINION On Petition for Review of an Order of the Federal Energy Regulatory Commission STATE OF OREGON v. FERC 3037 Argued and Submitted February 10, 2011—Seattle, Washington Filed March 2, 2011 Before: Betty B. Fletcher, Richard A. Paez, and Sandra S. Ikuta, Circuit Judges. Per Curiam Opinion 3038 STATE OF OREGON v. FERC COUNSEL Stephanie M. Parent (argued) and Eric C. Lagesen, Oregon Department of Justice, Portland, Oregon, for petitioner State of Oregon. Joan M. Marchioro, Office of the Washington Attorney Gen- eral, Olympia, Washington, for petitioner State of Washing- ton. Tom Buchele, Pacific Environmental Advocacy Center, Port- land, Oregon, for petitioner Columbia Riverkeeper et al. STATE OF OREGON v. FERC 3039 Michael Lopez, Nez Perce Tribe Office of Legal Counsel, Lapwai, Idaho, and Erin Madden, Cascadia Law PC, Portland, Oregon, for intervenor Nez Perce Tribe. Kristen M. Fletcher, Washington, DC, for amicus curiae Coastal States Organization. Jackson D. Logan, III, Louisiana Department of Justice, Baton Rouge, Louisiana, for amici curiae State of Louisiana et al. Robert M. Kennedy, Jr. (argued), Federal Energy Regulatory Commission, Washington, DC, for respondent Federal Energy Regulatory Commission. OPINION PER CURIAM: The states of Oregon and Washington, Columbia Riverkeeper et al., and the Nez Perce Tribe (collectively, peti- tioners) seek review of a September 18, 2008 order of the Federal Energy Regulatory Commission (FERC). For the rea- sons stated below, we dismiss the petition for review as moot and vacate the agency’s September 18, 2008 order. I FERC’s September 18, 2008 order incorporated two differ- ent authorizations, each with conditions. First, pursuant to Section 3 of the Natural Gas Act (NGA), 15 U.S.C. § 717b(a), FERC authorized Bradwood Landing LLC (Bradwood) to site, construct, and operate a liquefied natural gas (LNG) import terminal in Clatsop County, Oregon. Second, pursuant to Section 7 of the NGA, id. § 717f(c)(1)(A), FERC issued a Certificate of Public Convenience and Necessity (CPCN) 3040 STATE OF OREGON v. FERC authorizing NorthernStar Energy LLC (NorthernStar) to con- struct and operate a natural gas pipeline that would connect the new Bradwood LNG terminal to the Pacific Northwest’s existing natural gas pipeline network.1 The pipeline would traverse Clatsop and Columbia Counties, Oregon, and Cow- litz County, Washington. The FERC order also gave North- ernStar blanket certificates to perform certain routine construction activities and operations, and to provide trans- portation services on an open access basis. After FERC twice denied rehearing, the petitioners seek judicial review in this court under the Administrative Procedure Act. See 5 U.S.C. §§ 702, 704. The parties have informed us that the following events occurred after the petition for review was filed. First, on May 4, 2010, Bradwood and NorthernStar filed petitions in bank- ruptcy for Chapter 7 liquidation. See In re NorthernStar Natu- ral Gas, Inc., No. 10-33856 (Bankr. S.D. Tex.); In re Bradwood Landing LLC, No. 10-33867 (Bankr. S.D. Tex.). Second, in a letter dated August 18, 2010, Washington denied without prejudice the proponents’ request for certification under the Clean Water Act, (CWA) 33 U.S.C. § 1341(a)(1),2 1 We refer to the terminal and pipeline collectively as “the project,” and to Bradwood and NorthernStar collectively as the “project proponents.” 2 The relevant portion of the CWA states: Any applicant for a Federal license or permit to conduct any activity including, but not limited to, the construction or opera- tion of facilities, which may result in any discharge into the navi- gable waters, shall provide the licensing or permitting agency a certification from the State in which the discharge originates or will originate . . . that any such discharge will comply with the applicable provisions of sections 1311, 1312, 1313, 1316, and 1317 of this title. . . . No license or permit shall be granted until the certification required by this section has been obtained or has been waived as provided in the preceding sentence. No license or permit shall be granted if certification has been denied by the State . . . . 33 U.S.C. § 1341(a)(1). STATE OF OREGON v. FERC 3041 on account of the proponents’ failure to submit information requested by the state. Third, in a letter dated September 14, 2010, Oregon objected to the project proponents’ federal con- sistency determination under the Coastal Zone Management Act (CZMA), 16 U.S.C. § 1456(c)(3)(A).3 Oregon made this objection because the project proponents had failed to provide required information, a component of the project was incon- sistent with the state’s enforceable land use policies, and the project proponents had failed to obtain necessary state and local authorizations. Finally, on November 5, 2010, BL Credit Holdings, LLC purchased all permits and intellectual property owned by Bradwood at a foreclosure auction.4 II [1] A case is moot when it has “lost its character as a pres- ent, live controversy of the kind that must exist if we are to avoid advisory opinions on abstract propositions of law.” Hall v. Beals, 396 U.S. 45, 48 (1969) (per curiam). We “are with- out power to decide questions that cannot affect the rights of litigants in the case before [us].’ ” DeFunis v. Odegaard, 416 U.S. 312, 316 (1974) (per curiam) (quoting North Carolina v. Rice, 404 U.S. 244, 246 (1971)). This is such a case. [2] While FERC may authorize a permittee to transfer a Section 3 permit to a new project proponent, 18 C.F.R. § 153.9(a), the CPCN “is not transferable in any manner,” id. § 157.20(e). Once NorthernStar is liquidated in the bank- ruptcy proceeding, it will no longer exist, and thus will not be able to renew its efforts to obtain Washington’s certification 3 The statute provides, in pertinent part: “No license or permit shall be granted by the Federal agency until the state or its designated agency has concurred with the applicant’s certification [that the permit complies with the state’s coastal management program] or until, by the state’s failure to act, the concurrence is conclusively presumed . . . .” 16 U.S.C. § 1456(c)(3)(A). 4 The parties’ submissions make no mention of NorthernStar’s assets. 3042 STATE OF OREGON v. FERC under the CWA or Oregon’s concurrence in the proponents’ federal consistency determination under the CZMA, or pro- ceed with the pipeline project in any other manner. Nor can it transfer the CPCN to a third party. While Bradwood’s Sec- tion 3 permit is theoretically transferable, the petitioners con- cede that the terminal and the pipeline essentially constitute a single project that will go forward together, or not at all, even though the terminal and the pipeline are formally subject to two different permits. Given that the project proponents have filed Chapter 7 petitions, and failed to demonstrate com- pliance with Washington state water quality standards or con- sistency with Oregon’s land use policies and project authorization requirements, the future of the project as cur- rently permitted is in grave doubt. [3] Under these circumstances, the possibility that the proj- ect authorized by FERC’s September 18, 2008 order could be revived to threaten the interests of the petitioners is “too remote and too speculative a consideration to save this case from mootness.” Ctr. for Biological Diversity v. Lohn, 511 F.3d 960, 964 (9th Cir. 2007) (citing Headwaters, Inc. v. Bureau of Land Mgmt., 893 F.2d 1012, 1015 (9th Cir. 1989)). Consequently, we hold that the petitioners’ challenge to the FERC order is moot. III In cases where intervening events moot a petition for review of an agency order, the proper course is to vacate the underlying order. A.L. Mechling Barge Lines, Inc. v. United States, 368 U.S. 324, 330-31 (1961); see 15 U.S.C. § 717r(b). Accordingly, we dismiss the petition as moot and vacate FERC’s September 18, 2008 order. PETITION DISMISSED; ORDER VACATED.