F I L E D
United States Court of Appeals
Tenth Circuit
PUBLISH
NOV 25 1997
UNITED STATES COURT OF APPEALS
PATRICK FISHER
Clerk
TENTH CIRCUIT
ALFRED G. HOYL,
Plaintiff-Appellant,
v. No. 96-1388
BRUCE BABBITT, Secretary,
Department of the Interior,
Defendant-Appellee.
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
(D.C. No. 93-B-988)
Constance E. Brooks (Diane Vaksdal Smith of C.E. Brooks and Associates, P.C., and
James F. Engelking of James F. Engelking, P.C., Denver, Colorado, with her on the
brief), of C.E. Brooks and Associates, P.C., Denver, Colorado, for Plaintiff-Appellant.
Ellen J. Durkee (Lois J. Schiffer, Assistant Attorney General, Environment and Natural
Resources Division and David C. Shilton, United States Department of Justice,
Environment and Natural Resources Division, Washington, D.C., Henry J. Solano, United
States Attorney and Robert D. Clark, Assistant United States Attorney, Denver, Colorado,
and Lyle K. Rising, Office of the Solicitor, Rocky Mountain Region, Department of
Interior, Lakewood, Colorado, with her on the brief), United States Department of Justice,
Environment and Natural Resources Division, Washington, D.C., for Defendant-
Appellee.
Before PORFILIO, ANDERSON, and BALDOCK, Circuit Judges.
BALDOCK, Circuit Judge.
Plaintiff Alfred G. Hoyl appeals the district court’s order affirming the Department
of Interior, Bureau of Land Management’s (BLM’s) denial of his request for a coal lease
suspension pursuant to § 39 of the Mineral Leasing Act. 30 U.S.C. § 209. As grounds
for reversal, Plaintiff asserts that: 1) the district court’s findings of fact are not supported
by substantial evidence; 2) the district court erred by affirming the BLM’s denial of his
request for a coal lease suspension because “the denial differed significantly from past
agency precedent;” 3) the district court erred by holding that a present market for coal,
actual coal lease production, and authorization to mine are prerequisites for a § 39
suspension; and 4) the district court erred in finding that Plaintiff was not denied due
process when the Interior Board of Land Appeals (IBLA) refused his request for an
evidentiary hearing. Our jurisdiction arises under 28 U.S.C. § 1291. We affirm.
I.
In 1920, Congress authorized the Secretary of Interior to lease federal mineral
properties to private parties. 30 U.S.C. § 181. Congress authorized the Secretary to issue
prospecting permits to qualified applicants. Pursuant to the terms of the prospecting
permits, once the applicant discovered coal on the lands covered by the permit and proved
its existence to the Secretary, the applicant’s prospecting permits ripened into preference
2
right lease applications (PRLAs). Thereafter, if the holder of the PRLAs proved that coal
existed in commercial quantities, the Secretary would issue federal coal leases to the
applicant. Under this system, a few large companies controlled the vast majority of
federal coal deposits and large tracts of federal coal lands remained idle.
Concerned, among other things, about speculative holding of federal coal leases,
Congress passed the Federal Coal Leasing Amendments Act (FCLAA), 30 U.S.C. §§
201-209. In doing so, Congress created a “diligent development” requirement which
forced lessees to produce coal from their leases in “commercial quantities”1 within ten
years of lease issuance. Thus, if a lessee fails to produce coal in commercial quantities
within ten years of lease issuance, the lease lapses. Under the amended Mineral Leasing
Act, a federal coal lease may be suspended2: (1) under § 7(b) if lease development is
halted by a force majeure, 30 U.S.C. § 207(b); or (2) under § 39 “for the purpose of
encouraging the greatest ultimate recovery of coal . . . and in the interest of conservation
of natural resources.” 30 U.S.C. § 209.
A § 39 suspension is generally appropriate where the Secretary has taken action
which prohibits the lessee from having timely access to the lease or where the lessee
requests a suspension in the interest of conserving natural resources. When the Secretary
1
“Commercial quantities” is defined as one percent of recoverable coal
reserves or logical mining unit recoverable reserves. 43 C.F.R. § 3480.0-5(a)(6).
2
A § 39 suspension tolls the ten-year diligent development period for the
length of time the lease is suspended.
3
prevents timely access to the lease, a de facto suspension occurs to which the lessee is
entitled as a matter of right. Copper Valley Machine Works, Inc., v. Andrus, 653 F.2d
595, 602-605 (D.C. Cir. 1981). Where the Secretary, through some affirmative action,
prevents a lessee from accessing and developing his federal coal lease, the lessee should
not be penalized by having that time count against his due diligence period. Id. at 602-03
(citing H.R. Rep. No. 1737, 72d Cong., 1st Sess. 2-3 (1932); 76 Cong. Rec. 705, 1881
(1932)(remarks of Representative Eaton)).
When a lessee requests a suspension on the basis of conservation of natural
resources, however, the matter is committed to agency discretion. Copper Valley, 653
F.2d at 604 (implying that agency’s decision to grant suspension in the interest of
conserving natural resources is discretionary.). Section 39 is an equitable provision.
Accordingly, the courts and the Department of Interior have liberally construed the phrase
“in the interest of conservation of natural resources” to not only encompass conserving
mineral deposits, but also to prevent environmental harm. Id. at 600; Stephen G. Moore,
111 IBLA 326, 329 (1989). With this background in mind, we proceed to the present
appeal.
II.
On October 1, 1966, Gerald Tresner obtained permits allowing him to prospect for
coal on certain federal lands north of Fruita, Colorado. Tresner discovered coal, and as a
result received three PRLAs for the lands covered by the prospecting permits. In order
4
for the PRLAs to become actual coal leases, Tresner had to prove that coal existed in
commercially viable quantities.
Plaintiff and Donald E. Wilde owned fee land containing coal outcroppings next to
Tresner’s PRLAs. To prove his PRLAs were commercially viable, Tresner entered into
an agreement with Plaintiff and Wilde to mine their adjacent fee land. Plaintiff submitted
a mine plan to the United States Geological Service, which approved the plan on July 23,
1977. Plaintiff, Tresner, and Wilde then contracted with Dorchester Coal Company
which mined the fee land up to the boundary between the fee land and the PRLAs. After
completing the fee land mining, Tresner assigned the PRLAs to Dorchester. The BLM,
apparently satisfied that the PRLAs were commercially viable, issued three separate
leases to Dorchester on July 1, 1981, thus beginning the ten-year diligent development
period. Plaintiff, Wilde, and Tresner retained royalty interests in the leases.
Between 1981 and 1983, exploratory operations on the three leases suggested that
each of the leases could be mined as a single independent operation. Based on this
information, Dorchester submitted separate mine plans for each lease to the Office of
Surface and Mining (OSM) and the Mined Land Reclamation Division (MLRD). The
agencies determined that the submitted plans were deficient, and requested more
information from Dorchester on March 15, June 13 and October 29, 1984. Dorchester
responded to the agency’s request on July 2, 1985, but the record suggests that the
5
response was insufficient. Awaiting the information, the agencies took no further action
on Dorchester’s applications.
In 1986, American Shield Coal Company became the owner of the leases after its
parent company acquired Dorchester’s parent company. American Shield acknowledged
the problems with the mine plans submitted by Dorchester and informed the cooperating
agencies that “[w]e expect to supply fully engineered responses to the outstanding
adequacy issues for all three leases within ninety days.” By 1988, however, American
Shield had not supplied the necessary information. In fact, the company notified the
BLM that because of a poor coal market, it was withdrawing the permits and would not
proceed with development of the leases. Thereafter, American Shield failed to post the
bonds required by the BLM. The agency notified American Shield of the default and
warned that failure to cure would result in the federal leases being canceled.
Aware of American Shield’s action (or inaction) regarding the leases, Plaintiff
became concerned with the fate of his royalty interest in the leases. Accordingly, he met
with BLM officials to discuss the options available to protect his interests. The record
suggests that the BLM and Plaintiff decided Plaintiff could assume the leases from
American Shield, cure the defaults, and seek a suspension of the lease until Interior could
conduct an environmental impact statement and Plaintiff could complete the necessary
mine permits. Although BLM officials made no guarantees, the record suggests that, at a
6
minimum, they expressed optimism that the suspension would be granted.3 Furthermore,
both the BLM and Plaintiff apparently knew that it would be impossible to bring the
leases into production before the diligent development deadline in the absence of a
suspension.
On April 3, 1989, Plaintiff requested that BLM transfer title to the leases to him.
Shortly thereafter, on April 6, 1989, he requested a suspension of the lease under §§ 39
and 7(b) of the Mineral Leasing Act. 30 U.S.C. §§ 207(b) & 209. BLM notified Plaintiff
that he was responsible for surety bonds to guarantee annual rental payments and an
additional $50,000 cash reclamation bond. After several requests for extensions, Plaintiff
met BLM’s bonding requirements on December 20, 1989. BLM then processed
Plaintiff’s application requesting transfer of the leases and on January 1, 1990 transferred
the leases to Plaintiff and Wilde. On January 22, 1990, BLM notified Plaintiff that it was
reviewing his application for lease suspensions under §§ 39 and 7(b) of the Mineral
Leasing Act. BLM issued its decision denying plaintiff’s suspension request on August
21, 1990.
3
Plaintiff’s brief emphasizes his belief that BLM viewed him as a means to
recoup past due rentals owed by American Shield. Although BLM made no promises to
Plaintiff, we are cognizant that the agency’s actions in this case leave much to be desired.
By going beyond merely advising him of options, to expressing optimism regarding future
action, the agency gave Plaintiff a false sense of security which was later shattered by the
denial of his suspension request. This type of action on the part of a federal agency
serves no productive purpose and tends only to undermine the perceived legitimacy of the
agency’s decisions.
7
BLM offered several reasons for the denial. First, BLM concluded that even if the
suspension were granted, that Plaintiff’s proposed mine plan would not enable him to
meet the diligent development requirement. Second, BLM stated that to qualify for a
suspension, a lessee must have authorization to mine and current development on the
mine site. Finally, BLM concluded that the policies behind § 39 would not be thwarted
by denying the suspension because no federal coal would be lost if the suspension were
denied.
Plaintiff appealed BLM’s decision to the IBLA. The IBLA affirmed. Plaintiff
then moved for reconsideration on the grounds that: (1) BLM’s denial of his request for a
suspension was inconsistent with the decision in Trapper Mining, Inc., 103 IBLA 366
(1988); (2) BLM’s administrative delays deprived him of beneficial use of the leases; and
(3) BLM was estopped from denying the suspension because he relied on its assurances
that the suspension would be granted. The IBLA rejected Plaintiff’s arguments and
reaffirmed its earlier decision. Subsequently, the ten year diligent development period
expired and BLM notified Plaintiff that his leases were canceled. IBLA affirmed the
cancellation.
On May 7, 1993, Plaintiff sought review of the IBLA’s decision in the district
court pursuant to the Administrative Procedures Act, 5 U.S.C. § 701. Plaintiff argued that
BLM arbitrarily and capriciously denied his application for suspension of operations
8
under § 39 of the Mineral Leasing Act. In a thorough opinion, the district court rejected
Plaintiff’s arguments and affirmed the decision to deny the § 39 suspension.
III.
Although Plaintiff and the government allude to the Administrative Procedures Act
in their briefs, neither party attempts to guide the Court through its strictures. Instead, the
parties spend a good deal of time name calling, arguing over the record and IBLA
precedent, and making conclusory statements regarding the factors properly considered in
granting a § 39 suspension. Our review of agency decisions is guided by the APA.
Accordingly, we begin our analysis by examining the statute.
The APA provides for judicial review of a final agency action. 5 U.S.C. § 702.
The scope of this review, however, is limited. McAlpine v. United States, 112 F.3d 1429,
1432 (10th Cir. 1997). The IBLA’s decision represents the final agency action in this
case. 43 C.F.R. § 4.403. Our review of the IBLA’s decision is de novo, in that, we
accord no deference to the district court’s decision. City of Albuquerque v. Browner, 97
F.3d 415, 424 (10th Cir. 1996) However, based on the administrative record, we apply a
deferential standard and will set aside the decision only if it is arbitrary, capricious,
otherwise not in accordance with the law, or not supported by substantial evidence.
Chipman v. Shalala, 90 F.3d 421, 422 (10th Cir. 1996).
9
A.
Plaintiff’s first argument on appeal is that the district court’s decision affirming the
BLM’s denial of a § 39 suspension is not supported by substantial evidence. Specifically,
Plaintiff suggests that the record contradicts the district court’s findings of fact, and that
had the district court conducted a plenary review of the record and not relied solely on the
government’s representations, it would have reversed the BLM’s decision. We disagree.
Evidence is generally substantial under the APA if it is enough to justify, if the
trial were to a jury, refusal to direct a verdict on a factual conclusion. Rapp v. Office of
Thrift Supervision, 52 F.3d 1510, 1515 (10th Cir. 1995). We have further defined
substantial evidence as “such relevant evidence a reasonable person would deem adequate
to support the ultimate conclusion.” Grubb v. Federal Deposit Insurance Corp., 34 F.3d
956, 961 (10th Cir. 1994). Although our inquiry into the record is careful and searching,
we may not substitute our own judgment for that of the agency. McAlpine, 112 F.3d at
1436. Thus, even though we may not agree with the agency’s ultimate findings, we will
not set them aside if they are supported by substantial evidence.
Plaintiff contends that the district court affirmed four determinative findings of
fact which are clearly contradictory to the record. First, Plaintiff disputes the IBLA’s
finding that the “previous lessee filed mine plan permit applications which were seriously
deficient, which were never corrected, and which were withdrawn.” Second, Plaintiff
claims the record contradicts the IBLA’s finding that no mine plan was approved due to
10
his predecessor’s lack of diligence. Third, Plaintiff complains that the IBLA erroneously
found that the facts of Consolidation Coal Co., 111 IBLA 381 (1989) and his case were
distinguishable. Finally, Plaintiff contests the IBLA’s finding that he would need access
to the leases for all or most of the period of the requested suspension.4 We have
thoroughly reviewed the administrative record before us and conclude that IBLA’s
findings of fact are supported by substantial evidence.
B.
Plaintiff next complains that Interior acted arbitrarily and capriciously in not
granting his request for a § 39 suspension because the statute and established agency
precedent mandate a suspension as a matter of right whenever the agency prepares an
environmental impact statement (EIS). Specifically, Plaintiff claims that § 39, as
interpreted by the court in Copper Valley Machine Works, Inc., v. Andrus, 653 F.2d 595,
602-605 (D.C. Cir. 1981), entitled him to a suspension as a matter of right because
Interior had to prepare an EIS before he or his predecessors could develop the coal leases.
Furthermore, he complains that Interior’s decision to deny his request is directly contrary
to agency precedent holding that Interior grants § 39 suspensions as a matter of policy
when the agency prepares an EIS.
4
Our review of the IBLA’s decisions in this case revealed no finding that
Plaintiff would need access to the leases for most of the suspension period. Regardless,
the record before us contains substantial evidence supporting such a finding.
11
1.
Plaintiff notes that an agency must prepare an EIS before a lessee may conduct
mining operations on a federal coal lease, 40 C.F.R. § 1508.18(b)(4), and that a lessee
cannot access or develop the lease until the EIS is completed. He argues that the EIS
requirement is analogous to the stipulations at issue in Copper Valley. Therefore, he
asserts that he is entitled to a § 39 suspension as a matter of right. We disagree.
In Copper Valley, the lessee held a federal oil and gas lease in an area of Alaska
that was particularly fragile and susceptible to environmental degradation during the
summer thaw. Accordingly, BLM placed stipulations in the lessee’s application for
permit to drill which prevented any activity on the lease during the six months of summer
thaw. The lessee attempted to develop the lease with two years remaining in the diligent
development period. However, because of the stipulations, activity on the lease could
only occur six months out of the year. The court held that when the Secretary’s actions
prevent a lessee from accessing and developing his federal oil and gas lease, the action
creates a de facto suspension under § 39. Copper Valley, 653 F.2d at 605. Importantly,
the court noted that Congress intended for § 39 to be applied uniformly to all federal
mineral lessees and that the stipulations imposed upon the lessee were not required of
lessees with federal oil and gas leases in other areas. Id. at 604. Thus, to let the clock run
on the lessee’s diligent development period while the government prevented access to the
12
lease would be fundamentally unfair and contrary to § 39's policy that all lessees have ten
years to satisfy the diligent development requirement. Id. at 602-604.
Plaintiff ignores the fact that an EIS is prepared in the ordinary course of
developing a federal coal lease. Under Plaintiff’s interpretation of Copper Valley,
Interior would be required to issue a lease suspension every time preparation of an EIS is
necessary. Such a broad construction, however, is contrary to the policies of § 39 and the
FCLAA. Interior has determined that § 39 suspensions are generally only appropriate in
“extraordinary” situations where a lessee is denied access to his lease. E.g. Koch
Exploration Co., 100 IBLA 352, 363 (1988). This interpretation is consistent with
Copper Valley’s recognition that § 39 is an equitable provision which prevents a lease
from lapsing for lack of diligent development when the Secretary takes action regarding a
lease which does not apply evenhandedly to leases in other areas. As Plaintiff readily
admits, an EIS must be prepared before a coal mine may be developed. This applies not
just to selected federal coal leases, but to all federal coal leases. Logically, this makes the
preparation of an EIS part of the ordinary course of developing a coal mine. Allowing a
suspension to issue while ordinary mine development activities occur is not consistent
with the purposes behind § 39.
This is not to say that delays caused by the agency during the preparation of an EIS
could never entitle a lessee to a suspension. An agency preparing an EIS must do so
diligently and without undue delay. Certainly, an agency could delay in preparing an EIS
13
to the extent that a § 39 suspension would be necessary to carry out the policies of the
Mineral Leasing Act and the FCLAA. Indeed, an agency preparing an EIS might
encounter unexpected difficulties which cause an unreasonable delay. In such a situation,
the agency could easily abuse its discretion by not granting the suspension. Conversely,
the equitable policies surrounding § 39 would be thwarted if a suspension were granted
where the delays in preparing the EIS were attributable to the lessee and not the agency.
This determination, however, must be based on a careful consideration of relevant factors
and made on a case by case basis. Thus, although undue delay may require an agency to
exercise its discretion and grant a suspension, we conclude that the mere preparation of an
EIS does not constitute a de facto lease suspension under § 39.
2.
Plaintiff next argues that Interior departed from well established agency precedent
by failing to grant a suspension during the preparation of the EIS. We agree with Plaintiff
that an agency acts arbitrarily and capriciously when its actions depart from well
established agency precedent without a reasoned explanation. Diaz-Resendez v.
Immigration and Naturalization Service, 960 F.2d 493, 495 (5th Cir. 1992); Graphic
Communications International v. Salem-Gravure, 843 F.2d 1490, 1493 (D.C. Cir. 1988).
We disagree, however, that Department of Interior precedent establishes a policy of
granting § 39 suspensions whenever the agency is required to conduct environmental
studies or prepare an environmental impact statement.
14
Undoubtedly, Interior has granted § 39 suspensions in situations where it prepared
an environmental impact statement. E.g., Stephen G. Moore, 111 IBLA 326 (1989).
However, we are not convinced that by issuing the decisions, Interior abrogated its
discretion to deny future requests where an EIS was being prepared. Indeed, the
decisions demonstrate that the agency issued the suspensions in the exercise of its
discretion and not as a matter of right. See Mobil Producing Texas & New Mexico, Inc.,
99 IBLA 5, 8 (1987) (department may suspend a lease in the interest of conservation
where action cannot be taken on an application because of time needed to comply with
the requirements of the National Environmental Policy Act) (emphasis added); See also
Stephen G. Moore, 111 IBLA at 329; Nevdak Oil & Exploration, Inc., 104 IBLA 133,
138 (1988). Accordingly, Interior did not depart from well established agency precedent
when it refused to grant Plaintiff’s request for a § 39 suspension.
C.
Plaintiff next argues that we must set aside the Interior’s denial of his request for a
suspension because the basis for the agency’s decision is contrary to § 39 and the
agency’s own rules. Specifically, Plaintiff argues that IBLA erroneously held that a
present market for coal, actual coal lease production, and authorization to mine are
required before a § 39 suspension may be granted. While we generally agree that the
above three factors are not prerequisites to granting a § 39 suspension, we believe
Plaintiff misstates IBLA’s holding.
15
When we review an agency’s application of a statute where Congress has clearly
spoken to the issue before us, we must give effect to the unambiguous intent of Congress.
Chevron U.S.A. v. Natural Res. Def. Council, 467 U.S. 837, 842-43 (1984). However,
where Congress is silent regarding the issue before us, and has delegated authority over
the subject matter to the agency construing the statute, we will defer to the agency’s
construction. Id. at 843-44. We will set aside the agency’s interpretation only if, in the
context of the statute, the agency’s construction is unreasonable or impermissible. Id. at
843, 845. We apply this level of deference only when the agency’s interpretation is
reached through formal rulemaking procedures or an adjudication. Headrick v. Rockwell
Int’l Corp., 24 F.3d 1272, 1282 (10th Cir. 1994).
Aside from stating the general propositions that a suspension must “[be] in the
interest of conservation of natural resources” and “for the purpose of encouraging the
greatest ultimate recovery of coal,” § 39 provides the Secretary no guidance as to the
factors properly considered in determining whether or not to grant a lease suspension.
Because the statute explicitly delegates authority over the issuance of lease suspensions to
the Secretary, we must determine whether the factors Plaintiff claims Interior erroneously
considered in denying his suspension request are permissible or reasonable constructions
of § 39.
16
1.
Plaintiff first contends that Interior acted arbitrarily and capriciously by requiring
him to show a present market for the coal he planned to extract from his federal leases.
Plaintiff mischaracterizes IBLA’s holding. The IBLA considered the lack of a present
market for Plaintiff’s coal when it affirmed the BLM’s denial of Plaintiff’s suspension
request. However, the Board explicitly noted that it merely considered the lack of a
market as a factor when exercising its discretion under § 39 and that the lack of a market
is not, by itself, dispositive. The Board explained that it considered the existence of a
coal market in order to determine that the lessee’s request for suspension was in good
faith and not for speculative purposes. Interior’s consideration of a present market for
coal as a factor in determining whether or not to grant Plaintiff’s request for a suspension
was reasonable. Thus, we accord Chevron deference to Interior’s interpretation of § 39,
and conclude the agency properly considered the existence of a present market for coal
when it denied Plaintiff’s suspension request.5
5
At oral argument, the Secretary argued that where Interior suspected that a
lessee’s suspension request is motivated by a poor coal market, the lessee must prove the
existence of a present market before the agency will grant a § 39 suspension. While we
conclude the Secretary may consider the existence of a coal market in determining
whether to grant a suspension, we reject the Secretary’s position that his subjective
suspicion that a lessee’s request for a suspension is motivated by a poor coal market
makes the existence of a market mandatory before a suspension may be granted.
17
2.
Plaintiff complains that the IBLA erred by requiring him to show actual
production from his federal leases before it could grant a § 39 suspension. Although the
district court considered the lack of production on Plaintiff’s leases when it affirmed the
IBLA’s decision denying Plaintiff’s request for a suspension, neither BLM nor the IBLA
relied on lack of production in their denial of Plaintiff’s requested suspension. Our
review is limited to the administrative record and we give no deference to the district
court’s decision. Because we conclude that whether and to what extent Interior may
appropriately consider lack of production is not properly before us, we do not decide the
issue.
3.
Plaintiff also contends that the IBLA acted arbitrarily and capriciously when it
denied his request for a suspension because he lacked authorization to mine. In
particular, Plaintiff complains that Interior erroneously determined that authorization to
mine is a prerequisite to obtaining a suspension under § 39. The IBLA’s decision
indicates that it considered Plaintiff’s lack of authorization to mine in affirming the denial
of his request for a suspension. However, its language does not suggest that authorization
is mandatory in order to receive a § 39 suspension. Indeed, the Board clearly stated that it
considers many factors in determining whether to grant a suspension. Interior’s
consideration of whether Plaintiff was authorized to mine his federal leases was
18
reasonable. Thus, we accord Chevron deference to the agency’s interpretation of § 39,
and conclude that the agency did not act arbitrarily and capriciously when it considered
whether Plaintiff had received authorization to mine his leases.
D.
Finally, Plaintiff argues that the IBLA violated his procedural due process rights
and its own rules by not providing him a formal evidentiary hearing. Specifically,
Plaintiff argues that because he had a property interest in the federal coal leases, he was
entitled to a formal evidentiary hearing regarding the leases suspensions. Plaintiff further
argues that the IBLA’s failure to grant him a hearing regarding the suspension violated its
own rules. We disagree.
The BLM’s action regarding Plaintiff’s request for a § 39 suspension undoubtedly
affected his property rights in the three federal coal leases. We need not decide, however,
whether Plaintiff had a protected property interest in a § 39 suspension, because even
assuming Plaintiff had a right to due process regarding the suspension, the process
afforded by the IBLA and later by the district court satisfies any such right. The IBLA
allowed Plaintiff to present argument and evidence in written form. Furthermore, after
the IBLA ruled against him, the district court conducted a de novo review of the agency’s
decision. Accordingly, the procedural protections provided to Plaintiff satisfy his due
process rights. Haskell v. United States Dept. of Agriculture, 930 F.2d 816, 819-820
(10th Cir. 1991); Clouser v. Espy, 42 F.3d 1522, 1540 (9th Cir. 1994). We also note that
19
the IBLA’s authority to grant a formal hearing before the Board pursuant to 43 C.F.R. §
4.415 is purely discretionary. Therefore, the IBLA did not violate its own rules when it
ruled on the written evidence before it and denied Plaintiff’s request for a formal hearing.
For the foregoing reasons, the judgment of the district court is
AFFIRMED.
20
Hoyl v. Babbitt
Court: Court of Appeals for the Tenth Circuit
Date filed: 1997-11-25
Citations: 129 F.3d 1377
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