The federal government is urging the Supreme Court to uphold the authorization of a rail line in Utah for transporting crude oil, despite opposition from environmentalist groups. The case, Seven County Infrastructure Coalition v. Eagle County, Colorado, involves a coalition of seven Utah counties and Uinta Basin Railway LLC seeking to build an 85-mile rail line connecting the Uinta Basin region to national rail networks and out-of-state oil refineries.
The government’s argument centers around a misinterpretation of a federal environmental statute by a federal appeals court. The Biden administration argues that the court failed to properly consider the merits of the transportation project and instead focused on the environmental impact. The government asserts that the decision should be based on a balanced assessment of both factors.
The case dates back to 2020 when the coalition requested an exemption from formal application requirements for their proposed rail line. The Surface Transportation Board (STB) granted preliminary approval to the exemption petition in January 2021, despite opposition from environmentalist groups. The board released its final exemption decision in December 2021, stating that the merits of the transportation project outweighed its environmental effects.
However, the challengers appealed the decision, claiming that the STB violated the National Environmental Policy Act (NEPA) and the Endangered Species Act. In August 2023, the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of the challengers, finding that the STB failed to adhere to NEPA and that the environmental and biological impact opinions were of poor quality.
The government’s brief argues that the circuit court overreached in its decision, stating that the STB was not required to undertake additional analysis of the upstream and downstream consequences of oil and gas development. The Supreme Court has previously ruled that NEPA does not mandate particular results but instead encourages harmony between humans and the environment.
Eagle County and the environmentalist groups maintain that the circuit court’s ruling was correct and should be upheld. They argue that the STB failed to properly consider the environmental effects of the rail project, which would result in the drilling of an additional 3,300 oil wells in the Uinta Basin over a 15-year period. They claim that the board only studied the effects of new wells in close proximity to the rail line, neglecting the broader impact.
The Supreme Court is expected to schedule oral arguments for the case in the near future. The outcome of this case will have significant implications for the transportation of crude oil in Utah and the balance between economic development and environmental concerns.
