States, farmers, ranchers, and energy companies have sued the U.S. Department of the Interior and its agency, the U.S. Fish and Wildlife Service ("FWS"), for entering into and carrying out the terms of settlement agreements reached with environmental groups last year over listing decisions under the Endangered Species Act ("ESA").

The lawsuit, filed in the Northern District of Oklahoma, claims that the FWS has colluded with special interest groups to change its rulemaking process without going through the legally required channels. The plaintiffs' claims allege violations of the Administrative Procedures Act ("APA"), the Endangered Species Act, the FWS's own regulations, as well as the Due Process clause of the Fifth Amendment to the U.S. Constitution. Plaintiffs also say that the FWS has violated Article II of the U.S. Constitution by ceding its congressionally delegated authority to special interest groups.

The court-approved settlement agreements between the FWS and two environmental groups, WildEarth Guardians and the Center for Biological Diversity, respectively, bind the FWS to either drop species from a list of over 250 candidates or propose a rule to list them as threatened or endangered by September 30, 2015. The FWS's candidate-species list includes several that have been under consideration for many years, most with ranges in the plaintiffs' states. The FWS's determination to list a species as threatened or endangered can have major impacts on development and impose significant costs. Plaintiffs say that the settlement agreements inappropriately fast-track listing decisions by removing the option of keeping the species on the candidate list until the FWS is ready to make a decision.

Plaintiffs' main concern is that the FWS has eliminated one of its statutory options when it considers whether to list a species as threatened or endangered. The ESA lays out three options for the FWS when a petitioner brings forward a candidate species: (i) not warranted; (ii) warranted; and (iii) warranted but precluded. It is the third option, which results in leaving the species on the candidate list, that the settlement agreements remove.

Plaintiffs say the loss of "warranted but precluded" status is problematic because: (i) omitting a statutory alternative without the use of science-driven priorities is contrary to the ESA; (ii) relying on a procedural timetable rather than substantive statutory criteria violates the FWS's statutory obligations; (iii) the FWS is violating its own guidelines that establish a priority system for removing species from the candidate species classification; and (iv) the FWS cannot adopt binding policies that conflict with their own regulations outside the APA-mandated process.

Plaintiffs also raise constitutional concerns. They say that adopting a binding rule, like the settlement deadlines, without public participation, deprives the public of their right to due process under the Fifth Amendment. They are also troubled that the FWS appears to have abdicated its responsibility for how it will make ESA-listing determinations.

Finally, plaintiffs say that the FWS should have allowed more time for the recently approved conservation plans to recover the at-risk species. Over the last year, plaintiffs had agreed to participate in several Candidate Conservation Agreements for candidate species that were subject to the settlement agreements. States and private industry have spent millions of dollars to implement these plans. Plaintiffs say that but for the settlement agreements' deadlines, the FWS would have allowed these conservation plans to operate, retaining the "warranted but precluded" status for the species, in order to gauge the prospects of recovery.

The FWS has not issued any public statements regarding the lawsuit.

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