Alton Coal Development, LLC v. United States

The purchaser and owner of a federal coal lease for a tract in Utah filed a lawsuit in the Federal Court of Claims asserting that the United States breached its contractual obligations by misleading the company regarding the value of the lease and failing to revise the environmental impact statement for the lease sale after a court held that the U.S. Bureau of Land Management’s (BLM’s) NEPA review was inadequate for failure to address the effects and costs of greenhouse gas emissions. The complaint alleged that BLM knew when it approved the lease application that the environmental review was inadequate but nonetheless marketed and conducted the lease sale knowing that it was vulnerable to judicial challenge. The complaint alleged that the plaintiff had made all required bonus and rental payments for the lease, was in compliance with reclamation bond requirements, and had made significant investments in the permitting for and development of the coal tract. The plaintiff also alleged that the reinstatement of the federal coal lease moratorium diminished the value of the lease. The complaint sought damages for the U.S.’s alleged breach of the lease, including almost $12 million for the loss of bonus payments and reliance damages in an amount to be determined at trial.