Shell Gulf of Mexico Inc. v. Center for Biological Diversity, Inc.

The Beaufort and Chukchi Seas lie on Alaska’s Arctic coast. This area contains a bountiful ecosystem that supports a wide array of life, but it is also rich in natural resources, specifically, oil and gas. Shell Gulf of Mexico, Inc. and Shell Offshore, Inc. (collectively Shell) have invested heavily in the exploration and development of oil and gas resources, in the Beaufort and Chukchi Seas.

To carry out its operations, Shell sought and obtained approval from the Bureau of Safety and Environmental Enforcement (the Bureau) of two oil spill response plans required by the Oil Pollution Act. Shortly after obtaining approval, Shell filed a lawsuit under the Declaratory Judgment Act against several environmental organizations, seeking a declaration that the Bureau’s approval did not violate the Administrative Procedures Act (APA). Shell claimed that it needed a swift determination of the legality of the approval so it could conduct exploratory drilling without worrying that the environmental groups would seek to overturn the Bureau’s approval of the spill response plans.

Shell’s lawsuit represents a novel litigation strategy, whereby the beneficiary of agency action seeks to…