STIPULATED SETTLEMENT AGREEMENT 05-CV-274-HA

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KARIN J. IMMERGUT, United States Attorney JEFFREY K. HANDY, OSB #84051 jeff.handy@usdoj.gov Assistant United States Attorney 1000 S.W. Third Ave., Suite 600 Portland, OR 97204-2902 Telephone: (503) 727-1013 Telefax: (503) 727-1117 KELLY A. JOHNSON Acting Assistant Attorney General Environment & Natural Resources Division JEAN WILLIAMS, Section Chief COBY HOWELL, Trial Attorney (WY Bar No. 6-3589) U.S. Department of Justice Environment & Natural Resources Division Wildlife & Marine Resources Section Email: coby.howell@usdoj.gov Ben Franklin Station, P.O. Box 7369 Washington, D.C. 20044-7369 Phone: (202) 305-0201 Fax: (202) 305-0275 CHRIS WINTER (OSB# 98435) Cascade Resources Advocacy Group 917 SW Oak St., Suite 417 Portland, OR 97205 Telephone: (503) 525-2725 Facsimile: (503) 296-5454 chris@crag.org BRENT PLATER (CSB# 209555) Pro Hac Vice Center for Biological Diversity San Francisco Bay Area Office 1095 Market Street, Suite 511 San Francisco, CA 94103 Telephone: (415) 436-9682 x 301 Facsimile: (415) 436-9683 bplater@biologicaldiversity.org 05-CV-274-HA

UNITED STATES DISTRICT COURT DISTRICT OF OREGON CENTER FOR BIOLOGICAL DIVERSITY, CV-05-274-HA Plaintiff, v. STIPULATED SETTLEMENT AGREEMENT DAVE ALLEN, Regional Director, United States Fish and Wildlife Service, MATTHEW J. HOGAN, Acting Director of the United States Fish and Wildlife Service, and GALE NORTON, Secretary of Interior, Defendant. Plaintiff, Center for Biological Diversity, and Defendants Dave Allen, Regional Director of the U.S. Fish and Wildlife Service ( Service ), Matthew J. Hogan, Acting Director of the U.S. Fish and Wildlife Service, and Gale Norton, Secretary of the Interior, by and through their undersigned counsel, state as follows: WHEREAS on January 17, 2001, the Service, pursuant to the Endangered Species Act ( ESA ), 16 U.S.C. 1531 et. seq., published in the Federal Register a proposed rule to list 12 species of Hawaiian picture-wings, 66 Fed. Reg. 3964 (Jan. 17, 2001); WHEREAS on February 28, 2005, the Center for Biological Diversity filed a complaint for declaratory and injunctive relief, pursuant to ESA 4 in the District of Oregon, which alleges that Defendants failed to publish a final listing rule and critical habitat determination within the 12 month time-frame as required under 16 U.S.C. 1533(b)(6); WHEREAS Plaintiff and Defendant, through their authorized representatives, and 05-CV-274-HA -2-

without any admission or final adjudication of the issues of fact or law with respect to Plaintiff s claims, have reached a settlement that they consider to be a just, fair, adequate, and equitable resolution of the disputes set forth in Plaintiff s Complaint; WHEREAS, all parties agree that settlement of this action in this manner is in the public interest and is an appropriate way to resolve the dispute between them; NOW, THEREFORE, IT IS STIPULATED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. The Service shall submit for publication in the Federal Register a final listing determination and a final determination as to the prudency of designating critical habitat for the 12 species of Hawaiian picture-wings, pursuant to ESA 4(b)(6)(A) and (C), on or by April 17, 2006. If the final listing determination results in the listing of one or more of the 12 species and a critical habitat designation is found to be prudent, the Service shall submit for publication in the Federal Register a proposed critical habitat designation for the listed species on or by September 15, 2006, and a final critical habitat determination by April 17, 2007, but in no event will the Service seek an extension under 16 U.S.C. 1533(b)(6)(C)(ii). 2. If the Service determines that the statutory requirements are met for extending the April 17, 2006 listing determination pursuant to 16 U.S.C. 1533(b)(6)(B)(i), the Service will give Plaintiff notice of its determination by March 17, 2006. If the Service determines it requires additional time to designate critical habitat as a result of any extension pursuant to 16 U.S.C. 1533(b)(6)(B)(i) it will comply with paragraphs 3 and 4. 3. Either party may seek to modify the deadline for any actions specified in Paragraph 1 consistent with the Federal Rules of Civil Procedure. In that event, or in the event 05-CV-274-HA -3-

that either party believes that the other party has failed to comply with any term or condition of this Settlement Agreement ( Agreement ), the parties shall use the dispute resolution procedures specified in Paragraph 4. 4. The Order entering this Agreement may be modified by the Court upon good cause shown, consistent with the Federal Rules of Civil Procedure, by written stipulation between the parties, filed with and approved by the Court, or upon written motion filed by one of the parties and granted by the Court. In the event that either party seeks to modify the terms of this Agreement, including the deadline for the actions specified in Paragraph 1, or in the event of a dispute arising out of or relating to this Agreement, or in the event that either party believes that the other party has failed to comply with any term or condition of this Agreement, the party seeking the modification, raising the dispute or seeking enforcement, shall provide the other party with written notice of the claim. The parties agree that they will meet and confer (inperson not required) at the earliest possible time in a good-faith effort to resolve the claim before bringing any matter to the Court. If the parties are unable to resolve the claim within 30 days after the notice, either party may bring the claim to the Court. 5. No party shall use this Agreement or the terms herein as evidence of what does or does not constitute a reasonable timeline for a final listing determination or designation of critical habitat in any other proceeding regarding the Service s implementation of the ESA. 6. Defendant agrees that Plaintiff is the prevailing party in this action, and agrees to pay Plaintiff s reasonable attorneys fees and costs out of the Judgment Fund pursuant to Section 11(g) of the ESA, 16 U.S.C. 1540(g). If the parties do not agree on the amount of such fees within 30 days of the Court s order approving this agreement, Plaintiff will file a 05-CV-274-HA -4-

motion for attorney s fees and costs in this matter. 7. The parties agree that Plaintiff reserves the right to seek additional fees and costs incurred subsequent to this agreement arising from a need to enforce or defend against efforts to modify the underlying schedule outlined in Paragraph 1, or for any other unforeseen continuation of this action. 8. By this agreement, Defendant does not waive any right to contest fees claimed by Plaintiff or Plaintiff s counsel, including the hourly rate, in any future litigation, or continuation of the present action. 9. Subject to the qualifications in Paragraph 10, no provision of this Agreement shall be interpreted as or constitute a commitment or requirement that the Defendant take action in contravention of the ESA, the Administrative Procedure Act, or any other law or regulation, either substantive or procedural. Nothing in this Settlement Agreement shall be construed to limit or modify the discretion accorded to the Service by the ESA, the APA, or general principles of administrative law with respect to the procedures to be followed in developing the final listing determination and the final critical habitat determination, or as to the substance of the final determinations and rules. 10. Defendants assert that no provision of this Agreement shall be interpreted as, or constitute, a commitment or requirement that Defendants are obligated to spend funds in violation of the Anti-Deficiency Act, 31 U.S.C. 1341. Plaintiff asserts that (a) this Agreement and its terms do not create a conflict with the Anti-Deficiency Act because the duty to finalize proposed listings and critical habitat determinations is required in non-discretionary terms by the ESA; and (b) the Anti-Deficiency Act does not excuse compliance with this pre-existing, court- 05-CV-274-HA -5-

approved Agreement particularly where deadlines have been agreed to based on assessments of agency resources. Plaintiff intends to assert this position if Defendant fails to comply with the terms of this agreement for reasons of insufficient appropriations. The Service reserves all legal and equitable defenses to such a claim. 11. The parties agree that this Agreement was negotiated in good faith and it constitutes a settlement of claims that were vigorously contested, denied, and disputed by the parties. By entering into this Agreement, Plaintiff and Defendant do not waive any claim or defense. 12. The undersigned representatives of each party certify that they are fully authorized by the party or parties they represent to agree to the Court s entry of the terms and conditions of this Agreement and do hereby agree to the terms herein. 13. The terms of this Agreement shall become effective upon entry of an order by the Court ratifying this Agreement. 14. Upon approval of this Agreement by the Court, all counts of Plaintiff s Complaint shall be dismissed with prejudice, pursuant to Federal Rule of Civil Procedure 41(a)(1). 15. Notwithstanding the dismissal of this action, the parties hereby stipulate and respectfully request that U.S. District Court retain jurisdiction to oversee compliance with the terms of this Agreement and to resolve any motions to modify such terms. See Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375 (1994). DATED: August 5, 2005. 05-CV-274-HA -6-

By Permission: CHRIS WINTER (OSB# 98435) Cascade Resources Advocacy Group 917 SW Oak St., Suite 417 Portland, OR 97205 Telephone: (503) 525-2725 Facsimile: (503) 296-5454 chris@crag.org /s / Brent Plater BRENT PLATER (CSB# 209555) Pro Hac Vice Center for Biological Diversity San Francisco Bay Area Office 1095 Market Street, Suite 511 San Francisco, CA 94103 Telephone: (415) 436-9682 x 301 Facsimile: (415) 436-9683 bplater@biologicaldiversity.org KARIN J. IMMERGUT, United States Attorney JEFFREY K. HANDY, OSB #84051 jeff.handy@usdoj.gov Assistant United States Attorney 1000 S.W. Third Ave., Suite 600 Portland, OR 97204-2902 Telephone: (503) 727-1013 Telefax: (503) 727-1117 KELLY A. JOHNSON Acting Assistant Attorney General Environment & Natural Resources Division JEAN WILLIAMS, Section Chief /s/ Coby Howell COBY HOWELL, Trial Attorney (WY Bar No. 6-3589) U.S. Department of Justice Environment & Natural Resources Division Wildlife & Marine Resources Section Email: coby.howell@usdoj.gov Ben Franklin Station, P.O. Box 7369 Washington, D.C. 20044-7369 Phone: (202) 305-0201 Fax: (202) 305-0275 05-CV-274-HA -7-

Of Counsel: DIANE HOOBLER Office of Solicitor Department of Interior Portland, Oregon It is so ORDERED. DATED this day of, 2005. UNITED STATES DISTRICT COURT JUDGE 05-CV-274-HA -8-