Plaintiffs sued the Agencies, challenging changes to the Survey and Manage Standard (Standard) of the Northwest Forest Plan. Plaintiffs and the Agencies negotiated a settlement which the district court approved and entered in the form of a consent decree. D.R. Johnson appealed, contending that the district court’s approval of the consent decree was an abuse of discretion. At issue was whether a district court could approve resolution of litigation involving a federal agency through a consent decree, which substantially and permanently amended regulations that the agency could only otherwise amend by complying with statutory rulemaking procedures. Because the consent decree allowed for substantial permanent amendments to the Standard, it impermissibly conflicted with laws governing the process for such amendments. Therefore, the district court abused its discretion in approving it in its current form. Finally, D.R. Johnson waived its C & O Act, 28 U.S.C. 1291, argument. Accordingly, the court reversed and remanded for further proceedings.
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