Consider these facts: a new U.S. presidential administration wishes to reverse a previous administration's regulation which banned oil and gas exploration on the Outer Continental Shelf (OCS) off of North Carolina. Assume that such action is categorically included under NEPA, and requires lead agency - Bureau of Ocean Energy Management (BOEM) (part of the Department of Interior) to prepare Environmental Impact Statement (EIS). The EIS in detail reviews three alternative courses of action, including "no action." Alternative A opens lands off the southern NC Coast opposite Morehead City. Alternative B - which opens the submerged lands closest by Nags Head, NC, contained a disclosure of comparatively greater likelihood of leaked oil reaching the beach front from Oregon Inlet to Duck. Alternative B is chosen by the BOEM for its convenience to the ports in Hampton, Virginia, and BOEM has opened a bidding window to issue exploration leases.

The Town of Nags Head sues BOEM under the National Environmental Policy Act, alleging that Alternative B will have much greater environmental impact than Alternative A.

Which answer below best describes what happens next?

Select one:

a. The federal district court rules against the Town of Nags Head's complaint because NEPA does not impose a substantive duty on agencies to choose the least environmentally damaging alternative

b. The federal district court dismisses the Town of Nags Head's complaint for lack of standing. (not correct answer)

c.

The federal district court dismisses Nags Head's complaint because, now that BOEM has started the lease bidding process, the case is now moot.