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(A) In order to avoid protracted legal battles environmentalists should compromise with developers.
No mention of "Legal battles" in the argument

(B) Developers should adhere only to those environmental laws that are not overburdensome.
Developers' choice has not been mentioned in the argument.

(C) Laws should not be designed to serve the interests of all the parties concerned since they are often so weak that no one’s interest is served well.
This is the opposite of what the passage mentions. This is opposite of option (D) which correctly states the underlying principle

(D) Laws should be fashioned in such a way as to reconcile the interests of developers and environmentalists.
CORRECT: This is what the argument mentions in the second last sentence, the laws rarely get enforced but because of HCP both were content:
"Environmentalists are pleased that HCPs allowed them to win concessions from developers who would otherwise ignore rarely enforced environmental laws"


(E) The most effective means of preserving endangered species is to refrain from alienating property owners.
Not relevant
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