Dominion Carolina Gas Transmission, LLC v. 0.262 Acres et al
Filing
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ORDER granting 13 Motion for Immediate Possession. Signed by Honorable J Michelle Childs on 8/24/2016.(asni, )
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH CAROLINA
COLUMBIA DIVISION
Dominion Carolina Gas Transmission, LLC,
Case No: 3:16-CV-01975-JMC
Plaintiff,
vs.
0.262 Acres, in Richland County, South
Carolina located on Parcel R24600-01-57;
MICHAEL T. ROBERTSON,
Defendants.
ORDER GRANTING PLAINTIFF’S MOTION FOR IMMEDIATE POSSESSION
Plaintiff Dominion Carolina Gas Transmission, LLC (“DCGT”) has moved for immediate
possession of the easements sought in the Complaint in this matter. After considering the motion,
the memorandum in support, and the attached affidavits of Michael Ferguson and Metrick Houser,
the Court grants DCGT’s request pursuant to E. Tennessee Nat. Gas Co. v. Sage, 361 F.3d 808
(4th Cir. 2004) and its progeny as set forth below.
FACTUAL BACKGROUND
DCGT is an interstate natural gas company as defined by the Natural Gas Act (“NGA”).
15 U.S.C. § 717a(6); see also Ferguson Affidavit at ¶ 8. As such, DCGT is subject to the
jurisdiction of the Federal Energy Regulatory Commission (“FERC”) and is qualified to, among
other things, construct and operate interstate natural gas transmission pipelines. 15 U.S.C. § 717,
et seq.; Ferguson Affidavit at ¶ 8.
This case arises from DCGT’s exercise of its eminent domain powers pursuant to the NGA,
15 U.S.C. § 717, et seq., and the applicable FERC Certificate order, which is attached to the
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Ferguson Affidavit as Exhibit A. DCGT brought this action seeking certain easements it requires
in connection with its Eastover pipeline project (“Project”). DCGT has been unable to reach an
agreement as to the defendant parcels and landowners in this action, each of which is listed below
(collectively, “Landowners”).
The Landowners own or hold interests in real property located in Richland County, South
Carolina described as Michael T. Robertson, TMS # R24600-01-57(the “Property). Ferguson
Affidavit at ¶¶ 4-7. DCGT seeks easements over the Property in connection with the Project as
shown in Exhibits N & O to the Complaint. Id. at ¶ 10.
The FERC Certificate order authorizes DCGT to construct and operate the Project, an
approximately 28-mile long pipeline and appurtenant facilities serving an industrial customer in
South Carolina. Id. at Ex. A. That construction process necessarily requires access to all 126
involved parcels, including those belonging to the defendant landowners. Id. at ¶ 10. “DCGT’s
construction plan called for it to complete all construction by September 1, 2016, to meets its
customer’s in-service date.” Id. at ¶ 11. That deadline has been extended, and DCGT now
contemplates a construction completion date of November 1, 2016. Id. The deadline was chosen
to make sure that DCGT can meet its customer’s in-service deadline, which was set to reduce
emissions and comply with federal environmental deadlines. Id. at ¶ 12. “In order to comply with
its current construction schedule, DCGT must have immediate possession of the properties at issue
so it can commence construction and meet its deadline.” Id. at ¶ 11.
STANDARD OF REVIEW
The Fourth Circuit has held that a court may use its equitable powers to grant a preliminary
injunction awarding immediate possession to a natural gas company if the court determines that
the company has the right to condemn the property. Sage, 361 F.3d 808 (4th Cir. 2004). “[O]nce
a district court determines that a gas company has the substantive right to condemn property under
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the NGA, the court may exercise equitable power to grant the remedy of immediate possession
through the issuance of a preliminary injunction.” Id. at 828. “A plaintiff seeking a preliminary
injunction must establish that he is likely to succeed on the merits, that he is likely to suffer
irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor,
and that an injunction is in the public interest.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7,
20 (2008); see also Columbia Gas Transmission, LLC v. 252.071 Acres More or Less, 2016 WL
1248670, at *12 (D. Md. Mar. 25, 2016) (applying test for preliminary injunction in case seeking
immediate possession under the NGA). “The Fourth Circuit no longer recognizes a ‘flexible
interplay’ among these criteria. Instead, each requirement must be fulfilled as articulated.”
Occupy Columbia v. Haley, 866 F. Supp. 2d 545, 552 (D.S.C. 2011).
DISCUSSION
I.
Likelihood of Success on the Merits
This Court has granted partial summary judgment to DCGT with respect to its right to
condemn the requested easements. Thus, DCGT has already succeeded on the merits of this issue.
II.
Irreparable Harm
With respect to irreparable harm, the Ferguson Affidavit establishes the following:
10.
DCGT has received a FERC Certificate order authorizing it to construct
and operate the approximately 28 mile pipeline and appurtenant facilities in order
to serve an industrial customer in South Carolina. That construction process
necessarily requires access to all 126 involved parcels, including those belonging
to the defendant landowners. The specific easements sought with respect to the
properties at issue are depicted in Exhibits C-S to the Complaint in the above
captioned action.
11.
DCGT’s construction plan called for it to complete all construction by
September 1, 2016, to meets its customer’s in-service date. However, DCGT now
contemplates a construction completion date of November 1, 2016. In order to
comply with its current construction schedule, DCGT must have immediate
possession of the properties at issue so it can commence construction and meet its
deadline.
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12.
The construction deadline was selected to ensure that DCGT can meet its
customer’s in-service deadline, which is needed in order for the customer to comply
with federal environmental regulations and to meet its ongoing efforts to further
reduce emissions. Further delay also will cause financial harm to both DCGT and
its customer.
13.
Construction practices dictate that the Project be constructed using linear
construction. It is not practical to construct the Project in short segments
interrupted by landowners who have not yet reached an agreement with DCGT.
Skipping properties requires relocating all of the construction equipment and
personnel (both of which are extensive) and then having to bring them back later.
This also results in increased inconvenience for all landowners along the Project
corridor, and increases the Project costs. In addition, more movement of people
and equipment on and off of the Project route and onto roads and highways equates
to more potential for injury to contractor personnel as well as the public. For these
reasons, immediate possession is required to ensure an efficient construction
process and minimal disruption for all involved. In addition, the potential for
inclement weather is increased if the Project is delayed. Summer and early fall are
the preferable seasons for pipeline construction and any delay could jeopardize
DCGT’s ability to finish the Project on time.
15.
In addition, the potential for inclement weather is increased if the Project
is delayed. Summer and early fall are the preferable seasons for pipeline
construction and any delay could jeopardize DCGT’s ability to finish the Project
on time.
Ferguson Affidavit at ¶¶ 10-13, 15. The Court finds these statements to be credible and further
finds that delayed possession of the requested easements would delay the entire project and result
in additional complication and cost to both DCGT and its customer. Moreover, any delay would
render DCGT’s customer less able to meet federal environmental standards and to reduce its
emissions as set forth in the affidavit of Metrick Houser.
Courts around the Fourth Circuit have found these factors to present a sufficient showing
of “irreparable harm.” Columbia Gas Transmission, LLC v. 252.071 Acres More or Less, 2016
WL 1248670, at *17 (D. Md. Mar. 25, 2016). There, the Court summarized these rulings as
follows:
Courts in the Fourth Circuit have found similar circumstances sufficient to satisfy
the “irreparable harm” element of the preliminary injunction test. For example, in
Sage, 361 F.3d at 828, the Fourth Circuit affirmed the district court's finding of
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irreparable harm, noting that the plaintiff “would suffer undue delay” without a
preliminary injunction “and that this delay would cause significant financial harm
both to [plaintiff] and some of its putative customers.” Id. at 828 (internal quotation
marks omitted). The Court also noted, id. at 828-29 (internal citations omitted,
alterations in Sage):
Constructing a ninety-four-mile pipeline is a complex project that
can only progress in phases. Certain portions of the project have to
be completed before construction can begin on other portions.
Therefore, as the district court recognized, “any single parcel has the
potential of holding up the entire project.” Continuing, the court
said, “[t]o require ETNG to build up to a parcel of land [it] do[es]
not possess, skip that parcel, and then continue on the other side
would prove wasteful and inefficient.”
Similarly, in Columbia Gas Transmission Corp. v. An Easement to Construct,
Operate, & Maintain a 24-inch Gas Transmission Pipeline Across Properties in
Greene Cnty., 2007 WL 2220530 (W.D. Va. July 31, 2007), the court found:
“Plaintiff will suffer irreparable harm [because] it will be unable to stay on schedule
for the construction of the Pipelines and, therefore, may not be able to meet the time
requirements contemplated by the FERC Certificate and will delay delivery of
natural gas to customers who need it.” Id. at *4.
(footnotes omitted). These same factors are at work here. Therefore, the Court finds that DCGT
has clearly shown it will suffer irreparable harm in the event immediate possession is not granted.
III.
Balance of the Equities
Granting the requested relief will not harm the Landowners. As set forth in the Ferguson
Affidavit in ¶ 16, “[t]here is nothing about the subject properties in this case indicating that they
would suffer greater harm if DCGT is granted immediate possession of the easements and allowed
to begin construction of the Project in accordance with the construction schedule.”
Also, “the Fifth Amendment guarantees the landowners just compensation for their land
no matter when the condemnor takes possession.” Sage at 829. Thus, the Landowners do not lose
any rights if DCGT is allowed to take possession at this time rather than after just compensation
is determined. A landowner’s personal attachment to the property does not change this analysis.
As found in Sage,
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Finally, the landowners argue that taking property before determining just
compensation constitutes a type of inherent harm that is irreparable, especially
when lands have been held in the same family for many years. We fully understand
that condemnation often forces landowners to part with land that they would prefer
to keep for many reasons, including sentimental ones. However, the Supreme Court
long ago recognized that “in view of the liability of all property to condemnation
for the common good, loss to the owner of nontransferable values deriving from his
unique need for property or idiosyncratic attachment to it ... is properly treated as
part of the burden of common citizenship.” Kimball Laundry Co. v. United States,
338 U.S. 1, 5, 69 S.Ct. 1434, 93 L.Ed. 1765 (1949). In the end, the district court
concluded that the harm to the landowners due to early possession is “slight at best.”
[] The record supports this conclusion, and any harm to the landowners is clearly
outweighed by [the condemnor’s] immediate need for the property.
Id.
Finally, DCGT has indicated its willingness to deposit an amount representing its
determined value of the requested easements into Court or post bond as a condition of the requested
relief. This will protect the Landowners’ interests while the just compensation portion of this
action remains pending and will minimize any harm to the Landowners. See Sage at 829 (finding
harm “slight at best” when funds representing appraised value of the interests sought were
deposited with the Court). The Court finds and sets as a condition of the requested relief that
DCGT shall be required to deposit with the Court the amount of $ 3,000.00 (funds representing
the jurisdictional limit) prior to taking possession. Therefore, the balance of the equities weighs
in favor of granting the relief requested by DCGT.
IV.
Public Interest
The requested relief serves the public interest as expressed in the NGA. As recently stated,
“Congress passed the Natural Gas Act and gave gas companies condemnation
power to ensure that consumers would have access to an adequate supply of natural
gas at reasonable prices.” Sage, 361 F.3d at 830. By virtue of the FERC Certificate,
FERC found that the construction and operation of an expanded Line MB pipeline
promoted these congressional goals. Furthermore, improvements to aging
infrastructure, pipeline safety, and service reliability serve the public interest. . . .
Denying immediate access to and possession of the easements would result in a
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delay in construction, thus delaying the benefit of a pipeline that improves
reliability and safety. In turn, this would pose a risk of harm to the public. See Sage,
361 F.3d at 826 (recognizing the need for natural gas supply as a “substantial public
interest”).
Columbia Gas Transmission, LLC v. 252.071 Acres More or Less, 2016 WL 1248670, at *17-18
(D. Md. Mar. 25, 2016). Here, FERC has found the Project serves the public interest. Moreover,
the public is served by decreased emissions on the part of DCGT’s customer following completion
of the Project. Given the above, DCGT has satisfied this element of the preliminary injunction
analysis.
CONCLUSION
DCGT has met its burden of showing each of the elements required for the requested
preliminary injunction. For these reasons, the Court GRANTS DCGT’s motion for immediate
possession (ECF No. 13) upon the terms set forth in this Order. DCGT shall be entitled to take
possession as soon as the required funds in the amount of $3,000.00 are deposited with the clerk
of court.
IT IS SO ORDERED.
United States District Judge
August 24, 2016
Columbia, South Carolina
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