Arbor Resources Ltd. Liability Co. v. Nockamixon Township

973 A.2d 1036, 2009 Pa. Commw. LEXIS 208, 2009 WL 1288232
CourtCommonwealth Court of Pennsylvania
DecidedMay 12, 2009
Docket1972 C.D. 2008
StatusPublished
Cited by10 cases

This text of 973 A.2d 1036 (Arbor Resources Ltd. Liability Co. v. Nockamixon Township) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arbor Resources Ltd. Liability Co. v. Nockamixon Township, 973 A.2d 1036, 2009 Pa. Commw. LEXIS 208, 2009 WL 1288232 (Pa. Ct. App. 2009).

Opinion

OPINION BY Judge McGINLEY.

Arbor Resources Limited Liability Company, Pasadena Oil and Gas Wyoming, L.L.C., Hook ‘Em Energy Partners, LTD., and Pearl Energy Partners, LTD., (Objectors) appeal from an order of the Court of Common Pleas of Bucks County (trial court) which sustained Nockamixon Township’s (Township) preliminary objection to jurisdiction and dismissed the action filed by Objectors seeking a declaration of general preemption of the Township’s land use controls.

Factual and Procedural Background

On May 14, 2008, Objectors filed a Complaint for Declaratory and Injunctive Relief 1 and challenged the substantive validity of the Township’s zoning ordinances as related to the regulation of oil and gas drilling. Objectors alleged the following:

I. Introduction
1. The Plaintiffs [Objectors], who are the owners of 240 oil and natural gas leasehold interests located within Nock-amixon Township ... are being deprived of their legal rights to develop their oil *1039 and natural gas property interests under those leaseholds because the Township has improperly enacted two ordinances which unlawfully regulate and restrict the development of oil and natural gas.
2. The Townships’ ordinances are unlawful because regulation of the development of oil and natural gas within the Commonwealth of Pennsylvania is exclusively and comprehensively within the control of the Pennsylvania Department of Environmental Protection through the Pennsylvania Oil and Gas Act.[ 2 ] Oil and Gas Act, Act of December 19, 1984, P.L. 1140, as amended by Act No. 1992-78 § 7, 58 P.S. § 601.101 et. seq. Moreover, the Act expressly preempts such local regulation of development of oil and natural gas. Id. at § 601.602.
3. Because the Plaintiffs have met all of the requirements under the Act for drilling within the Township and have been issued DEP permits to proceed with drilling within the Township, the Plaintiffs have a legal right to develop their leasehold interests.
4. Accordingly, the Township cannot lawfully place additional local restriction on the Plaintiffs, and the Township should be enjoined from enforcing the Ordinances.
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III. Factual Background
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12. On May 18, 2006, the Board [Nock-amixon Township Board of Supervisors] enacted Ordinance No. 126, which was incorporated into the Township Zoning Ordinance at § 234-23 R....
13. On April 17, 2007, the Board enacted Ordinance No. 129, which was further incorporated into the Township Zoning Ordinance at § 234-23 R ...
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17. Ordinance No. 129 per se prohibits oil and natural gas activities in all districts, except those zoned as ‘Industrial’ and ‘Quarry.’ Recovery in Industrial and Quarry districts is prohibited unless a written approval is first granted by the Board....
18. Both Ordinance Nos. 126 and 129 ... place further restrictions upon oil and natural gas activities within the Township that ... are exclusively regulated by the DEP, pursuant to authority extended by the Act.... [ 3 ]
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Count I-Declaratory Relief Oil and Gas Preemption
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27. The Ordinances regulate oil and natural gas operations in a manner expressly preempted by the Act....
28. The Ordinances contain numerous conditions, requirements or limitations ... on the same features or accomplish the same purposes of oil and natural gas operations regulated under authority of the Commonwealth by the DEP and as such, are expressly preempted. See 25 Pa.Code §§ 78.1-78.314.
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30. The Ordinances require written approval from the Board before commencement of any drilling operations, even where authorization ... has been granted by the Commonwealth through the DEP under the authority of the Act, and as such, are in direct conflict with the laws of the Commonwealth, and therefore preempted.
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Count II — Declaratory Relief Violation of Due Process
32. The Plaintiffs [Objectors] and the owners of surface estates have constitutional property rights to develop their-interests in oil and natural gas....
33. The Ordinances are unreasonable and arbitrary, and exceeds (sic) the authority granted the Township by the Second Class Township Code and the Municipalities Planning Code because: (i) they arbitrarily apply only to oil and natural gas production; and (ii) they are not substantially related to any legitimate Township purpose.
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36. The Ordinances effectively prohibit the development of oil and natural gas within the Township, and their requirements are not rationally related to its purported purpose.
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*1041 38. Therefore, the Ordinances are constitutionally invalid because they deprive the Plaintiffs and the surface estate owners of property rights without due process of law.
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Count III — Declaratory Judgment Regulatory Taking
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40. The Ordinances unreasonably restrict the property rights of the Plaintiffs.
41. By allowing the Township to withhold authorization to engage in drilling activities even where such authorization has been granted ... by the DEP, and by imposing requirements that .are prohibitively difficult, expensive and/or unnecessarily duplicitous and burdensome, the Ordinances destroy the Plaintiffs property rights by prohibiting or effectively eliminating the economic viability of production within the Township. Moreover, the Ordinances also destroy the property rights of the surface estate owners by effectively eliminating any opportunity to benefit ... from ... oil and natural gas production beneath the surface estate.
42. The Ordinances have wholly deprived these property rights without just compensation, in violation of Article I, Section 10 of the Pennsylvania Constitution, and the Fifth and Fourteenth Amendments of the United States Constitution.

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Cite This Page — Counsel Stack

Bluebook (online)
973 A.2d 1036, 2009 Pa. Commw. LEXIS 208, 2009 WL 1288232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arbor-resources-ltd-liability-co-v-nockamixon-township-pacommwct-2009.