Columbia Gas v. Phelps Preferred Invests., L.L.C.

2022 Ohio 2540
Ohio Court of Appeals·Decided July 25, 2022·No. Case No. 14-22-07·Published·Cited by 3 cases

Opinion

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT

UNION COUNTY

COLUMBIA GAS OF OHIO, INC., PETITIONER-APPELLANT, CASE NO. 14-22-07 v.

PHELPS PREFERRED INVESTMENTS, LLC, OPINION

RESPONDENT-APPELLEE.

Appeal from Union County Common Pleas Court Trial Court No. 21-CV-0137

Judgment Affirmed

Date of Decision: July 25, 2022

APPEARANCES:

Adam C. Smith for Appellant Andrew C. Clark and Richard T. Ricketts for Appellee

SHAW, J.

{¶1} Petitioner-Appellant, Columbia Gas of Ohio, Inc. (“Columbia Gas”), appeals from a judgment entry of the Union County Court of Common Pleas dismissing Columbia Gas’ petition in an action involving appropriation of easement rights.

Facts and Procedural Background

{¶2} In August 2020, the Ohio Power Siting Board (“Siting Board”)

approved Columbia Gas’ Letter of Notification application “for the construction, operation, and maintenance of the Marysville Connector Pipeline Project” (the “Pipeline Project”), subject to two conditions which are not at issue in this appeal. (Petitioner’s Ex. 7). According to the Siting Board’s Opinion, Order, and Certificate, the Pipeline Project is a 4.78-mile natural gas pipeline route near Marysville, Union County.

{¶3} By a letter dated July 21, 2021, Columbia Gas sent Respondent-

Appellee, Phelps Preferred Investments, LLC (“Phelps”) a notice of intent to acquire an easement across Phelps’ parcels of real property located in Union County for purposes of the project involving installation of the natural gas pipeline infrastructure. (Respondent’s Ex. R). The pipeline route is on 1.7 miles of the Phelps’ property. (Tr. at 168). Despite negotiations, the parties were unable to agree on the proposed easement rights.

{¶4} Accordingly, on August 30, 2021, Columbia Gas, a public utility, filed in the Common Pleas Court of Union County a verified petition for appropriation of easements rights on the real property owned by Phelps. The petition claimed that the Pipeline Project and acquisition of the easement rights are “necessary and for a public use” to construct, operate, and maintain the Marysville Connector Facility. (Doc. No. 2 at ¶ 38). The petition included among the exhibits a copy of the proposed easement and a copy of the Siting Board’s August 27, 2020 Opinion, Order, and Certificate for the Pipeline Project.

{¶5} Phelps filed an answer objecting to the appropriation action. Phelps’

answer raised ten specific denials to Columbia Gas’ petition.

{¶6} On December 7, 2021, the trial court conducted a necessity hearing. At this hearing, both parties were given the opportunity to present testimony and evidence for and against their respective positions. Columbia Gas called two witnesses, Melissa Thompson, Director of Regulatory Policy for Columbia Gas, and Matthew Opfer, a Manager of Major Projects for Columbia Gas, through his work at NiSource. Phelps testified on its behalf by Doug Phelps (a member and manager of Phelps). The office manager of the law firm of Ricketts & Clark Co., LPA also testified and Opfer was called on cross-examination by Phelps.

{¶7} On February 8, 2022, the trial court issued a judgment entry finding the following three specific denials asserted in Phelps’ answer have merit: “Excess

taking relating to pipeline specification;” “Excessive taking relating to blanket easement for valves and appurtenances;” and “Excessive taking as to width and duration of easement.” (Doc. No. 44, Feb. 8, 2022 J.E. on Necessity Hearing, p. 1- 2). The trial court’s conclusions of law state that (1) the burden was upon Petitioner [Columbia Gas] to prove that the appropriation was taking no more than was necessary to promote the public; and (2) the Ohio Power Siting Board in failing to examine the applicable easement documents itself, failed to determine if the appropriation was taking only that which was necessary. (Id. at p. 3, citing Norwood v. Horney, 110 Ohio St.3d 353, 2006-Ohio-3799; Ohio Power Co. v. Burns, 4th Dist. Washington Nos. 20CA19, 20CA20, 20CA21, and 20CA22, 2021-Ohio-2714, appeal not allowed, 165 Ohio St.3d 1478, 2021-Ohio-4289, reconsideration granted, 165 Ohio St.3d 1543, 2022-Ohio-397.) As a result, the trial court concluded that Columbia Gas’ petition should be dismissed pursuant to R.C. 163.09([G]).

{¶8} From this decision, Columbia Gas appeals, asserting the following assignments of error.

Assignment of Error No. 1

The Trial Court erred in failing to find in the Judgment Entry on Necessity Hearing (the “Judgment Entry”) that Petitioner/Appellant Columbia Gas of Ohio, Inc., (“Columbia Gas”) is not entitled to an irrebuttable presumption of necessity pursuant to R.C. 163.09(B)(1)(c), despite the Ohio Power Siting Board (“OPSB”) approving Columbia Gas’ Letter of Notification

Application for the Marysville Connector Pipeline Project (the “Project”), which contained the easement terms Columbia Gas seeks to appropriate.

Assignment of Error No. 2

The Trial Court erred in failing to find in the Judgment Entry that Columbia Gas is entitled to a rebuttable presumption of necessity pursuant to R.C. 163.09(B)(1)(b), despite Columbia Gas presenting evidence of necessity of the appropriation, despite considerable deference afforded to an appropriating public utility, and despite Respondent Phelps Preferred Investments, LLC’s (“Phelps”) failure to overcome Columbia Gas’

presumption of necessity of the appropriation.

Assignment of Error No. 3

The Trial Court erred in finding in favor of Phelps in the Judgment Entry on Phelps’ second specific denial that Columbia Gas is seeking excessive pipeline specifications, despite only Columbia Gas proffering evidence that such pipeline specifications are reasonably convenient or useful to the public.

Assignment of Error No. 4

The Trial Court erred in finding in favor of Phelps in the Judgment Entry on Phelps’ third specific denial that Columbia Gas is seeking excessive “blanket” easement rights, despite only Columbia Gas proffering evidence that Columbia Gas’ easement rights are limited to a 75´ easement corridor that is depicted by a professional surveyor and that such easement corridor is reasonably convenient or useful to the public.

Assignment of Error No. 5

The Trial Court erred in finding in favor of Phelps in the Judgment Entry on Phelps’ fourth specific denial that Columbia Gas is seeking excessive rights regarding Columbia Gas’ 25´ temporary construction easement because Columbia Gas is authorized to use that area after initial pipeline construction only

for limited work on the pipeline, despite only Columbia Gas proffering evidence that such rights are reasonably convenient or useful to the public.

Assignment of Error No. 6

The Trial Court erred by dismissing Columbia Gas’ Petition in the Judgment Entry and by failing to hold a compensation hearing pursuant to R.C. 163.09(B)(2), regardless of how the Trial Court decided Phelps’ specific denials.

{¶9} Because the first through fifth assignments of error present related issues, we address them together.

Standard of Review

{¶10} “The interpretation and application of a statute is a matter of law that an appellate court reviews de novo.” Ohio Power Co., 4th Dist. Washington Nos. 20CA19, 20CA20, 20CA21, and 20CA22, 2021-Ohio-2714, at ¶ 45. Additionally, “we review the trial court’s decision on the extent of the take de novo, without any deference to the trial court’s determination, as it is an issue of law.” (Italics sic.) Ohio Dept. of Natural Resources v. Thomas, 3d Dist. Mercer No. 10-16-05, 2016- Ohio-8406, ¶ 46.

Statutory Framework

{¶11} Pursuant to R.C. 163.021(A), “No agency1 shall appropriate real property except as necessary and for a public use. In any appropriation, the taking

1 An “agency” includes “any corporation * * * that is authorized by law to appropriate property in the courts of this state.” R.C. 163.01(B), (C).

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Columbia Gas v. Phelps Preferred Invests., L.L.C., 2022 Ohio 2540 (Ohio Ct. App. 2022).

2022 Ohio 2540 (Columbia Gas v. Phelps Preferred Invests., L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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