D. Scott & L.M. Scott v. DEP & Rice Drilling B LLC (EHB)

CourtCommonwealth Court of Pennsylvania
DecidedApril 2, 2026
Docket672 C.D. 2024
StatusPublished
AuthorWallace

This text of D. Scott & L.M. Scott v. DEP & Rice Drilling B LLC (EHB) (D. Scott & L.M. Scott v. DEP & Rice Drilling B LLC (EHB)) 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
D. Scott & L.M. Scott v. DEP & Rice Drilling B LLC (EHB), (Pa. Ct. App. 2026).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Douglas Scott and : Linda Marie Scott, : Petitioners : : v. : No. 672 C.D. 2024 : Argued: November 5, 2025 Department of Environmental : Protection and Rice Drilling B LLC : (Environmental Hearing Board), : Respondents :

BEFORE: HONORABLE RENÉE COHN JUBELIRER, President Judge HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE ANNE E. COVEY, Judge HONORABLE MICHAEL H. WOJCIK, Judge HONORABLE LORI A. DUMAS, Judge HONORABLE STACY WALLACE, Judge HONORABLE MATTHEW S. WOLF, Judge

OPINION BY JUDGE WALLACE FILED: April 2, 2026

In this matter, Douglas Scott and Linda Marie Scott (collectively, the Scotts) petition for review of the order of the Environmental Hearing Board (Board), dated April 29, 2024. The Board concluded in its order, among other things, that the Department of Environmental Protection (DEP) had not perpetrated an unconstitutional “taking” by granting permits to Rice Drilling B LLC (Rice) to drill oil and gas wells through the Scotts’ coal seams.1 After careful review, we affirm. BACKGROUND The Scotts are the owners of two parcels of land (Property) in Greene County. Reproduced Record (R.R.) at 2157a. The Scotts’ ownership interest includes oil and gas rights for the Property and coal rights “except for the Pittsburgh coal seam which had been previously severed.” Id. The Scotts’ predecessors-in-interest entered into an oil and gas lease for the Property with Peoples Natural Gas Company in 1917. Id. Douglas Scott purchased the Property in 2002 and entered into an amendment and ratification of the lease in 2013. Id. EQT Production Company (EQT) later became the lessee under the oil and gas lease and engaged in litigation against the Scotts. Id. EQT and the Scotts reached a settlement agreement in 2019, providing that the Scotts would allow EQT to enter the Property and build a well pad, and that EQT would pay the Scotts $260,000. Id. In addition, the Scotts entered into another amendment and ratification of the oil and gas lease and executed a “Coal Owner Permission to Drill,” granting permission to Rice, EQT’s subsidiary, to drill wells at 14 specified locations on the Property. Id. at 2157a-58a. Rice initially drilled six wells. Id. at 2158a. In 2022, Rice applied for permits from the DEP to drill an additional five wells on the Property. R.R. at 2158a. The planned locations for the additional wells were within 1,000 feet of an existing well and would require drilling through coal seams that the Scotts owned. Id. The Scotts objected, purporting to revoke the Coal Owner Permission to Drill, and arguing Rice could not drill the wells without their consent

1 The Fifth Amendment to the United States Constitution provides that private property may not be “taken for public use, without just compensation.” U.S. Const. amend. V. Additionally, article I, section 10 of the Pennsylvania Constitution provides that private property may not “be taken or applied to public use, without authority of law and without just compensation being first made or secured.” Pa. Const. art. 1, § 10.

2 under Section 7(a)(1), and (b) of the Coal and Gas Resource Coordination Act (Act),2 which provides:

(a) No permit for a gas well covered by this act may be issued to drill a new gas well, or reopen a gas well which has been plugged . . . unless the proposed gas well is located not less than 1,000 feet from any other well. For the purpose of this section, “other well” shall not include any:

(1) Oil or gas well or injection well which does not penetrate a workable coal seam.

....

(b) The [DEP] shall, upon request of the permit applicant or the owner of the workable coal seam which underlies the proposed gas well, grant an exception from the minimum 1,000 feet distance requirement of subsection (a), where the permit applicant and the owner of the workable coal seam consent in writing.

58 P.S. § 507(a)(1), (b).3 The parties submitted information to the DEP, which determined the relevant coal seams were not “workable.” R.R. at 2159a. Thus, the DEP concluded Rice did not require the Scotts’ consent and granted permits for the additional wells. Id. The Scotts appealed the permits to the Board. Id. However, the Scotts did not request a supersedeas, and Rice drilled the additional wells, which purportedly resulted in the

2 Act of December 18, 1984, P.L. 1069, as amended.

3 The Act defines a “workable coal seam” to include:

(1) A coal seam in fact being mined in the area in question under this [A]ct by underground methods.

(2) A coal seam which, in the judgment of the [DEP], can reasonably be expected to be mined by underground methods.

Section 2 of the Act, 58 P.S. § 502.

3 “sterilization of approximately 72,139 tons of coal.” Id. at 2159a-60a. Rice filed a motion to dismiss, contending the Scotts’ appeal was moot because it already drilled the wells. Id. at 2159a. The Board denied the motion, reasoning the Scotts presented a takings claim in their notice of appeal that was not subject to dismissal on mootness grounds. Id. The Scotts, Rice, and the DEP filed motions for summary judgment. By order dated April 29, 2024, the Board granted summary judgment against the Scotts. The Board reasoned the Scotts had failed to establish a takings claim, even assuming the coal was workable and their consent was required under the Act. R.R. at 2160a. The Board explained the Scotts’ coal was not taken for the “public benefit,” nor had they “been forced to bear any burdens that should in all fairness and justice be borne by the public.” Id. at 2162a-66a. To the contrary, the DEP granted permits to a private party, Rice, authorizing it to drill oil and gas wells in accordance with the law. Id. The Board reasoned that although the Scotts might disagree with the DEP’s decision to grant permits to Rice and its determination that their coal was unworkable, there was “no basis for their claim that the [DEP] has ‘taken’ their coal.” Id. at 2162a. The Board expressed concern that concluding otherwise could have severe public policy consequences and subject the DEP to a takings claim each time its permitting actions involved a private property dispute. Id. at 2165a-66a. The Board went on to discuss the Scotts’ contention that the DEP’s permitting decision and its decision that the coal was unworkable were arbitrary and capricious, contrary to the law and the evidence, and resulted in a deprivation of the Scotts’ right to due process. R.R. at 2169a. The Board explained the Scotts received due process in that they had notice and the opportunity to be heard during the permitting process and had the opportunity to appeal the DEP’s permitting decision. Id. at 2170a. The

4 Board concluded the Scotts’ claim regarding the DEP’s workability determination was moot because Rice had already drilled the wells, and the Board could not grant damages or other relief to the Scotts. Id. at 2170a-71a. The Board found no merit to the Scotts’ contentions that determining their coal was workable would affect Rice’s statutory obligations, that the Board could “halt Rice’s operations” while the parties resolved their dispute, and that the circumstances of this case fell within an exception to the mootness doctrine. Id. at 2171a-73a. The Scotts filed a petition for review in this Court. The Scotts argue the DEP’s permitting decision was a regulatory taking under the federal and state Constitutions, in that it resulted in a “physical invasion” of their Property and denied them the only economically viable use of their coal. Scotts’ Br. at 23-29. The Scotts challenge the Board’s rationale that the DEP’s decision was not for the “public benefit” and, in the alternative, contend no public benefit was necessary for a taking to occur. Id. at 29- 35.

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Bluebook (online)
D. Scott & L.M. Scott v. DEP & Rice Drilling B LLC (EHB), Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-scott-lm-scott-v-dep-rice-drilling-b-llc-ehb-pacommwct-2026.