Envirogas, Inc. v. Town of Westfield

82 A.D.2d 117, 442 N.Y.S.2d 290, 70 Oil & Gas Rep. 34, 1981 N.Y. App. Div. LEXIS 10950
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 9, 1981
StatusPublished
Cited by5 cases

This text of 82 A.D.2d 117 (Envirogas, Inc. v. Town of Westfield) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Envirogas, Inc. v. Town of Westfield, 82 A.D.2d 117, 442 N.Y.S.2d 290, 70 Oil & Gas Rep. 34, 1981 N.Y. App. Div. LEXIS 10950 (N.Y. Ct. App. 1981).

Opinion

OPINION OF THE COURT

Cardamone, J. P.

[118]*118This case presents a narrow question, the answer to which has broad implications. We are asked to ascertain whether under the provisions of section 268 of the Town Law a town may be authorized to require that a bond be posted to insure compliance with a zoning ordinance which placed restrictions on the drilling of gas and oil wells. If so, do the bond requirements unlawfully discriminate in violation of the equal protection clauses of the State and Federal Constitutions.

This is a case of first impression because, although section 268 has been part of the Town Law for nearly 50 years, no case law relevant to this question has been developed.

The undisputed facts are simple. Envirogas, Incorporated, a New York corporation, is in the business of developing and producing oil and natural gas. It has drilled a number of wells in Western New York, including at least four wells in the Town of Westfield. Other commercial gas companies are active in Westfield, drilling over 129 wells there in recent years.

Concerned that unrestricted drilling was hazardous and disruptive to the environment, the town board amended the town’s zoning ordinance in 1974 to require that gas wells could not be located less than 200 feet from any building, property line or public right of way and that, following drilling, the driller must restore the contour of the property and seed the land (Town of Westfield Zoning Ordinance, art II, § 2-02, subd 6 [Arndt No. I], enacted Aug. 20,1974). Paragraph (h) of subdivision 6 required that commercial gas companies post a $5,000 compliance bond in favor of the town. The bond requirement does not apply to landowners drilling on their own property solely for the purpose of obtaining gas for their own use or the use of their tenants.

For the four wells drilled in the town, Envirogas posted four $5,000 bonds. On May 1, 1980 the town board repealed the 1974 amendment and enacted a new subdivision 6 (Arndt No. II). The new ordinance stated that the purpose of regulating gas drilling is to minimize the risk of harm from accidents and to protect the aesthetic quality of the town. A new bonding requirement provides that drillers [119]*119post a bond of $5,000 for each well drilled or, in the alternative, post one $25,000 bond, “the condition of the bond being that the driller shall comply with all the terms, conditions, and requirements of this subsection” (Town of Westfield Zoning Ordinance, art II, § 2-02, subd 6, par [A]). The exemption for landowners drilling on their own property for their own use was re-enacted.

Plaintiff, which had commenced this declaratory judgment action in January, 1980, later served an amended complaint in May, 1980 in order to include allegations with respect to Amendment No. II. Plaintiff alleged that subdivision 6 was void in its entirety for a number of statutory and constitutional reasons. It thereafter moved for partial summary judgment, contending that the requirement for a compliance bond is invalid as beyond the scope of the town board’s authority and that its enactment denies plaintiff’s right to equal protection of the laws, guaranteed by the United States and New York State Constitutions. Plaintiff’s motion was granted on the ground that the town board had no authority to impose such a bonding requirement. Special Term expressly declined to reach the constitutional issue. The order appealed from declares the provisions for bonds to be null and void and directed defendant town to return all sums collected as security deposits under the ordinance.

Before considering the provisions of section 268 of the Town Law, we note that both parties agree that the power to enact zoning or other land use regulations and to enforce those regulations must be delegated by theUegislature to the municipality. As creatures of the State, towns are possessed of no inherent police power to zone—“The exercise of that power, to the extent that it is lawful, must be founded upon a legislative delegation to so proceed, and in the absence of such a grant will be held ultra vires and void” (Matter of Golden v Planning Bd. of Town of Ramapo, 30 NY2d 359, 370). Power has been delegated to towns to enact regulations concerning the use of land for industrial purposes (Town Law, § 261). Further, article 16 of the Town Law contains language relative to the power to enforce duly enacted zoning regulations. Although section 264 of the [120]*120Town Law provides that the town board shall provide for the manner in which such regulations shall be enforced, there is no language in article 16 expressly delegating to the town the power to require a compliance bond.

However, section 268 of the Town Law expressly delegates to towns the power to enforce article 16 and regulations enacted pursuant thereto. Subdivision 1 of section 268 provides that a violation of any zoning regulation is an offense punishable by fine or imprisonment. While subdivision 2 is directed primarily to the power to seek injunctions to enforce zoning regulations, it goes on to provide: “In case any * * * land is used * * * in violation of this article or of any ordinance or other regulation made under authority conferred thereby, the proper local authorities of the town, in addition to other remedies, may [seek injunctions]” (emphasis supplied).

Defendant argues that—if reasonably related to a legitimate purpose—the power to demand a compliance bond may be implied from this language in subdivision 2 of section 268 of the Town Law authorizing town authorities to seek injunctive relief “in addition to other remedies”. Plaintiff argues that the requirement of a bond is burdensome and that in those cases where the Legislature intended a municipality to have such authority, it expressly provided for it (see, e.g., Town Law, § 277).

The language of section 268 is essentially identical to section 7-714 of the Village Law which was taken unchanged from the old Village Law (Village Law of 1909, § 179-c, added L 1923, ch 564). No relevant case law has developed under either the Town or the Village Law. Legislative history is scant. The original delegation of enforcement power to the towns provided only for criminal sanctions and civil penalties without authority to obtain injunctions or other remedies (Town Law of 1909, § 349-v, as added by L 1926, ch 714). In 1931 section 349-v was amended to include a provision that a town could bring an action for injunctive relief in addition to the civil and criminal penalties authorized (L 1931, ch 235). In 1932 the Legislature recodified the entire Town Law. The criminal sanctions and the injunctive relief provisions of section [121]*121349-v were carried over to the new section 268, but the provision for civil penalties was dropped. This legislation contained language identical to that which was already part of the Village Law, that the town authorities could seek injunctions in addition to other remedies. The available legislative history does not reveal what the Legislature intended by the language referring to other remedies (NY Legis Doc, 1932, No. 91, Report of the Joint Legislative Committee to Recodify the Town Law, p 35).

It would appear that when the Legislature made changes in the Village Law in 1923 and in the Town Law in 1932, it was following the recommendations of the United States Department of Commerce’s Advisory Committee on Zoning which in 1921 issued “A Standard State Zoning Enabling Act”.

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Bluebook (online)
82 A.D.2d 117, 442 N.Y.S.2d 290, 70 Oil & Gas Rep. 34, 1981 N.Y. App. Div. LEXIS 10950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/envirogas-inc-v-town-of-westfield-nyappdiv-1981.