EQT Production v. Boro of Jefferson Hills, Aplt.

208 A.3d 1010
Supreme Court of Pennsylvania·Decided May 31, 2019·No. 4 WAP 2018·Published·Cited by 18 cases

Opinion

JUSTICE TODD

In this appeal, we consider the question of whether a municipality, in addressing a natural gas extraction company's conditional use application for the construction and operation of a well site, may consider as evidence the testimony of residents of another municipality regarding the impacts to their health, quality of life, and property which they attribute to a similar facility constructed and operated by the same company in their municipality. After careful review, we hold that such evidence may be received and considered by a municipality in deciding whether to approve a conditional use application, and, thus, we vacate the order of the Commonwealth Court and remand this matter to that court, with instructions to remand this matter to the trial court for further consideration.

I. Factual and Procedural History

In 2015, Appellees EQT and ET Blue Grass Clearing LLC, an affiliate of EQT (collectively, "EQT"), sought to construct, operate, and maintain a natural gas production complex on a 126-acre tract of property within the Borough of Jefferson Hills, Allegheny County ("Borough"), the Appellant in this matter. The proposed site for this facility, known as the Bickerton *1012 Well Site ("Bickerton site"), was a 29.7-acre site projected to include up to 16 "unconventional" gas wells, so described because they utilize the hydraulic fracturing production process ("fracking") to extract natural gas from a subjacent reservoir. This was to be the first unconventional well site in the Borough. According to its conditional use application filed with the Borough, the wells that EQT planned to drill would penetrate the subsurface vertically to a distance of 6,000 to 7,000 feet, and then extend horizontally for another 10,000 feet. Next to every well, impoundment ponds would be constructed, each with the capacity to store 3.4 million gallons of freshwater. 1 Additionally, all well sites were to have holding tanks for the wastewater that is returned from the well during the drilling process. Said tanks, also called flowback impoundments, which are open to the air, store the wastewater generated during the fracking process for one week, during which time a large portion of the water contained therein would evaporate into the atmosphere, after which any remaining water would be reused in the fracking process. 2 Jefferson Township Council Decision on EQT Conditional Use Application, 12/23/15, at 19.

The site is located in a zoning district of the Borough designated a Business Park, which is also an Oil and Gas Development Overlay District. 3 In both districts, unconventional oil and gas well drilling is permitted by the Borough's zoning code as a conditional use. In September 2015, EQT filed an application with the Borough for conditional use approval so that it could commence construction of this facility. On October 26, 2015, the Borough Planning Commission provisionally recommended that the application be approved, contingent on EQT's furnishing to it additional detailed information regarding matters such as: notices of EQT's past violations from the Pennsylvania Department of Environmental Protection ("DEP"); the height of the structures utilized in the drilling and operation of the wells; descriptions and maps of how materials, equipment, and the water and other chemicals used in the fracking process would be transported to the site; the route through the Borough which vehicles servicing the site would take; and plans for the installation of fencing and warning signs. Id. at 1-2.

On November 10, 2015, the Borough Council ("Council") conducted a public hearing on the application, as required by the Municipalities Planning Code ("MPC"). 4 At this hearing, eight individuals ("objectors") testified in opposition to the conditional use application. Four of the objectors were Borough residents, one of *1013 whom lived within 1,000 feet of the Bickerton site. However, three of the objectors were, at that time, residents of Union Township, Washington County, which adjoins the Borough at its southern border, and were living near another unconventional natural gas well site known as "Trax Farm," which EQT had constructed and operated in Union Township since 2007 ("Trax Farm site"). Council also heard testimony from an objector who had recently moved to the Borough, but previously lived in Union Township in proximity to the Trax Farm site. As pertinent to the issue presented by this appeal, the present and former Union Township objectors gave evidence of their firsthand personal experiences with EQT's drilling and operational practices while living near its Trax Farm site, and they conveyed their perceptions of how EQT's activities at that site had negatively impacted their health and quality of life, and, also, their community's environment. Given its relevance herein, we will recount their testimony in detail.

Union Township resident Bob Domman related that because "the Trax site was probably the closest one to where I lived, we followed that pretty closely," and he testified that EQT had offered what he characterized as "gag agreements" to individuals who lived next to the site, and he provided Council with copies thereof which were entered into the evidentiary record. N.T. Jefferson Hills Council Public Hearing ("Hearing"), 11/10/15, at 138, 143. Because these individuals had apparently complained that EQT's extraction activities at the Trax Farm site constituted a nuisance which interfered with the use and enjoyment of their property, the agreements provided that, in exchange for a $ 50,000 cash payment, the residents would grant EQT easements and rights-of-way over their properties for "noise, dust, light, smoke, odors, fumes, soot or other pollution, [and] vibrations ... [and other] adverse impacts or other conditions or nuisances which may emanate or be caused by [EQT's] operations." Id. at 139-40. These easements were for varying lengths of time, ranging from one year to perpetuity. Id. at 140.

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EQT Production v. Boro of Jefferson Hills, Aplt., 208 A.3d 1010 (Pa. 2019).

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