Huntley & Huntley, Inc. v. Borough Council of Oakmont

929 A.2d 1252, 168 Oil & Gas Rep. 517, 2007 Pa. Commw. LEXIS 404
CourtCommonwealth Court of Pennsylvania
DecidedJuly 27, 2007
StatusPublished
Cited by2 cases

This text of 929 A.2d 1252 (Huntley & Huntley, Inc. v. Borough Council of Oakmont) 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
Huntley & Huntley, Inc. v. Borough Council of Oakmont, 929 A.2d 1252, 168 Oil & Gas Rep. 517, 2007 Pa. Commw. LEXIS 404 (Pa. Ct. App. 2007).

Opinion

OPINION BY

Judge COLINS.

Huntley & Huntley, Inc. (Huntley) appeals an order of the Court of Common Pleas of Allegheny County that affirmed a decision of the Borough of Oakmont Council (Council) denying Huntley’s conditional use application to allow Huntley to drill and operate a natural gas well on property owned by Robert and Jacqueline Capretto located at 927 Hulton Road in a residential subdivision in the Borough. Huntley’s proposal seeks permission to extract natural gas from the Capretto’s property and from the property of Joseph A. and Carolyn Massaro, located in the same subdivision as the Capretto’s property at 1037 Hulton Road, both of which are in an R-l Residential zoning district and are comprised of a total of 10.16 acres, hereinafter referred to as the Property.

The facts as found by the Council are summarized as follows. The well Huntley proposed to operate would be located on the Capretto’s property, upon which is located a residential dwelling, a carriage house (including a garage and rental unit), and an in-ground pool. On August 31, 2005 Huntley entered into commercial oil and gas lease agreements with both the *1254 Caprettos and the Massaros to allow Huntley to conduct drilling and extraction of natural gas from the Property. The Pennsylvania Department of Environmental Protection issued a permit to Huntley on September 7, 2005 allowing Huntley to drill a natural gas well on the Property. On February 6, 2006, Council held a public hearing on Huntley’s application for a conditional use permit for the drilling operation. The construction of the well would take approximately forty-five days and would require about thirty trips of heavy equipment of trucks. Testimony at the hearing indicated that drilling will be a “noisy, obtrusive operation.”

An engineer who testified for Huntley indicated that seventy-five percent of the gas extracted from the well will be sold to a commercial supplier of gas, Equitable Gas. The Caprettos and Massaros expect to consume the remaining twenty-five percent. Thus, the Council determined that the dominant use of the proposed operation is commercial. If completed according to the application, the operation would entail: (1) a well head consisting of red and green pipes protruding approximately four or five feet above ground; (2) a 50-to-100 barrel fluid tank; (3) a 15,000 square foot “pad;” (4) a chain link fence with privacy screening; (5) a vent shaft protruding from the fluid tank to vent the gas; (6) pressure relief valves; (7) a gravel access road from Woodland Avenue to the well site; and (8) an Equitable Gas meter along Hulton Road bordered by a chain link fence and barbed-wire above. Huntley will regularly maintain the well by draining the fluid tank using a garbage-truck sized vehicle that has two motors— one to drive the vehicle and the other to empty the fluid tank.

Huntley asserted that the proposed use was permitted as a conditional use as the extraction of minerals under the Borough’s Zoning Code. 1 Alternatively, Huntley contended that the Oil and Gas Act 2 preempts the Borough from seeking to regulate its proposed gas operation.

Two groups of people objected to Huntley’s application. Most of these objectors live near or adjacent to the Property, and some of their properties will face the well head and well operations. One group, represented by counsel, made several specific objections to the application: (1) lack of Council jurisdiction; and (2) natural gas does not constitute a mineral under the Borough’s zoning ordinance; and (3) the proposed use is a prohibited commercial use in the R-l district in which the Property is located. The second group of objectors, unrepresented by counsel, protested that the proposed use would have negative safety, noise, and traffic effects on the community.

The Council concluded that the extraction of natural gas did not constitute a mining process and that natural gas is not a mineral. Accordingly, the Council held that the proposal did not fall within the Zoning Ordinance’s definition of “extraction of minerals,” and therefore did not qualify as a conditional use. The Council then noted that, because the extraction of natural gas is not a use specifically identified in the zoning ordinance, the Council lacked jurisdiction to consider whether the proposed use would qualify as a special exception. Council concluded that such a determination is solely within the power of the Zoning Hearing Board. Finally, the 'Council held that the Oil and Gas Act did not preempt the Borough’s power to regulate natural gas extraction.

*1255 The trial court agreed with the Council, and affirmed the conclusions that gas extraction did not constitute the “extraction of minerals,” and that the Oil and Gas Act did not preempt local zoning regulations involving gas drilling and production. The trial court relied in part upon this Court’s decision in Nalbone v. Borough of Youngsville, 104 Pa.Cmwlth. 623, 522 A.2d 1173 (1987), wherein we held that the Oil and Gas Act permitted local regulation of oil and gas operations “upon compliance with the provisions of the ... [Municipalities Planning Code].” 3 Id. at 1175.

Huntley raises the following issues in its appeal: (1) whether the trial court erred by accepting new evidence but failing thereafter to exercise de novo review; (2) whether the Oil and Gas Act preempts the Borough’s zoning regulations limiting gas drilling and production; (3) whether Huntley’s proposed use falls within the Borough Ordinance’s definition of “extraction of minerals;” and (4) whether the Borough is estopped from denying Huntley’s conditional use application. 4

Huntley first asserts that the trial court applied an incorrect standard of review. In its appeal of the Council’s decision Huntley filed a motion to present additional evidence, seeking to have the trial court admit a letter from the Borough’s solicitor. Huntley asserted the letter constitutes an admission that the Borough believed natural gas extraction to fall within the “extraction of minerals” conditional use provision. However, as the Borough notes, although the trial court considered Huntley’s motion, the court never formally admitted the letter. Accordingly, we agree with the Borough that the trial court exercised the proper standard of review. Because we agree with the Borough on this issue, we note here that our standard of review in this case is limited to considering whether the trial court abused its discretion or erred as a matter of law. Greth Development Group, Inc. v. Zoning Hearing Board of Lower Heidelberg Township, 918 A.2d 181 (Pa.Cmwlth.2007).

The initial issue confronting this Court is whether the Oil and Gas Act preempts the Borough’s attempt to regulate through its ordinances Huntley’s proposed operation. We will begin by noting Section 602 of the Oil and Gas Act, which provides in pertinent part:

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Related

Penneco Oil Co. v. County of Fayette
4 A.3d 722 (Commonwealth Court of Pennsylvania, 2010)
Huntley & Huntley, Inc. v. Council of Oakmont
964 A.2d 855 (Supreme Court of Pennsylvania, 2009)

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Bluebook (online)
929 A.2d 1252, 168 Oil & Gas Rep. 517, 2007 Pa. Commw. LEXIS 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntley-huntley-inc-v-borough-council-of-oakmont-pacommwct-2007.