In Re: Appeal of Penneco Environmental Solutions, LLC from the decision of The ZHB of the Borough of Plum ~ Appeal of: Borough of Plum

205 A.3d 401
CourtCommonwealth Court of Pennsylvania
DecidedMarch 8, 2019
Docket931 C.D. 2018
StatusPublished
Cited by1 cases

This text of 205 A.3d 401 (In Re: Appeal of Penneco Environmental Solutions, LLC from the decision of The ZHB of the Borough of Plum ~ Appeal of: Borough of Plum) 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
In Re: Appeal of Penneco Environmental Solutions, LLC from the decision of The ZHB of the Borough of Plum ~ Appeal of: Borough of Plum, 205 A.3d 401 (Pa. Ct. App. 2019).

Opinion

OPINION BY JUDGE SIMPSON

In this zoning appeal, the Borough of Plum (Borough) asks whether the Court of Common Pleas of Allegheny County 1 (trial court) erred in reversing the decision of the Zoning Hearing Board of the Borough of Plum (ZHB), that denied Penneco Environmental Solutions, LLC's (Penneco) substantive validity challenge to Borough Ordinance No. 731-004 (zoning ordinance). The ZHB denied Penneco's substantive validity challenge on the ground that it was not ripe for review where Penneco had not yet obtained federal and state permits for the proposed conversion of its production oil and gas well into an underground injection well. Agreeing that the ZHB erred in concluding Penneco's substantive validity challenge was not ripe for review, we affirm the trial court.

I. Background

The ZHB made the following findings. Sedat, Inc. (Sedat) owns the property located at 1800 Old Leechburg Road in the Borough (property). Penneco is an affiliate of Sedat. The property lies in a rural residential zoning district.

Since approximately 1989, Penneco Oil Company (Penneco Oil) operated a gas production well on the property. Penneco Oil has a permit from the Pennsylvania Department of Environmental Protection (DEP) to operate the gas production well. Penneco, whose association to Penneco Oil is unknown, seeks to convert the well from a producing well to an underground injection well. An underground injection well serves to dispose of exploration and production fluids from oil and gas operations by placing the fluids into porous geologic formations. The disposal of waste products from oil and gas operations is subject to the oversight of the U.S. Environmental Protection Agency (EPA).

In March 2016, Penneco submitted an application to the EPA requesting permission to operate an underground injection well on the property. About six months later, Penneco filed a substantive validity challenge to the zoning ordinance with the ZHB. Penneco challenged the zoning ordinance claiming it excluded the operation of an underground injection well in all zoning districts in the Borough. Penneco also asserted the zoning ordinance was preempted by state and federal law. The parties consented to postponement of a hearing before the ZHB on the validity challenge until after the EPA conducted a public hearing on Penneco's application to the EPA to operate the injection well on the property.

In June 2017, the Borough publicly announced its plan to adopt or propose a new zoning ordinance. The EPA subsequently conducted a hearing at which it received public comment regarding Penneco's proposed injection well.

In August 2017, Penneco requested that its substantive validity challenge be placed on the ZHB's agenda. A few weeks later, Penneco and the ZHB agreed to list the matter on the ZHB's October 2017 agenda. A hearing ensued before the ZHB.

In its subsequent decision, the ZHB explained:

The current status of the EPA's consideration of the permit is that subsequent to the hearing the EPA is considering and responding to the public comments from that meeting and comments that were submitted subsequent to that during the comment period. It is Penneco's understanding that the EPA intends to respond to those comments by the end of 2017 and then will go on through the remaining permitting process in early 2018.

ZHB Dec., 11/17/17, Finding of Fact (F.F.) No. 18.

Penneco represented that it would file an application with DEP for a permit to operate the injection well if the EPA gave its approval, as EPA approval must precede DEP approval. As a result, Penneco had not yet submitted an application to DEP. Penneco will not be permitted to operate an injection well on the property if the EPA and DEP do not grant the required permits and approvals.

Based on these findings, the ZHB made the following conclusions of law. Ripeness is defined as the presence of an actual controversy. In re Borough of Blakely , 25 A.3d 458 (Pa. Cmwlth. 2011). The ripeness doctrine requires an evaluation of "the fitness of the issues" for determination, as well as the hardship to the parties of withholding judicial consideration. Am. Council of Life Ins. v. Foster , 134 Pa.Cmwlth. 634, 580 A.2d 448 , 451 (1990). The ZHB determined no actual controversy yet existed here, and one may never exist, because Penneco had not yet received the required approvals from the EPA and DEP.

The ZHB stated that the issue of whether the zoning ordinance is invalid because, as alleged, it is exclusionary or preempted is of no consequence if the EPA and DEP do not grant the required approvals. The ZHB explained that, if it invalidated the zoning ordinance, Penneco would not be permitted to operate its proposed injection well because it lacked the requisite federal and state approvals. The ZHB further determined this matter would be moot if those approvals were not granted. The ZHB also stated the zoning ordinance imposes no hardship on Penneco unless Penneco receives the required approvals. For these reasons, the ZHB denied Penneco's substantive validity challenge. Penneco appealed to the trial court.

Without taking additional evidence, the trial court reversed. The trial court stated that, contrary to the ZHB's determinations, under Pennsylvania law, municipalities may not require outside agency permits before providing zoning approval. Therefore, the trial court determined the ZHB erred in concluding Penneco's substantive validity challenge was not ripe for review.

Further, the trial court determined Penneco met its burden of proving the zoning ordinance improperly excluded a recognized, legitimate business activity; thus, the trial court held the zoning ordinance was de jure exclusionary and invalid. As a result, the trial court determined Penneco was entitled to site-specific relief as to its proposed underground injection well on the property. The Borough now appeals to this Court.

II. Issue

The Borough raises only one issue on appeal. 2 It asserts the ZHB properly denied Penneco's substantive validity challenge for lack of ripeness. Whether the zoning ordinance is de jure exclusionary, and whether, if so, Penneco is entitled to site-specific relief, are not matters before us in this appeal.

III. Discussion

A. Contentions

The Borough argues that "[r]ipeness has been defined as the presence of an actual controversy; it requires a court to evaluate the fitness of the issues for judicial determination, as well as the hardship to the parties of withholding court consideration." Blakely

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Related

Plum Borough v. ZHB of the Borough of Plum
Commonwealth Court of Pennsylvania, 2024

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Bluebook (online)
205 A.3d 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-appeal-of-penneco-environmental-solutions-llc-from-the-decision-of-pacommwct-2019.