In Re: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume

CourtCommonwealth Court of Pennsylvania
DecidedMay 26, 2017
DocketIn Re: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume - 1306 C.D. 2016
StatusUnpublished

This text of In Re: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume (In Re: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume) 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: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume, (Pa. Ct. App. 2017).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

In Re: Condemnation by Sunoco : Pipeline, L.P. of Permanent and : Temporary Rights of Way for the : Transportation of Ethane, Propane, : Liquid Petroleum Gas, and Other : Petroleum Products in the Township : of Upper Frankford, Cumberland : County, Pennsylvania, Over the : Lands of Rolfe W. Blume and : Doris J. Blume : : Appeal of: Rolfe W. Blume and : No. 1306 C.D. 2016 Doris J. Blume : Argued: March 6, 2017

BEFORE: HONORABLE RENÉE COHN JUBELIRER, Judge HONORABLE JULIA K. HEARTHWAY, Judge HONORABLE DAN PELLEGRINI, Senior Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE COHN JUBELIRER FILED: May 26, 2017

Rolfe W. and Doris J. Blume (Condemnees) appeal from the Order of the Court of Common Pleas of Cumberland County (trial court) that overruled their preliminary objections to Sunoco Pipeline L.P.’s (Condemnor) Declaration of Taking. The trial court found the majority of Condemnees’ preliminary objections were controlled by this Court’s prior en banc decision in In Re: Condemnation by Sunoco Pipeline, L.P., 143 A.3d 1000 (Pa. Cmwlth.), petition for allowance of appeal denied, (Pa. Nos. 571, 572, 573 MAL 2016, filed December 29, 2016) (Sunoco I). The few issues that were not explicitly covered by Sunoco I were nonetheless meritless, according to the trial court. After careful review of the record, and consistent with our decision in Sunoco I, we discern no error and therefore affirm.

I. Factual & Procedural Background This case is the latest in a line of cases challenging the ability of Condemnor to exercise eminent domain to condemn private property in order to construct its pipeline. On September 30, 2015, Condemnor filed a Declaration of Taking under Section 302 of the Eminent Domain Code, 26 Pa. C.S. § 302, seeking to condemn portions of Condemnees’ property located at 45 Wildwood Road, Newville, Upper Frankford Township, Cumberland County. (Declaration of Taking, ¶¶ 50-51.) Condemnor sought a permanent easement over 1.92 acres and a temporary workspace easement over 0.97 acres. (Id. ¶ 52.) Condemnor maintains the condemnation is necessary to construct the second phase of its Mariner East project. The project began in 2012 and was designed to relieve an oversupply of natural gas liquids (NGLs) in the Marcellus and Utica Shale basins and to alleviate supply-side shortages of propane in Pennsylvania and the Northeast. (Id. ¶ 8.) Phase I, commonly referred to as Mariner East 1, initially prioritized the interstate pipeline transportation of propane and ethane from the Marcellus and Utica basins eastward to the Marcus Hook Industrial Complex (MHIC) in Delaware County, Pennsylvania and Claymont, Delaware. (Id. ¶ 9.) Condemnor’s business plan always contemplated intrastate shipment, but at a later time. (Id.) Following a harsh winter in 2013-14, Condemnor experienced an increase in shipper demand for intrastate shipments, causing it to accelerate its business plan

2 to include intrastate shipments earlier than originally planned. (Id. ¶ 10.) Phase II, or Mariner East 2, calls for placement of two pipelines adjacent to one another over a portion of the existing Mariner East 1 line, which runs from Delmont, Pennsylvania, to MHIC, and placement of a single line over a portion of the existing Mariner East 1 line between Delmont, Pennsylvania and the West Virginia border. (Id. ¶ 39.) Mariner East 2 will be primarily underground, except for valves, and will be mostly parallel to and within the existing Mariner East 1 right of way. (Id. ¶ 42.) To accommodate this increased need, on May 21, 2014, Condemnor filed an application with the Pennsylvania Public Utility Commission (PUC) seeking to clarify an August 29, 2013 Order, that granted it the authority to suspend and abandon east-to-west gasoline and distillate service in certain areas. (Id. ¶ 12.) On July 24, 2014, the PUC issued an Opinion and Order, which reaffirmed Condemnor’s authority under an existing Certificate of Public Convenience (CPC) to transport petroleum products and refined petroleum products between Delmont, Westmoreland County, and Twin Oaks, Delaware County. (Id. ¶ 13; PUC Op. and Order, R.R. 43a-53a.) Condemnor was first issued a CPC in 2002 after the PUC approved the transfer of assets and merger of Sun Pipe Line Company and Atlantic Pipeline Corporation with Condemnor. (Declaration of Taking, ¶ 6; CPC dated Feb. 26, 2002, R.R. 26a.) After the PUC issued its July 24, 2014 Order, Condemnor filed the necessary tariff that established PUC-regulated transportation rates for west-to-east intrastate movement of propane from Mechanicsburg, Cumberland County, to Twin Oaks. (Declaration of Taking, ¶ 16.) The tariff was approved by the PUC, effective October 1, 2014. (Id. ¶ 17; PUC Op. and Order, R.R. 55a-59a.)

3 Under the CPCs issued by the PUC, Condemnor is authorized to transport petroleum and refined petroleum products bi-directionally in, inter alia, Allegheny, Westmoreland, Indiana, Cambria, Blair, Huntingdon, Juniata, Perry, Cumberland, York, Dauphin, Lebanon, Lancaster, Berks, Chester, and Delaware Counties. (Declaration of Taking, ¶ 21.) Because Condemnor’s original service territory did not include Washington County, which is where the Mariner East service would originate, Condemnor filed an application to expand its service territory into Washington County on June 6, 2014, which was approved by the PUC by Order dated August 21, 2014. (Id. ¶¶ 22-23; CPC dated Aug. 21, 2014, R.R. 61a; PUC Op. and Order, R.R. 62a-66a.) Supplemental tariffs were thereafter filed and approved, adding new origin points in Houston, Washington County, and Delmont, Westmoreland County. (Declaration of Taking, ¶¶ 30-33; PUC Ops. and Orders, 68a-72a, 74a-77a.) Following the filing of the Declaration of Taking, Condemnees filed preliminary objections challenging the condemnation on a number of grounds, which mirror the issues raised in this appeal. (R.R. 175a-82a.) Hearings were held on February 8, 2016 and February 29, 2016. On July 19, 2016, the trial court issued an order overruling the preliminary objections.1 Condemnees filed a timely notice of appeal on July 29, 2016.2

1 The trial court issued its Rule 1925(a) opinion on September 1, 2016, wherein it elaborated on the bases for its denial of the preliminary objections. 2 On appeal of orders overruling preliminary objections in an eminent domain case, this Court’s scope of review is limited to determining whether the trial court abused its discretion or committed an error of law. In re Condemnation of Certain Properties and Property Interests for Use as Public Golf Course, 822 A.2d 846, 849 n.6 (Pa. Cmwlth. 2003) (citations omitted). Because the trial court serves as fact finder, its findings will not be disturbed if supported by substantial evidence. In re Dep’t of Transp., of the Right of Way for State Route 0202, Section 701, 871 A.2d 896, 900 n.2 (Pa. Cmwlth. 2005) (citation omitted).

4 II. Analysis Condemnees assert a number of grounds to support reversal of the trial court. Although they enumerate nine issues on appeal,3 several are intertwined and

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Bluebook (online)
In Re: Condemnation by Sunoco Pipeline, L.P. -- Appeal of: R. Blume and D. Blume, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-condemnation-by-sunoco-pipeline-lp-appeal-of-r-blume-and-d-pacommwct-2017.