In the Matter of Proposed Construction of Compressor Station, Etc.

CourtNew Jersey Superior Court Appellate Division
DecidedJune 27, 2025
DocketA-3616-20
StatusUnpublished

This text of In the Matter of Proposed Construction of Compressor Station, Etc. (In the Matter of Proposed Construction of Compressor Station, Etc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of Proposed Construction of Compressor Station, Etc., (N.J. Ct. App. 2025).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-3616-20

IN THE MATTER OF PROPOSED CONSTRUCTION OF COMPRESSOR STATION (CS327), OFFICE BUILDING AND APPURTENANT STRUCTURES, HIGHLANDS APPLICABILITY DETERMINATION, PROGRAM INTEREST NO. 1615-17-0004.2 (APD200001). ____________________________

Argued February 8, 2023 – Decided August 31, 2023 Remanded by the Supreme Court August 6, 2024 Reargued May 13, 2025 – Decided June 27, 2025

Before Judges Gilson, Firko, and Augostini.

On appeal from the New Jersey Department of Environmental Protection.

Daniel A. Greenhouse argued the cause for appellants Food & Water Watch, New Jersey Highlands Coalition, and Sierra Club (Eastern Environmental Law Center, attorneys; Daniel A. Greenhouse, on the briefs).

Kristina L. Miles, Deputy Attorney General, argued the cause for respondent New Jersey Department of Environmental Protection (Matthew J. Platkin, Attorney General, attorney; Sookie Bae-Park, Assistant Attorney General, of counsel; Kathrine M. Hunt, Deputy Attorney General, on the brief).

Richard G. Scott argued the cause for respondent Tennessee Gas Pipeline Company, LLC (Rutter & Roy, LLP, attorneys; Richard G. Scott, Christine A. Roy, and Monica N. Stahl, on the brief).

PER CURIAM

As part of an upgrade to its natural gas pipeline system, Tennessee Gas

Pipeline Company, LLC (Tennessee Gas) sought permission to construct a

compressor station and related facilities (Compressor Station 327) in West

Milford, which is within the Highlands Preservation Area. In June 2021, the

New Jersey Department of Environmental Protection (the DEP) issued a

Highlands Applicability Determination (HAD) to Tennessee Gas, finding that

the project qualified for an exemption and that the project was consistent with

the goals and purposes of the Highlands Water Protection and Planning Act (the

Highlands Act), N.J.S.A. 13:20-1 to -35, as well as the applicable Northeast

Water Quality Management Plan (WQM Plan).

The New Jersey Supreme Court has held that Compressor Station 327

meets the statutory definition for an exemption to the permit requirements of the

Highlands Act as an upgrade of a public utility line under N.J.S.A. 13:20-

28(a)(11) (Exemption 11). In re Proposed Constr. of Compressor Station

A-3616-20 2 (CS327) (Compressor II), 258 N.J. 312, 331 (2024). This matter now returns to

us on remand from the Supreme Court to review whether the DEP erred in

determining that Compressor Station 327 is an activity consistent with the goals

and purposes of the Highlands Act. We also consider the related issue of

whether the DEP erred in determining that the project was consistent with the

WQM Plan. Having reviewed the extensive record, we discern nothing

arbitrary, capricious, or unreasonable in the DEP's determinations. Therefore,

we reject all of appellants' challenges and affirm the HAD.

I.

The construction of Compressor Station 327 has been extensively

reviewed. The DEP has conducted two reviews of the project. We previously

considered an appeal by Food & Water Watch, New Jersey Highlands Coalition,

and Sierra Club challenging the DEP's June 2021 HAD. In re Proposed Constr.

of Compressor Station (CS327) (Compressor I), 476 N.J. Super. 556 (App. Div.

2023). The Supreme Court thereafter considered certain issues raised in that

appeal. Compressor II, 258 N.J. at 322-23. There was also a separate, but

related, review by the Federal Energy Regulation Commission (FERC) and an

appeal to the United States Court of Appeals for the District of Columbia Circuit.

Food & Water Watch v. Fed. Energy Regul. Comm'n (Food & Water), 104 F.4th

A-3616-20 3 336 (D.C. Cir. 2024). We summarize the project's history of reviews to place

the remaining issues on this appeal in context.

Tennessee Gas owns and operates a natural gas pipeline system that runs

from Texas to the eastern part of the United States. Part of that system runs

from western Pennsylvania through New Jersey and into New York (the 300

Line). Id. at 341. In June 2020, Tennessee Gas, which transports natural gas in

interstate commerce and is regulated under federal laws, applied to FERC for a

certificate of public convenience and necessity to construct and operate

upgrades to its 300 Line. Those upgrades included Compressor Station 327,

which would help move larger volumes of natural gas to meet increased

demands in Westchester County, New York.

FERC conducted an extensive review and issued a certificate allowing

Tennessee Gas to upgrade its 300 Line by constructing several new compressor

stations, including Compressor Station 327. Id. at 342. As part of its review,

FERC addressed a range of environmental impacts, including the project's

impact on air and water quality, as well as greenhouse gas emissions. The FERC

staff prepared an environmental assessment that concluded that the project

"would not constitute a major action significantly affecting the quality of the

human environment."

A-3616-20 4 Because Compressor Station 327 was proposed to be in the Highlands

Preservation Area, in August 2020, Tennessee Gas also applied for a HAD. It

requested that the DEP find that the proposed station was exempt from the

Highlands Act under Exemption 11. Exemption 11 exempts utility projects from

the Highlands Act's permitting requirements if the project is for "routine

maintenance and operations, rehabilitation, preservation, reconstruction, repair,

or upgrade of public utility lines, rights of way, or systems, by a public utility,

provided that the activity is consistent with the goals and purposes of [the

Highlands Act]." N.J.S.A. 13:20-28(a)(11). In addition, the DEP must find that

the project is consistent with the WQM Plan. N.J.A.C. 7:38-2.4(a)(3);

Compressor II, 258 N.J. at 319.

Tennessee Gas sought to construct Compressor Station 327 on a forty-

seven-acre property, which had previously been used as a gravel quarry, pipe

storage yard, and recycling storage facility. The compressor was to be powered

by an electric motor, and the station would include auxiliary equipment,

including a generator, an office building, and a septic system.

Tennessee Gas also submitted a copy of its complete HAD application to

the Highlands Water Protection and Planning Council (the Highlands Council).

On October 16, 2020, the Highlands Council informed the DEP that it would not

A-3616-20 5 object to Tennessee Gas' HAD application. The Highlands Council stated that

Tennessee Gas' "efforts to avoid, minimize and mitigate . . . resource impacts

[were] sufficient to find that the project is consistent with the goals of the

Highlands Act," because Compressor Station 327 will be located on a

"historically disturbed" property where "[c]ritical wildlife habitat areas [were]

disconnected and non-functional." The Highlands Council also found that the

"Highlands [o]pen [w]ater [b]uffers and [r]iparian [a]reas [were] non-functional

as they [were] disconnected from waterbodies which lie off site." So, the

Highlands Council concluded that Compressor Station 327 would cause minimal

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Njac 7: 26e-1.13
871 A.2d 711 (New Jersey Superior Court App Division, 2005)
In RE NJAC 7: 15-5.24 (B)
22 A.3d 94 (New Jersey Superior Court App Division, 2011)
Russo v. BD. OF TRUSTEES, POLICE.
17 A.3d 801 (Supreme Court of New Jersey, 2011)
SJC Builders, LLC v. New Jersey Department of Environmental Protection
874 A.2d 586 (New Jersey Superior Court App Division, 2005)
Mount v. Bd. of Trs., Police & Firemen's Ret. Sys.
186 A.3d 248 (Supreme Court of New Jersey, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
In the Matter of Proposed Construction of Compressor Station, Etc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-proposed-construction-of-compressor-station-etc-njsuperctappdiv-2025.