Iroquois Gas Corp. v. Gernatt

50 Misc. 2d 1028, 272 N.Y.S.2d 291, 1966 N.Y. Misc. LEXIS 1677
CourtNew York Supreme Court
DecidedJuly 19, 1966
StatusPublished
Cited by4 cases

This text of 50 Misc. 2d 1028 (Iroquois Gas Corp. v. Gernatt) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iroquois Gas Corp. v. Gernatt, 50 Misc. 2d 1028, 272 N.Y.S.2d 291, 1966 N.Y. Misc. LEXIS 1677 (N.Y. Super. Ct. 1966).

Opinion

Matthew J. Jasen, J.

This is a condemnation proceeding brought pursuant to Conservation Law (Art. 3-A, § 86) to acquire gas storage rights in land owned by defendants.

Plaintiff is a public utility engaged in the business of producing, transporting, distributing and storing gas for ultimate public use. In connection with its business, plaintiff has been operating an underground gas storage reservoir in the Town of Collins, New York, commonly known as the Quaker Pool. Into this geological formation gas transported from Texas and Louisiana is injected for storage and withdrawn in periods of peak demand.

Plaintiff contends that defendants’ property is located within the Quaker Pool and, therefore, is subject to condemnation. It is also claimed that the defendants have a well on their property from which they are withdrawing the stored gas.

Condemnation proceedings are special proceedings and accordingly, pursuant to the provisions of CPLR 409 (subd. [b]): “ The court shall make a summary determination upon the pleadings, papers and admissions to the extent that no triable issues of fact are raised.”

A factual issue is raised by the defendants as to Avhether the property sought to be condemned is located within the Quaker Pool. •

Upon the papers submitted the court reaches the conclusion that the property is located within the Quaker Pool.

The remaining issues raised by the pleadings are questions of laAAr, to Avit:

(1) Has plaintiff failed to set forth a specific description of the property to be condemned and its location?

(2) Does the petition fail because it does not include, as property to be condemned, “ any commercially recoverable nati\Te oil and gas ? ’ ’

(3) Does the petition fail because it does not designate as property to be acquired all those geological formations below the Medina formation as well as water, oil, gas, minerals and any other properties contained in those geological formations?

[1031]*1031(4) Has plaintiff failed to show that it is lawfully ” operating the Quaker Pool?

(5) Has plaintiff failed to show the necessity of the acquisition of defendants’ property?

(6) Do the provisions of the statute under which plaintiff seeks to condemn the property, violate the Fourteenth Amendment of the United States Constitution and sections 6, 7 and 11 of article I of the New York State Constitution, in that: (a) they are discriminatory and deny equal protection of the laws to defendants in favor of operators of underground storage reservoirs which were in operation prior to October 1, 1963; (b) they deprive defendants of property rights without due process of law and just compensation by (i) failing to provide payment for native oil and gas in place; (ii). depriving defendants of the value of geological formations below the formation sought to be condemned; (iii) depriving defendants of access to the lower geological formations without compensation; (c) they deprive defendants of property rights without due process of law in that the terms “ commercially recoverable ” and “ otherwise lawfully operate an underground storage reservoir ” used in the statute are so indefinite as to render the statute violative of constitutional requirements.

In answer to the first question of law raised by the pleadings this court is of the opinion that the property sought to be condemned is sufficiently described to identify the property.

The petition gives a metes and bounds description and then asks for storage rights in the “ Medina Foundation ” below it. The defendants concede that part of the ‘ Medina Foundation ’ ’ exists under the property sought to be condemned but claims there are both a red and white layer and the one or ones in which storage is sought should be specified together with the width, depth and breadth of the foundation.

A reasonable description depends, of course, on the nature of the property sought to be condemned. Under the circumstances here present, the description is sufficient to locate the foundation the plaintiff seeks to use for the storage of gas, as it affects the defendants.

The second question raised is whether the petition must designate as property to be acquired, commercially recoverable native oil and gas in place.

Section 86 of the Conservation Law does not require that the petition allege the presence or nonpresence of commercially recoverable native oil and gas. It only requires that, if such native oil or gas is present, compensation be paid for it.

[1032]*1032Defendants also attack the sufficiency of the petition claiming that there are not designated as property to be acquired, all the geological formations below the Medina formation as well as water, oil, gas, minerals and any other properties contained therein.

On this point, it seems that plaintiff seeks only to condemn and acquire an interest in the Medina formation and no more, so as to operate a gas storage facility. Indeed, plaintiff is limited by section 86 of the Conservation Law only to acquire such rights as may be required to operate the gas storage reservoir.

The condemnor cannot take any more property than is necessary for the public use. (Matter of New York & Harlem R. R. Co. v. Kip, 46 N. Y. 546.) Consistent with this view, courts in other jurisdiction have held that condemnation of storage strata does not impair ownership right in other strata (Cornwell v. Central Kentucky Natural Gas Co., 249 S. W. 2d 531 [Ky]; United Fuel Gas Co. v. Allen, 137 W. Va. 897).

Certainly, defendants may offer proof to show that their use and enjoyment of the geological formation below the Medina Avill be damaged by plaintiff’s acquisition of storage rights in the Medina formation.

Let us noAV consider defendants’ contention that plaintiff has failed to show that it is “ laAvfully ” operating the Quaker Pool within the meaning of section 86 of the Conservation Law. The section provides, in part: Any corporation empowered to produce, transport, distribute or store gas within this state for ultimate public use, which holds an underground storage permit from the department as hereinbefore provided or which is otherwise lawfully operating an underground storage reservoir * * * shall, subject to the condemnation law of this state, have the authority to acquire such rights by condemnation ’ ’ (emphasis added).

Section 86 clearly grants condemnation rights under two different circumstances: (1) a corporation holding an underground storage permit, or (2) one laAvfully operating an underground storage reservoir.

Section 85, in turn, sets forth that permits are not required Ayhere underground storage reservoirs were placed in operation prior to October 1,1963, so long as the operation thereof was not abandoned.

It is conceded that plaintiff has for many years prior to 1963 regularly injected gas from Texas and Louisiana into the underground storage reservoir knoAvn as the Quaker Pool.

[1033]*1033The defendants contend that since plaintiff does not have leases authorizing it to store under the entire surface acreage within the Quaker Pool, the injected gas by its nature, migrates throughout the pool and hence a trespass is committed when it flows under lands the plaintiff has not leased.

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Related

Iroquois Gas Corp. v. Gernatt
49 A.D.2d 1007 (Appellate Division of the Supreme Court of New York, 1975)
Home Gas Co. v. Miles
46 A.D.2d 562 (Appellate Division of the Supreme Court of New York, 1975)
Home Gas Co. v. Miles
79 Misc. 2d 26 (New York Supreme Court, 1974)
Iroquois Gas Corp. v. Jurek
30 A.D.2d 83 (Appellate Division of the Supreme Court of New York, 1968)

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Bluebook (online)
50 Misc. 2d 1028, 272 N.Y.S.2d 291, 1966 N.Y. Misc. LEXIS 1677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iroquois-gas-corp-v-gernatt-nysupct-1966.