Keystone Bituminous Coal Ass'n v. DeBenedictis

581 F. Supp. 511, 20 ERC 1676, 20 ERC (BNA) 1676, 1984 U.S. Dist. LEXIS 19055
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 29, 1984
DocketCiv. A. 82-2712
StatusPublished
Cited by5 cases

This text of 581 F. Supp. 511 (Keystone Bituminous Coal Ass'n v. DeBenedictis) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keystone Bituminous Coal Ass'n v. DeBenedictis, 581 F. Supp. 511, 20 ERC 1676, 20 ERC (BNA) 1676, 1984 U.S. Dist. LEXIS 19055 (W.D. Pa. 1984).

Opinion

OPINION

ZIEGLER, District Judge.

More than 60 years have passed since the Supreme Court announced its landmark decision in Pennsylvania Coal Company v. Mahon, 260 U.S. 393, 43 S.Ct. 158, 67 L.Ed. 322 (1922). Speaking for the majority, Justice Holmes explained that the police power of government has a limit and action beyond that limit results in a “taking” of private property for which just compensation is required. The Court declared unconstitutional a Pennsylvania statute that prohibited coal mining that caused subsidence damage to surface lands.

In this case we are faced with a constitutional challenge to another Pennsylvania statute which seeks to prevent coal mining subsidence damage. However, the statute here differs from the enactment in Pennsylvania Coal; the parties are different; and, most importantly, the passage of time and subsequent decisions require that Pennsylvania Coal be placed in proper perspective.

In the present case, defendants, who are state officials charged with enforcing the *513 act, maintain that the statute is a valid exercise of Pennsylvania’s inherent police power to regulate private industry for the public health, safety and welfare. Plaintiffs argue that the statute goes beyond police power and appropriates private property for public use in violation of the Takings Clause of the Fourteenth Amendment. Thus we are presented with a classic confrontation between private property interests and public powers of regulation since the opposing interests are well-defined and nearly perfectly equal in magnitude.

Because plaintiffs have not alleged any injury due to the enforcement of the statute, there is as yet no concrete controversy regarding the application of the specific provisions and regulations. Thus, the only question before this court is whether the mere enactment of the statute and regulations constitutes a taking. Agins v. City of Tiburón, 447 U.S. 255, 100 S.Ct. 2138, 65 L.Ed.2d 106 (1980). For the reasons that follow, we hold that the Pennsylvania legislation and regulations do not exceed the inherent police power of the state as defined by Pennsylvania Coal and its progeny. Plaintiffs’ motion for summary judgment must be denied and defendants’ motion for judgment must be granted.

I. History of Case

Five coal companies and an association representing similar interests instituted this civil action challenging the constitutionality of three sections of Pennsylvania’s Bituminous Mine Subsidence and Land Conservation Act, 52 P.S.A. § 1406.1 et seq, and three regulations of the Pennsylvania Department of Environmental Resources (DER) adopted under the act. Plaintiffs seek an injunction to prevent enforcement of these provisions by the DER officials.

The challenged provisions are as follows:

(1) Section 1406.4, which prohibits mining that causes subsidence damage to certain surface structures in place as of April 27, 1966, namely, any publicly-used building, residential building or cemetery.

(2) Section 1406.6, which gives the DER authority to revoke a mining permit if a company fails to pay a reasonable sum to repair subsidence damage to the structures listed in § 1406.4.

(3) Section 1406.15, which allows the owner of a structure not listed in § 1406.4 to pay a reasonable price to purchase from the coal company the underlying coal that supports the structure. This section provides for arbitration or mediation if the parties fail to agree upon a reasonable price.

(4) DER Regulation 89.145, which expands the protected structures of § 1406.4 to include: perennial streams and large impoundments of water, aquifers that serve as a significant source of public water supply, and coal refuse disposal areas. This regulation also prohibits mining under urban areas.

(5) DER Regulation 89.146, which requires coal operators to leave 50 percent of their coal in place for support under structures and features protected under § 1406.4 and DER Regulation 89.145.

(6) DER Regulation 89.147(b), which provides that, when underground mining activities reduce the value or foreseeable uses of surface land, the operator shall restore the land to its premining condition.

Plaintiffs contend that § 1406.4 and DER Regulations 89.145 and 89.146 violate (a) the Due Process Clause of the Fourteenth Amendment in that property is taken without just compensation and (b) the Contract Clause of the United States Constitution, Article I, Section 10, in that the regulations destroy private contract rights. Plaintiffs also argue that § 1406.6 and DER Regulation 89.147(b) impair private contracts in contravention of the Contract Clause. Finally, plaintiffs urge that § 1406.15 is an unconstitutional exercise of the power of eminent domain because the taking is without a public purpose.

II. The Contract Clause

Article I, Section 10 of the Constitution provides that: “No State shall ... pass any ... Law impairing the Obligation of Contracts____” Although the language of the Contract Clause appears to be abso *514 lute, its prohibition must accommodate the inherent police power of a state “to safeguard the vital interests of its people.” Home Building & Loan Association v. Blaisdell, 290 U.S. 398, 434, 54 S.Ct. 231, 238, 78 L.Ed. 413 (1934); Energy Reserves Group v. Kansas Power & Light, — U.S. —, 103 S.Ct. 697, 74 L.Ed.2d 569 (1983). Any regulation promulgated by a state under its legitimate police powers does not violate the Contract Clause if the enactment serves a legitimate public purpose and does not simply provide a benefit to special interests. Energy Reserves Group, 103 S.Ct. at 705.

Courts generally will defer to a legislative determination of public purpose in testing legislation under the Contract Clause, except when the state enacts legislation to avoid its contractual obligations. Thus, when the state is a party to a contract, the Contract Clause is given a more absolute, literal meaning because “complete deference to a legislative assessment of reasonableness and necessity is not appropriate because the State’s self-interest is at stake.” United States Trust Company v. New Jersey, 431 U.S. 1, 26, 97 S.Ct. 1505, 1519, 52 L.Ed.2d 92 (1977). Where the state is not a contracting party, “[a]s is customary in reviewing economic and social regulation, ... courts properly defer to legislative judgment as to the necessity and reasonableness of a particular measure.” Energy Reserves Group, 103 S.Ct. at 705-06.

Justice Blackmun, speaking for a unanimous Court in Energy Reserves Group, wrote that economic and social legislation is to be analyzed under the Contract Clause through a three-step test. 103 S.Ct.

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581 F. Supp. 511, 20 ERC 1676, 20 ERC (BNA) 1676, 1984 U.S. Dist. LEXIS 19055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keystone-bituminous-coal-assn-v-debenedictis-pawd-1984.