Kretschmann Farm, LLC v. Twp. of New Sewickley and Board of Supervisors of New Sewickley Twp. v. Cardinal PA Midstream, LLC and PennEnergy Resources, LLC

CourtCommonwealth Court of Pennsylvania
DecidedJanuary 7, 2016
Docket360 C.D. 2015
StatusPublished

This text of Kretschmann Farm, LLC v. Twp. of New Sewickley and Board of Supervisors of New Sewickley Twp. v. Cardinal PA Midstream, LLC and PennEnergy Resources, LLC (Kretschmann Farm, LLC v. Twp. of New Sewickley and Board of Supervisors of New Sewickley Twp. v. Cardinal PA Midstream, LLC and PennEnergy Resources, LLC) 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
Kretschmann Farm, LLC v. Twp. of New Sewickley and Board of Supervisors of New Sewickley Twp. v. Cardinal PA Midstream, LLC and PennEnergy Resources, LLC, (Pa. Ct. App. 2016).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Kretschmann Farm, LLC, and : Donald Kretschmann and : Rebecca Kretschmann, husband : and wife, : Appellants : : v. : No. 360 C.D. 2015 : Argued: November 17, 2015 Township of New Sewickley and : Board of Supervisors of New : Sewickley Township, Beaver : County, Pennsylvania : : v. : : Cardinal PA Midstream, LLC and : PennEnergy Resources, LLC :

BEFORE: HONORABLE MARY HANNAH LEAVITT, Judge1 HONORABLE P. KEVIN BROBSON, Judge HONORABLE ANNE E. COVEY, Judge

OPINION BY JUDGE LEAVITT FILED: January 7, 2016

Kretschmann Farm, LLC and Donald and Rebecca Kretschmann, husband and wife (collectively, Landowners), appeal the order of the Court of Common Pleas of Beaver County (trial court) that affirmed the decision of the Board of Supervisors of New Sewickley Township (Township) to allow the construction of a gas compressor station on land adjacent to their organic farm. Landowners contend the Township erred because its written decision and order did

1 This case was assigned to the opinion writer before January 4, 2016, when Judge Leavitt became President Judge. not address Landowners’ evidence that the proposed compressor station will adversely affect the public health and welfare. They also assert that the trial court erred by denying them the opportunity to present additional evidence in their land use appeal. We affirm.

Background

On May 1, 2014, Cardinal PA Midstream, LLC (Cardinal) filed a conditional use application with the Township to build a gas compressor station on property located in the Township’s “A-1 Agricultural District.” Section 6.2 of the Zoning Ordinance2 lists conditional uses authorized in the A-1 Agricultural District, and one such use is a compressor station, subject to “standards and criteria specified in Subsection 16 herein.” ZONING ORDINANCE, art. VI, §6.2; Reproduced Record at 899a (R.R. ___).3 The Zoning Ordinance defines a “compressor station” as:

One or more enclosed insulated building, housing compressor units, that are to be designed compatible with other structures in the area and designed and constructed to compress natural gas and/or oil that originates from a gas and/or oil well, or collection of such wells, operating as a midstream facility for delivery of gas and/or to a transmission pipeline, distribution pipeline, processing plant or underground storage field including one or more natural gas and/or oil compressors associated buildings, pipes, valves, tanks and other equipment.

2 ZONING ORDINANCE OF THE TOWNSHIP OF NEW SEWICKLEY, BEAVER COUNTY, PENNSYLVANIA (Zoning Ordinance), as amended by Ordinance No. 194, December 27, 2012. 3 Ordinance No. 194 was enacted in 2012 and amended the Zoning Ordinance to regulate natural gas drilling and activities. R.R. 897a-910a. Ordinance No. 194 identifies the amendments to the Zoning Ordinance by article and section.

2 ZONING ORDINANCE, art. II, §301; R.R. 897a-98a. Cardinal’s compressor station will consist of two buildings and four compressors on an 11.2-acre pad, which is part of a 46.64-acre parcel about to be acquired by Cardinal.4 Cardinal’s compressor station will prepare natural gas produced by PennEnergy Resources, LLC for market.5 On July 2, 2014, the Township scheduled a public hearing on Cardinal’s conditional use application. At that hearing, Cardinal presented testimony from Greg Muse of PennEnergy as well as testimony from Cardinal’s employees and consultants: Thomas Baskin, Lauren Parker, Reggie Keith, and Brian Hoffheins. Muse provided a history of PennEnergy operations, which included slides depicting its existing oil and gas sites, from the construction phase to completion.6 PennEnergy plans to connect four of its natural gas wells to Cardinal’s proposed compressor station, which will “gather the gas,” i.e., separate the condensate, a type of ultralight oil, from the gas. Cardinal will then transport the condensate to market. Thomas Baskin, Cardinal’s vice-president of construction, testified about Cardinal’s operations. He explained that under the joint venture, Cardinal will process PennEnergy’s gas at multiple compressor stations in Beaver and Butler Counties, some of which are already operational. Baskin introduced Cardinal’s management team and detailed its experience in the natural gas

4 Cardinal has a sales agreement with Cecil Ellen Properties, which owns the 46.64-acre parcel. 5 PennEnergy was granted permission to intervene by the trial court. Cardinal and PennEnergy have filed a joint brief to this Court. 6 The PowerPoint slides were photocopied and submitted into evidence.

3 industry. He testified that the compressor station will incorporate pollution prevention and control measures that will be reviewed and approved by the Pennsylvania Department of Environmental Protection (DEP). Lauren Parker, a licensed professional engineer, testified that Cardinal’s erosion and sediment control plan had been submitted to DEP. In response to the recommendations of the Township’s Planning Commission, Cardinal made site plan adjustments. For example, it will undertake landscaping to block the visibility of the compressor station from neighboring landowners and the road. Reggie Keith, Cardinal’s noise consultant, testified that the compressor station will conform to the noise standards in the Township. A muffler will be installed on each compressor, and each compressor building will be insulated. Keith testified that Cardinal is committed to mitigating noise from the compressors. Brian Hoffheins, Cardinal’s traffic consultant, testified about the driveway and traffic. He identified the driveway’s proposed location off Teets Road and explained that Cardinal is still reviewing comments from the Township’s engineer. He stated that once the compressor station is built, truck traffic will average six trucks per day. The Township permitted residents in attendance to ask questions. Donald Kretschmann stated that he has operated an organic farm for 40 years and complained that the area has become more industrial over time. Rebecca Kretschmann noted that the stated speed limit of 45 mph on Teets Road is often violated. Further, the road curves close to Cardinal’s proposed driveway, which may present a danger. Others in attendance asked questions, principally about

4 traffic and noise. Mr. Kretschmann complained that the focus should not be on noise emitted by the compressors, but upon gas emissions. After posing questions on noise and traffic, the Township scheduled the next hearing date for July 23, 2014. At the second hearing, Cardinal presented responses to the questions of residents and Township officials. Hoffheins testified that after the first hearing, he met with Township officials to address traffic, and this prompted the submission of updated reports. He also addressed the driveway construction. Mark Ward, Cardinal’s chief operating officer, testified that the compressor station will be state-of-the-art, with equipment installed to control gas emissions. He noted that Cardinal has placed its compressor stations next to farms in the past and without incident. Ward then went through a PowerPoint presentation demonstrating the compressor station’s compliance with the Zoning Ordinance. Christie Wilson, Cardinal’s air quality compliance consultant, explained the DEP permitting process. First, DEP will issue a construction permit to allow Cardinal to construct one of its four planned compressor stations. DEP then inspects the constructed station. If it is satisfied that Cardinal has complied with the terms of the construction permit, DEP will issue an operating permit. Thereafter, DEP will do periodic inspections to ensure compliance with the operating permit. In addition, Cardinal must meet or exceed federal air quality standards enforced by the Environmental Protection Agency (EPA).

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Kretschmann Farm, LLC v. Twp. of New Sewickley and Board of Supervisors of New Sewickley Twp. v. Cardinal PA Midstream, LLC and PennEnergy Resources, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kretschmann-farm-llc-v-twp-of-new-sewickley-and-board-of-supervisors-of-pacommwct-2016.