MacHipongo Land & Coal Co. v. Commonwealth, Department of Environmental Resources

719 A.2d 19
CourtCommonwealth Court of Pennsylvania
DecidedOctober 1, 1998
StatusPublished
Cited by7 cases

This text of 719 A.2d 19 (MacHipongo Land & Coal Co. v. Commonwealth, Department of Environmental Resources) 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
MacHipongo Land & Coal Co. v. Commonwealth, Department of Environmental Resources, 719 A.2d 19 (Pa. Ct. App. 1998).

Opinions

PELLEGRINI, Judge.

Before this Court is a motion for summary judgment filed by the Commonwealth of Pennsylvania, Department of Environmental Protection (DER), the Environmental Quality Board (EQB) and Arthur A. Davis, Secretary of the Department of Environmental Resources (collectively, the Commonwealth) in response to a petition for review filed by Machipongo Land and Coal Company, Inc., the Victor E. Erickson Trust and Joseph Naughton (collectively, Coal Owners) challenging a regulation designating portions of their land unsuitable for surface mining.

On May 26, 1989, the Commonwealth received from the Brisbin Recreation Board and the Locust Grove Sportsmen Club “A Petition To Declare Areas Unsuitable For Mining” in which they requested that the entire 2.86 square mile Goss Run Watershed (Watershed) be protected from coal mining so as to protect the quality of the water of the Goss Run stream and the Brisbin Dam and Recreational Park.1 Coal Owners requested and were granted intervenor status because they owned surface and mineral rights in the Watershed that could potentially be affected. Specifically, Machipongo owned 2,037 acres of land in Clearfield County of which 157 acres had mineral rights in the Watershed and Erickson and Naughton owned 1,350 acres in Clearfield County of which 27 acres had mineral rights in the Watershed.

After public hearings were held, the DER conducted a detailed study of the proposed designated area as required by Section 4.5(g) of the Pennsylvania Surface Mining Conservation and Reclamation Act (PaSMCRA), Act of May 31, 1945, P.L. 1198, as amended, 52 P.S. § 1396.4e(g). Essentially, the results of the study indicated that surface coal mining of the Watershed upstream of the Brisbin Dam had significant potential to disrupt the hydrologic balance causing decreases in the net alkalinity of discharges from abandoned Lower Freeport underground mines and destroying the habitat for wild trout populations. It also had a high potential to cause increases in dissolved solids and metals concentrations in Goss Run that would adversely affect the use of the stream as an auxiliary water supply. The DER recommended that the EQB approve a proposed regulation designating the surface mineable coals located within the Watershed upstream of the Bris-bin Dam as unsuitable for surface mining of coal and submitted that recommendation to the General Assembly. The EQB approved the proposed regulation, and after a period of public comment, the General Assembly also approved the notice of proposed rulemaking and adopted a final regulation designating a portion of the Watershed unsuitable for mining (UFM) as set forth at 25 Pa.Code § 86.130(h)(14).2 That designation was made pursuant to Section 4.5(b) of the PaSMCRA, 52 P.S. § 1396-4e(b), that permits the Commonwealth to designate an area as unsuitable for surface mining.

[22]*22Subsequently, on July 1, 1992, Coal Owners filed a petition for review against the Commonwealth in our original jurisdiction seeking equitable and declaratory relief challenging the regulation designating that certain portions of land they owned in the Watershed were unsuitable for surface mining. They alleged that 157 acres of the 2,037 acres of land owned by Machipongo in the south reserves of the Watershed had mineral rights that were within the UFM designated area and could not be mined, resulting in a taking of at least 1,344,800 tons of its coal valued at $2,846,550. Similarly, 27 acres of the 1,350 acres owned by Erickson and Naughton in the north reserves of the Watershed could not be mined, resulting in a taking of at least 377,900 tons of them coal valued at $566,850. Based on Coal Owners’ inability to mine any of their coal located within the UFM designated area, they alleged that the regulation implementing the designation constituted a taking without just compensation and a violation of their due process rights. They requested, among other things, that this Court enjoin the enforcement of the regulation as an unconstitutional taking of their property or remand the case to the trial court to determine the value of the property taken as a result of the adoption of the regulation.3

After much litigation as to the proper forum to hear this ease, our Supreme Court remanded it to us for resolution.4 The Commonwealth has now filed a motion for summary judgment that is presently before this Court.5 It contends that the regulation is not a taking because the UFM designation was adopted for a public purpose, provides protection to the Watershed and is not unduly oppressive. It also argues that the designation does not deprive Coal Owners of all beneficial use of their land because the designated area only comprises 8% of the total land owned by Machipongo and 2% of the land owned by Erickson and Naughton in Clearfield County. Because it avers that the majority of Coal Owners’ land is adjacent to the designated area, the Commonwealth contends they have not lost all economical use of their land. It further argues that even if we only consider the designated land for purposes of a taking, because Coal Owners still [23]*23have use of their surface rights for that land and because it can be used for purposes other than mining such as for the sale of lumber, it still has value and Coal Owners have not been denied all beneficial use of their land.

Not denying at this time that the regulation allowing for the UFM designation is valid, Coal Owners argue that a taking has occurred because they have been deprived of their right to surface mine their coal in the designated area and, therefore, have been denied all economical use of that land. They contend this is so because Pennsylvania recognizes coal as a separate estate in land and whether they can still utilize the surface rights of their land in the designated area is irrelevant.

I.

Both the Fifth Amendment to the United States Constitution and Article 1, Section 10 of the Pennsylvania Constitution expressly provide that private property may not be taken under the powers of eminent domain for public use without payment of just compensation.6 A taking occurs when the entity clothed with the power of eminent domain substantially deprives an owner of the use and enjoyment of his property. Machipongo III. A taking may also occur if a regulation enacted for a public purpose under the government’s police powers prevents the landowner from using his land.7 In Machipongo III, our Supreme Court held that Section 4.5(b) of the PaSMCRA, which allowed the Commonwealth to designate the Watershed as unfit for mining, was an act deemed to be an exercise of its police power.

The test for determining whether a regulation amounts to a taking and requires the payment of just compensation has evolved over the years. The test, which was first established in Lawton v. Steele, 152 U.S. 133, 14 S.Ct. 499, 38 L.Ed. 385 (1894), has come to be known as the “traditional” takings analysis. In Lawton, the United States Supreme Court set forth the following factors to be considered when determining whether a regulatory taking had occurred:8 1) whether the public interest required such interference; 2) whether the means chosen were reasonably necessary for the accomplishment of the purpose; and 3) whether the means chosen were not unduly oppressive on individuals.

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MacHipongo Land & Coal Co. v. Commonwealth, Department of Environmental Resources
719 A.2d 19 (Commonwealth Court of Pennsylvania, 1998)

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Bluebook (online)
719 A.2d 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/machipongo-land-coal-co-v-commonwealth-department-of-environmental-pacommwct-1998.