Marcellus Shale Coal. v. Dep't of Envtl. Prot. of Pa.

185 A.3d 985
CourtSupreme Court of Pennsylvania
DecidedJune 1, 2018
Docket115 MAP 2016
StatusPublished
Cited by20 cases

This text of 185 A.3d 985 (Marcellus Shale Coal. v. Dep't of Envtl. Prot. of Pa.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marcellus Shale Coal. v. Dep't of Envtl. Prot. of Pa., 185 A.3d 985 (Pa. 2018).

Opinion

SAYLOR, C.J., BAER, TODD, DONOHUE, DOUGHERTY, WECHT, MUNDY, JJ.

OPINION

CHIEF JUSTICE SAYLOR

This is a direct appeal in the context of pre-enforcement judicial review of regulations governing the operation of unconventional gas wells in Pennsylvania. The Commonwealth Court, sitting as a trial court, issued a single-judge opinion and order preliminarily enjoining the enforcement of some of the challenged regulations. The administrative-agency parties appeal from that decision.

I. Background

On October 13, 2016, Appellee, the Marcellus Shale Coalition ("MSC"), filed in the Commonwealth Court's original jurisdiction a petition for review in the nature of a complaint seeking declaratory and injunctive relief (the "Petition"), on behalf of itself and its members. MSC describes itself as a non-profit membership organization whose members explore, produce, transmit, and distribute natural gas from the Marcellus and Utica Shale formations. See Petition ¶¶ 3-4. MSC named as respondents the Pennsylvania Department of Environmental Protection ("DEP") and the Pennsylvania Environmental Quality Board (the "EQB") (collectively, the "Agencies"). 1

In the Petition, MSC challenged the validity of several regulations relating to unconventional gas well operations as governed by Pennsylvania's Oil and Gas Act of 2012, known as Act 13. 2 See *986 Robinson Twp. v. Commonwealth , 623 Pa. 564 , 584 & n.1, 83 A.3d 901 , 913 & n.1 (2013). Those provisions are contained in Title 25, Chapter 78a of the Pennsylvania Administrative Code. They were promulgated as part of a rulemaking package which included regulations for conventional wells under Chapter 78 and for unconventional wells under Chapter 78a. 3 The package went into effect upon its publication in the Pennsylvania Bulletin on October 8, 2016.

MSC asserted seven counts, focusing on regulations pertaining to discrete areas within Chapter 78a which were part of the new package. These included: public resources, see 25 Pa. Code §§ 78a.1, 78a.15(f), (g) ; area of review, see id. §§ 78a.52a, 78a.73(c), (d); onsite processing, see id. § 78a.58(f); impoundments, see id. §§ 78a.59b, 78a.59c; site restoration, see id. § 78a.65; remediation of spills, see id. § 78a.66(c); and waste reporting, see id. § 78a.121(b). MSC alleged that these provisions were void and unenforceable for multiple reasons, including that they were vague, lacked statutory authorization, and conflicted with other regulations and statutes applicable to the industry. See Petition ¶ 34. As well, MSC averred that the rulemaking process did not comply with the Regulatory Review Act, and that the EQB failed to develop criteria for DEP to use in conditioning a drilling permit on relevant factors. See id.

A. Request for preliminary injunctive relief

Contemporaneous with the Petition, MSC filed an Application for Expedited Special Relief (the "Application"), requesting a preliminary injunction with respect to the Chapter 78a regulations challenged in the Petition pending a ruling as to their validity. The Agencies submitted a joint answer opposing the Application and arguing MSC failed to meet the requirements for a preliminary injunction. An evidentiary hearing was held with MSC bearing the burden to demonstrate the need for interim relief. 4

At the hearing, MSC did not present any witnesses, but it did enter documents *987 into the record, including the transcript of an EQB meeting, a copy of Chapter 78a regulations, a regulatory analysis form submitted to the Independent Regulatory Review Commission ("IRRC") for consideration with those regulations, and correspondence from the House and Senate Environmental Resources and Energy Committees to the IRRC and EQB suggesting legislative disapproval of the proposed Chapter 78a regulations. For their part, the Agencies presented the testimony of DEP Deputy Secretary Scott Perry, who heads the agency's Office of Oil and Gas Management. Secretary Perry supplied information concerning unconventional gas drilling and how it differs from conventional drilling. He also addressed the substance of the disputed regulations, the process by which they were finalized, and the need for such rules.

B. Trial court decision granting relief in part

The Commonwealth Court, per Judge Brobson, issued a single-judge, unpublished opinion and order, granting in part and denying in part preliminary injunctive relief. As MSC has not cross-appealed, we are only concerned with the portion of the decision granting such relief. In particular, the court granted the Application for interim relief (at least in part) with respect to Counts I, II, IV, and V of Petition, and denied the Application in all other respects.

General precepts

Initially, the court made several general comments concerning the prerequisites for preliminary injunctive relief. The court explained, for example, that where a party incurs losses from having to comply with an invalid regulation and the relevant government agency is immune from liability, the party's losses constitute irreparable harm. See MSC , No. 573 M.D. 2016, slip op. at 8 (citing Boykins v. City of Reading , 128 Pa. Cmwlth. 154, 158, 562 A.2d 1027 , 1028-29 (1989) ).

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Cite This Page — Counsel Stack

Bluebook (online)
185 A.3d 985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcellus-shale-coal-v-dept-of-envtl-prot-of-pa-pa-2018.