Marcellus Shale Coalition v. DEP, Aplts.

CourtSupreme Court of Pennsylvania
DecidedApril 19, 2023
Docket69 MAP 2021
StatusPublished

This text of Marcellus Shale Coalition v. DEP, Aplts. (Marcellus Shale Coalition v. DEP, Aplts.) 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 Coalition v. DEP, Aplts., (Pa. 2023).

Opinion

[J-55-2022] IN THE SUPREME COURT OF PENNSYLVANIA MIDDLE DISTRICT

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

THE MARCELLUS SHALE COALITION, : No. 69 MAP 2021 : Appellee : Appeal from the Order of the : Commonwealth Court at No. 573 : MD 2016 dated August 12, 2021. v. : : ARGUED: September 15, 2022 : DEPARTMENT OF ENVIRONMENTAL : PROTECTION OF THE COMMONWEALTH : OF PENNSYLVANIA AND : ENVIRONMENTAL QUALITY BOARD OF : THE COMMONWEALTH OF : PENNSYLVANIA, : : Appellants :

Justice Donohue delivers the Opinion of the Court with respect to Parts I-V, and VI(C)(2), and announces the Judgment of the Court.

OPINION

JUSTICE DONOHUE DECIDED: April 19, 2023 In this appeal as of right, we are asked to pass upon the breadth of the legislative

rulemaking authority given to the Department of Environmental Protection (the

“Department”) and the Environmental Quality Board (the “Board”) (collectively, the

“Agencies”) by the General Assembly in the Pennsylvania Oil and Gas Act of 1984. 1 The

Agencies submit that the Commonwealth Court erroneously concluded that they

exceeded their authority and consequently struck down certain regulations designed to

aid the Agencies in information gathering attendant to the issuance of permits for new

1 Dec. 19 P.L. 1140, No. 223. unconventional gas wells. For the following reasons, we find that the General Assembly

intended to give the Agencies the leeway to promulgate the challenged regulations and

that those regulations are reasonable. We therefore reverse the Commonwealth Court.

I. Procedural History

The instant petition for review was one of many lawsuits concerning Act 13 of 2012,

which amended Pennsylvania’s Oil and Gas Act. “Act 13 comprises sweeping legislation

affecting Pennsylvania’s environment and, in particular, the exploitation and recovery of

natural gas in a geological formation known as the Marcellus Shale.” Robinson Twp.,

Washington Cnty. v. Commonwealth, 83 A.3d 901, 913 (2013) (OAJC). The oil and gas

industry uses two primary methods to extract natural gas, both of which “inevitably do

violence to the landscape.” Id. at 914. In enacting Act 13, “the General Assembly has

made a policy decision respecting encouragement and accommodation of rapid

exploitation of the Marcellus Shale Formation[.]” Id. at 928.

Act 13 included the grant of authority by the General Assembly to the Agencies to

promulgate regulations for unconventional gas wells. On December 14, 2013, the

regulations were first published for public comment. Over 28,000 public comments were

received and considered, with 429 individuals testifying across twelve public hearings. In

2016, the Board published regulations pertaining to applications for a permit to drill an

unconventional gas well.

On October 13, 2016, the Marcellus Shale Coalition (the “MSC”) filed a Petition for

Review in the Nature of a Complaint Seeking Declaratory and Injunctive Relief (the

“Petition”). The Petition raised seven counts, only one of which is at issue in this appeal.2

2 The MSC accompanied its petition with a request for expedited review and a stay. Then-Judge, now Justice, Brobson, sitting as the trial court, issued a single-judge opinion and order preliminarily enjoining some of the regulations. We addressed the Agencies’ (continued…)

[J-55-2022] - 2 That count pertained to portions of the regulations set forth at Sections 78a.1 and 78a.15.

Each challenged regulatory provision interacts to some degree with Section 3215 of the

Oil and Gas Act of 2012, 3 titled “Well location restrictions.” 58 Pa.C.S. § 3215. The

following portion of that statute directs the Agencies to consider certain “public resources”

when deciding whether to approve a well:

(c) Impact.--On making a determination on a well permit, the department shall consider the impact of the proposed well on public resources, including, but not limited to:

(1) Publicly owned parks, forests, game lands and wildlife areas.

(2) National or State scenic rivers.

(3) National natural landmarks.

(4) Habitats of rare and endangered flora and fauna and other critical communities.

appeal of that order in a decision issued on June 1, 2018. See Marcellus Shale Coal. v. Dep’t of Env’t Prot. of Commonwealth, 185 A.3d 985 (Pa. 2018). Meanwhile, merits review proceeded in the Commonwealth Court. Id. at 994. On March 14, 2018, the MSC filed an application for partial summary relief on counts three, five, and six. Separately, on August 31, 2017, the MSC sought summary relief on count one. The Commonwealth Court addressed count one by opinion published August 23, 2018. Marcellus Shale Coal. v. Dep’t of Env’t Prot., 193 A.3d 447, 455 (Pa. Commw. 2018). That is the opinion and order at issue here. Previously, the Agencies appealed that order, and we quashed without prejudice to raise the claims on appeal from a final order. Marcellus Shale Coal. v. Dep’t of Env’t Prot., 198 A.3d 330 (Pa. 2018) (per curiam). Thereafter, the parties filed cross applications for summary relief on counts two through seven. Now-Justice Brobson authored the opinion dealing with those applications, which left several counts pending. Marcellus Shale Coal. v. Dep’t of Env’t Prot., 216 A.3d 448, 457 (Pa. Commw. 2019). The parties filed cross-appeals, and we quashed both appeals until a final order was entered. Marcellus Shale Coal. v. Dep’t of Env’t Prot., 223 A.3d 655 (Pa. 2019) (per curiam). The parties then filed a joint Stipulation for Settlement and Joint Application for Relief disposing of counts two through seven, leaving only count one. 3 58 Pa.C.S. §§ 2301–3504.

[J-55-2022] - 3 (5) Historical and archaeological sites listed on the Federal or State list of historic places.

(6) Sources used for public drinking supplies in accordance with subsection (b).

58 Pa.C.S. § 3215(c) (emphases added).

The regulations governing applications for a well permit require applicants to

submit the applications “electronically to the Department on forms provided through its

web site and contain the information required by the Department to evaluate the

application.” 25 Pa. Code § 78a.15(a). The required information includes information

pertaining to specific “public resources[,]” with corresponding obligations to notify any

applicable “public resource agency” managing those public resources. Id. § 78a.15(f). In

turn, other regulations expand on the concepts of “public resources” and “public resource

agencies.” Beginning with “public resources,” the General Assembly did not separately

define that term in Act 13, nor did the Agencies in the regulations. Instead, within Section

78a.15(f)(1), the Agencies listed eight specific “public resources,” two of which are

challenged by the MSC. The first, found in Section 78a.15(f)(1)(iv), is “other critical

communities.” The term “other critical communities” is defined in the “Definitions”

regulation as follows:

Other critical communities –

(i) Species of special concern identified on a [Pennsylvania Natural Diversity Inventory (“PNDI”)] receipt,[4] including plant or animal species:

4 The regulations define “PNDI” as follows:

PNDI -- Pennsylvania Natural Diversity Inventory -- The Pennsylvania Natural Heritage Program’s database containing data identifying and describing this (continued…)

[J-55-2022] - 4 (A) In a proposed status categorized as proposed endangered, proposed threatened, proposed rare or candidate.

(B) That are classified as rare or tentatively undetermined.

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