Mid-America Pipeline Co. v. Iowa State Commerce Commission

125 N.W.2d 801, 255 Iowa 1304, 1964 Iowa Sup. LEXIS 725
CourtSupreme Court of Iowa
DecidedJanuary 14, 1964
Docket51197
StatusPublished
Cited by12 cases

This text of 125 N.W.2d 801 (Mid-America Pipeline Co. v. Iowa State Commerce Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-America Pipeline Co. v. Iowa State Commerce Commission, 125 N.W.2d 801, 255 Iowa 1304, 1964 Iowa Sup. LEXIS 725 (iowa 1964).

Opinion

Thompson, J.

This is the second time the controversy between the plaintiff, Mid-America Pipeline Company, hereinafter known as Mid-America, and the defendant Northern Gas Products Company, hereinafter known as Northern, has been before us. See Mid-America Pipeline Co. v. Iowa State Commerce Commission and Northern Gas Products Co., 253 Iowa 1143, 114 N.W.2d 622. In each case the Iowa State Commerce Commission, hereinafter known as the commission, has been involved somewhat in the role of the innocent bystander who finds himself embroiled in a battle in which he has no personal interest.

*1307 The first case involved only the question whether the commission might issue a permit to Northern for the construction of a pipeline across Iowa from its western border to Des Moines which carried with it the right to use the power of eminent domain. It came to us on the pleadings, and we held that since it appeared Northern proposed to carry only its own products and was engaged in a purely private business with no public use involved, it might not be granted that power.

Thereafter Northern surrendered the permit which had been issued to it by the commission, and applied for a permit to construct its line without the right of eminent domain. It had purchased all necessary rights-of-way from private owners, and needed only a permit to cross public highways, grounds and streams. After a hearing, the commission granted the permit, and this action was brought by Mid-America.

I. The two major questions involved in this appeal are these: 1, has the commission statutory authority to issue a permit such as was granted to Northern here; and 2, if so, is such authority constitutional? One other question is raised by the plaintiff which will be discussed in turn.

II. We find little difficulty in holding that chapter 490 of the Code of 1962 gives the commission power to issue the permit. Section 490.1 provides: “It is hereby declared to be the purpose and policy of the legislature in enacting this law to confer upon the commerce commission the power and authority to supervise the transportation or transmission of gas, gasoline, oils or motor fuels and/or inflammable fluid within or through this state by pipeline, whether specifically mentioned herein or not, and the power and authority to supervise the underground storage of gas, so as to protect the safety and welfare of the public in their use of any public and/or private highways, grounds, waters and streams of any kind in this state.” In section 490.2 pipelines and pipeline companies are defined, and here again we find the words “within or through this state”. Section 490.3 prohibits the construction, operation or maintenance of any pipeline under, over or along any public or private highways, grounds, waters or streams except in ac *1308 cordance with the provisions of chapter 490. Sections 490.5 and 490.6 specify the required application and its contents.

Section 490.12 is important to our consideration, and we quote it: “It may grant such permit in whole or in part upon such terms, conditions and restrictions as to safety requirements and as to location and route as may be determined by it to be just and proper. Provided, however, that before any permit shall be granted to any pipeline company proposing to engage in intrastate commerce, the commission shall, after a public hearing as provided in this chapter, determine whether the services proposed to be rendered will promote the public convenience and necessity, and an affirmative finding to such effect shall be a condition precedent to the granting of such permit.”

Parenthetically, it is noted that all safety requirements of the commission have been met; and all subsidiary permits from the state highway commission, boards of supervisors etc. have been secured. No controversy exists concerning these matters.

Reverting to chapter 490 we find that sections 490.19, 490.20 and following sections through 490.24 deal with permits and by implication at least uphold the right of the commission to issue them. "We come then to section 490.25, which is relied upon by the plaintiff as supporting its position. The first paragraph provides: “Any pipeline company having secured a permit for pipelines as in this chapter provided shall thereupon be vested with the right of eminent domain to such extent as may be necessary and as prescribed and approved by said state commerce commission, not exceeding seventy-five feet in width for right of way and not exceeding one acre in any one location in addition to right of way for the location of pumps, pressure apparatus or other stations or equipment necessary to the proper operation of its said pipeline or lines. * *

It will be noted that this language says that when a permit for a pipeline has been secured the company procuring it “shall thereupon be vested with the right of eminent domain to such extent as may be necessary and as prescribed and approved by said state commerce commission * * So the plaintiff argues that since Northern is admittedly carrying only its own products and is not serving any public use, it may not have *1309 a permit because such permit, under the statute, carries with it the right of eminent domain, which Northern may not have.

We do not so consider it. The statute gives the right only to such extent as may be necessary, and as may be prescribed and approved by the commission. No right of eminent domain is necessary here, nor has the commission prescribed or approved it. Again, if the construction put on the statute by the plaintiff were adopted, it would result only in a holding that that part of the statute giving the right of eminent domain automatically upon the issuance of a permit, under the circumstances here would be unconstitutional and void. See Mid-America Pipeline Co. v. Iowa State Commerce Commission and Northern Gas Products Co., supra. But it would not affect the other statutes in the chapter which plainly give the commission the right to issue permits.

Again, the plaintiff urges that if it be held that a permit may be issued for interstate transportation, such as Northern asks here, without a showing of public use or necessity, unconstitutional discrimination results because of section 490.12, supra, which requires that a showing of public convenience and necessity must be made before a permit may be granted to a pipeline company proposing to engage in intrastate commerce. This is one of those pipelines, or bridges, which we prefer to cross when we reach it. The plaintiff is not engaged in intrastate, but in interstate, commerce. It is not one of those injured by the discrimination, if such exists, and so may not raise the question. Browneller v. Natural Gas Pipeline Co., 233 Iowa 686, 692, 8 N.W.2d 474, 477. Nor would a holding that section 490.12 is discriminatory and so void be of any value to the plaintiff here.

Indeed, the limitation of the necessity for a showing of public use and convenience as a prerequisite for granting a permit to intrastate pipelines is a strong indication that such a permit may be issued to interstate lines without such a showing. The doctrine of

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125 N.W.2d 801, 255 Iowa 1304, 1964 Iowa Sup. LEXIS 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-america-pipeline-co-v-iowa-state-commerce-commission-iowa-1964.