Mountain Valley Pipeline v. Brian C. and Doris W. McCurdy

793 S.E.2d 850, 238 W. Va. 200, 2016 W. Va. LEXIS 876
West Virginia Supreme Court·Decided November 15, 2016·No. 15-0919·Published·Cited by 5 cases

Opinions

Davis, Justice:

In this appeal, petitioner and defendant below, Mountain Valley Pipeline, LLC (“MVP”), challenges an order entered by the Circuit Court of Monroe County that granted declaratory judgment to Bryan and Doris McCurdy (“the McCurdys”), respondents and plaintiffs below, declaring that MVP has no right to enter their property to survey the area as a potential location for a natural gas pipeline MVP plans to construct. The circuit court based its decision on its finding that MVP’s pipeline is not being constructed for a public use in West Virginia. In addition, the circuit court granted the McCurdys both a preliminary and a permanent injunction prohibiting MVP from entering their property. After considering the parties’ briefs and oral arguments, as well as the relevant law, we find no error. Therefore, we affirm the rulings of the Circuit Court of Monroe County.

I.

FACTUAL AND PROCEDURAL HISTORY

MVP1 is in the process of seeking approval from the Federal Energy Regulatory Commission (“FERC”) to construct and operate a nearly 300-mile natural gas transmission pipeline from Wetzel County, West Virginia, to Pittsylvania County, Virginia. MVP is a pipeline company that will not directly own the gas to be transported. However, nearly ninety-five percent of the gas to be transported is owned by affiliates of MVP.2

[203]*203The proposed pipeline, known as the Mountain Valley Pipeline (“MVP’s pipeline”), will serve the primary purpose of moving gas from the producing regions of northern West Virginia to markets in the Mid-Atlantic and Southeast regions of the United States. MVP asserts that nearly all of the gas to be transported in MVP’s pipeline will be produced in West Virginia, and further contends that MVP’s pipeline will provide needed capacity for additional development of natural gas in West Virginia. MVP’s pipeline currently has two main delivery points: The Transco pool in Pittsylvania County, Virginia, which serves the entire east coast; and the Columbia WB pipeline, which, similar to MVP’s pipeline, is a natural gas transportation pipeline. An agreement has been reached whereby MVP’s pipeline will deliver gas to Roanoke Gas Company, a local distribution company that serves consumers in Virginia. However, no agreements have been reached that would provide gas to any consumers in West Virginia. Although MVP avers that such agreements are likely, there is no absolute right for local distribution companies or consumers to access MVP’s pipeline, and there currently is no definitive evidence that any West Virginia consumers or non-MVP affiliated natural gas producers would benefit from MVP’s pipeline.

On October 27, 2014, MVP submitted a request to FERC to initiate the pre-filing process that will lead to an application for the issuance of a certificate of public convenience and necessity for MVP’s pipeline. At the time of,the entry of the circuit court order herein appealed, MVP had not yet filed its formal application with FERC for a certificate of public convenience and necessity; however, MVP avers that its application has now been filed.

Respondents, plaintiffs below, Bryan and Doris McCurdy (“the MeCurdys”), own approximately 185 acres of land in Monroe County, West Virginia, along the proposed route for MVP’s pipeline. They have lived on a portion of their property, which consists of three tracts, since 1984. The proposed route fer MVP’s pipeline will cross all three of the MeCurdys’ tracts and, according to the circuit court, would come near to their barn and their residence.

In February 2015, the MeCurdys were contacted by an MVP agent who requested access to their property to conduct surveys that are necessary to complete MVP’s application process for obtaining the certificate of public convenience and necessity. The MeCurdys declined to consent to the surveys. MVP then sent the MeCurdys a letter, dated February 24, 2015, providing notice of MVP’s intention to take legal action to obtain access to the property pursuant to W. Va. Code § 54-1-3 (1923) (Repl. Vol. 2016)3 unless the MeCurdys acquiesced to the surveys by March 9, 2015.

Thereafter, on March 18, 2015, the MeCur-dys filed suit against MVP in the Circuit Court of Monroe County seeking a declaratory judgment that MVP has no right to enter their property for surveying purposes and further seeking both a preliminary and a permanent injunction prohibiting MVP from entering their property. MVP removed the suit to federal district court, but the federal court ultimately determined that it lacked subject matter jurisdiction because the amount in controversy was less than $75,000. Accordingly, the district court remanded the case to the Circuit Court of Monroe County for further proceedings. Following an eviden-tiary hearing, the circuit court, by order entered on August 19, 2015, granted declaratory judgment to the MeCurdys, and also granted them preliminary and permanent injunctions. In doing so, the circuit court concluded that W. Va. Code § 54-1-3 does not authorize MVP to enter the MeCurdys’ property because MVP is not vested with the power of eminent domain insofar as its pipeline is not for a public use. The circuit court based its conclusion on the fact that no West Virginia consumer would use any of the gas to be transported in MVP’s pipeline. The circuit court further enjoined MVP from entering the MeCurdys’ property under color of Chapter 54 of the West Virginia Code with[204]*204out the McCurdys’ express permission. This appeal followed.

II.

STANDARD OF REVIEW

The circuit court’s order herein appealed by MVP granted to the McCurdys declaratory judgment as well as preliminary and permanent injunctive relief. With respect to a declaratory judgment, this Court has held that “[a] circuit court’s entry of a declaratory judgment is reviewed de novo.” Syl. pt. 3, Cox v. Amide, 195 W.Va. 608, 466 S.E.2d 459 (1995).

Our review of the circuit court’s grant of a preliminary injunction has three parts:

“Tn reviewing the exceptions to the findings of fact and conclusions of law supporting the granting of a temporary or preliminary injunction, we will apply a three-pronged deferential standard of review. We review the final order granting the temporary injunction and the ultimate disposition under an abuse of discretion standard, West v. National Mines Corp., 168 W.Va. 578, 590, 285 S.E.2d 670, 678 (1981), we review the circuit court’s underlying factual findings under a clearly erroneous standard, and we review questions of law de novo.’ Syllabus Point 4, Burgess v. Porterfield, 196 W.Va. 178, 469 S.E.2d 114 (1996).” Syl. pt. 1, State v. Imperial Marketing, 196 W.Va. 346, 472 S.E.2d 792 (1996).

Syl. pt. 1, Camden-Clark Mem’l Hosp. Corp. v. Turner, 212 W.Va. 752, 575 S.E.2d 362 (2002). As to the circuit court’s award of a permanent injunction, our review is for an abuse of discretion:

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Mountain Valley Pipeline v. Brian C. and Doris W. McCurdy, 793 S.E.2d 850, 238 W. Va. 200, 2016 W. Va. LEXIS 876 (W. Va. 2016).

793 S.E.2d 850 (Mountain Valley Pipeline v. Brian C. and Doris W. McCurdy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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