NMSURF, Inc. v. State of New Mexico Department of Transportation

District Court, D. New Mexico·Decided June 28, 2021·No. 1:21-cv-00057·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW MEXICO ______________________

NMSURF, INC.,

Plaintiff,

v. No. 1:21-cv-00057-KWR-JHR

STATE OF NEW MEXICO DEPARTMENT OF TRANSPORTATION,

Defendant.

MEMORANDUM OPINION AND ORDER

THIS MATTER comes before the Court upon Plaintiff NMSURF, Inc.’s Motion for Preliminary Injunction (Doc. 5), filed February 8, 2021. Plaintiff is a New Mexico state and New Mexico Public Regulation Commission (“PRC”)1 regulated competitive local carrier (“CLEC”) providing local exchange telecommunication services. Plaintiff requests that the Court issue a preliminary injunction ordering Defendant to approve Plaintiff’s two applications for the installation of personal wireless services telecommunications facilities, specifically two, 40-foot utility poles in public rights of way (“ROW”) regulated by Defendant. Having reviewed the parties’ pleadings and the applicable law, the Court finds that Plaintiff’s motion is well-taken and, therefore, is GRANTED. BACKGROUND Plaintiff alleges that, on November 24, 2020, it submitted two permit applications to

1 Plaintiff’s President, Albert Catanach, testifies in an Affidavit attached to the Motion that NMSURF’s original name was Computer Network Service Professionals, Inc., and that he changed it to NMSURF, Inc. in 2020 by filing the requisite Articles of Amendment with the New Mexico Secretary of State. See Doc. 5-2, ¶ 2; Doc. 5-3, Ex. 3. Defendant for the installation of two, 40 foot utility poles within ROWs subject to Defendant’s regulation. Plaintiff alleges that the purpose of these installations is to mount antennas to provide broadband wireless services in two locations in Albuquerque where there is “little or no fixed broadband service now available.” Doc. 5 at 3. There is no dispute that Defendant is a department of the State of New Mexico and an

“instrumentality” of the State under § 332(c)(7)(B). Plaintiff alleges that it submitted its two permit applications in accordance with New Mexico Administrative Code (“NMAC”) 17.4.2(G), which details the appropriate process for obtaining a “New Mexico public highway utility accommodation permit.”2 Plaintiff alleges that it is a utility within the meaning of NMAC 17.4.2 as a company that provides microwave, telephone and fiberoptic services.3 Id. at 4. Plaintiff

2 NMAC 17.4.2 is entitled “Requirements for Occupancy of State Highway System Right-of-Way by Utility Facilities”. Subsection G is entitled “New Mexico public highway utility accommodation permit.” NMAC 17.4.2 (G)(1-2) provide: (1) General requirements: A utility owner who desires to install segments of their utility systems, or needs to relocate an existing facility already installed within the rights-of-way of public highways under the jurisdiction of the NMSHTD, must apply for a New Mexico Public Highway Utility Accommodation Permit. No utility construction shall commence on public highways right-of-way until the utility owner has obtained the approved permits, approval of their insurance, with coverages and face amounts shown in Paragraph 12.11 [now Subsection K of 17.4.2.12 NMAC], and added the NMSHTD as an additional insured. After receiving approval, the utility owner shall notify the Department in writing, five days in advance of the date their installation or relocation construction will commence. (2) The utility owner seeking a utility permit must provide as-built plans, within thirty (30) days of completion of the installation pertaining to the location of the facility installed. The location must be tied by a survey, performed and certified by a registered New Mexico Land Surveyor, to the Department's monuments and referenced to Department's mileposts and/or to the highway construction project stationing. The Utility shall provide a map to the Department detailing location and elevation of each break point along the facility. Where utility owners fail to establish documentation and provide survey maps to the Department, and Department maintenance crews damage utilities, the utility shall be responsible for all costs associated with repair, but only if Department requested a utility locate prior to beginning maintenance activities. See NMAC 17.4.2

3 17.4.2.7 (DK) defines a utility within the meaning of the statue: “-- All publicly, privately and cooperatively owned utilities, without distinction, for the rendition of water, electric power, sanitary sewer, storm sewer, steam, fuel gas, telephone or telegraph service through a system of pipes or wires devoted to public utility service. The systems can include natural gas; sanitary sewage collection systems; electricity; communication systems, including telephone, telegraph, TV cable, microwave, fiberoptics and others. The term “utility” does not apply to utility systems devoted solely to private use, or when the product of the private utility system is not for sale or for use by the general public as a whole.” (emphasis added). alleges that both applications were submitted using Defendant’s form A-63, rev. 11/12, entitled “Application for Permit to Install Utility Facilities Within Public Right of Way”. Plaintiff proffers the Catanach Affidavit, testifying that this is the same form through which it had successfully submitted previous permit applications for similar projects. Doc. 5-2, Ex. 2, ¶ 8. On December 23, 2020, Defendant issued a denial of both applications by letter, and

emailed Plaintiff the following day. The Denial Letter, attached to Plaintiff’s Motion as Exhibit 5, provides in the relevant portions: NMDOT controlled right-of-way is by definition exempted from the New Mexico Legislatures 2018 Wireless Consumer Advanced Infrastructure Act, Section 2 (O). The NMDOT is required to follow Federal Highway Administration rules including 23 CFR 710.403(e) and charge fair market value for the private use of NMDOT controlled right-of-way (ROW), as the NMDOT has done for the last twenty years…

NMSURF Internet is not eligible for the free use of public right-of-way because NMSURF is not a public utility rendering essential services subject to consumer- rate regulation by the Public Regulatory Commission. See NMSA 1978, Section 67-8-15.

The NMDOT has entered into rulemaking to promulgate a new telecom-broadband section to NMAC 17.4.2., Requirements for Occupancy of State Highway System Right-of-Way by Utility Facilities. Until the new telecom-broadband rule is published and adopted, the NMDOT has drafted an interim telecom-broadband permit and related application process, for the NMDOT to process private ROW use applications during the rulemaking period.

Doc. 5-5, Ex. 5.

The Denial Letter continues, offering Plaintiff an alternative application form as a “non-PRC” regulated entity, should it be “willing to accept the standardized interim terms and rates, which include an annual fee for ROW use…” Id. Finally, the Letter concludes, noting, “Additionally, ROW use requests which are within controlled access boundaries of controlled access highways, will be summarily denied. Please review NMAC 18.31.6., State Highway Access Management Requirements.” Id. The Denial Letter does not provide any further basis for the denials and Plaintiff alleges that “Defendant did not object to Plaintiff's construction plans, or any other part of the Applications. The denials were based solely on a misapprehension of Plaintiff's status as a utility.” Doc. 5 at 7. Plaintiff states that it ultimately elected not to apply under the alternative form proffered to it by Defendant because it “is a public utility” and, despite Defendant’s alleged implication to the contrary, is also a PRC-regulated entity4. Id. Plaintiff alleges that this sort of

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