Pennsylvania Services Corp. v. Texas Eastern Transmission, LP

98 A.3d 624, 2014 Pa. Super. 164, 2014 WL 3721418, 2014 Pa. Super. LEXIS 2317
CourtSuperior Court of Pennsylvania
DecidedJuly 29, 2014
Docket1429 WDA 2013
StatusPublished
Cited by24 cases

This text of 98 A.3d 624 (Pennsylvania Services Corp. v. Texas Eastern Transmission, LP) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Services Corp. v. Texas Eastern Transmission, LP, 98 A.3d 624, 2014 Pa. Super. 164, 2014 WL 3721418, 2014 Pa. Super. LEXIS 2317 (Pa. Ct. App. 2014).

Opinions

OPINION BY

MUSMANNO, J.:

Texas Eastern Transmission, LP (“Texas Eastern”) appeals from the Order granting partial summary judgment against it and in favor of Pennsylvania Services Corporation, trading as Emerald Coal Resources, LP, and Pennsylvania Land Holdings Company, LLC (collectively, “Emerald”), and declaring the parties’ rights as to the support estate underlying gas transmission pipelines owned by Texas Eastern.1 We affirm.

Emerald operates a full extraction coal mine in Greene County, Pennsylvania. Texas Eastern operates five interstate pipelines, which traverse property above Emerald’s mine. Four of the five Pipelines are active, and all are buried several feet below the surface.

The Pennsylvania Department of Environmental Protection (“the Department”), in 2010, issued a permit (“Permit”) authorizing Emerald to conduct full extraction mining operations, by longwall system,2 in an area of the mine known as “D District.” [627]*627The Permit included the following condition:

[A]t least 90 days prior to conducting any underground mining that will or is likely to result in subsidence of the Pipelines, [Emerald] shall submit evidence to the Department showing that [Emerald] reached an agreement with [Texas Eastern] or provide other satisfactory evidence (for example, a court or administrative order or ruling) that requires the performance, prior to undermining of appropriate mitigation measures that will minimize damage, disruption or destruction of utility service provided by the Pipelines after they have been undermined, which describes those mitigation measures.

Complaint, Exhibit A. Emerald and Texas Eastern were unable to reach an agreement regarding mitigation measures.

On July 14, 2011, Emerald filed a five-count Complaint against Texas Eastern, seeking declaratory relief. Emerald averred that it could not fully extract its coal underlying Texas Eastern’s Pipelines, by longwall system,

unless, before undermining begins, Texas Eastern plans for, implements and pays for appropriate mitigation measures that will minimize damage, disruption, or destruction of [the Pipelines] from subsidence that may occur from full extraction mining by Emerald.

Complaint, ¶ 3. Emerald claimed that Texas Eastern interfered with Emerald’s superior property rights by its refusal to plan for, implement and pay for appropriate mitigation measures. Complaint, ¶5. Emerald’s Complaint sought a declaration recognizing its superior property rights, and interference of those rights by Texas Eastern’s inaction. Complaint, ¶¶ 74-79. Emerald also sought injunctive relief

(1) stopping Texas Eastern from interfering with Emerald’s superior property rights; (2) mandating that Texas Eastern plan for, implement, and pay for appropriate and timely mitigation measures to permit Emerald to mine all of its coal under the Pipelines in D District; and (3) awarding any other appropriate relief.

Complaint, at p. 16. Emerald pled additional counts sounding in trespass (Count IV) and private nuisance (Count V).

On August 19, 2011, Texas Eastern removed the case to federal court on the ground that the “complete preemption doctrine” confers federal-question jurisdiction.3 The federal court disagreed, holding that

Texas Eastern has not shown that (i) Congress intended to preempt the Pennsylvania laws at issue in this case, (ii) there is a conflict between Pennsylvania law and [federal law] such that compliance with both is impossible or would prevent the accomplishment of congressional objectives, or (iii) that Congress legislated comprehensively to occupy an entire field of regulations, leaving no room for the Pennsylvania laws at issue ....

Pa. Servs. Corp. v. Tex. E. Transmission, LP, 2011 U.S. Dist. LEXIS 117559, at *3-*4 (W.D.Pa.2011). On that basis, the federal court remanded to the Court of Common Pleas of Greene County for disposition of the matter under Pennsylvania law. Id. at *4.

Before the common pleas court, Texas Eastern filed Preliminary Objections to Emerald’s Complaint, which the trial court [628]*628denied. Trial Court Order, 1/10/12. Thereafter, Texas Eastern filed its Answer, New Matter and Counterclaims. Texas Eastern’s counterclaims sought declaratory and injunctive relief. Texas Eastern averred that the Pipelines were constructed prior to 1967; the predecessors of Emerald knew or had reason to know of the Pipelines above their coal estates; and the Pipelines would be materially damaged as a result of Emerald’s intended mining. Counterclaims, ¶¶ 17, 19. Texas claimed that the right of Emerald (and its predecessors) to seek just compensation for the coal estates in D District accrued not later than when the Pipelines were constructed, and the statute of limitations for any such action has expired. Id., ¶¶ 23-24. Texas Eastern further claimed that the waivers of support, relied upon by Emerald, do not permit the removal of subjacent support for the Pipelines through the type of mining planned by Emerald. Id., ¶ 29. Texas Eastern claimed ownership of the right to subja-cent support of the Pipelines; that it had acquired the right to subjacent support by means of a de facto taking or through adverse possession/prescriptive easement; and that Emerald was liable to Texas Eastern for trespass, negligence and unjust enrichment. Id., ¶¶ 33-70.

Emerald filed a Motion for Preliminary Injunction on May 17, 2013. Emerald sought injunctive relief requiring Texas Eastern to plan and complete mitigation measures, and to pay for those measures. After the close of discovery, Emerald filed a Motion for Partial Summary Judgment in its declaratory judgment action, seeking a declaration that Emerald owns the coal estate, support estate and mining rights underlying the surface of D District by way of deeds severing the coal estate (“Coal Severance Deeds”) executed in the early 1900s. Texas Eastern filed its own Motion for Partial Summary Judgment seeking declaratory relief, claiming ownership of the support estate by deed, inverse condemnation (a de facto taking) and/or adverse possession.

After a hearing, the trial court entered an Order granting Emerald’s Motion for Partial Summary Judgment, denying Texas Eastern’s Motion for Partial Summary Judgment, and declaring the rights of the parties as to the mining of coal under the Pipelines. Thereafter, Texas Eastern filed the instant timely appeal, followed by a court-ordered Pa.R.A.P. 1925(b) Concise Statement of Matters Complained of on Appeal.

Texas Eastern now presents the following claims for our review:

Whether, by granting partial summary judgment and entering declaratory judgment in favor of Emerald as opposed to Texas Eastern with regard to ownership and control of the subjacent support for the Pipelines, the [trial court] erred by determining that:
(a) The deeds that Emerald cites as establishing its right to remove the subja-cent support for the Pipelines actually convey that right to it[?]
(b) Texas Eastern’s predecessor in interest, the United States, did not {de

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Pennsylvania Services Corp. v. Texas Eastern Transmission, LP
98 A.3d 624 (Superior Court of Pennsylvania, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
98 A.3d 624, 2014 Pa. Super. 164, 2014 WL 3721418, 2014 Pa. Super. LEXIS 2317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-services-corp-v-texas-eastern-transmission-lp-pasuperct-2014.