Portland Natural Gas Transmission System v. 4.83 Acres of Land

26 F. Supp. 2d 332, 1998 U.S. Dist. LEXIS 17451, 1998 WL 770762
CourtDistrict Court, D. New Hampshire
DecidedNovember 3, 1998
DocketCivil 98-436-JM
StatusPublished
Cited by14 cases

This text of 26 F. Supp. 2d 332 (Portland Natural Gas Transmission System v. 4.83 Acres of Land) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Portland Natural Gas Transmission System v. 4.83 Acres of Land, 26 F. Supp. 2d 332, 1998 U.S. Dist. LEXIS 17451, 1998 WL 770762 (D.N.H. 1998).

Opinion

ORDER

MUIRHEAD, United States Magistrate Judge.

Before me in this condemnation action under the Natural Gas Act, 15 U.S.C. § 717f(h), are the following motions filed by defendant Frederick W. Martin: a motion for a 90-day letter (document no. 9); a motion for relief (document no. 7), a motion to dismiss under Fed.R.Civ.P. 12(h)(3) (document no. 20); and a motion for a preliminary injunction, entitled “Motion for Alternate Temporary Restraining Order” (document no. 23). For the following reasons, all four motions are denied.

*334 Background

The following facts are undisputed. Mr. Martin owns the strip of land at issue, approximately 4.83 acres, which is part of a larger parcel of cleared and wooded farm land. Plaintiff (“Portland Gas”) is a Maine partnership that holds certificates of public convenience and necessity, issued by the Federal Energy Regulatory Commission (“FERC”) in 1997.

Portland Gas instituted this eminent domain action by depositing money with the court and filing a verified complaint in condemnation against the property. Portland Gas seeks to obtain temporary easements for the purpose of constructing a natural gas pipeline, and to obtain a permanent easement for the purpose of operation and maintenance of the pipeline and related facilities.

On July 21,1998, Portland Gas obtained an Order (document no. 4) granting its ex parte motion for immediate entry and possession. A request for reconsideration of that Order was denied on September 17,1998 (document no. 10). Mr. Martin thereafter filed Ms first motion for a temporary restraming order (“TRO”) and for other preliminary injunctive relief, wMch was denied in an Order (document no. 19) issued on September 24, 1998.

After the motion for a TRO was denied, Portland Gas actually took possession of the easements by bringing heavy equipment onto Mr. Martin’s land, cutting down trees, excavating soil, burying a pipe, and bulldozing a road on the strip of land at issue. See Affidavits of Fred W. Martin (dated Oct. 9, 1998 & Oct. 19, 1998) (document nos. 24 and 28). According to Mr. Martin, a Portland Gas representative told him on October 19, 1998 that the “pipe would be past [his] property by October 28.” Affidavit of Fred W. Martin (Oct. 19,1998).

Analysis

I. Motion under Rule 12(h)(3) and Motion for Relief

In his motion to dismiss for lack of subject matter jurisdiction under Rule 12(h)(3), Mr. Martin contends that Portland Gas obtained a right of entry and possession in July 1998, before it complied with a condition of its FERC certificate known as “Condition 31,” and before FERC had complied with the National Historic Preservation Act, 16 U.S.C. § 470Í. 1 As a result, this court lacked authority to grant a right of entry and possession to Portland Gas in July 1998 and presently lacks subject matter jurisdiction over the action. Mr. Martin makes essentially the same arguments in his motion for relief.

Condition 31 is one of more than sixty environmental conditions relating to the construction and operation of the gas fine project (covering, among other things, wetland mitigation, wellhead protection, cultural resources, fisheries, erosion controls, and a hazardous materials inventory), which FERC included in an appendix to the certificate. Condition 31 directs Portland Gas to defer construction, among other things, until it files with the Secretary of FERC certain information about cultural and historic resources. 2

There is no dispute that Portland Gas began construction on Mr. Martin’s land after FERC acknowledged that Portland Gas had satisfied the requirements of Condition 31. Portland Gas received a letter from FERC, *335 dated August 20, 1998, notifying it of FERC’s determination that Portland Gas had complied with Condition 81. Portland Gas actually entered the property and began cutting trees and clearing Mr. Martin’s land more than a month after the August 20, 1998 letter was issued.

a. Subject Matter Jurisdiction

Mr. Martin is mistaken in contending that subject matter jurisdiction is contingent on compliance with the pre-construction conditions of the FERC certificate. The federal statute providing a cause of action to Portland Gas to pursue a condemnation action in federal district court does not contain any such limitation. A holder of a FERC certificate may bring an action in federal district court to acquire land by eminent domain if it cannot acquire the land by contract or agree on the purchase price with the landowner. See 15 U.S.C. § 717f(h).

Since Mr. Martin has not agreed to allow Portland Gas, a holder of a FERC certificate, to acquire the land at issue, Portland Gas was entitled to initiate this action under section 717f(h). Accordingly, the district court has subject matter jurisdiction over the action pursuant to 15 U.S.C. § 717f(h) and 28 U.S.C. § 1331. Portland Gas’s delayed compliance with Condition 31 is not a basis for dismissing this action under Fed.R.Civ.P. 12(h)(3).

b. Right to Enter and Possess

The issuance of an order granting Portland Gas a right to enter and possess before Portland Gas complied with Condition 31 was within the court’s authority. Courts have concluded that a landowner cannot use a FERC certificate-holder’s alleged non-compliance with the conditions in the certificate to prevent a taking of private property by eminent domain. See, e.g., Tennessee Gas Pipeline Co. v. 104 Acres of Land, 749 F.Supp. 427, 433 (D.R.I.1990) (“Tennessee Gas I”).

In Tennessee Gas I, the court considered whether a gas pipeline company’s failure to obtain a permit required by a FERC order prevented it from condemning land. The court concluded that, absent a stay issued by FERC, “the lack of a required permit does not prevent condemnation of land in preparation for construction.” 749 F.Supp. at 433. The First Circuit denied Mr. Martin’s request for a stay. Mr. Martin has not requested a stay from the D.C. Circuit and, therefore, has not obtained such a stay. In sum, there is no authority for this court to vacate its order granting Portland Gas an immediate right of entry and possession.

Mr. Martin contends that the holding in United States v. 162.20 Acres of Land,

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Bluebook (online)
26 F. Supp. 2d 332, 1998 U.S. Dist. LEXIS 17451, 1998 WL 770762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/portland-natural-gas-transmission-system-v-483-acres-of-land-nhd-1998.