Save Our Illinois Land v. Illinois Commerce Comm'n

2022 IL App (4th) 210008, 200 N.E.3d 870, 460 Ill. Dec. 322
CourtAppellate Court of Illinois
DecidedJanuary 12, 2022
Docket4-21-0008
StatusPublished
Cited by9 cases

This text of 2022 IL App (4th) 210008 (Save Our Illinois Land v. Illinois Commerce Comm'n) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Save Our Illinois Land v. Illinois Commerce Comm'n, 2022 IL App (4th) 210008, 200 N.E.3d 870, 460 Ill. Dec. 322 (Ill. Ct. App. 2022).

Opinion

FILED 2022 IL App (4th) 210008 January 12, 2022 Carla Bender NO. 4-21-0008 4th District Appellate Court, IL IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

SAVE OUR ILLINOIS LAND, SIERRA CLUB, ) Appeal from an Order of the NATURAL RESOURCES DEFENSE COUNCIL, and ) Illinois Commerce Commission WILLIAM KLINGELE, ) Plaintiffs-Appellants, ) v. ) THE ILLINOIS COMMERCE COMMISSION; ) Docket No. 19-0673 DAKOTA ACCESS, LLC; ENERGY TRANSFER ) CRUDE OIL COMPANY, LLC; INTERNATIONAL ) ) BROTHERHOOD OF ELECTRICAL WORKERS, ) LOCAL 702; LABORERS’ INTERNATIONAL ) UNION OF NORTH AMERICA; SOUTHWESTERN ) ILLINOIS LABORERS’ DISTRICT COUNCIL; ) GREAT PLAINS LABORERS’ DISTRICT ) COUNCIL; and SOUTHERN AND CENTRAL ) ILLINOIS LABORERS’ DISTRICT COUNCIL AND ) ) ITS AFFILIATED LOCAL UNIONS 231, 622, 773, ) AND 1197, ) Defendants-Appellees. )

JUSTICE CAVANAGH delivered the judgment of the court, with opinion. Justices Harris and Steigmann concurred in the judgment and opinion.

OPINION ¶1 Dakota Access, LLC (Dakota Access), and Energy Transfer Crude Oil Company,

LLC (Energy Transfer), which, collectively, we will call “the carriers,” own a crude-oil pipeline

that runs hundreds of miles through Illinois, from the northwest to the south. Dakota Access owns

the pipeline from Hamilton, Illinois, to Patoka, Illinois, and Energy Transfer owns the rest of the pipeline, from Patoka to Joppa, Illinois. The carriers petitioned the Illinois Commerce Commission

(Commission) for permission to add more pumping stations to this Illinois pipeline.

¶2 In the administrative proceeding on the carriers’ petition, two groups intervened.

One group opposed the petition: Save Our Illinois Land, Sierra Club, Natural Resources Defense

Council (Natural Resources), and William Klingele. We will call this group “the objectors.” The

second group of intervenors advocated for the carriers’ petition: International Brotherhood of

Electrical Workers, Local 702; Laborers’ International Union of North America; Southwestern

Illinois Laborers’ District Council; Great Plains Laborers’ District Council; and Southern and

Central Illinois Laborers’ District Council and its affiliated Local Unions 231, 622, 773, and 1197.

We will call them collectively, “the unions.”

¶3 After hearing evidence, the Commission granted the carriers’ petition to construct

the additional pumping stations. The objectors petitioned for a rehearing, and the Commission

denied their petition. Now the objectors appeal to the appellate court. In their appeal, they make

seven arguments.

¶4 First, the objectors contend that the Commission erred by failing to apply section

15-401 of the Public Utilities Act (Act) (220 ILCS 5/15-401 (West 2020)) to the petition to

construct the pumping stations. To the extent, however, that section 15-401(a) (id. § 15-401(a))

was applicable, it was satisfied. The carriers already possessed the certificates in good standing

that section 15-401(a) required. Contrary to the objectors’ contention, the carriers did not have to

obtain new or amended certificates in good standing in order to install additional pumping stations

on their completed pipelines. Section 15-401 says nothing about obtaining new or amended

certificates in good standing.

-2- ¶5 Second, the objectors complain that the Commission’s decision fails to provide

sufficient factual findings and reasons to make possible an informed judicial review. We find the

Commission’s single-spaced 80-page decision to be adequate to that purpose.

¶6 Third, the objectors claim that, in its assessment of the public need for the proposed

pumping stations (see id. § 8-503), the Commission misapplied case law and failed to consider

substantial evidence that militated against a finding of public need. The objectors argue, and we

agree, that the Commission misinterpreted a prior decision of ours as equating the “public” with

the world. Under section 8-503, the Commission must consider the public need for the proposed

improvement, but the “public,” in the broadest sense of that word, is the United States, not the

world. We are unconvinced by the objectors’ argument, however, that the Commission failed to

consider the evidence adduced against the claim of public need. Just because the Commission did

not give the opposing evidence the weight that the objectors believe it deserved, it does not follow

that the Commission failed to consider the evidence.

¶7 Fourth, the objectors contend that the Commission erred by regarding itself as

federally preempted from addressing the risk of greater leakage posed by nearly doubling the

throughput of the pipeline. In its decision, the Commission recounted evidence that the carriers’

leak-detection system could not readily detect leaks of less than 1% of throughput flowing past a

given point per hour. But then, at the conclusion of the part of its decision in which the Commission

discussed the leak-detection system, the Commission announced that it would “not rule on this

issue” because (1) “the safety regulation of petroleum pipelines” was “within the jurisdiction of

[Pipeline and Hazardous Materials Safety Administration]” and (2) “inconsistent state

requirements [were] specifically preempted.” The Pipeline Safety Improvement Act of 2002 does

indeed forbid “[a] State authority [to] adopt or continue in force safety standards for interstate

-3- pipeline facilities or interstate pipeline transportation.” 49 U.S.C. § 60104(c) (2018). If the

Commission had denied permission to construct the proposed pumping stations and if the

Commission had cited, as the reason for the denial, the inability of the leak-detection system to

readily detect leaks of less than 1% of throughput, the Commission thereby would have adopted a

safety standard for this interstate pipeline. The Commission is correct that it is federally preempted

from doing so. See id.

¶8 Fifth, the objectors criticize the Commission for ignoring evidence of

discrimination by the carriers in their treatment of shippers (that is, users of their pipeline).

According to the objectors, some of the transportation shipping agreements, or contracts for

transportation of crude oil through the pipeline, have provisions illegally favoring some shippers

over other shippers. Because of these discriminatory provisions, the objectors argue, the

agreements are void and unenforceable as violative of state and federal law, and the increased

throughput that the void agreements purport to require really is unrequired. If the transportation

shipping agreements are void, the reasoning runs, the need for additional pumping stations to fulfill

the agreements is illusory. A weakness of this reasoning is that the invalidity of the agreements as

a whole does not automatically follow from the invalidity of some of their provisions. The

objectors do not show, nor do they even argue, that the contractual provisions in question are

essential and inseverable.

¶9 Sixth, the objectors accuse the Commission of “arbitrarily and capriciously

prohibiting inquiry into the operator’s record.” The “operator,” in this context, is Sunoco Pipeline,

L.P. (Sunoco). The carriers have subcontracted the operation of their Illinois pipeline to Sunoco.

In view of that fact, the objectors offered evidence that, in Pennsylvania, Sunoco repeatedly had

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Bluebook (online)
2022 IL App (4th) 210008, 200 N.E.3d 870, 460 Ill. Dec. 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/save-our-illinois-land-v-illinois-commerce-commn-illappct-2022.