Seneca Resources Corp. v. City of St. Marys ZHB

CourtCommonwealth Court of Pennsylvania
DecidedNovember 30, 2021
Docket136 C.D. 2020
StatusUnpublished

This text of Seneca Resources Corp. v. City of St. Marys ZHB (Seneca Resources Corp. v. City of St. Marys ZHB) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seneca Resources Corp. v. City of St. Marys ZHB, (Pa. Ct. App. 2021).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Seneca Resources Corporation, Appellant

v. : No. 136 C.D. 2020 ARGUED: October 13, 2020 City of St. Marys Zoning Hearing Board :

BEFORE: HONORABLE ANNE E. COVEY, Judge HONORABLE CHRISTINE FIZZANO CANNON, Judge HONORABLE BONNIE BRIGANCE LEADBETTER, Senior Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY SENIOR JUDGE LEADBETTER FILED: November 30, 2021

Seneca Resources Corporation appeals from the order of the Court of Common Pleas denying Seneca’s appeal from a decision of the Zoning Hearing Board (ZHB) of the City of St. Marys, which had dismissed Seneca’s substantive validity challenge to City Ordinance No. 296 (Ordinance, Reproduced Record “R.R.” at pp. 58la-86a, appended hereto as “Appendix A.”'). The Ordinance amended several of the City’s Zoning Code provisions respecting oil and natural gas production activities. This appeal concerns particularly those provisions relating to “unconventional wells” used for hydrofracking. (Ordinance.) We affirm in part and

reverse in part.

' Because Seneca challenges several provisions of the Ordinance, for the sake of concision we have attached the Ordinance itself rather than include detailed recitations of the substance of each provision. Background Jurisprudential Developments Relating to the Ordinance

The City Zoning Code was adopted in 2005. In 2012, the St. Marys City Council amended it to allow oil and gas development as a permitted use in every zoning district of the City. [See Zoning Code § 459, R.R. at pp. 858a-60a (repealed by Ordinance Section 1.D).] The 2012 ordinance was passed in response to the enactment of what is commonly known as Act 13 of 2012,? which preempted the authority of municipalities to zone oil and gas operations and imposed a regime of penalties for municipalities that failed to comply with its requirements. On December 19, 2013, in Robinson Township yv. Pennsylvania Public Utility Commission, 83 A.3d 901 (Pa. 2013) (Robinson ID), a plurality of our Supreme Court declared unconstitutional several provisions of Act 13 in whole or in part, relying upon article I, section 27 of the Pennsylvania Constitution, Pa. Const. art. I, § 27 (Environmental Rights Amendment), and remanded that matter to this Court for consideration of the constitutionality of several other provisions of Act 13. On remand, this Court struck as unconstitutional other provisions of Act 13. Robinson Twp. v. Pa. Pub. Util. Comm’n, 96 A.3d 1104 (Pa. Cmwlth. 2014) (Robinson HD). The sum effect of Robinson IT, Robinson HI, and the Supreme Court’s decision in Robinson Township yv. Pennsylvania Public Utility Commission, 147 A.3d 536 (Pa. 2016) (Robinson IV), was to reopen the field of municipal zoning regulation of oil and gas operations.

In response to these ongoing developments in the courts, the City Council established an Oil & Gas Committee, which prepared a draft of what was to

become the Ordinance at issue. Seneca expressed its concerns throughout the

> 58 Pa.C.S. §§ 2301-3504. Committee’s and City Council’s consideration of the draft ordinance, including in comments at a public hearing by the City Council prior to adoption of the Ordinance. On February 15, 2016, the Ordinance was adopted in its current form. The Ordinance

The provisions challenged by Seneca may be summarized as follows. The Ordinance as adopted distinguishes between “conventional wells” (using only vertical well bores) and “unconventional wells” (using any method other than a vertical well bore). [Ordinance at Section 2 (amending Section 112 of the Zoning Code [relating to definitions]).] Of concern to Seneca are those provisions relating to unconventional wells, which are utilized in the practice of extracting natural gas by hydrofracking, which has become the predominant means of drilling for natural gas.*> The Ordinance establishes facilities used in the development and operation of unconventional wells—well pads [generally, “the site where drilling activities . . . take place... .” (id.)], natural gas compression stations, and disposal wells*—as special exception uses in the Rural-Conservation (R-C) District [Ordinance at Section 3 (amending Section 200 of the Zoning Code [relating to the R-C District])].

To qualify as a special exception in the R-C District, unconventional wells, disposal wells, and compression stations must meet certain requirements set

forth in the new Section 459.1 of the Zoning Code. [Ordinance at Section 5 (adding

3 One of Seneca’s witnesses testified on cross-examination that Seneca is not currently drilling conventional wells because “shale has . . . become the preeminent play.” (Notes of Testimony “N.T.” 37, R.R. 11 1a.)

* “Disposal well” is defined as “a bore hole to be drilled, or an existing well to be used, for the purpose of the injection of any liquid related to oil and gas production and storage, including the disposal of hydraulic fracturing chemicals or brine, but excluding the injection of gas or petroleum for storage purposes.” [Ordinance at Section 2 (amending Section 112 [relating to definitions]).] Section 459.1 to the Zoning Code [relating to unconventional wells, disposal wells, and compression stations]).] Among those requirements are various location and siting mandates and limitations. These include a prohibition against the location of well pads, disposal wells, and natural gas compression stations in an area with a population density at the time of application greater than 1,086.07 persons per square mile “as delineated on the population density map for the City .. . issued by the United States Census Bureau, as from time to time amended.” (Ordinance at Section 5.1.A.) This Census Bureau map was neither further identified nor provided, either prior or subsequent to enactment of the Ordinance.

The Ordinance also provides for setbacks for structures and equipment used for well pads, disposal wells, and natural gas compression stations, from occupied structures. (Ordinance at Section 5.1.B-E.) “Occupied structures” are defined as any permanent building actually used for occupancy by humans or farm animals and existing sources of potable water serving occupied structures. (Ordinance at Section 2.) The ZHB may reduce setbacks “upon written consent of all neighboring properties directly impacted by the setback reduction. The [ZHB] may require installations of man-made sound barriers in such cases, unless specifically waived by the neighboring property owner.” (Ordinance at Section 5.1.H.) Section 5 also includes noise restrictions for well pad sites and compression stations and height limitations. (Ordinance at Section 5.1.G and 5.1.1.)

Section 5 of the Ordinance further requires that an applicant “submit a copy of the plat and any water management plan filed with its well permit application

under Section 3211 of [Act 13, 58 Pa.C.S. § 3211]” with accompanying information. (Ordinance at Section 5.2.°) For unconventional well pads and disposal well sites, an applicant must submit a traffic control plan. (Ordinance at Section 5.3.) An applicant must submit a permit approval under Act 537, the Pennsylvania Sewage Facilities Act,° if employees are to be housed on site. (Ordinance at Section 5.4.) For natural gas compression stations, an applicant must submit a plan with approximate GPS coordinates, a plan for noise abatement, and a proposed schedule for installation and removal of the station. (Ordinance at Section 5.5.)

Section 5.6 of the Ordinance provides that development of a well pad site must follow certain “best practices.’”’ (Ordinance at Section 5.6.) These best practices may be excused if the applicant can demonstrate that the practices are

unnecessary or inappropriate.

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