State, Department of Transportation v. Florida Gas Transmission Co.

126 So. 3d 1095, 2012 WL 2014755, 2012 Fla. App. LEXIS 9070
CourtDistrict Court of Appeal of Florida
DecidedJune 6, 2012
DocketNo. 4D11-2567
StatusPublished
Cited by3 cases

This text of 126 So. 3d 1095 (State, Department of Transportation v. Florida Gas Transmission Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Department of Transportation v. Florida Gas Transmission Co., 126 So. 3d 1095, 2012 WL 2014755, 2012 Fla. App. LEXIS 9070 (Fla. Ct. App. 2012).

Opinion

MAY, C.J.

The historical saga of the Florida Gas Transmission Company (“FGT”) and the Florida Department of Transportation (“DOT”) provides the factual background for this appeal. DOT appeals a declaratory judgment that set an easement’s width and a damages judgment rendered after a jury verdict that determined who was responsible for the cost of relocating gas pipelines because of a Turnpike expansion project. DOT argues error in the trial court’s submission of unambiguous contract language to the jury for interpretation, the resulting verdict finding FGT entitled to reimbursement for relocation expenses, and in the trial court granting FGT a uniform permanent and temporary space easement width. Numerous sub-issues are raised. On cross-appeal, FGT argues the trial court erred in requiring it to pay the cost of relocating the pipeline if it does not consent to DOT paving over the pipeline in the future, and failing to find that mechanically-stabilized earth walls always interfere with FGT’s easements. We affirm in part and reverse in part.

The History Begins: The 1958 Easement

In 1958, the Florida Turnpike Authority entered into an easement agreement with Houston Gas for the purpose of laying, constructing, maintaining, and operating a natural gas pipeline within the Turnpike right-of-way. Pursuant to the 1958 easement, Houston Gas installed an eighteen-inch pipeline along 109 miles of the Turnpike.

The easement contained a metes and bounds description with a starting and [1098]*1098ending point, but did not specify where within the easement the pipeline would be located. The pipeline and necessary appurtenances were “to be constructed in the most practicable and workable locations, consistent with usual pipeline construction procedures, by and with the consent of [the Turnpike Authority] and its engineers.” The easement specified that the pipeline would be located “at a distance of not less than 40 feet from the outer edge of the pavement of [the Turnpike], except where structures and topographical features shall require a lesser distance, as permitted by [the Turnpike Authority] or its engineers.” The legal description did not specify a uniform easement width or guarantee a minimum amount of tempo.-rary work space.

The History Continues: The 1967 Easement

Houston Gas became known as FGT in 1962. Five years later, the Turnpike Authority entered into a second easement agreement that allowed FGT to lay a second twenty-four-inch pipeline along the Turnpike right-of-way south of Fort Pierce and a nine-mile pipeline in Orange County. The 1967 easement again contained a metes and bounds description with beginning and ending points, but no specific location within the right-of-way for the pipeline. The 1967 easement also contemplated that FGT would lay the pipeline at least forty feet from the outside edge of the pavement, subject to the Turnpike Authority’s ability to grant a variance.

Paragraph four of the 1967 easement stated in part:

The laying and installation of said pipeline, and the construction and operation thereof, shall be in conformity with the industry’s standards for the highest grade of design, construction and operation, for a similar facility paralleling a limited access highway in a populated urban area; provided, however, that in no event shall the standards be below those requirements set forth in the American Standard Code for Pressure Piping, ASA B31.8, with any changes or additions which may be mutually agreed upon in writing by both [DOT] and [FGT],

The 1967 easement required FGT “to conduct its activities in connection with the construction and operation of any and all pipelines which have been, or may be, constructed and operated by [FGT] in such a manner so as to interfere to the least possible extent with the overall operation of the [Turnpike].”

The 1967 easement required FGT to be responsible for its own expenses should a Turnpike expansion require relocation of its pipeline. It also incorporated the terms of the 1958 easement “relative to maintenance, operation, relocation and removal of [the] pipeline.” The parties agreed that sections of the pipeline located under crossings of underpasses, access roads, interchanges, and the Turnpike itself would be bored underground.

The History Continues: The 1987 Amendment

In 1987, the parties agreed to amend the 1967 easement to clarify the rights of the parties with respect to the cost of relocating the gas pipelines. Following the 1987 amendment, section 10 of the 1967 easement read:

In the event it shall become necessary to rearrange or relocate the pipeline system to accommodate changes or improvements on or to the [Turnpike] and such rearrangements and relocations are reasonably required for such purposes, they will be made by [FGT] at its own expense.... In construing this paragraph, it is understood that [DOT] will fully cooperate with [FGT] to the end that such changes and relocation of [FGT’s] pipeline system may be held to [1099]*1099the minimum necessary to accomplish [DOT’s] purposes; and when an alternative method or methods are possible, and in the judgment of [DOT] are substantially equal in cost and feasibility, such alternative method or methods may be adopted and [FGT’s] pipeline system permitted to remain in place or with a minimum of disturbance. [DOT] shall not have any obligation or responsibility to pay or reimburse [FGT] for rearrangements or relocations of [FGT’s] pipeline(s) under this Paragraph 10; provided that such rearrangements or relocations are reasonably required to accommodate changes or improvements to the [Turnpike].... The determination of what changes and improvements are to be made on or to the [Turnpike] is reserved solely to [DOT],

The Plot Thickens: The 1992 Agreements

In 1992, FGT and DOT entered into two agreements, one for use when FGT was located within the state right-of-way, pursuant to a permit or license (the “Non-Reimbursable” Agreement), and another if FGT owned a property interest in DOT’s right-of-way (the “Reimbursable” Agreement). The Reimbursable Agreement provided that “[w]hen the [DOT] has served an order on [FGT] regarding relocation of [FGT’s] facilities along, over and under property in which [FGT] holds a compen-sable interest,” FGT agreed to relocate the necessary facilities. DOT agreed to reimburse [FGT] “for all costs incurred by it in each such relocation of said facilities.”

Paragraph 1 specifically incorporated the terms of the Utility Accommodation Guide (“UAM”), and “any supplements thereto or revisions thereof.”1 The 2004 UAM, which was admitted into evidence without objection, defines “compensable interest” as “having established real property rights.”

The Saga Begins: The Widening Projects

In 2000, the Turnpike Authority initiated the widening projects. On April 19, 2004, the Turnpike Authority sent the first of four'“Final Agreement Package” letters to FGT, confirming the project would require FGT to adjust and/or relocate its pipeline facilities. These “Final Agreement Packages” included documentation for FGT to submit its relocation costs to DOT. The Turnpike’s Utility Manager testified that the Turnpike Authority’s normal practice was to send these “packages” authorizing reimbursement of utility relocation expenses only after the correspondence had been subject to a full review by DOT’s legal department.

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126 So. 3d 1095, 2012 WL 2014755, 2012 Fla. App. LEXIS 9070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-transportation-v-florida-gas-transmission-co-fladistctapp-2012.