Sunoco Pipeline L.P. v. Teter

2016 Ohio 7073
CourtOhio Court of Appeals
DecidedSeptember 29, 2016
Docket16 HA 0002 & 16 HA 0005
StatusPublished
Cited by7 cases

This text of 2016 Ohio 7073 (Sunoco Pipeline L.P. v. Teter) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunoco Pipeline L.P. v. Teter, 2016 Ohio 7073 (Ohio Ct. App. 2016).

Opinion

[Cite as Sunoco Pipeline L.P. v. Teter, 2016-Ohio-7073.] STATE OF OHIO, HARRISON COUNTY

IN THE COURT OF APPEALS

SEVENTH DISTRICT

SUNOCO PIPELINE L.P., ) CASE NO. 16 HA 0002 ) 16 HA 0005 ) PLAINTIFF-APPELLEE, ) ) VS. ) OPINION ) CAROL A. TETER TRUSTEE, et al., ) ) DEFENDANTS-APPELLANTS. )

CHARACTER OF PROCEEDINGS: Civil Appeal from the Court of Common Pleas General Division of Harrison County, Ohio Case No. CVH-2015-0058

JUDGMENT: Affirmed.

JUDGES:

Hon. Carol Ann Robb Hon. Gene Donofrio Hon. Mary DeGenaro Dated: September 29, 2016 [Cite as Sunoco Pipeline L.P. v. Teter, 2016-Ohio-7073.] APPEARANCES:

For Plaintiff-Appellee: Atty. Gregory Brunton Atty Daniel Hyzak Atty. Bruce Moore Reminger Co., LPA 200 Civic Center Drive, Suite 800 Columbus, Ohio 43215

Atty. James Hadden Murray Murphy Moul + Basil LLP 1114 Dublin Road Columbus, Ohio 43215

For Defendant-Appellee Atty. C. Craig Woods Atty. Andrew H. King Squire Patton Boggs (US) LLP 2000 Huntington Center 41 South High Street Columbus, Ohio 43215

For Defendants-Appellants: Atty. Eric McLoughlin Atty. Jessica Sohner Atty. Nicholas Anderson Arenstein & Anderson Co., LPA 5131 Post Road, Suite 350 Dublin, Ohio 43017

Atty. Amy Milam Atty. Chad Endsley Atty. Leah Curtis Ohio Farm Bureau Federation, Inc. 280 North High Street, 6th Floor P.O. Box 182383

Atty. Jordan Berman Assistant Attorney General Constitutional Offices Section 30 East Broad Street, 16th Floor Columbus, Ohio 43215 [Cite as Sunoco Pipeline L.P. v. Teter, 2016-Ohio-7073.]

ROBB, J.

{¶1} Defendant-Appellant Carol Teter, Trustee of the Carol A. Teter Revocable Living Trust appeals the decision of Harrison County Common Pleas Court granting Plaintiff-Appellee Sunoco Pipeline L.P.’s petition for appropriation and complaint for condemnation. There are two core issues in this case. The first is whether pure propane and pure butane are petroleum for the purposes of R.C. 1723.01, which permits common carriers to appropriate land. The second issue is whether the appropriation is necessary for public use. {¶2} Although there is no definition of petroleum in R.C. 1723.01, consideration of the current statutory definitions and the common historical definitions of petroleum leads us to conclude pure propane and pure butane are included in those definitions. Furthermore, the term “petroleum” has taken on a technical or industry definition. This industry definition indicates petroleum includes pure propane and pure butane. As to the second issue before us, the evidence submitted to the trial court proved appropriation was necessary for public use. Consequently, for those reasons and the ones espoused below, the trial court’s decision is affirmed. Statement of the Facts and Case {¶3} This appeal involves two trial court case numbers that concern Appellee’s right to appropriate an easement from Appellant to run a pipeline across the Teter property that will transport pure propane and pure butane. The pure propane and pure butane are derived from fractionation of petroleum (the raw material) that was extracted from the Utica and Marcellus shale deposits in Ohio through hydraulic fracturing. The fractionation plants are located in Scio, Ohio and Jewett, Ohio. {¶4} After trying and failing to obtain a voluntary easement from Appellant, Appellee filed a petition for appropriation and complaint for condemnation in Harrison County Common Pleas Court. CVH 2015 0058 5/19/15 Complaint. Appellant was named as defendant along with Enterprise TE Products Pipeline Co. LLC, Wellington Resource Group LLC, Texas Eastern Products Pipeline Co., Sinclair Oil & Gas Co., -2-

Chesapeake Exploration LLC, CHK Utica, LLC, and Total E&P USA Inc. 5/19/15 Complaint; 7/15/15 Amended Complaint. Sunoco sought the easement because it was building the “Mariner East 2 Pipeline,” which will run from the fractionation plant in Scio, Ohio to Marcus Hook, Pennsylvania and Claymont, Delaware. {¶5} Appellant filed an answer to the amended complaint to appropriate. 8/3/15 Answer. {¶6} Around the same time Appellee filed its petition for appropriation and complaint for condemnation, Appellant filed her complaint in Harrison County Common Pleas Court against Appellee. 3/24/15 Complaint Case Number CVH 2015 0034. Appellant sought a declaratory judgment; she requested an order indicating eminent domain could not be used to appropriate an easement to her land. 3/24/15 Complaint. {¶7} The cases were consolidated. 8/13/15 J.E. Thereafter, Appellee and Chesapeake, CHK Utica, and Total E&P stipulated the acquisition of an easement would not affect the validity or enforcement of leases. 9/10/15 Stipulation. Chesapeake, CHK Utica, and Total E&P were dismissed without prejudice. 9/15/15 Notice. {¶8} A hearing was held on the complaint to appropriate in October 2015. The trial court identified the issues as: 1) does the definition of petroleum include propane and butane; 2) is the pipeline a common carrier; and 3) does the pipeline serve a public purpose. 12/14/15 J.E. {¶9} As to the first issue, the trial court determined propane and butane are petroleum. Although the trial court acknowledged R.C. 1723.01 does not define petroleum, it used the General Assembly’s definition found in other portions of the Ohio Revised Code. The trial court reasoned propane and butane are petroleum because R.C. 3746.01(L) indicates petroleum includes liquefied natural gas. Liquefied natural gas specifically includes propane and butane pursuant to Ohio Adm.Code 1301:7-7-38. Furthermore, the U.S. Energy Information Administration (EIA) defines petroleum to include petroleum natural gas plant liquids. According to EIA, natural gas plant liquids include propane and butane. The trial court -3-

acknowledged the Ohio Administrative Code and the EIA’s definition permitted the gases to be fractionated and liquefied. 12/14/15 J.E. {¶10} The next issue was whether Appellee qualified as a common carrier. The trial court found it did. Pursuant to R.C. 1723.08 a common carrier is a company organized to transport petroleum through pipelines. The evidence indicated Appellee met the definition of a common carrier as set forth by Ohio case law and statutory law. 12/14/15 J.E. {¶11} The third issue was whether the taking was necessary and for public use. The trial court began by setting forth the standard of proof. It found the burden of proof rests with Appellee to show, by a preponderance of the evidence, the taking was necessary and for public use. It explained that the presentation of evidence of necessity by a common carrier created a rebuttable presumption of the necessity for appropriation. The trial court then found the pipeline was necessary because the Mariner East 2 Pipeline project is reasonably convenient or useful to the public. It reasoned:

The Court finds that it is undisputed that Eastern Ohio has an abundance of wet gas in its Utica shale. The Court takes note of the expanding drilling operations and the construction of oil and gas fractionating facilities in Harrison County, Ohio.

The Court is further cognizant that in order for the Utica shale play to develop, pipelines must be constructed to move the wet gas to the fractionating plants in their raw form and from the fractionating plants in their useful forms to consumers.

12/14/15 J.E. {¶12} The court further noted the pipeline is open to any member of the public who wishes to transport product. 12/14/15 J.E. The pipeline creates a means to deliver Eastern Ohio resources to market and provides a heating source to consumers by delivering propane. 12/14/15 J.E. -4-

{¶13} Consequently, the trial court granted the request for appropriation of an easement. {¶14} Prior to the compensation hearing, the parties reached a settlement on the amount of compensation.

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Bluebook (online)
2016 Ohio 7073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunoco-pipeline-lp-v-teter-ohioctapp-2016.