SWN Production Company, LLC v. City of Weirton and City of Weirton Board of Zoning Appeals

CourtIntermediate Court of Appeals of West Virginia
DecidedNovember 1, 2023
Docket22-ica-83
StatusPublished

This text of SWN Production Company, LLC v. City of Weirton and City of Weirton Board of Zoning Appeals (SWN Production Company, LLC v. City of Weirton and City of Weirton Board of Zoning Appeals) is published on Counsel Stack Legal Research, covering Intermediate Court of Appeals of West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SWN Production Company, LLC v. City of Weirton and City of Weirton Board of Zoning Appeals, (W. Va. Ct. App. 2023).

Opinion

IN THE INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA

2023 Fall Term FILED _____________________ November 1, 2023 released at 3:00 p.m.

No. 22-ICA-83 EDYTHE NASH GAISER, CLERK INTERMEDIATE COURT OF APPEALS _____________________ OF WEST VIRGINIA

SWN PRODUCTION COMPANY, LLC, Plaintiff Below, Petitioner,

v.

CITY OF WEIRTON and CITY OF WEIRTON BOARD OF ZONING APPEALS, Defendants Below, Respondents.

___________________________________________________________

Appeal from the Circuit Court of Brooke County Honorable Jason A. Cuomo, Judge Nos. CC-05-2021-P-35 & CC-05-2021-C-71

REVERSED _________________________________________________________

Submitted: September 19, 2023 Filed: November 1, 2023

Shawn N. Gallagher, Esq. Ryan P. Simonton, Esq. Kathleen Jones Goldman, Esq. Margaret E. Lewis Buchanan Ingersoll & Rooney PC Kay Casto & Chaney, PLLC Pittsburgh, Pennsylvania Morgantown, West Virginia Counsel for Petitioner Vincent S. Gurrera, Esq. Gurrera Law Offices, PLLC Weirton, West Virginia Daniel J. Guida, Esq. Guida Law Office Weirton, West Virginia Counsel for Respondent City of Weirton

JUDGE SCARR delivered the Opinion of the Court. SCARR, JUDGE:

Petitioner, SWN Production Company, LLC (“SWN”), appeals the August

23, 2022, “Order Regarding Pre-Emption” entered by the Circuit Court of Brooke County.

In that order, the circuit court concluded that Respondent City of Weirton’s (“City”)

municipal zoning ordinances were not preempted by either the West Virginia Oil and Gas

Act or the Natural Gas Horizontal Well Control Act (“Horizontal Well Act”). 1 On appeal,

SWN argues that the circuit court erred by failing to recognize that the Horizontal Well

Act delegates “sole and exclusive authority” over all aspects of the permitting and location

of oil and gas exploration and production activities to the Secretary of the West Virginia

Department of Environmental Protection (“WVDEP”).

For the reasons discussed below, this Court reverses the August 23, 2022,

“Order Regarding Pre-Emption,” entered by the Circuit Court of Brooke County.

I. Facts and Procedural Background

SWN Production Company, LLC is a Texas-based natural gas exploration

and production company. The City of Weirton is a Class II city 2 located in the northern

panhandle.

The Oil and Gas Act is codified within West Virginia Code § 22-6-1 et seq. The 1

Horizontal Well Act is codified within West Virginia Code § 22-6A-1 et seq. 2 West Virginia Code § 8-1-3 (1969) classifies cities with a population between 10,000 and 50,000 as Class II. 1 On June 11, 2021, SWN submitted its application for a conditional use permit

to the City in order to obtain local zoning approval under the City’s then existing Unified

Development Ordinance (“UDO”) for drilling at a well site located on a parcel within the

City known as the Brownlee Site. Under the UDO, the setback requirement for drilling

sites was 200 feet from any residential, church, or school use.

On July 7, 2021, the City enacted a new Unified Development Ordinance

(“NUDO”) which increased the setback requirement to 2,500 feet from any residential,

church, or school use and removed oil and gas extraction as a permitted conditional use

anywhere in the City except for industrial-zoned districts. The Brownlee Site is not within

an industrial zone.

On August 3, 2021, and September 7, 2021, the City of Weirton Board of

Zoning Appeals (“Board”) conducted hearings on SWN’s application for a conditional use

permit. On October 1, 2021, the Board issued its written decision denying SWN’s

application. The Board reasoned that “SWN has failed to prove that the proposed

conditional use is compatible with the goals of the [City’s] Comprehensive Plan, including

objective 2.3, which provides[,] in part[,] that future development in the Three Springs

Drive area should be managed ‘to avoid worsening traffic congestion and additional stress

on other existing infrastructure.’”

2 On October 18, 2021, SWN applied to the West Virginia Department of

Environmental Protection (“WVDEP”) for permits to drill for and develop natural gas at

the Brownlee Site. On February 8, 2022, WVDEP issued SWN Well Work Permit No. 47-

009-00328-00-00 for the Brownlee Site.

On October 29, 2021, SWN filed a Petition for Writ of Certiorari in the

Circuit Court of Brooke County seeking review of the Board’s denial of SWN’s conditional

use permit. Also on October 29, 2021, SWN filed a Verified Complaint against the City in

the Circuit Court of Brooke County. The Verified Complaint sought to have the circuit

court declare that the West Virginia Oil and Gas Act preempted the UDO and NUDO. The

Verified Complaint also asserted a claim for a taking by the City, as well as a count seeking

injunctive relief to prevent the City from enforcing the UDO or NUDO. On March 14,

2022, the circuit court issued an order consolidating the two matters. In that order, the

circuit court also stayed the issues presented in the Writ of Certiorari until the circuit court

made a final determination on the preemption issues presented by the Verified Complaint.

On March 29, 2022, SWN filed its First Amended Verified Complaint which set forth the

same causes of action as the Verified Complaint but added information about the WVDEP

permit for the Brownlee Site.

No discovery was conducted on the preemption issue and there was no

hearing. On August 23, 2022, the circuit court issued its “Order Regarding Pre-Emption.”

In that order, the circuit court held that the Legislature did not intend for West Virginia

3 Code § 22-6-1 et seq. or West Virginia Code § 22-6A-1 et seq. to expressly or impliedly

preempt the authority of municipalities to enact reasonable and rational zoning ordinances

under West Virginia Code § 8A-1-1 et seq. The circuit court interpreted those statutes to

mean:

[T]he operation…and… permitting of [oil and gas] companies is…to be “largely, if not completely, regulated by the [WVDEP]; and that local municipalities, although not permitted to completely ban the lawful operation of oil and gas companies within their city limits, are permitted to pass reasonable and rational zoning ordinances/regulations to allow said companies to operate therein while protecting the health, welfare, and safety of its citizens.”

The circuit court then noted: “If the Supreme Court of Appeals of West

Virginia wants to tell our communities they have lost that ability…then it will have to do

so without having had any express direction from our [L]egislature.” The circuit court

dismissed SWN’s preemption count from its amended complaint, lifted the stay on the

issues presented in the Writ of Certiorari, and permitted the parties to proceed with

discovery on all other remaining issues. It is from this order that SWN appeals to the

Intermediate Court of Appeals.

On September 15, 2023, four days before oral argument, this Court was

notified by the City’s counsel that the NUDO enacted on June 7, 2021, was repealed by the

City on or about September 11, 2023, re-enacting the previous UDO adopted in 2005. Oral

argument was held before this Court on September 19, 2023, with all parties appearing in

person.

4 II. Standard of Review

“A circuit court’s entry of a declaratory judgment is reviewed de novo.” Syl.

Pt. 3, Cox v. Amick, 195 W. Va. 608, 466 S.E.2d 459 (1995).

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SWN Production Company, LLC v. City of Weirton and City of Weirton Board of Zoning Appeals, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swn-production-company-llc-v-city-of-weirton-and-city-of-weirton-board-of-wvactapp-2023.