Texas Midstream Gas Services, LLC v. City of Grand Prairie

608 F.3d 200, 176 Oil & Gas Rep. 791, 2010 U.S. App. LEXIS 11108, 2010 WL 2168643
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 1, 2010
Docket08-11200
StatusPublished
Cited by43 cases

This text of 608 F.3d 200 (Texas Midstream Gas Services, LLC v. City of Grand Prairie) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Midstream Gas Services, LLC v. City of Grand Prairie, 608 F.3d 200, 176 Oil & Gas Rep. 791, 2010 U.S. App. LEXIS 11108, 2010 WL 2168643 (5th Cir. 2010).

Opinion

DeMOSS, Circuit Judge:

This appeal concerns municipal regulation of the siting, construction, and operation of a natural gas compressor station. We weigh jurisdictional and jurisprudential concerns before addressing the merits, which implicate federalism and the interplay between state and local authority under Texas law. We affirm the judgment of the district court denying injunctive relief in part and granting relief in part.

I.

Plaintiff-Appellant Texas Midstream Gas Services LLC (“TMGS”) is in the business of installing and operating natural gas pipeline facilities. It is known as a “midstream gas gatherer.” Grand Prairie, Texas (“Grand Prairie” or “the City”) is a home-rule city.

In 2007, TMGS announced plans to construct a natural gas pipeline and compressor station in Grand Prairie. Compressor stations are needed to clean and compress natural gas after extraction in anticipation of interstate transport. TMGS acquired land for the station and easements for the pipeline. Apparently concerned by the prospect of a compressor station within city limits, the Grand Prairie City Council amended the City’s Unified Development Code (“UDC”) on July 1, 2008, to cover natural gas compressor stations. Grand Prairie, Tex., UDC art. 4, § 10 (2008) (“Section 10”). Section 10 requires a Specific Use Permit (“SUP”) from the City to build and operate a natural gas compressor station (“the SUP requirement”). Id. art. 4, § 10.1. It requires, inter alia, that compressor stations comply with setback rules (“the setback requirement”); have an eight-foot security fence (“the security fence requirement”); enclose equipment and sound attenuation structures within a building; conform to certain aesthetic standards; and pave means of vehicular *204 access. Id. art. 4, §§ 10.2-.6. Section 10 also prohibits compressor stations from emitting noise in excess of pre-development ambient levels. Id. art. 4, § 10.5. Violations are punishable by civil penalties of up to $2,000 per day. Grand Prairie, Tex., UDC art. 21, § 11 (2008).

TMGS sued Grand Prairie and certain City officials for declaratory and injunctive relief. TMGS averred, inter alia, that Section 10 was preempted by the Pipeline Safety Act (“PSA”), 49 U.S.C. §§ 60101-60137, and that Section 10 impinged on TMGS’s state-conferred eminent domain powers. TMGS requested a temporary injunction against enforcement of Section 10 during the pendency of this case, and a permanent injunction upon its conclusion. 1 After considering undisputed evidence, the district court granted in part and denied in part injunctive relief. The court held that the PSA preempted part of the security fence requirement, but the remainder of Section 10 was lawful and severable. The court thus enjoined only the security fence requirement.

TMGS filed this interlocutory appeal. TMGS challenges the district court’s failure to enjoin the setback requirement because it infringes TMGS’s eminent domain rights and is preempted by the PSA. TMGS says the preempted parts are not severable from the remainder of Section 10, and therefore, Section 10 must be enjoined in toto.

After filing its notice of appeal, TMGS applied “under protest” for an SUP. Because the compressor station would be in an area zoned agricultural, a 300-foot setback applied. TMGS asked for a 250-foot setback from the south lot line. The City Council granted the exception and issued the SUP on July 7, 2009. The district court has stayed proceedings pending appeal.

II.

We first note that we have statutory jurisdiction over this appeal pursuant to 28 U.S.C. § 1292(a)(1), which confers jurisdiction in the courts of appeal over “[ijnterlocutory orders of the district courts ... granting, continuing, modifying, refusing or dissolving injunctions.” Grand Prairie does not argue that statutory jurisdiction is absent, but rather, says we lack Article III constitutional jurisdiction because the issuance of an SUP has rendered this appeal moot. Grand Prairie reasons that because the appeal seeks to enjoin Section 10’s setback requirement, for which an exception was granted, a ruling on the validity of this part of Section 10 would be an advisory opinion. TMGS counters that the station has not been built and that TMGS could change the station’s design and location. Moreover, TMGS still challenges Grand Prairie’s authority to enact Section 10, and seeks to enjoin the measure altogether.

A.

Mootness is a jurisdictional matter which can be raised for the first time on appeal. See Harris v. City of Houston, 151 F.3d 186, 189 n. 4 (5th Cir.1998). This requirement, the so-called “doctrine of standing set in a time frame,” mandates that litigants retain a “personal interest” in a dispute at its inception and throughout the litigation. Motient Corp. v. Dondero, 529 F.3d 532, 537 (5th Cir.2008) (quoting Arizonans for Official English v. Arizona, 520 U.S. 43, 68, 117 S.Ct. 1055, 137 L.Ed.2d 170 (1997)). “[I]f an event occurs while a case is pending on appeal that *205 makes it impossible for the court to grant any effectual relief whatever to a prevailing party, the appeal must be dismissed.” Karaha Bodas Co. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara, 335 F.3d 357, 365 (5th Cir.2003) (quoting Church of Scientology v. United States, 506 U.S. 9, 12, 113 S.Ct. 447, 121 L.Ed.2d 313 (1992)). A claim is moot if “the issues presented are no longer live or the parties lack a legally cognizable interest in the outcome.” Id. (citation omitted).

This appeal is not moot. TMGS has argued from the inception of this action that Grand Prairie lacks authority to regulate the compressor station’s siting, construction, or operation. TMGS still seeks declaratory and injunctive relief against enforcement of any part of Section 10. If TMGS had only sought to compel issuance of an SUP with a modified setback, it would arguably lack a “cognizable legal interest” in this appeal. See id.; cf. Bayou Liberty Ass’n, Inc. v. U.S. Army Corps of Eng’rs, 217 F.3d 393, 396 (5th Cir.2000) (“When a party seeks an injunction to halt a construction project the case may become moot when a substantial portion of that project is completed.”). TMGS contends that Grand Prairie’s efforts to regulate setbacks and other matters are per se illegal. It makes no difference that TMGS has applied for an SUP (“under protest” or otherwise), or that an SUP has issued.

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Bluebook (online)
608 F.3d 200, 176 Oil & Gas Rep. 791, 2010 U.S. App. LEXIS 11108, 2010 WL 2168643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-midstream-gas-services-llc-v-city-of-grand-prairie-ca5-2010.