Village of Pine Run v. South Jersey Gas Co.

520 A.2d 1367, 215 N.J. Super. 54, 1987 N.J. Super. LEXIS 1027
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 4, 1987
StatusPublished

This text of 520 A.2d 1367 (Village of Pine Run v. South Jersey Gas Co.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Village of Pine Run v. South Jersey Gas Co., 520 A.2d 1367, 215 N.J. Super. 54, 1987 N.J. Super. LEXIS 1027 (N.J. Ct. App. 1987).

Opinion

The opinion of the court was delivered by

MUIR, J.A.D.

Petitioner Village of Pine Run appeals from a Board of Public Utility’s decision which adopted an Administrative Law Judge’s determination that Respondent South Jersey Gas Company properly refrained from undertaking individual gas service metering at petitioner’s apartment complex in Gloucestor Township. Petitioner contended before the ALT that respondent violated (1) N.J.S.A. 48:3-2 by adopting unreasonable regulations, (2) N.J.S.A. 48:3-3 by withholding reasonably demanded service, and (3) N.J.S.A. 48:3-4 by subjecting petitioner to undue prejudice or disadvantage.

The BPU, in adopting the ALJ’s decision, stated:

The Board concurs with the Administrative Law Judge’s findings that South Jersey properly refrained from undertaking individual gas service metering at the Pine Run apartment complex because of the numerous safety questions which remain unresolved. The Board agrees with the company’s contention that the issues of safety are a permanent concern and in this case transcend conservation savings which normally follow the conversion from master to individual metering.

The controversy between the parties centered on the transmission lines used to provide natural gas to petitioner’s apartment. Service lines, those lines before the customer’s meter, are the responsibility of the utility. Fuel lines, those lines downstream or after the meter, are the responsibility of the customer. Conversion to individual metering, by the fact that it moved the meters to points downstream from the prior master meter location, converted fuel lines to service lines.

Petitioner, being responsible for the cost of any conversion, sought to have the respondent take over the existing fuel lines [57]*57which became service lines by virtue of the conversion. Respondent refused to do so unless the petitioner upgraded the fuel lines to meet respondent’s safety standards, which are higher or more restrictive than existing federal or state requirements.

On appeal, petitioner abandons the challenge raised before the ALL It concedes the ALJ’s findings and conclusions adopted by the BPU. Instead, petitioner now argues the respondent may not set higher safety standards than the minimum federal pipeline safety standards set by regulations of the U.S. Department of Transportation adopted pursuant to the Natural Gas Pipeline Safety Act of 1968, 49 U.S.C.A. § 1671 et seq. (West 1976).

It argues that the minimum standards are binding on respondent, that only the BPU can enact more stringent standards and that in allowing respondent to utilize more stringent standards the BPU delegated its rule-making power to the respondent in violation of the Administrative Procedures Act. N.J. S.A. 52:14B-1 et seq.

Petitioner, a cartel of four limited partnerships with one man as a general partner of each, owns a 699-apartment complex. The complex has 177 townhouse-styled apartments that are individually metered. It also has 522 traditionally styled apartments that are currently master metered. Petitioner seeks to convert these units to individual metering.

All 522 units and buildings in which they are located are provided natural gas in the same manner. A service line runs from the street to the master meter. Fuel lines then leave the meter, go into the ground and go through the foundation wall of the apartment building into a laundry room where there are hot water heaters and clothes dryers. The fuel lines then run through a crawl space (except for a dozen buildings which have no crawl space with lines apparently running under the floor) and branch off to apartment gas ranges. From there, the fuel lines extend through another crawl space to the rear of the [58]*58building where they branch off to heating units in the apartments.

The AU made the following findings with respect to the fuel lines:

114. The respondent has a policy not to accept fuel lines as service lines.
15. The respondent has a policy requiring welded joints on service lines.
16. The- respondent has a policy to encase lines running through buildings.
21. The actual layout of the piping does not follow a consistent design from one building to the next.
22. Neither the petitioner nor the respondent knows who installed existing lines or specification to which the lines were installed.
23. The existing lines have screw-threaded joints rather than welded joints.
24. It is not known whether the threaded portions of the couplings are tapered or straight.
25. It is not known whether the joints have pipe dope which is essential to creating a proper seal at the joints.
26. There is some corrosion on the pipes, but the depth of the corrosion is not known.
28. Respondent is primarily concerned about external, rather than internal, pressure such as settling of the building which could cause a leak at a joint.
29. The types of couplings used at inaccessible locations are not known.
30. The existing lines inside the buildings are not encased.
31. The pipes in several of the laundry rooms run along the floor where they are exposed to water and detergent which could cause corrosion.
32. In other laundry rooms, the pipes are covered with concrete or dirt which could cause corrosion.
33. When first inspected by respondent’s personnel, the crawl spaces contained litter and debris and were as shallow as 16 inches.
34. Other crawl spaces were wet from air conditioner condensate and ground water.
35. Prior to hearing, the petitioner caused the crawl spaces to be cleaned and excavated to a minimum depth of 22 inches.
36. The crawl spaces have poor ventilation, and gas could pocket there.
37. The lines in the crawl spaces are poorly hung.
[59]*5938. The lines would be difficult to maintain because of the limited depth of the crawl spaces.
39. The entrance to most of the crawl spaces is through a pit.
40. No leaks in the existing piping have been reported.
41. The existing lines are not presently in compliance with federal minimum standards.
42. The existing lines are not in compliance with the higher safety standards established by company policy.

Petitioner proposed a conversion plan that would have respondent reuse, as service lines, 80% of the fuel lines. Respondent made two alternative proposals, both of which would require the installation of new lines upgrading the safety standards of the lines.

The cost of petitioner’s proposal is unknown. The costs of respondent’s proposals are $236,000 and $263,000. Both, according to the AU, would “probably” exceed petitioner’s plan.

I

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Bluebook (online)
520 A.2d 1367, 215 N.J. Super. 54, 1987 N.J. Super. LEXIS 1027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-pine-run-v-south-jersey-gas-co-njsuperctappdiv-1987.