Weaver's Cove Energy, LLC v. Rhode Island Coastal Resources Management Council

583 F. Supp. 2d 259, 168 Oil & Gas Rep. 574, 2008 U.S. Dist. LEXIS 77407, 2008 WL 4449852
CourtDistrict Court, D. Rhode Island
DecidedOctober 2, 2008
DocketC.A. 07-246 S
StatusPublished
Cited by1 cases

This text of 583 F. Supp. 2d 259 (Weaver's Cove Energy, LLC v. Rhode Island Coastal Resources Management Council) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weaver's Cove Energy, LLC v. Rhode Island Coastal Resources Management Council, 583 F. Supp. 2d 259, 168 Oil & Gas Rep. 574, 2008 U.S. Dist. LEXIS 77407, 2008 WL 4449852 (D.R.I. 2008).

Opinion

OPINION AND ORDER

WILLIAM E. SMITH, District Judge.

In this case a developer of liquefied natural gas (“LNG”) facilities and the Rhode Island agency that oversees coastal *262 development and resource protection have squared off in a high stakes confrontation involving the transportation of LNG by tanker ship through Rhode Island waters. Weaver’s Cove Energy LLC (“Weaver’s Cove”) and the Rhode Island Coastal Resources Management Council (“CRMC”) 1 reached an impasse after engaging in a protracted and tense dialogue pursuant to a complicated permitting process. At the core of the dispute is the question of whether CRMC has the ability to indefinitely stall its concurrence with or objection to Weaver’s Cove’s permit application — a process that ordinarily must be completed within six months. By choosing the tactic of indefinite delay (as opposed to objection), CRMC has succeeded in grounding Weaver’s Cove’s proposed project, forcing the company to bring this action for relief. CRMC’s tactic, however, was a gamble. Whatever the short term benefit of this tactic may have been, in the long run, CRMC’s inaction necessarily results in a finding that the agency is legally presumed to have concurred with Weaver’s Cove’s application. For the reasons stated below, then, Weaver’s Cove’s motion for summary judgment is granted, and CRMC’s cross-motion for summary judgment is denied.

I. Factual and Procedural Background

A. The Parties

Weaver’s Cove is a limited liability company organized and incorporated under the laws of Delaware, with its principal place of business in Fall River, Massachusetts. CRMC is an agency of the State of Rhode Island created to preserve and protect the coastal resources of Rhode Island. See R.I. Gen. Laws 1956, chapter 23 of Title 46 (entitled “Coastal Resources Management Council”). CRMC’s primary responsibility is “the continuing planning for and management of the resources of the state’s coastal region.” R.I. Gen. Laws § 46 — 23—6(1)(i). Importantly, it is also the state agency responsible for administering the federal Coastal Zone Management Act (“CZMA”), 16 U.S.C. §§ 1451 et seq.

B. Weaver’s Cove’s Proposed LNG Terminal

This dispute centers on Weaver’s Cove’s proposal to construct and operate a liquefied natural gas (“LNG”) terminal in Fall River, Massachusetts. 2 As envisioned by the proposal, tanker ships carrying LNG would transit Rhode Island and Massachusetts waters, through the federal navigation channel in the Taunton River, on their way to deliver their cargo to the terminal. The terminal would have the capacity to provide 800 million cubic feet per day (“MMcfd”) of natural gas, which is equivalent to an estimated 15% of New England’s peak daytime natural gas requirements in 2010. The natural gas imported to the facility would be injected into the existing U.S. natural gas pipeline grid via two lateral pipelines proposed for construction by Mill River Pipeline, LLC *263 (“Mill River”), an affiliate of Weaver’s Cove.

On December 19, 2003, Weaver’s Cove filed an application with the Federal Energy Regulatory Commission (“FERC”) under section 3 of the Natural Gas Act (“NGA”), 15 U.S.C. §§ 717 et seq., requesting authority to site, construct, and operate the proposed terminal. 3 Also on December 19, 2003, Mill River filed an application with FERC to construct and operate the two lateral pipelines to transport the natural gas from the proposed terminal. In order to facilitate the passage of LNG tanker ships through the federal navigation channel, Weaver’s Cove proposed in its application to dredge and permanently deepen the channel. The proposal would require the dredging of up to about 2.6 million cubic yards of sediment from the Taunton River and Mount Hope Bay, disturbing approximately 191 acres of submerged land. About 230,000 cubic yards of the total would be dredged from Rhode Island waters. FERC approved Weaver’s Cove’s application, subject to conditions too numerous (and unnecessary) to list here. See Weaver’s Cove Energy, LLC, 112 FERC ¶ 61,070 (2005) (“Weaver’s Cove I”). The only condition relevant to this proceeding is that Weaver’s Cove obtain CRMC’s concurrence that the terminal project will be consistent with Rhode Island’s coastal zone management program (“CMP”). 4 Id. at 61,546. Under the CZMA, applicants for certain federal licenses or permits for activities affecting coastal resources may be required to certify that the proposed activity complies with the affected state’s federally approved CMP. and that such activity will be conducted in a manner consistent with the CMP. See 16 U.S.C. § 1456(c)(3)(A). This process is known as “consistency certification.” See 15 C.F.R. § 930.57.

In addition to FERC approval, Weaver’s Cove’s proposal to dredge the federal navigation channel requires the approval of the U.S. Army Corps of Engineers (“USACE”) under Section 10 of the Rivers and Harbors Act. See 33 U.S.C. § 403. Consequently, on March 18, 2004, Weaver’s Cove submitted a “Joint Section 10/404 Individual Permit Application” to the USACE seeking authorization to dredge in United States waters and to discharge fill materials into United States waters. 5 And because Rhode Island has listed Section 10 permits as among the various federal licenses and permits subject to its review under the CMP, Weaver’s Cove was required to certify that the Section 10 permit activity — dredging— would be consistent with Rhode Island’s CMP. 6 Weaver’s Cove subsequently filed *264 its certification with CRMC that the dredging proposed by its Section 10 permit application would be consistent with Rhode Island’s CMP.

C. Weaver’s Cove’s Consistency Certification

Weaver’s Cove filed its consistency certification with CRMC on July 19, 2004. Later that month, Dan Goulet, a CRMC staff member, telephoned Weaver’s Cove and claimed that CRMC could not review the certification until Weaver’s Cove provided certain information, purportedly required by the CMP, regarding the ultimate destination of the dredge material, and until Weaver’s Cove resubmitted its design drawings for the project stamped by a Rhode Island engineer.

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583 F. Supp. 2d 259, 168 Oil & Gas Rep. 574, 2008 U.S. Dist. LEXIS 77407, 2008 WL 4449852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weavers-cove-energy-llc-v-rhode-island-coastal-resources-management-rid-2008.