Yaw v. THE DELAWARE RIVER BASIN COMMISSION

CourtDistrict Court, E.D. Pennsylvania
DecidedJune 11, 2021
Docket2:21-cv-00119
StatusUnknown

This text of Yaw v. THE DELAWARE RIVER BASIN COMMISSION (Yaw v. THE DELAWARE RIVER BASIN COMMISSION) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yaw v. THE DELAWARE RIVER BASIN COMMISSION, (E.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

SENATOR GENE YAW, et al., : Plaintiffs, : : v. : Civ. No. 21-119 : THE DELAWARE RIVER BASIN : COMMISSION, et al, : : Defendant. :

Diamond, J. MEMORANDUM June 11, 2021 Two Pennsylvania state senators, their party caucus, and various municipalities ask me to declare that the Delaware River Basin Commission exceeded its authority by imposing a moratorium on fracking in the Delaware River Basin. Because Plaintiffs lack standing, I will grant Defendants’ Motions to Dismiss. I. JURISDICTION Plaintiffs bring this action pursuant to 28 U.S.C. § 2201. The Court has jurisdiction to hear the federal claims under 28 U.S.C. § 1331 and supplemental jurisdiction to hear the state law claims under 28 U.S.C. § 1367. See Cuyler v. Adams, 449 U.S. 433, 438 (1981) (“the construction of an interstate agreement sanctioned by Congress under the Compact Clause presents a federal question”). II. LEGAL STANDARDS In deciding a motion to dismiss, I must conduct a two-part analysis. Fowler v. PMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). First, I must accept Plaintiffs’ factual allegations, and disregard legal conclusions or mere recitations of the elements. Id. I then determine whether the facts alleged make out a “plausible” claim for relief. Id. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Accordingly, Defendants must show that Plaintiffs have failed to allege facts sufficiently detailed to “raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007); Phillips v. Cnty. of Allegheny, 515 F.3d 224, 234 (3d Cir. 2008).

III. FACTUAL BACKGROUND A. The Basin, the Compact, and the Commission The DRB is the drainage basin of the Delaware River, which includes large swaths of land in Pennsylvania, Delaware, New Jersey, and New York. See Wayne Land & Min. Grp. LLC v. Delaware River Basin Comm'n, 894 F.3d 509, 515 (3d Cir. 2018). In 1961, these states and the federal government entered into the Delaware River Basin Compact, an agreement “aimed at ensuring a unified approach to the conservation, utilization, development, management, and control of the water and related resources of the Basin.” Id. The Compact created the Delaware River Basin Commission and invested it with “a broad range of powers” to safeguard the waters in the DRB. Id. The Commission comprises the Governors of each of the four member states—

who may appoint alternates to represent them—and a federal representative appointed by the President. (Compact § 2.2-2.3, Doc. No. 29-2, Ex. A.) Under Compact § 3.8 (Referral and Review), the Commission is empowered to review “projects” undertaken in the DRB if they will have “a substantial effect on the water resources” of the DRB. (Id. at § 3.8.) The Commission may promulgate rules “for the procedure of submission, review and consideration of [such] projects[.]” (Id.) Under § 14.2 (Regulations; Enforcement), the Commission may “[m]ake and enforce reasonable rules and regulations for the effectuation, application and enforcement of th[e] Compact.” (Id. at § 14.2.) The Compact may be modified or repealed by concurrent legislation of each of the Member States or by Congress. (Amend Compl. ⁋89; Compact at § 1.4.) B. Fracking in Pennsylvania ‘High-volume hydraulic fracturing’ or ‘fracking’ is “the process by which a mixture of water and various chemicals is injected into the ground at high pressure to cause the release of

natural gas trapped in shale rock formations.” Wayne, 894 F.3d at 515 n. 1. Fracking is a major business in Pennsylvania. (Amend. Compl. ⁋⁋57-58 (“Since 2012, [fracking fees have] generated approximately $1.7 billion for [Pennsylvania] State and municipal governments.”); id. at ⁋⁋49-50 (United States Geological Survey estimates $40 billion in natural gas reserves are contained in Pennsylvania Basin territory alone).) To manage the practice, the Commonwealth has created a complex regulatory regime: “(1) overseeing the installation and operation of [] gas wells . . . and (2) providing for payment of various fees for their construction and/or operation.” (Amend. Compl. ⁋51.) The Commonwealth may also execute leases for natural gas extraction on state- owned lands. (Id. at ⁋68.) The gas wells where fracking is performed are referred to as “Unconventional Wells.” (Id.)

Under the Pennsylvania regime, “all fees for the development of Unconventional Wells are deposited in the Unconventional Gas Well Fund (the ‘Well Fund’).” (Id. at ⁋52.) The Pennsylvania Treasury Department administers the Fund. The proceeds are distributed annually in accordance with statutory requirements, under which “more than half of the Well Fund’s annual revenue is distributed to the various municipalities where Unconventional Wells are located . . . .” (Id. at ⁋54-55.) The General Assembly “has substantial discretion in determining the specific allocation” of money in the Well Fund (as well as in other, natural gas-related funds). (Id. at ⁋77.) C. The Moratorium In 2009, the Commission’s then-Executive Director, Carol Collier, instituted a Moratorium banning most natural gas fracking projects “within the drainage area of Special Protection Waters” (which includes land in Pennsylvania), unless there was prior Commission approval. Wayne, 894 F.3d at 517 (explaining the Commission’s concern with fracking’s “adverse environmental effects” on the DRB’s water resources). Expanded by a notice letter in 2010, this ‘de facto’ ban

remained in place until February 25, 2021, when it was superseded by the Commission’s vote to adopt a regulation “memorializing the ban set forth in the moratorium.” Id.; (Amend. Compl. ⁋⁋78-93); see also 18 C.F.R. §§ 440.1, et seq. Based on various Compact provisions, the regulation is intended to “protect and conserve the water resources of the Delaware River Basin.” 18 C.F.R. §§ 440.1(a)/(b). The regulation reflects the Commission’s belief that “high volume hydraulic fracturing poses significant, immediate and long-term risks to the development, conservation, utilization, management, and preservation of the water resources of the Delaware River Basin and to Special Protection Waters of the Basin.” The regulation thus provides that “[h]igh volume hydraulic fracturing in hydrocarbon bearing rock formations is prohibited within the Delaware River Basin.” See id. at § 440.3(a)/(b).

D. Senate and Municipal Plaintiffs Plaintiffs are two members of the Pennsylvania Senate (Gene Yaw and Lisa Baker), their party caucus (the Pennsylvania Senate Republican Caucus), and two Pennsylvania townships and two counties located within the DRB (Damascus Township, Dyberry Township, Wayne County, and Carbon County). (Complaint, Doc. No. 1.) Senator Yaw is the Chairman of the Senate Environmental Resources and Energy Committee; in this role he receives a detailed annual report regarding the Well Fund. (Amend. Compl. ⁋53 (citing 58 Pa.C.S.

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Yaw v. THE DELAWARE RIVER BASIN COMMISSION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yaw-v-the-delaware-river-basin-commission-paed-2021.