Landowners vs. FERC
Landowners vs. FERC
Landowners vs. FERC
Plaintiffs Bold Alliance, Bold Educational Fund, Friends of Nelson, and the
named individual landowners file this complaint against Defendants Federal Energy
Mountain Valley Pipeline, LLC; and Atlantic Coast Pipeline LLC. Plaintiffs allege and
pray as follows:
INTRODUCTION
1. In the eighty years since the Natural Gas Act was enacted, the industry
commodities markets and export. Yet while the role of interstate pipelines and the
nature of the gas industry has changed, the eminent domain provisionsoftheNatural
Gas Act have not. In light of changes in the gas industry and the evolution of FERC
of the Natural Gas Act and FERCs Certificate Program no longer further a public use
7f(h) of the Natural Gas Act (15 U.S.C. 717 et seq.), any company that obtains a
certificate of convenience and necessity (CCN) from FERC has the power to
condemn. The only way this arrangement can satisfy statutory requirements and the
FERC grants not only CCNs but also conditioned certificates and
limits.
necessary.
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FERC does notrequirecompaniestopostbondsorotherwisedemonstrate
those private, for-profit companies will not actually and ultimately pay
certificate program violates the Due Process Clause and Takings Clause of the Fifth
private companies far beyond what Congress ever intended and an assault on
personally. Here, the individual Plaintiffs along with members of Plaintiff BOLD
Coast Pipeline (ACP) and Mountain Valley Pipeline (MVP)that do not serve a
public use.
6. The purported public use of the ACP and MVP projects is interstate
The ACP Project does not meet this standard because it will deliver gas
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7. This lawsuit seeks a declaration that FERCs certificate program as
implemented violates the Natural Gas Act and the U.S. Constitution. It also seeks
Court to enjoin FERC from awarding any certificates under its flawed program,
including certificates for the MVP and ACP. Unless the Court grants this relief,
Plaintiffs and others similarly situated will have their statutory protections and
Fifth Amendment to the United States Constitution. It also arises under the Natural
Gas Act, 15 U.S.C. 717f(h). Accordingly, the Court has jurisdiction under 28 U.S.C.
1331. The Court also has jurisdiction under 15 U.S.C. 717u, which establishes
10. Venue is proper in the federal district court for the District of Columbia
pursuantto28U.S.C.1391(e)(1)(A)and15U.S.C.717u.DefendantFERCisanagency
of the United States and resides in this judicial district, while Mountain Valley LLC
and Atlantic Coast Pipeline LLC have submitted to the processing of its certificate
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11. The individually named landowners have standing to bring this action
subject to eminent domain once the projects are certificated. Moreover, several of the
are directly impacted by the MVP and ACP projects and have individual standing to
sue.
13. This Court can and must act now to grant the declaratory and injunctive
relief Plaintiffs seek because, without it, FERC will continue to award statutorily and
those certificates to abuse their eminent-domain power. Moreover, MVP and ACP will
continuetryingtointimidatelandownersintograntingeasementssothatthecompanies
can avoid having to demonstrate genuine public need and public use for their projects.
the MVP and ACP Projects is virtually certain and imminent. FERC has completed the
Once the 90-day deadline for receipt of federal authorizations has passed, FERC can
grant the certificates. The MVP certification can issue any time September 21, 2017,
while the ACP certificate can issue any time after October 21, 2017.
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a likelihood of approval for purposes of demonstrating aggrievement. Del. Riverkeeper
Carolina Environmental Study Group, 438 U.S. 59 (1978) (allowing declaratory relief for
potential taking).
PARTIES
I. Plaintiffs
Nebraska law and formed to educate the public about eminent domain issues,
protection of water and climate. The Bold Education Fund includes as members
domain by the MVP and ACP Projects, including some of the individually named
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values, rural heritage and the environment for all the citizens of Nelson County,
Virginia.
19. The individual landowners in this proceeding are: Carolyn Maki and
William Maki;JamesandKatherineMcLean;Louis&YvetteRavina;RichardAverittIII;
William S.MooreandCarolM.Moore(TrusteesoftheMooreRevocableTrust);Hershel
and Darlene Spears; Jonathan Ansell and Pamela Farnham; Lora and Victor Baum;
Demian K. JacksonandBridgetK.Hamre(membersofNelsonCountyCreekside,LLC);
Horizons Village Property Owners Association; Anne and Ken Norwood; Carolyn
Fischer; Pearl L. Finch; Heather Louise Finch; Wade Raymond Finch; Randy and
Kathleen Forbes; Todd Rath; W. Marvin Winstead Jr.; Susan Lazerson and Clifford
& Shahir Kassam-Adams; Robert Turner; Stephanie Barton, James A. Hardee; Hazel
and Stephen Bernard; Georgia Haverty - Doe Creek Farm; Brenda Lynn Williams;
Serena Garst, President of Occanneechi, Inc; Jerry & Jerolyn Deplazes; Newport
Quinn; Charles F. Flora and Stephanie Flora; Benny L. Huffman; Ian Elliott Reilly and
Carolyn Elizabeth Reilly and Dave J. Werner and Betty B. Werner; Mary E. and Bruce
M. Coffey; Jacqueline J. Lucki; David G. and Karen M. Yolton; Clarence B. Givens and
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Dameron; Keith Wilson; Frank and Jacqueline Biscardi; Wendell & Mary Flora;
20. All of these individual landowners own property that will be crossed by
the MVP and ACP Projects Atlantic Coast Pipeline and will be taken through eminent
been enabled by FERC, which has a practice of encouraging and rewarding pipeline
companies that acquire property before obtaining CCNs. This practice hasincentivized
MVPandACPtothreateneminentdomaintopressurelandownerstosignoverlybroad
just compensation.
21. The MVP and ACP will harm Plaintiffs health, safety, and surrounding
environment and, as a result, will decimate property values and impede economic
agency formed under 42 U.S.C. 7171. As of the date of this Complaint, the
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Attachment A to this Complaint lists each landowners address, the pipeline
that will cross their respective property and amount of property that will be impacted
by condemnation.
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23. The Commission claims authority under the Natural Gas Act to issue
gas pipelines.
liabilitycompanyorganizedandexistingunderthelawsofDelaware.MountainValley
is a joint venture between EQT Midstream Partners, LP; NextEra Energy US Gas
and Con Edison Gas Midstream. Mountain Valley was formed to develop the MVP.
for-profit limited liability company organized under the laws of Delaware with its
Dominion Resources (which has a 45% interest in the venture), Duke Energy (40%),
Piedmont Natural Gas Company (10%) and AGL Resources (5%). Atlantic Coast was
FACTUAL BACKGROUND
A. Overview
26. FERC oversees natural gas companies, which the Natural Gas Act defines
sale in interstate commerce of such gas for resale. 15 U.S.C. 717(c). FERCs
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responsibilities include rate-setting, oversight, and, critically, issuance of CCNs
While the Natural Gas Act confers eminent-domain power on pipelines operating in
in foreign commerce.
convenience and necessity under Section 7f(h) of the Natural Gas Act, the
issued by FERC serves a public use. By its own admission, however, FERC does not
consider adeterminationofpublicusetobeanecessarypartofagrantofacertificate.
memorialized FERCs process for evaluating applications for CCNs. As the Certificate
review of need is superficial at best, as FERC does not look behind precedent
agreements (See e.g., Transcontinental Gas Pipe Line Co. LLC, 157 FERC 61,095, at P. 5
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Certification of New Interstate Natural Gas Pipeline Facilities, 88 FERC 61,227 (1999),
clarified, 90 FERC 61,128, further clarified, 92 FERC 61,094(2000)(CertificatePolicy
Statement).
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(2016)) even though the Certificate Policy Statement suggests that affiliatecontractsare
grant a certificate. In no part of the review process does FERC examine whether a
31. FERC does not require applicants to post bond or to demonstrate assets
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Certificate Policy Statement at 27 (emphasis added).
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posting bond or proving adequate assets. Accordingly, landowners receive no
assurance that the private, for-profit entities condemning them will actually pay and
programs that are not expressly authorized by the Natural Gas Act.
1. Conditioned Certificates
33. Conditioned certificates are nominally issued under Section 7f(e) of the
Natural Gas Act, which grants FERC the power to attach to the issuance of the
certificate and to the exercise of the rights granted thereunder such reasonable terms
and conditions as the public convenience and necessity may require. As a matter of
that states:
In other words, FERC routinely grants certificates for projects that are not yet legally
authorizations without force or effect, (See e.g., Ruby Pipeline LLC, 133 FERC 61,015
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domain as non-conditioned certificates. FERC has, in fact, expressly refused to restrict
eminent domain powers under conditioned certificates even though they relate to
2. Blanket Certificates
35. Pipeline companies can also request blanket certificate authority. See18
C.F.R. Part 157, Subpart F. As originally conceived by FERC, the blanket certificate
program was intended to enable a natural gas company to undertake repairs and
various routine activities without the need to obtain a case-specific certificate for each
individual project.
for activities that fall well outside the definition of routine as that term is ordinarily
facilities that may extend up to fifteen miles from a certificated project, impact
previously unaffected properties, and serve entirely new purposes. When these
activities occur under a blanket certificate, they may proceed with minimal notice to
landowners and without any finding that the expansions will serve the public
convenience.
diameter pipeline in West Virginia, Virginia, and North Carolina; (2)three new
compression; and (3)other minor facilities. See ACP Application at 14-15. The ACP
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pipeline willhavenumerousdeliveryandreceiptpointstoserveshippers.Accordingto
ACPs application, the pipeline will carry up to 1.5 million dekatherms/day, bringing
gas from the Marcellus region of northern West Virginia Project to Virginia and North
Carolina.
38. As the ACP pipeline makes its way through West Virginia, Virginia, and
North Carolina, it will traverse mountainous topography and karst-ridden terrain, cut
water bodies, and adversely impact wildlife habitat and endangered species. In
addition to its substantial and devastating environmental impacts, the ACP pipeline
39. In October2015,ACPappliedtoFERCforaCCNandablanketcertificate.
for this capacity are with utility companies that are subsidiaries of the ACPs joint
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statement (DEIS). As relevant here, the DEIS urged companies to reach mutual
agreements with all landownersand ACP land agents routinely advise property
Information Act (FOIA) and FERCs Critical Energy Infrastructure Information (CEII)
rules, to obtain additional documents that would further corroborate the projects
intended use for gas exports. FERC failed to timely process their requests, which
remain pending.
42. On July 21, 2017, FERC issued a favorable Final Environmental Impact
Statement (FEIS) for the ACP Project. Given the favorable FEIS andFERCsnear-100%
and certain.
43. Likewise, it is both imminent and certain that the certificates grantedwill
the required state and federal approvals necessary for construction of the ACPProject
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were outstanding as of July 2017, and ACP had not even applied for at least 10 other
required federal and state permits. It is unlikely that these permits will issue by the
power anyway.
44. In addition to the missing federal and state permits, there are other
pending issues involving ACP and its affiliates that may affect the ACP Projects
future. For example, the Federal Trade Commission has been asked to investigate the
gas supply if the project goes through. Several similar challenges are pending before
state regulators. All these ongoing investigations and complaints have the potentialto
delay or doom the ACPbut they may not conclude before FERC issues a CCN.
45. Once FERC grants a certificate, ACP can and will initiate eminent domain
proceedings against landowners in state or federal district court under Section 7f(h) of
the Natural Gas Act, 15 U.S.C. 7f(h) seeking immediate possession of the property in
diameter pipeline in West Virginia and Virginia; (2)three new compressor stations
(3)other minor facilities. The MVP pipeline extends from an interconnection with
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Transcos Zone 5 Compressor Station 165 (which is also a gas-trading hub for the
of West Virginia and Virginia, it will cut large swaths through hundreds of acres of
forest, cross more than 1,000 bodies of water, and traverse miles of treacherous
impacts, the MVP pipeline will jeopardize the safety and economic livelihood of
landowners along its path, assaulting their statutorily and constitutionally protected
private property rights by taking hundreds of tracts of property for a private enterprise.
48. In late October 2014, MVP initiated the pre-filing application process, an
informal reviewperiodthatenablesaprojectsponsortovetitsproposal.Atthattime,
proposed pipeline.
process, MVP submitted its application under Section 7 of the Natural GasActseeking
MVP project as well as a blanket certificate. In its application, MVP declared that its
primary purpose for constructing the pipeline is to deliver shale gas to TranscoStation
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50. At or around the timeMVPfileditsApplication,itsproposedpipelinewas
fully subscribed by affiliated shippers who are either producers and marketers
51. Following the filing of its FERC Application, MVP stepped up efforts to
statement (DEIS). As relevant here, the DEIS urged companies to reach mutual
negotiatedeasementagreementswithalllandownersandMVPlandagentsroutinely
negotiated 1,250 easement agreements along the route, or roughly 70% of the acreage
required. Id.
53. The DEIS also concluded that the project would not export gas,
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one of the project shippers, to supply an Indiancompanywith430,000dt/dayofLNG
gas.
Information Act (FOIA) and FERCs Critical Energy Infrastructure Information (CEII)
rules, to obtain additional documents that would further corroborate the projects
intended use for gas exports. FERC failed to timely process their requests, which
remain pending.
the MVP Project. Given the favorable FEIS and FERCs near-100% approval record, a
grant of a certificate and a blanket certificate to MVP by the September 21, 2017 target
56. Likewise, it is both imminent and certain that the certificates granted will
state and federal approvals necessary for construction of the MVP Project were
outstanding as of June 2016 and that many of these necessary approvals will not issue
proceedings against landowners in state or federal district court under Section 7f(h) of
the Natural Gas Act, 15 U.S.C. 7f(h) seeking immediate possession of the property in
CAUSES OF ACTION
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COUNT 1: Declaratory Judgment That Certificate Holders Do Not Possess the
Power of Eminent Domain at Least Until Congress or FERC Finds That
the Takings for the Project Covered by the Certificate Is for a Public
Use.
59. The Takings Clause of the Fifth Amendment requires that takings of
60. Congress has not declared that the takings required for the MVP or ACP
projects, which give Plaintiffs standing here, are for a public use.
61. Moreover, FERC has not declared that such takings are for a public use,
and neither the Natural Gas Act nor FERC policies actually require FERC to make a
possess the power of eminent domain at least until Congress or FERC actually finds
that the takings for projects covered by a FERC certificate are for a public use.
COUNT 2: Declaratory Judgment That, Under the Natural Gas Act, FERC Cannot
Grant Certificates Whose Sole or Primary Purpose Is to BenefitForeign
Commerce.
64. Under section 717f of the Natural Gas Act, any certificate of convenience
and necessity must be for the transportation in interstate commerce of natural gas.
a State and any point outside thereof, or between points within the same State but
through any place outside thereof, but only insofar as such commerce takes place
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66. Plaintiffs seek a declaratory judgment that the Natural Gas Act does not
allow FERC to grant certificates of convenience and necessity whose sole or primary
68. Plaintiffs seek a declaratory judgment that FERC cannot grant certificates
commerce, as benefitting foreign commerce is not a valid public use under the
issuance of the certificate and to the exercise of the rights granted thereunder such
reasonable terms and conditions as the public convenience and necessity may require.
of natural-gas pipelines.
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73. FERC has an established pattern and practice of issuing certificates of
74. Even so, FERCs pattern and practice is to issue certificates of public and
convenience and necessity that allow the certificate holder to exercise the right of
eminent domain before such state and federal approvals have been granted.
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approvals violates Plaintiffs substantive rights under the Fifth Amendments Takings
Clause by authorizing takings that have not been determined to be necessary andfora
public use.
83. The two other Vesting Clauses of the Constitution vest governmental
power, respectively, in (i)the President and his or her agents or (ii)the SupremeCourt
84. MVP and ACP are private entities that are neither Congress, nor the
Presidentoroneofhisagents,northeSupremeCourtoraninferiorcourtestablishedby
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Congress.
85. Even so, MVP and ACP seek to exercise a core legislative power of
eminent domain without a specific delegation of that awesome power from the
Dept of Transp. v. Assn of Am. R.Rs., 135 S.Ct. 1225, 1252 (2015) (Thomas, J.,
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COUNT 8: Declaratory Judgment That, Under the Natural Gas Act orFERCPolicy,
Certificate Holders Do Not Possess the Power of Eminent Domain if
Their Certificates Are Conditioned on the Receipt of Federal or State
Approvals.
87. Plaintiffs incorporate the allegations in paragraphs 1 through 86.
natural-gas pipeline.
effect.
90. Plaintiffs seek a declaratory judgment that, under the Natural Gas Act or
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pursuant to one or more blanket certificates exceeds FERCs statutory authority
94. Section 717f(a) of the Natural Gas Act requires necessary expansions
necessity for all acts and operations, including the construction and operation of any
engage in the transportation or sale of natural gas, subject to the jurisdiction of the
acquire or operate any such facilities or extensions thereof, unless there isinforcewith
96. Acts and operations, including the construction and operations of any
facilities or extensions thereof, authorized under the Act are subject to the notice and
hearing requirements of section 717f(c), except that the Commission may issue
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97. PlaintiffsseekadeclarationFERCspracticeofdelegatingeminentdomain
applications.
pursuanttoblanketcertificatesviolatestheprocedural-due-processrightsofPlaintiffs
pursuanttoblanketcertificatesviolatestheprocedural-due-processrightsofPlaintiffs
and other interested parties under the Due Process Clause of the Fifth Amendment.
COUNT 13: Declaratory Judgment That FERCs Policy of Allowing The Number of
Negotiated Easements to Substitute for a Certificate Applicants
Demonstration of Public Necessity Violates the Natural Gas Act.
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103. Under the balancing test in FERCs Certificate Policy Statement, an
pipeline with impacted landowners is not required to show need, or may make a less
104. FERCs policy creates a perverse incentive for companies to use any
means necessary (including representations that they have eminent domain rights
under the Natural Gas Act) to secure negotiated easement agreements with
105. FERCs policy also encourages pipelines to lock down their preferred
106. Plaintiffs seek a declaration that FERCs policy of relying on the number
support of their application that is also relevant to the projects public use and
necessity. Withoutthisinformation,landownersareunabletoeffectivelychallengethe
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109. Plaintiffs have requested from FERC the confidential and privileged
materials filed by MVP and ACP, but these documents have not been disclosed.
need.
112. Plaintiffs seek a declaratory judgment that FERCs has failed to condition
114. Plaintiffs seek a declaratory judgment that FERCs has failed to condition
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constitutional separation-of-powers principles, including the private nondelegation
doctrine.
116. The Natural Gas Act does not contain any provisions allowing for the
quick take of private property, nor has Congress specifically delegating quick-take
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constitutional separation-of-powers principles, including the private nondelegation
doctrine.
C. in the alternative,aninjunctionpreventingFERCfromconferringeminent
domain authority to MVP and/or ACP if it grants MVP and/or ACP a certificate of
ACPs plans to transport gas for export and other issues relevant to Plaintiffs claims;
G. attorneys fees, other costs and such other relief as the Court deems
Respectfully submitted,
Carolyn Elefant
_______________________________
Carolyn Elefant D.C. Bar #265433
Law Offices of Carolyn Elefant PLLC
2200 Pennsylvania Avenue, 4th Flr. E
30
Washington D.C. 20037
202-297-6100
carolyn@carolynelefant.com
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