Opinion

Columbia Gas Transmission, LLC v. .12 Acres of Land, More or Less, in Washington County, Maryland, State of Maryland, Department of Natural Resources

Court
District Court, D. Maryland
Filed
Dec 16, 2022
Cited by
0 cases
Authority
More cited than 23.1%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MARYLAND

COLUMBIA GAS TRANSMISSION, *

LLC,

*

Plaintiff,

* Civil Action No. GLR-19-1444

v.

*

0.12 ACRES OF LAND, MORE OR

LESS, IN WASHINGTON COUNTY, *

MARYLAND, et al.,

*

Defendants.

***

MEMORANDUM OPINION

THIS MATTER is before the Court on Defendant State of Maryland, Department

of Natural Resources’ (“MDNR”) Renewed Motion to Dismiss (ECF No. 63). The Motion

is ripe for disposition, and no hearing is necessary. See Local Rule 105.6 (D.Md. 2021).

For the reasons set forth below, the Court will deny Defendant’s Motion.

I. BACKGROUND1

On July 19, 2018, the Federal Energy Regulatory Commission (“FERC”) granted

Plaintiff Columbia Gas Transmission, LLC (“Columbia Gas”) a certificate of public

convenience and necessity (“the Certificate”) to construct and operate a gas pipeline, part

of which would run through Washington County, Maryland. (Compl. ¶¶ 7–8, ECF No. 1).

“The Natural Gas Act [“NGA”] expressly permits a holder of a Certificate to acquire the

1 Unless otherwise noted, the Court takes the following facts from Columbia Gas’s

Complaint (ECF No. 1) and accepts them as true. See Erickson v. Pardus, 551 U.S. 89, 94

(2007).

necessary land and rights ‘by the exercise of the right of eminent domain’ if it is unable to

reach an agreement with the landowner.’” (Id. ¶ 25 (quoting 15 U.S.C. § 717f(h)). MDNR

is the record title holder of the land that Columbia Gas seeks to access in Washington

County (“Tract No. 1”). (Id. ¶ 30). Columbia Gas began its easement-acquisition efforts in

2016, and after negotiations, offered MDNR consideration for the easement in the amount

of $5,000.00. (Id. ¶¶ 15, 18). Conveyance of the easement required approval by the

Maryland Board of Public Works (“BPW”). (Id. ¶ 20). On January 2, 2019, BPW denied

Columbia Gas’s easement application. (Id.). Thereafter, Columbia Gas sought to condemn

the easement by authority of the Certificate and under § 717f(h) of the NGA. (Id.).

On May 16, 2019, Columbia Gas filed its Complaint in Condemnation (ECF No. 1)

and a Motion for an Order of Condemnation and for Preliminary Injunction (ECF No. 2).

On June 17, 2019, MDNR opposed preliminary injunctive relief (ECF No. 30) and filed a

Motion to Dismiss for Lack of Jurisdiction, arguing that its sovereign immunity, although

waivable, had not been waived. (Mot. Dismiss at 1, ECF No. 29). Columbia Gas filed its

Response on July 8, 2019. (ECF No. 38). The Court heard oral arguments on August 13,

2019 and August 21, 2019. (ECF Nos. 41, 45).

On August 21, 2019, the Court issued a ruling from the bench denying the

preliminary injunction and dismissing the Complaint. (ECF No. 46). The Court explained:

[A]lthough the Natural Gas Act certainly does grant [Columbia

Gas] the power of eminent domain to condemn land . . . the

Natural Gas Act does not abrogate state sovereign immunity or

delegate the United States’ state sovereign exemption to permit

Columbia [Gas] to sue the State of Maryland for an order of

condemnation without Maryland’s consent.

(Aug. 21, 2019 Tr. at 2:22–3:4, ECF No. 47). The Court determined that Columbia Gas

failed to establish “three of the four mandatory requirements for obtaining preliminary

injunctive relief, most notably, a likelihood of success on the merits simply because the

Eleventh Amendment precludes [MDNR] from being sued by Columbia [Gas] as a private

party.” (Id. at 3:5–9). Thus, the Court dismissed the case and denied MDNR’s Motion to

Dismiss as moot. (Id. at 19). Columbia Gas appealed on September 20, 2019. (ECF No.

48).

On June 21, 2021, the Supreme Court decided PennEast Pipeline Co. v. New Jersey.

141 S.Ct. 2244 (2021). In PennEast, the Court held that “the Federal Government can

constitutionally confer on pipeline companies the authority to condemn necessary rights-

of-way in which a State has an interest.” Id. at 2251. Following the PennEast decision, the

Fourth Circuit Court of Appeals remanded the case to this Court. (ECF No. 52). The Fourth

Circuit further denied Columbia Gas’s Motion for Summary Reversal and vacated this

Court’s August 21, 2019 Order, directing the Court to engage in “further consideration[s]

in light of PennEast.” (4th Cir. Order at 2, ECF No. 52).

On July 29, 2022, MDNR filed a Renewed Motion to Dismiss for Lack of

Jurisdiction under Federal Rule of Civil Procedure 12(b)(1). (Def.’s Mot. Dismiss [“Mot.”]

at 1, ECF No. 63). Columbia Gas filed its Opposition on August 29, 2022, (ECF No. 66),

and MDNR filed its Reply on September 26, 2022 (ECF No. 69).

II. DISCUSSION

A. Standard of Review

Federal Rule of Civil Procedure 12(b)(1) requires a plaintiff to establish the Court’s

subject-matter jurisdiction by showing the existence of either a federal question under 28

U.S.C. § 1331 or diversity jurisdiction under 28 U.S.C. § 1332. A plaintiff may establish

federal question jurisdiction by asserting a claim that arises from a federal statute or from

the U.S. Constitution. Fed.R.Civ.P. 12(b)(1). To show that the claim arises on one of these

bases, the federal question must appear “on the face of the plaintiff’s properly pleaded

complaint.” AES Sparrows Point LNG, LLC v. Smith, 470 F.Supp.2d 586, 592 (D.Md.

2007) (quoting Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987)). However, when a

party challenges subject-matter jurisdiction, the Court may consider “evidence outside the

pleadings” to resolve the challenge. Richmond, Fredericksburg & Potomac R. Co. v.

United States, 945 F.2d 765, 768 (4th Cir. 1991).

A defendant challenging a complaint under Rule 12(b)(1) may advance a “facial

challenge, asserting that the allegations in the complaint are insufficient to establish subject

matter jurisdiction, or a factual challenge, asserting ‘that the jurisdictional allegations of

the complaint [are] not true.’” Hasley v. Ward Mfg., LLC, No. RDB-13-1607, 2014 WL

3368050, at *1 (D.Md. July 8, 2014) (alteration in original) (quoting Kerns v. United

States, 585 F.3d 187, 192 (4th Cir. 2009)). When a defendant raises a facial challenge, the

Court affords the plaintiff “the same procedural protection as he would receive under a

Rule 12(b)(6) consideration.” Kerns, 585 F.3d at 192 (quoting Adams v. Bain, 697 F.2d

1213, 1219 (4th Cir. 1982)). As such, the Court takes the facts alleged in the complaint as

true and denies the motion if the complaint alleges sufficient facts to invoke subject-matter

jurisdiction.

The Court may determine on its own initiative that it lacks subject-matter

jurisdiction, regardless of whether a party to the case has raised this claim. Arbaugh v. Y

& H Corp., 546 U.S. 500, 506 (2006); see also Fed.R.Civ.P. 12(h)(3). “Whenever it appears

by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject

matter, the court shall dismiss the action.” Arbaugh, 546 U.S. at 506 (quoting Kontrick v.

Ryan, 540 U.S. 443, 455 (2004)). The Court “ha[s] an independent obligation to determine

whether subject-matter jurisdiction exists, even in the absence of a challenge from any

party.” Id. at 501, 514. When the Court establishes that it does not have subject-matter

jurisdiction, it “must dismiss the complaint in its entirety.” Id. at 514.

B. PennEast Pipeline Co. v. New Jersey

In PennEast, Plaintiff PennEast Pipeline Company sought an order for

condemnation and a preliminary injunction for immediate access to property owned by the

State of New Jersey. See 141 S.Ct. at 2251. The Supreme Court held that the Federal

Government constitutionally conferred on pipeline companies the authority to condemn

rights-of-way in which States have an interest in the NGA. Id. The Court determined that

“[a]lthough nonconsenting States are generally immune from suit, they surrendered their

immunity from the exercise of the federal eminent domain power when they ratified the

Constitution.” Id. at 2251–52. Thus, “the Natural Gas Act delegates the federal eminent

domain power to private parties,” allowing “those parties [to] initiate condemnation

proceedings, including against state-owned property.” Id. at 2252. The Court further

reasoned that precluding Federal Government delegatees from bringing condemnation

proceedings “would violate the basic principle that a State may not diminish the eminent

domain authority of the federal sovereign.” Id. at 2260. Thus, a court may not “divorce the

eminent domain power from the power to bring condemnation actions.” Id.

In coming this conclusion, the Court emphasized the long history of eminent domain

power:

[T]he Framers . . . sought to create a cohesive national

sovereign in response to the failings of the Articles of

Confederation. Over the course of the Nation’s history, the

Federal Government and its delegatees have exercised the

eminent domain power to give effect to that vision, connecting

our country through turnpikes, bridges, and railroads—and

more recently through pipelines, telecommunications

infrastructure, and electric transmission facilities. And we have

repeatedly upheld these exercises of the federal eminent

domain power—whether by the Government or a private

corporation, whether through an upfront taking or a direct

condemnation proceeding, and whether against private

property or state-owned land. The NGA fits well within this

tradition.

Id. at 2263.

The Court further addressed New Jersey’s argument that despite the established

eminent domain power in the NGA, it was immune from suit due to sovereign immunity:

States’ immunity from suit is a fundamental aspect of the

sovereignty which the States enjoyed before the ratification of

the Constitution . . . Under our precedents, a State may be

subject to suit only in limited circumstances. A State may of

course consent to suit . . . and Congress may also abrogate state

sovereign immunity under the Fourteenth Amendment.

Furthermore, a State may be sued if it has agreed to suit in the

“plan of the Convention,” which is shorthand for the structure

of the original Constitution itself. The “plan of the convention”

includes certain waivers of sovereign immunity to which all

States implicitly consented at the founding. We have

recognized such waivers in the context of bankruptcy

proceedings, suits by other States, and suits by the Federal

Government.

Id. at 2258 (cleaned up). The Court found that the third exception to States’ immunity

applied in this instance−the States had implicitly agreed to condemnation suits when they

ratified the Constitution. Id. at 2251−52.

Justice Gorsuch dissented and argued that even if States consented to condemnation

proceedings in the plan of the Convention, “the Eleventh Amendment nonetheless divests

federal courts of subject-matter jurisdiction over a suit filed against a State by a diverse

plaintiff.” Id. at 2262. He posited that “States have two distinct federal-law immunities

from suit.” Id. at 2264 (Gorsuch, J., dissenting). The first is “structural immunity” which

is “derive[d] from the structure of the Constitution” and the ratification of the Convention.

Id. Justice Gorsuch agreed with the majority that this immunity is waivable. Id. The second

form of state immunity is “textual immunity,” also known as Eleventh Amendment

immunity, which is “derive[d] from the text of the Eleventh Amendment.” Id. The Eleventh

Amendment provides that “[t]he Judicial power of the United States shall not be construed

to extend to any suit in law or equity, commenced or prosecuted against one of the United

States by Citizens of another State, or by Citizens or Subjects of any Foreign State.” Id.

(quoting U.S. Const. amend. XI). Justice Gorsuch argued that the majority failed to answer

whether Eleventh Amendment immunity is waivable when a federal suit is commenced

against a State by a citizen of another State. Id. at 2264–65. He further argued that the

Eleventh Amendment constitutes an “ironclad rule for a particular category of diversity

suits” where immunity is not waivable because the Amendment’s plain language mandates

that federal courts “shall not” hear suits that fall within its parameters. Id. Because the

circumstances of PennEast presented “‘the rare scenario’ that comes within the Eleventh

Amendment’s text,” New Jersey and other states sued by a diverse plaintiff should be

immune from suit. Id. at 2265. Justice Gorsuch concluded by stating that “lower

courts . . . have an obligation to consider this issue on remand before proceeding to the

merits.” Id.

The majority opinion briefly addressed Justice Gorsuch’s argument. It stated that

despite the Eleventh Amendment’s language, “States retain their immunity from suit

regardless of the citizenship of the plaintiff” and “we have understood the Eleventh

Amendment to stand not so much for what it says, but for the presupposition of our

constitutional structure which it confirms.” Id. at 2258 (majority opinion). The Court

further reasoned that:

Under our precedents that no party asks us to reconsider here,

we have understood the Eleventh Amendment to confer a

personal privilege which a State may waive at pleasure. When

a State waives its immunity and consents to suit in federal

court, the Eleventh Amendment does not bar the action. Such

consent may, as here, be inherent in the constitutional plan.

Id. at 2262 (cleaned up).

C. Analysis

In its Motion to Dismiss, MDNR primarily relies on Justice Gorsuch’s dissent in

PennEast. It argues that the Eleventh Amendment’s textual immunity may not be waived

by the States, and thus, this Court does not have subject matter jurisdiction to hear this

case. (Mot. at 7). MDNR further argues that the majority in PennEast “signaled its openness

to reconsidering” cases which have held that States may waive the Eleventh Amendment’s

conferral of privilege. (Id. at 11). The Court did this, according to MDNR, by adding the

qualification that “no party asks us to reconsider [those cases] here,” rather than

conclusively foreclosing Justice Gorsuch’s suggestion that textual immunity is not

waivable. (Id. at 12 (quoting PennEast, 141 S.Ct. at 2262 (emphasis added))). Thus, MDNR

argues that this Court may consider and grant its Renewed Motion to Dismiss because the

State is entitled to textual immunity. (Id.). MDNR acknowledges that “[o]f course, this

Court is not free to overrule or disregard decisions of the Supreme Court” and recognizes

“that some of its arguments here may ultimately be better suited for Supreme Court

review.” (Id. at 13 n.5).

Columbia Gas counters that MDNR’s Eleventh Amendment argument is foreclosed

by PennEast and other Supreme Court precedents. (Pl.’s Resp. Opp’n [“Opp’n”] at 1, ECF

No. 66). At bottom, the Court agrees with Colombia Gas and will deny MDNR’s Renewed

Motion to Dismiss.

This Court interprets the Supreme Court’s opinion in PennEast as explicitly holding

that Federal Government delegatees have federal eminent domain power to “initiate

condemnation proceedings, including against state-owned property.” See 141 S.Ct. at

2252. It is undisputed that FERC has granted Columbia Gas a certificate of public

convenience and necessity, thus delegating federal eminent domain power to Columbia

Gas. (See Compl. ¶¶ 7, 8, 11–13, 25; Mot. at 1–2). Further, MDNR is the record title holder

for Tract No. 1. (Mot. at 2). Thus, as a Federal Government delegatee, Columbia Gas has

federal eminent domain power to initiate condemnation proceedings against the property

owned by MDNR. PennEast, 141 S.Ct. at 2252.

If this Court were to hold that it lacked subject matter jurisdiction to hear this case,

it would be “divorc[ing] the eminent domain power from the power to bring condemnation

actions.” Id. at 2260. The Supreme Court stated that such a ruling “would violate the basic

principle that a State may not diminish the eminent domain authority of the federal

sovereign.” Id. Thus, the Court has subject matter jurisdiction to hear Colombia Gas’s suit

for condemnation.

Further, the Court is not persuaded by MDNR’s argument that the Supreme Court

is open to reconsidering cases holding that Eleventh Amendment immunity is waivable.

(Mot. at 6–7); see also PennEast, 141 S.Ct. at 2265 (Gorsuch, J., dissenting). The Supreme

Court clearly stated that the Eleventh Amendment confers a waivable privilege, and the

consent to waive this privilege “may, as here, be ‘inherent in the constitutional plan.’”

PennEast, 141 S.Ct. at 2262 (majority opinion) (quoting McKesson Corp. v. Div. Alcoholic

Beverages and Tobacco, 496 U.S. 18, 30 (1990)). The Court interprets this statement as an

express rejection of the MDNR’s arguments. The majority considered Justice Gorsuch’s

argument that the Eleventh Amendment “divests federal courts of subject-matter

jurisdiction over a suit filed against a State by a diverse plaintiff” and reaffirmed that the

States waived their Eleventh Amendment immunity at the ratification of the Constitution.

Id. Thus, this Court may entertain federal-court condemnation suits commenced against a

State by a citizen of another State.

This Court will not attempt to determine whether the Supreme Court’s holding

applies only to structural immunity rather than textual immunity. The Supreme Court did

not make such a distinction, and this Court will “simply apply the[] commands” of the

Supreme Court. See Payne v. Taslimi, 998 F.3d 648, 654 (4th Cir. 2021). The Court’s

dictate was clear: a court must not “divorce the eminent domain power from the power to

bring condemnation actions.” PennEast, 141 S.Ct. at 2260. Columbia Gas correctly argues

that MDNR’s textual immunity theory, and the sources that support it, may not “properly

suggest to this [Court] what it must do on remand,” as that is “exclusively the province of

the majority of Supreme Court Justices who have written for the Court.” (Opp’n at 9). If

this Court were to grant the Motion, it would ignore the essential holding in PennEast by

allowing MDNR to separate Columbia Gas’ eminent domain power from its condemnation

authority. The Supreme Court expressly decided that this is something “[a] State may not

do.” PennEast, 141 S.Ct. at 2247. Indeed, MDNR acknowledged that “this Court is not free

to overrule or disregard decisions of the Supreme Court.” (Mot. at 13 n.5). Accordingly,

the Court finds that it must adhere to the precedent established in PennEast and deny

MDNR’s Renewed Motion to Dismiss.

III. CONCLUSION

For the foregoing reasons, the Court will deny Defendant MDNR’s Renewed

Motion to Dismiss (ECF No. 63). A separate Order follows.

Entered this 16th day of December, 2022.

/s/ .

George L. Russell, III

United States District Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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