Supreme Court Lets PennEast Pipeline Sue for Land Rights (Eminent Domain)
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Source: Bloomberg Law
The U.S. Supreme Court ruled that PennEast Pipeline Co. can sue New Jersey to secure key land-use rights for its 116-mile natural-gas project in a decision that gives the industry new leverage in dealings with state officials.
The justices, voting 5-4, said New Jersey wasn’t protected by sovereign immunity given the federal approval for the PennEast project.
The ruling is a boost for a pipeline that would carry as much as 1 billion cubic feet of natural gas per day from northern Pennsylvania to New Jersey. PennEast, a joint venture of five companies including Southern Co. and Enbridge Inc., still must secure state-level permits, according to Bloomberg Intelligence analyst Brandon Barnes.
At issue at the Supreme Court was a provision in the U.S. Natural Gas Act that lets pipeline companies use the federal government’s eminent domain power. After the Federal Energy Regulatory Commission approved the pipeline in 2018, PennEast sued to gain access to more than 40 parcels that are either owned or partially controlled by New Jersey.
From Scotusblog: https://www.scotusblog.com/case-files/cases/penneast-pipeline-co-v-new-jersey/
Holding: A certificate of public convenience and necessity issued by the Federal Energy Regulatory Commission pursuant to Section 717f(h) of the Natural Gas Act authorizes a private company to condemn all necessary rights-of-way, whether owned by private parties or states.
Read more: https://news.bloomberglaw.com/us-law-week/supreme-court-clears-penneast-pipeline-to-sue-for-land-rights
Weird lineup of Judges on this one as well.
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