PennEast Pipeline Property Taking Ruling Reversed
Agreeing with New Jersey’s arguments, the Third Circuit held that, under the Eleventh Amendment of the U.S. Constitution, the state is immune from condemnation lawsuits by private parties, including pipeline companies.
TRENTON, NJ— New Jersey Attorney General Gurbir S. Grewal announced on Tuesday that the United States Court of Appeals for the Third Circuit issued a ruling that prevents PennEast from condemning state-owned lands for its planned 116-mile natural gas pipeline that would run from Pennsylvania into New Jersey.
The appeals court decision reverses an earlier district court ruling that had allowed PennEast to condemn approximately 40 parcels previously and permanently preserved for recreational, conservation and/or agricultural uses through state tax dollars.
Agreeing with New Jersey’s arguments, the Third Circuit held that, under the Eleventh Amendment of the U.S. Constitution, the state is immune from condemnation lawsuits by private parties, including pipeline companies. Under the legal doctrine of sovereign immunity, the state cannot be sued by a private entity without its consent, the New Jersey Attorney General’s office states.
“We will not hesitate to stand up to private companies when their actions violate the law—or, in this case, the U.S. Constitution,” says New Jersey Attorney General Grewal. “From the very beginning, we have made clear that the Eleventh Amendment prohibits private pipeline companies like PennEast from condemning state properties for private use, and we’re pleased that the Third Circuit agreed with our position. This is great news for New Jersey and the environment.”
In issuing its ruling, the Third Circuit held that the federal Natural Gas Act, which PennEast argued allowed it to condemn all needed properties along the path of its proposed pipeline, does not overcome New Jersey’s sovereign immunity under the Constitution.
“PennEast remains committed to moving forward with the PennEast Pipeline Project to provide New Jersey and Pennsylvania residents and businesses increased access to clean, affordable natural gas,” said PennEast spokesperson Pat Kornick in a statement released to NPR.
In December, 2018, The United States District Court for the District of New Jersey ruled that as a pipeline project deemed by federal regulators to be in the public need and benefit, the PennEast Pipeline Company LLC could be granted access to properties it requires in New Jersey in order to perform surveys.
That ruling followed a similar ruling by Judge Malachy E. Mannion from the United States District Court for the Middle District of Pennsylvania. Judge Mannion’s ruling also provided PennEast with the ability access the last property that had not been surveyed in Pennsylvania.