Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 1 of 7 PageID #: 533 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA BECKLEY DIVISION MOUNTAIN VALLEY PIPELINE, LLC, Plaintiffs, CIVIL ACTION NO. 5:15-cv-03858 v. KENNETH DOSIER, et al., Defendant. MEMORANDUM IN SUPPORT OF MOTION TO CERTIFY QUESTION TO WEST VIRGINIA SUPREME COURT OF APPEALS INTRODUCTION Certain Defendants (hereinafter, “Defendants”) identified below submit this Memorandum in Support of their Motion to Certify Question to the West Virginia Supreme Court of Appeals. This memorandum and the motion that it supports are filed on behalf of the following Defendants: Michael Losch, Charles F. Chong, Rebecca A. Chong, Wilda Judy, Melissa Howard, W. Nathaniel Bernhart, Marietta Lyall (Clendenen), Sara L. Alm, Harold Bostic, Leressa Bostic, Woodrow Estep, Randy L. Stone, Jr., Kimberly Stone, Donna Huffman, Suzanne Fry (Soucier), Harold Butler, Dale L. McMillion, Alicia McMillion, D. Lane McMillion, Roger A. Flanagan, Betty J. Flanagan, Margaret Ann Burkhardt, Phillip Harrah, Tammy A. Capaldo, Steve Ballard, Cathy Ballard, Clarence A. Thomas, Joyce L. Thomas, and Anthony M. Carter. W. Va. Code § 51-1A-3 provides that [t]he supreme court of appeals of West Virginia may answer a question of law certified to it by any court of the United States . . . if the answer may be determinative of an issue in a pending cause in the certifying court and if there is no controlling appellate decision, constitutional provision or statute of this state. Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 2 of 7 PageID #: 534 Defendants submit that the following question of law is determinative of the question whether Plaintiff has a statutory right to enter Defendants’ properties to conduct surveys related to its proposed natural gas pipeline: Whether, under West Virginia Code § 54-1-1 et seq., a proposed natural gas pipeline is “for public use,” as that term is used in W. Va. Code § 54-1-2(a)(3), when consumers of natural gas in West Virginia will not be served with gas from that pipeline, under reasonable and proper regulations, along the entire line traversed, and for reasonable fixed rates. As explained below, that determinative question is appropriate for certification because no controlling appellate decision, constitutional provision, or statute may apply. FACTUAL BACKGROUND Plaintiff, a Delaware limited liability company whose principal office is in Pennsylvania, intends to construct a 300-mile long, 42-inch diameter natural gas pipeline across Defendants’ property. CM/ECF # 1 at ¶¶ 2, 78, & 81. Plaintiff sought permission from Defendants to enter their properties to survey the proposed pipeline route across the property, but Defendants declined to allow Plaintiff to enter their private properties. Id. at ¶ 81. ARGUMENT Chapter 54 of the West Virginia Code governs eminent domain. Its provisions must be strictly construed, however, because eminent domain, when granted, deprives West Virginians of their fundamental rights in private property. State ex rel. Firestone Tire & Rubber Co. v. Ritchie, 153 W. Va. 132, 138 (1969); State, by State Road Commission v. Bouchelle, 137 W. Va. 572, 576 (1952); City of Mullens v. Union Power Co., 122 W. Va. 179, 7 S.E.2d 870, 871 (1940); Fork Ridge Baptist Cemetery Ass’n v. Redd, 33 W. Va. 262, 10 S.E. 405, 407 (1889); Adams v. Trustees of Town of Clarksburg, 23 W. Va. 203 (1883). W. Va. Code § 54-1-3 provides that 2 Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 3 of 7 PageID #: 535 any incorporated company . . . invested with the power of eminent domain under [Chapter 54 of the West Virginia Code], by its officers, servants and agents may enter upon lands for the purpose of examining the same, surveying and laying out the lands, ways and easements which it desires to appropriate, provided no injury be done to the owner or possessor of the land; but no company or body politic, under the authority of this section, shall throw open fences or inclosures on any land, or construct its works through or upon the same, or in anywise injure the property of the owner or possessor, without his consent, until it shall have obtained the right so to do in the manner provided in this chapter. That extraordinary right of entry established by that section is strictly limited, however, to entities invested with the power of eminent domain by the West Virginia Legislature. W. Va. Code § 54-1-1 makes that authority available to certain governmental and corporate bodies, but such entities must be organized for a “purpose of internal improvement for which private property may be taken or damaged for public use as authorized in section two of this article.” Section 2(a)(3) of Article 1 of Chapter 54 of the West Virginia Code provides that “public uses for which private property may be taken or damaged” include [f]or constructing, maintaining and operating pipelines, plants, systems and storage facilities for manufacturing gas and for transporting petroleum oil, natural gas, manufactured gas, and all mixtures and combinations thereof, by means of pipes, pressure stations or otherwise . . . when for public use, the extent of the area to be acquired for such purpose to be determined by the court on the basis of reasonable need therefor. W. Va. Code § 54-1-2(a)(3) (emphasis added). Corporations may exercise the right of eminent domain under that section only when they are transporting natural gas “for public use.” Id. Consequently, the determinative question in this action is whether Plaintiff’s proposed pipeline is “for public use” as that term is used in W. Va. Code § 54-1-2(a)(3). That question is purely one of state law. As Defendants argue in their memorandum in support of their Motion to Dismiss Pursuant to FRCP 12(b)(6), the West Virginia Supreme Court of Appeals has held that, to be “for public use,” natural gas pipelines must provide certain and definite rights of access to natural gas to West Virginians along the entire route of the pipeline for reasonable and fixed 3 Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 4 of 7 PageID #: 536 rates. United Fuel Gas Co. v. Public Serv. Comm’n, 95 W. Va. 415, 121 S.E. 281, 283 (1924); Carnegie Natural Gas Co. v. Swiger, 72 W. Va. 557, 79 S.E. 3, 9 (1913); Hardman v. Cabot, 60 W. Va. 664, 55 S.E. 756, 759 (1906); Charleston Natural Gas Co. v. Low, 52 W. Va. 662, 44 S.E. 410, 414 (1901); Varner v. Martin, 21 W. Va. 534, 1883 WL 3202 at *15 (1883). Plaintiff does not, and cannot, allege that its proposed pipeline would provide such access to West Virginia consumers. Consequently, the proposed pipeline is not for public use. If for any reason the Court were to conclude that the above cited precedent does not control this action, then there would be no controlling appellate decisions on point, making certification to the West Virginia Supreme Court of Appeals appropriate under W. Va. Code § 51-1A-3. Moreover, there are no controlling constitutional provisions or statutes. Although the proposed certified question is one of statutory interpretation, that does not render it inappropriate for certification. The West Virginia Supreme Court of Appeals regularly addresses certified questions that involve statutory construction. See, e.g., Harper v. Jackson Hewitt, Inc., 227 W. Va. 142, 147 (2010) (responding to certified question requiring interpretation of W. Va. Code §§ 46A-6C-1(1) & 46A-6C-2(a)); L.H. Jones Equipment Co. v. Swenson Spreader LLC, 224 W. Va. 570 (2009) (responding to certified question requiring construction of West Virginia Farm Equipment Dealer Contract Act); Taylor v. Nationwide Mut. Ins. Co., 214 W. Va. 324 (2003) (responding to certified question requiring construction of West Virginia Unfair Trade Practices Act). The West Virginia statute governing certified questions is the Uniform Certification of Questions of Law Act. W. Va. Code § 51-1A-13. The West Virginia statute expressly provides that “[t]his article shall be construed as to effectuate its general purpose to make uniform the law of those jurisdictions which enact it.” Id. § 51-1A-12. Accordingly, interpretation of the West 4 Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 5 of 7 PageID #: 537 Virginia certified question statute should conform to the application of the similar statutes in other states that have adopted the Uniform Certification of Questions of Law Act. Connecticut is one such state. C.G.S.A. § 51-199a. Interpreting Connecticut’s certified question statute, the United States Court of Appeals for the Second Circuit has concluded that, although a federal court “may ordinarily interpret ambiguous state statutes using the normal rules of statutory interpretation, even in the absence of controlling state authority,” statutory construction questions should be certified if other “factors strongly suggest that we defer to the [state] Supreme Court.” Sealed v. Sealed, 332 F.3d 51, 59 (2d Cir. 2003). One such factor is whether the state has a “compelling interest” in the issue presented by the case. Id. Here, West Virginia has a compelling interest in the question presented by this case because it involves the exercise of the extraordinary state power of eminent domain. That power is “in derogation of the rights of the citizen,” and, therefore, the West Virginia Supreme Court of Appeals has held that “such power must be strictly construed for the protection of the private rights of the citizen.” McConiha v. Guthrie, 21 W. Va. 134, 1882 WL 3554 at *8 (1882). Consequently, West Virginia has a compelling interest in ensuring that its statutes governing the power of eminent domain are properly construed. That is particularly true as the question presented in this case will likely rear its head again in the future regarding additional proposed natural gas pipelines in West Virginia. Sealed, 332 F.3d at 59 (“Where a question of statutory interpretation implicates the weighing of policy concerns, principles of comity and federalism strongly support certification.”). As a result, the question of what the term “for public use” means in W. Va. Code § 54-1-2(a)(3) should be certified to the West Virginia Supreme Court of Appeals under W. Va. Code § 51-1A-3. CONCLUSION 5 Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 6 of 7 PageID #: 538 For the foregoing reasons, Defendants respectfully request that, if the Court determines that it has subject matter jurisdiction over this case, the Court certify the question presented by this action to the West Virginia Supreme Court of Appeals. Respectfully submitted, /s/ Derek O. Teaney DEREK O. TEANEY (WVSB # 10223) ISAK HOWELL (WVSB # 11558) Appalachian Mountain Advocates P.O. Box 507 Lewisburg, WV 24901 Telephone: (304) 793-9007 Fax: (304) 645-9008 E-mail: dteaney@appalmad.org Counsel for Defendants Michael Losch, Charles F. Chong, Rebecca A. Chong, Wilda Judy, Melissa Howard, W. Nathaniel Bernhart, Marietta Lyall (Clendenen), Sara L. Alm, Harold Bostic, Leressa Bostic, Woodrow Estep, Randy L. Stone, Jr., Kimberly Stone, Donna Huffman, Suzanne Fry (Soucier), Harold Butler, Dale L. McMillion, Alicia McMillion, D. Lane McMillion, Roger A. Flanagan, Betty J. Flanagan, Margaret Ann Burkhardt, Phillip Harrah, Tammy A. Capaldo, Steve Ballard, Cathy Ballard, Clarence A. Thomas, Joyce L. Thomas, and Anthony M. Carter 6 Case 5:15-cv-03858 Document 57 Filed 05/22/15 Page 7 of 7 PageID #: 539 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA BECKLEY DIVISION MOUNTAIN VALLEY PIPELINE, LLC, Plaintiffs, CIVIL ACTION NO. 5:15-cv-03858 v. KENNETH DOSIER, et al., Defendant. CERTIFICATE OF SERVICE I, Derek O. Teaney, do hereby certify that, on May 22, 2015, I electronically filed the foregoing document with the Clerk of the Court using the ECF system, which will send notification of such filing to the following ECF participants: Stephen F. Gandee E. Ryan Kennedy Robinson & McElwee, PLLC P.O. Box 128 140 West Main Street, Suite 300 Clarksburg, WV 26302-0128 Counsel for Defendant Charles S. Piccirillo Kenneth B. Adkins Shaffer & Shaffer PLLC P.O. Box 38 Madison, WV 25130-0038 Counsel for Defendant Respectfully submitted, /s/ Derek O. Teaney DEREK O. TEANEY (WVSB # 10223) Appalachian Mountain Advocates P.O. Box 507 Lewisburg, WV 24901 Telephone: (304) 793-9007 Fax: (304) 645-9008 E-mail: dteaney@appalmad.org 7