Environmental -- 2019



In re: PennEast Pipeline Company LLC   (3rd Circuit)

State interference with energy development

The NAM filed an amicus brief to oppose New Jersey’s efforts to stop construction of a major new proposed natural gas pipeline to deliver natural gas from Pennsylvania to the eastern United States. The proposed PennEast Pipeline is natural gas transmission pipeline to bring abundant and low-cost natural gas from northeastern Pennsylvania to manufacturers, power generators, and other customers in New Jersey and throughout the eastern United States. The state of New Jersey resisted the pipeline's exercise of eminent domain under the federal Natural Gas Act, arguing that the 11th Amendment to the U.S. Constitution prohibits federal courts from effectuating the eminent domain over lands in which the state has a property interest (such as a conservation easement). If New Jersey's argument prevails, it would give that state and others a unilateral veto over federally approved natural gas transmission pipelines. Those vetoes would restrict future pipeline infrastructure development, leading to lower availability of natural gas and increased costs to manufacturers for natural gas, electricity, and other products derived from natural gas. The NAM's amicus brief explains the practical implications of New Jersey's argument and argues why the 11th Amendment does not support the state's interpretation. In a troubling decision for manufacturers, the Third Circuit on September 10, 2019, held that New Jersey's sovereign immunity bars eminent domain proceedings against New Jersey under the Natural Gas Act. On October 29, 2019, our coalition petitioned the court for rehearing and rehearing en banc, in which we highlighted the 3rd Circuit's significant disruption of new energy infrastructure development and why the full 3rd Circuit court should hear the case en banc. Unfortunately, the court denied en banc review.


Related Documents:
NAM brief  (October 29, 2019)
NAM brief  (May 15, 2019)