PennEast wins in federal court, can start taking N.J. land for pipeline

A federal judge in New Jersey on Friday ruled a natural gas pipeline company may continue taking property and compensating landowners as part of the roughly $1.1 billion project.

U.S. District Judge Brian Martinotti said PennEast may begin taking immediate possession of properties in New Jersey along the roughly 120-mile proposed pipeline that would pass through Northampton County on its way from Luzerne County to Mercer County in New Jersey.

The ruling is a blow to towns, landowners, the state and environmental groups, who sought to stop PennEast’s use of eminent domain.

In the 50-page ruling, Martinotti rejected landowners’ arguments that a federal certificate issued in January approving the pipeline is not final, and he said PennEast is entitled to condemnation rights.

PennEast still needs permits from the Delaware River Basin Commission, U.S. Army Corps of Engineers and New Jersey Department of Environmental Protection before construction can begin.

But the pipeline can start taking properties before getting the permits, said Timothy Duggan, an attorney with Stark & Stark who is representing several nonprofits, government entities and about 40 New Jersey property owners in the fight against PennEast.

“If you go to sell your house, you will have to disclose that there is an easement on your property for a pipeline that may or may not be built,” Duggan said.

Such an easement could also affect home construction projects, such as when a property owner wants to build an addition or needs to relocate a septic system.

“Even though there may not be a pipeline, wherever those easements are you are now restricted from the use of the property,” Duggan said.

PennEast officials said they welcomed Friday’s decision.

“The PennEast Pipeline Company is pleased with today’s ruling allowing the project to take another step forward in delivering low-cost, reliable energy that strengthens New Jersey’s economy and creates thousands of jobs,” said Tony Cox, chairman of the PennEast Board of Managers.

The ruling also dismisses claims by the New Jersey Attorney General’s office to block access to certain properties in which New Jersey has a conservation interest, Cox said.

Permanent easements will be restricted to a 50-foot-wide corridor and landowners will be compensated for both temporary and permanent easements, Cox said.

Jeff Tittel, director of the New Jersey Sierra Club said the decision Friday was expected, but “is still wrong.”

“This is not just the beginning of the end, this is the end of the beginning. The next round in the battle to stop PennEast starts now,” he said.

Besides missing some state and federal permits, PennEast still does not have approval from the Delaware River Basin Commission. PennEast’s application process to the commission could take up to a year, and if rejected the commission could help stop the pipeline, Tittel said.

Tittel also called for New Jersey Gov. Phil Murphy and the NJDEP to block permits for the project, which he said will negatively impact waterways and environmentally sensitive habitats.

In February, PennEast filed eminent domain proceedings against 51 property owners in Pennsylvania and 134 in New Jersey who were still holding out from providing access to their properties for land surveys. All but one property owner in Pennsylvania agreed to allow the company to survey their property.

Last week, a federal judge in Pennsylvania granted PennEast eminent domain over Susana Bullrich’s property in Towamensing Township, the first such ruling for PennEast in Pennsylvania.

So far, PennEast only has the right to survey access on those other 50 properties in Pennsylvania. If the pipeline receives its permits, those property owners could still face eminent domain proceedings.