Mountain Valley Pipeline, LLC v. 6.56 Acres of Land
915 F.3d 197
4th Cir.2019Background
- FERC issued Mountain Valley Pipeline (MVP) a Certificate authorizing construction of a 303.5-mile natural gas pipeline, permitting MVP to condemn rights-of-way under 15 U.S.C. § 717f(h).
- MVP acquired ~85% of easements by agreement; it filed condemnation actions for remaining properties in three district courts and obtained partial summary judgment that it has the substantive right to condemn.
- District courts granted preliminary injunctions permitting MVP immediate possession of easements (before final determination/payment of just compensation) to avoid construction delay and meet FERC's three-year in-service deadline.
- Courts required MVP to post multi‑times appraisal-value deposits and surety bonds to protect landowners’ right to just compensation during proceedings.
- Landowners appealed only the preliminary injunctions, conceding MVP’s substantive right to condemn but arguing statutory lack of authority for pre‑payment possession and that Winter factors were misapplied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to grant immediate possession before payment of just compensation | District courts lack statutory authority under the Natural Gas Act to order possession before payment | Federal courts may grant equitable preliminary injunctions (Rule 65) once substantive right to condemn is established; Cherokee Nation and Sage allow take-first/pay-later with safeguards | Court: District courts have authority; Sage controls; injunctions lawful with adequate deposit/bond protections |
| Whether MVP satisfied Winter's "likelihood of success" prong | Landowners conceded substantive right; contested only injunctive relief | MVP had unchallenged partial summary judgment entitling it to condemn | Court: Success on merits guaranteed; prong satisfied |
| Whether MVP showed irreparable harm absent injunction | Economic losses and inability to meet FERC deadline are speculative or self‑inflicted; damages recoverable later | Delay would likely prevent meeting FERC deadline and cause unrecoverable financial losses (lost revenues, contract penalties, carrying costs); losses are not recoverable in other litigation | Court: Irreparable harm shown—deadline risk and unrecoverable economic harms qualify |
| Balance of equities and public interest | Immediate possession causes concrete property harms and risk of later invalidation if Certificate vacated | Harms to landowners stem from the taking itself (not timing); public interest favors timely completion of a FERC‑approved project | Court: Equities and public interest favor MVP; deposits mitigate landowner harms; injunctions not an abuse of discretion |
Key Cases Cited
- Cherokee Nation v. Southern Kansas Railway Co., 135 U.S. 641 (1890) (constitutional requirement satisfied if owners are assured reasonable, certain, and adequate provision for compensation)
- East Tennessee Natural Gas Co. v. Sage, 361 F.3d 808 (4th Cir. 2004) (Fourth Circuit upheld preliminary injunctions granting immediate possession in NGA condemnations where substantive right established and protections provided)
- Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008) (established four‑part test for preliminary injunctions)