Transcontinental Gas Pipe Line Company, LLC v. PERMANENT EASEMENT FOR, 4:17-cv-00306

Transcontinental Gas Pipe Line Co., LLC (Transco) obtained a FERC Certificate of Public Convenience and Necessity for the Atlantic Sunrise Project on Feb. 3, 2017 and sued in federal court (Rule 71.1 / NGA § 717f(h)) on Feb. 20, 2017 to condemn easements after failing to agree compensation with landowners.
The property at issue: a permanent easement (0.64 acres), temporary easements (1.03 acres) and a temporary access easement in Coal Township, Northumberland County, PA.
Transco moved for partial summary judgment and for a preliminary injunction seeking immediate possession; a hearing was held Aug. 3, 2017.
Defendants argued (1) they were denied the opportunity to challenge FERC’s findings, (2) Transco did not negotiate in good faith, (3) the project/route is not public use, and (4) a stay of the FERC Order or advance payment of compensation was required.
The court found (a) the three statutory prerequisites under § 717f(h) were satisfied (FERC certificate, necessity of rights-of-way, inability to obtain by contract), (b) collateral attack on the FERC certificate is improper in district court, (c) Transco demonstrated likelihood of success and irreparable harm, and (d) ordered partial summary judgment, a preliminary injunction granting possession beginning Aug. 18, 2017, and required a surety bond (amount set at treble Transco’s appraisal amount for the easement portion).

Issue	Plaintiff's Argument	Defendant's Argument	Held
1. Right to condemn under NGA § 717f(h)	Transco holds a valid FERC certificate; rights‑of‑way are necessary; negotiations failed	FERC findings and certificate may be challenged; Transco didn’t negotiate in good faith	Court: Certificate is conclusive for district‑court condemnation; prerequisites met; partial summary judgment for Transco
2. Ability to collaterally attack FERC certificate in district court	FERC process was proper; challenges belong to FERC or to courts of appeals	Defendants claim they lacked opportunity to be heard and contest public use/route	Court: Collateral attack in district court barred; defendants had opportunity to participate in FERC process
3. Entitlement to immediate possession / preliminary injunction	Immediate possession is necessary; Transco will suffer irreparable harm (monetary, contract breaches, seasonal work windows)	Landowners will lose use/enjoyment; status quo would change; harms are monetary	Court: Preliminary injunction granted—Transco demonstrated likelihood of success, irreparable harm, small comparative harm to landowners, and public interest favors project
4. Security / advance payment of compensation	Proposed bond (treble appraisal) protects owners; Transco is financially able	Defendants demanded $100,000 bond and advance compensation	Court: Ordered surety bond (Transco's proposed amount accepted); advance payment denied; remedies preserved under Rule 71.1

Columbia Gas Transmission, LLC v. 1.01 Acres, More or Less in Penn Twp., York Cty., Pa., 768 F.3d 300 (3d Cir. 2014) (FERC certificate conclusively establishes necessity for condemnation under NGA)
Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (summary judgment standards)
Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (moving party’s burden on summary judgment)
Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008) (preliminary injunction standards — extraordinary remedy)
Reilly v. City of Harrisburg, 858 F.3d 173 (3d Cir. 2017) (Third Circuit clarification of preliminary injunction gateway factors)
Williams Natural Gas Co. v. City of Oklahoma City, 890 F.2d 255 (10th Cir. 1989) (validity/conditions of FERC certificate not subject to collateral attack in district court)
Cherokee Nation v. Southern Kansas Railway Co., 135 U.S. 641 (1890) (Fifth Amendment takings and treatment of nontransferable values)