OPINION BY JUDGE SIMPSON.
In this zoning appeal, the Borough of Plum (Borough) asks whether the Court of Common Pleas of Allegheny County
The ZHB made the following findings. Sedat, Inc. (Sedat) owns the property located at 1800 Old Leechburg Road in the Borough (property). Penneco is an affiliate of Sedat. The property lies in a rural residential zoning district.
Since approximately 1989, Penneco Oil Company (Penneco Oil) operated a gas production well on the property. Penneco Oil has a permit from the Pennsylvania Department of Environmental Protection (DEP) to operate the gas production well. Penneco, whose association to Penneco Oil is unknown, seeks to convert the well from a producing well to an underground injection well. An underground injection well serves to dispose of exploration and production fluids from oil and gas operations by placing the fluids into porous geologic formations. The disposal of waste products from oil and gas operations is subject to the oversight of the U.S. Environmental Protection Agency (EPA).
In March 2016, Penneco submitted an application to the EPA requesting permission to operate an underground injection well on the property. About six months later, Penneco filed a substantive validity challenge to the zoning ordinance with the ZHB. Penneco challenged the zoning ordinance claiming it excluded the operation of an underground injection well in all zoning
In June 2017, the Borough publicly announced its plan to adopt or propose a new zoning ordinance. The EPA subsequently conducted a hearing at which it received public comment regarding Penneco's proposed injection well.
In August 2017, Penneco requested that its substantive validity challenge be placed on the ZHB's agenda. A few weeks later, Penneco and the ZHB agreed to list the matter on the ZHB's October 2017 agenda. A hearing ensued before the ZHB.
In its subsequent decision, the ZHB explained:
ZHB Dec., 11/17/17, Finding of Fact (F.F.) No. 18.
Penneco represented that it would file an application with DEP for a permit to operate the injection well if the EPA gave its approval, as EPA approval must precede DEP approval. As a result, Penneco had not yet submitted an application to DEP. Penneco will not be permitted to operate an injection well on the property if the EPA and DEP do not grant the required permits and approvals.
Based on these findings, the ZHB made the following conclusions of law. Ripeness is defined as the presence of an actual controversy.
The ZHB stated that the issue of whether the zoning ordinance is invalid because, as alleged, it is exclusionary or preempted is of no consequence if the EPA and DEP do not grant the required approvals. The ZHB explained that, if it invalidated the zoning ordinance, Penneco would not be permitted to operate its proposed injection well because it lacked the requisite federal and state approvals. The ZHB further determined this matter would be moot if those approvals were not granted. The ZHB also stated the zoning ordinance imposes no hardship on Penneco unless Penneco receives the required approvals. For these reasons, the ZHB denied Penneco's substantive validity challenge. Penneco appealed to the trial court.
Without taking additional evidence, the trial court reversed. The trial court stated that, contrary to the ZHB's determinations, under Pennsylvania law, municipalities may not require outside agency permits before providing zoning approval. Therefore, the trial court determined the ZHB erred in concluding Penneco's substantive validity challenge was not ripe for review.
The Borough raises only one issue on appeal.
The Borough argues that "[r]ipeness has been defined as the presence of an actual controversy; it requires a court to evaluate the fitness of the issues for judicial determination, as well as the hardship to the parties of withholding court consideration."
The Borough maintains that, when a ZHB member questioned Penneco's counsel as to the effect that denial of approval by the EPA or DEP could have on Penneco's proposed injection well, Penneco's counsel stated:
Reproduced Record (R.R.) at 103a-04a.
Without EPA or DEP approval, the Borough argues, Penneco will have no ability to develop the property for purposes of installing an injection well. R.R. at 104a. Thus, the Borough asserts, absent approval of both outside agencies, and the issuance of necessary permits, Penneco was deprived of no legal rights.
The Borough further contends that, at the October 2017 ZHB hearing, Penneco's counsel indicated that the EPA and DEP permits remained outstanding. R.R. at 123a. Specifically, Penneco's counsel stated: "We are here today asking with our petition for the Borough, but the EPA permit, once that is approved, then we would go through the DEP permitting process."
The Borough argues Penneco's lack of the necessary federal and state approvals renders any alleged injury or deprivation hypothetical, and, therefore, not ripe for consideration.
For its part, the ZHB argues Penneco filed its challenge, claiming the zoning ordinance excluded the operation of an underground injection well in all zoning districts in the Borough, and that the zoning ordinance was preempted by state and federal law. In order to operate an underground injection well, the ZHB asserts, Penneco concedes it is required to obtain EPA and DEP approval. At the time Penneco challenged the zoning ordinance, it lacked approval from either agency.
Without an actual controversy, the ZHB argues, a matter is not suitable for judicial determination. The ZHB asserts it denied Penneco's challenge because there was no actual controversy, as Penneco had yet to obtain regulatory permission from the relevant federal and state agencies. Thus, the ZHB contends, the matter was not ripe for determination.
The ZHB maintains that, before obtaining EPA or DEP approval, Penneco challenged the zoning ordinance claiming it excluded the operation of underground injection wells in all zoning districts, and that the zoning ordinance was preempted by federal and state law. R.R. at 12a.
The ZHB argues it decided no actual controversy existed, and one may never exist, because Penneco had yet to receive the required approvals from the EPA and DEP. F.F. No. 18. Under the ripeness doctrine, the ZHB asserts, this Court should refrain from making a determination as the answer would be based on Penneco's assertions of speculative, hypothetical events that may or may not occur in the future. The ZHB contends a determination by the ZHB regarding the validity of the zoning ordinance would have been speculative and based on hypothetical events because Penneco had yet to receive the necessary federal and state approvals.
Penneco counters that the trial court correctly reversed the ZHB because the ZHB erred in denying Penneco's challenge to the validity of the exclusionary zoning ordinance. Penneco argues the Borough waived all bases for appeal except for that stated in its question presented and argued in its brief—that the ZHB correctly denied Penneco's challenge to the zoning ordinance for want of "ripeness" where Penneco had not received permits for its proposed use from state or federal agencies. Appellee Penneco Environmental Solutions, LLC's Br. at 10.
Penneco asserts Pennsylvania law is clear that a municipality may not require outside agency permits or approvals before providing zoning approval. Penneco contends that, while it is undisputed that at the time of the ZHB hearing it had not yet received federal and state permits to operate an underground injection well, that is not an appropriate basis upon which the ZHB could deny Penneco's challenge to the validity of the exclusionary zoning ordinance. Nevertheless, Penneco maintains, the ZHB denied Penneco's challenge on that basis, committing reversible error. Therefore, Penneco requests that this Court affirm the trial court's reversal of the ZHB and the grant of site-specific relief.
Penneco asserts its substantive validity challenge was ripe for review by the ZHB because the zoning ordinance's failure to provide for the use of an underground injection well anywhere in the Borough directly and presently prevented Penneco's proposed use of the property.
Specifically, Penneco contends, Pennsylvania law is clear that municipalities may not require outside agency permits before providing zoning approval.
For example, Penneco maintains, addressing the issue of standing to challenge the validity of an ordinance, the Pennsylvania Supreme Court noted that the ordinance at issue did "not require that a party receive a permit from [DEP] before receiving a permit from the [t]ownship," but only required that a DEP permit be obtained "prior to the onset of site application."
Likewise, Penneco argues, in the context of a special exception application, this Court explained that the Pennsylvania Municipalities Planning Code
At most, Penneco asserts, while this Court consistently holds that local municipalities must approve zoning applications even where federal and state permits will be required, but have not yet been obtained, it acknowledges that in some cases
Here, Penneco contends, contrary to the above authority, the ZHB did not consider any specific conditions related to ancillary permits, but instead rejected Penneco's substantive validity challenge outright. As such, Penneco maintains, the ZHB's denial of Penneco's substantive validity challenge on the basis that Penneco had not yet received EPA and DEP permits was an error of law.
Penneco further argues the Borough cites no relevant authority to support its legal arguments. It asserts the Borough cites only two cases in its brief to attempt to support its assertion that Penneco's validity challenge was not ripe for review by the ZHB. Penneco contends these cases,
Moreover, Penneco maintains, the improper, exclusionary zoning ordinance presents an actual controversy ripe for judicial review, because it stands as an obstacle to Penneco's ability to obtain a DEP permit.
Pursuant to Section 916.1(a)(1) of the MPC: "A landowner who, on substantive grounds, desires to challenge the validity of an ordinance ... or any provision thereof which prohibits or restricts the use or development of land in which he has an interest shall submit the challenge ... to the [ZHB] under [S]ection 909.1(a) [of the MPC,] [53 P.S. § 10909.1(a)
Rather than considering the merits of Penneco's challenge, however, the ZHB denied it on the ground it was not ripe for review, as Penneco had not yet obtained (and could possibly never obtain) EPA and DEP approval for its proposed underground injection well.
Here, Penneco's substantive validity challenge is ripe for review. Through its petition, Penneco claimed that, as presently written, the zoning ordinance does not permit Penneco's proposed underground injection well, the use it seeks to commence, in any zoning district throughout the Borough. R.R. at 63a-83a. Thus, it asserted, the zoning ordinance, on its face, directly prohibits its proposed use. As such, the issue of whether the zoning ordinance was, in fact, de jure exclusionary was sufficiently developed for review by the ZHB.
In addition, Penneco will suffer hardship if consideration is delayed as it already expended resources surveying the site and creating a plat map in connection with its validity challenge. R.R. at 36a. Penneco also expended resources applying for an EPA permit and undergoing a public hearing before the EPA in connection with its proposed underground injection well. F.F. Nos. 9, 14. Moreover, it appears Penneco's inability to obtain a merits review by the ZHB will delay its ability to obtain a DEP permit because, prior to commencing review of a permit application, DEP requires information as to a proposal's compliance with applicable local ordinances.
Further, in
Here, as in
In addition, this Court repeatedly holds that, where permits from an agency outside a municipality are required for a land development proposal, approving the proposal with a condition that outside agency permits are received, as opposed to outright denial, is appropriate.
In addition, this case is distinguishable from
The borough filed a petition for appointment of a board of viewers, alleging the planned surface acquisition of the borough's remaining occupied properties and relocation of residents would result in a de facto taking of the subsurface mineral and coal reserves. Ultimately, this Court held the borough's petition was not ripe for review where it did not aver existing facts that could establish a de facto taking. Rather, it merely alleged the redevelopment authority will effect a de facto taking once it completed the acquisition and relocation plan. The borough alleged the planned condemnation of all remaining surface properties would ultimately result in the "destruction and elimination of [b]orough government and effective elimination of the [b]orough as an entity."
More recently, in
Contrary to the landowner's assertions, this Court explained, among other things: (1) the borough never informed the landowner he could not build homes on the lots; (2) the landowner did not consult the planning commission or submit actual plans to the borough; (3) the landowner did not explain why access was not possible from another road abutting the landowner's property; and (4) the landowner did not explain how he intended to resolve his need for variances for the lots. Thus, we held the landowner's claims of injury and substantial deprivation of the use of his property were speculative; as a result, his de facto taking claim was premature.
Unlike
Based on the foregoing, we affirm the trial court's determination that the ZHB erred in concluding Penneco's substantive validity challenge was not ripe for review. Because this is the sole issue raised by the Borough in its brief on appeal, we do not consider the propriety of the trial court's determinations that Penneco met its burden of proving the zoning ordinance is, in fact, impermissibly exclusionary, or that Penneco is entitled to site-specific relief.