Chester New Matter 1st Quarter 2017 - 19

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and observed that the pipeline transporters are sometimes
subject to regulation by both PUC and the U.S. Federal Energy
Regulatory Commission (FERC) because petroleum products
produced in-state are sometimes commingled with out-of-state
products during transportation over interstate pipelines.

to and from the pipeline at locations in Pennsylvania was
merely a ploy, and that the "true purpose" of the pipeline was
for the interstate transportation of petroleum products (and
ultimate export internationally - and therefore the enterprise
had no public benefit for Pennsylvanians)).

The court, after reviewing the regulatory history of Sunoco
Pipeline L.P., and its predecessors, then found that Sunoco
Pipeline L.P. had been operating in Pennsylvania as a public
utility corporation since 2002, and has been operating its
pipelines (and those of its predecessors) under certificates of
public convenience (CPCs) issued by the PUC. Accordingly,
Sunoco Pipelines L.P. had the requisite authority to condemn
private property under the provisions of the Eminent Domain
Code, 26 Pa. C.S. ยงยง 101-1106. Also, Commonwealth
Court determined that a determination of public need by the
PUC cannot be collaterally attacked in an eminent domain
proceeding. Only the scope and validity of the easement can
be determined by a court in eminent domain proceedings, not
the public need for the easement.

Judge McCullough's dissent also expressed concern that
Sunoco Pipeline L.P. unlawfully was using eminent domain
authority for exclusively private benefit (Sunoco Pipeline L.P.
initially had represented to lower courts that the pipeline was
to be used exclusively for interstate transportation purposes
only (presumably to avoid PUC regulation)). Sunoco
Pipeline, L.P. then shifted gears, added new "on-off ramps" in
Pennsylvania, and thus claimed that the pipeline was also being
used for intrastate transportation purposes (thus subjecting
itself to PUC regulation, but also allowing it to acquire eminent
domain authority). Judge McCullough opined that Sunoco
should be required to get a new CPC from the PUC for the
Mariner East 2 project.

Judge Brobson's dissent generally discussed the importance
of private property rights, the limitations on the PUC's power
to regulate interstate transportation of petroleum products, and
the failure of the Common Pleas Court below to determine the
"true purpose" of the pipeline (the condemnees alleged that the
creation of facilities ("on-off ramps") to add and remove NGLs

So, with the Pa. Supreme Court's decision to pass on the
issues (unfortunately, no explanation is usually provided when
a Petition for Allocatur is denied), some essential questions
about Sunoco Pipeline L.P.'s status as a public utility, and its
ability to use eminent domain authority to acquire private
property for its Mariner East 2 pipeline easements have
been answered.

New Matter | 19


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Table of Contents for the Digital Edition of Chester New Matter 1st Quarter 2017

Chester New Matter 1st Quarter 2017 - 1
Chester New Matter 1st Quarter 2017 - 2
Chester New Matter 1st Quarter 2017 - 3
Chester New Matter 1st Quarter 2017 - 4
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Chester New Matter 1st Quarter 2017 - 35
Chester New Matter 1st Quarter 2017 - 36
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https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatter4thQtr2020
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https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatter1stQtr2020
https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatter4thQtr2019
https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatterFall2019
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https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatter3rdQtr2018
https://www.nxtbook.com/hoffmann/Chester_NewMatter/CNM_2ndQtr2018
https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatter1stQtr2018new
https://www.nxtbook.com/hoffmann/Chester_NewMatter/ChesterNewMatterWinter2017
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