Professional Documents
Culture Documents
Document 16
Filed 10/15/2008
Page 1 of 45
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 2 of 45
TABLE OF CONTENTS
Page
I.
SUMMARY OF ARGUMENT............................................................................. 1
II.
FACTS ................................................................................................................. 3
III.
A.
The City and TMGS actively negotiated Section 10. The purpose was
to promote compressor stations in the City that are compatible with
surrounding development. ....................................................................... 3
B.
C.
D.
E.
F.
B.
ii.
Case 3:08-cv-01724-D
2.
3.
Document 16
Filed 10/15/2008
Page 3 of 45
b.
c.
TMGS has not shown and cannot show ANY of the prerequisites
for injunctive relief. ..................................................................... 30
a.
b.
ii
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 4 of 45
TABLE OF AUTHORITIES
Page
Cases
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 5 of 45
Granny Goose Foods, Inc. v. Brotherhood of Teamsters & Auto Truck Drivers, Local
No. 70, 415 U.S. 423 (1974)........................................................................................ 1
Guschke v. Oklahoma City,
Hoover v. Morales,
Monk v. Huston,
Morgan v. Fletcher,
iv
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 6 of 45
489 S.W.2d 361 (Tex. Civ. App.-Amarillo 1972, writ refd n.r.e.)..................... 25, 26
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 7 of 45
Federal Statutes
49 U.S.C. 60104(c)..................................................................................................... 20
49 U.S.C. 60104(e)..................................................................................................... 24
State Statutes
Tex. Util. Code 121.201(b)(2).................................................................................... 20
Federal Rules
Federal Rule of Civil Procedure 65(c) ......................................................................... 36
vi
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 8 of 45
before a determination on the merits in this case. Such action would make a
determination on the merits moot.
TMGSs Application for Preliminary Injunction (the PI) and its
contemporaneous public relations campaign are based on misdirection and a false
premise: that the City is preventing TMGS from building a compressor station on
land that is owned by TMGS. Specifically, that Section 10, designed to promote the
1 The Courts order dated October 2, 2008 combined the deadline for the TRO response and the PI
Response. This PI Response focuses on the Preliminary Injunction Application since the purpose of a
TRO ceases upon the Courts consideration of the preliminary injunction (see Granny Goose Foods,
Inc. v. Brotherhood of Teamsters & Auto Truck Drivers, Local No. 70, 415 U.S. 423, 439 (1974)
(stating that the purpose of a TRO is to preserve the status quo of the subject matter of the litigation
and prevent irreparable harm until a hearing can be held on a preliminary injunction)). To the
extent the TRO is not moot, it should be denied for the same reasons the PI should be denied as set
forth fully in this PI Response.
TMGS and Chesapeake have been used synonymously by both TMGS and the City - as stated by
TMGS, TMGS is a gas utility and subsidiary of Chesapeake Energy Marketing, Inc. which is an
affiliate of Chesapeake Energy Corporation. September 30, 2008 Letter, App. 131-132.
2
Page 1
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 9 of 45
Page 2
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 10 of 45
Finally, TMGS has not established any of the other prerequisites for
injunctive relief. It will not suffer irreparable harm without an injunction. In
fact, if TMGSs PI is denied and TMGS complies with Section 10 and builds the
Barnes Compressor Station, at best TMGSs damages are the difference between
the economic cost of compliance with Section 10 and the cost without compliance
with Section 10. In addition, the injury to the City, and to the public as a whole,
outweighs any benefit of an injunction to TMGS.
For the reasons set forth above and detailed below, TMGS has failed to meet
its considerable burden in demonstrating that it is entitled to a preliminary
injunction. Therefore, TMGSs requested injunction should be denied.
II.
FACTS
A.
The City and TMGS actively negotiated Section 10. The purpose was to
promote compressor stations in the City that are compatible with
surrounding development.
1.
Permissible Uses and governs the permissible uses of buildings and structures
located within the City.3
2.
Page 3
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 11 of 45
From December 2007 to April 2008 and over the course of several
meetings, the Development Committee reviewed and modified Section 10.9 In the
fall of 2007, the City and TMGS began negotiating various Section 10 requirements
because TMGS had indicated its desire to build a compressor station within the City
limits (the Barnes Compressor Station).10 Prior to July 1, 2008, TMGSs attorneys
and representatives attended numerous public hearings on Section 10 and
expressed TMGSs opinions regarding Section 10 to the City.11
Lasher Aff. 7, App. 003; AskChesapeake.com, October 3, 2008, www.askchesapeake.com/ENUS/NeighborhoodCenter/pages/Barnescompressorstation.aspx, App. 146.
10
11
Page 4
Case 3:08-cv-01724-D
5.
Document 16
Filed 10/15/2008
Page 12 of 45
Section 10 be considered by the Citys Planning and Zoning Commission (the P&Z
Commission).12 On June 23, 2008, the P&Z Commission considered Section 10 at a
public meeting and recommended that the City Council consider and adopt Section
10.13
6.
a public regular session meeting.14 At the meeting, the Mayor and the City Council
stressed the importance of enacting Section 10 but also recognized that Section 10
could be tweaked in the future if needed.15
7.
12
13
14
15
16
17
18
19
Page 5
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 13 of 45
compressor station within the City limits of Grand Prairie.21 First, TMGS must
apply for a SUP by submitting an application with a proposed site plan, building
elevations, and landscape plans and pay an application fee totaling $1,000 plus $40
per acre.22 It typically takes 45 days for a SUP application to be evaluated and for a
SUP to be issued.23 It can take longer than 45 days, especially if the City has
concerns with the application or proposed structure that need to be resolved.24
Before a SUP will be issued, there must be a public hearing regarding the
application, and certain public notification requirements must be satisfied.25
9.
b.
20
21
22
23
24
25
Page 6
Case 3:08-cv-01724-D
c.
Document 16
Filed 10/15/2008
Page 14 of 45
10.
plat, (ii) its Engineering Plan, which includes its requests for a Driveway Permit,
Clearing and Grubbing Permit, and Floodplain Permit, and (iii) request any
necessary building permits.31 Upon receipt of completed applications, issuance of
these permits usually takes two weeks per permit.32 The issuance process may be
delayed, however, if the City identifies a problem with the proposed plans.33
26
27
28
29
30
31
32
33
Page 7
Case 3:08-cv-01724-D
C.
Document 16
Filed 10/15/2008
Page 15 of 45
TMGS has not complied with any of the Citys permitting procedures.34
13.
transmitted documents describing its plans to build the Barnes Compressor Station
to the City.35 TMGS did not, however, submit the required application to the City,
did not pay the required application fee, and did not submit a complete set of site,
building, and landscape plans.36 TMGS informed the City that the materials were
being submitted not as a formal application for a SUP but so that TMGS could get
the Citys reaction to the materials.37
14.
The City had concerns with the plans depicted in the April 2, 2008
Letter.38 First, the plans depicted a driveway constructed with a material other
than concrete.39 Second, the plans showed that the compressor station location did
not satisfy the proposed Section 10 minimum setback requirement.40 The City
continued to discuss the proposed plans with TMGS in an attempt to address the
Citys concerns.41 At no point in the process with TMGS has the City indicated that
it would not allow the construction of a compressor station.42
34
35
Lasher Aff. 20, App. 007-008; April 2, 2008 Letter, App. 052-053.
36
37
38
39
40
41
42
Page 8
Case 3:08-cv-01724-D
15.
Document 16
Filed 10/15/2008
Page 16 of 45
After the July 1, 2008 enactment of Section 10, the City attempted to
resolve the remaining issues with TMGS, focusing on the location of the station and
the method by which the setback should be measured.43 Section 10 requires that
the Barnes Compressor Station be setback a minimum of 300 feet.44 The City
believes the setback should be measured from the perimeter of the station to the
property line of the subdivision.45 TMGS informed the City that it wants the
setback to be measured from the compressor station structure to the nearest
habitable structure.46 Using the Citys method of measurement, the proposed
station location is only set back 250 feet.47 Using TMGSs proposed method of
measurement, the proposed station location is set back approximately 300 feet.48 In
other words, TMGSs primary complaint revolves around a difference in Section 10s
interpretation of the setback requirement a difference of 50 feet.49
16.
TMGS agrees with the goals of Section 10. It advertises that the
43
44
45
46
47
48
49
Page 9
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 17 of 45
feet of mature, densely, populated trees will provide a visual buffer for nearby
residential communities.50
D.
TMGS has not complied with any of the other permitting requirements.
17.
On June 23, 2008, City staff discovered that TMGS had broken ground
at the location where it plans to build the Barnes Compressor Station.51 TMGS had
not applied to the City for the permits required for building any structure
including a compressor station on the property, and the City had not issued the
required permits to TMGS for any construction.52
18.
2008, the City informed Laura Jones a representative of TMGS that TMGS was
operating in or near a floodplain and discussed with her the need for TMGS to
acquire the necessary engineering and building permits before any additional
clearing or construction took place.53
19.
During the next two days, the City asked Ms. Jones about the status of
the construction again and she told the City that all construction efforts would be
shut down by 5:00 p.m. on June 26, 2008. 54
20.
On June 26, 2008, a representative of the City visited the site to see
what construction had already occurred.55 A crushed gravel driveway had been
51
52
53
54
55
Page 10
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 18 of 45
constructed and extended from the road to the pad site, the pad site had been
completely cleared of foliage, and various fill material had been used around the
site.56 Bulldozers and trucks were still present at the site and were in the process of
moving dirt on the site.57 TMGS had still not requested the required permits for
construction of any kind.58
21.
on July 19, 2008, with an incomplete application for a Floodplain Permit.59 This
original set of plans submitted by TMGS to the City only described the driveway to
the site.60 In addition, the Floodplain Permit application was for the driveway only
not for the entire site.61
22.
On several occasions in July 2008, the City informed Ms. Jones of the
56
57
58
59
60
61
62
Page 11
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 19 of 45
would obstruct flow from the Tributary and possibly flood neighboring
properties.
Erosion control devices such as a silt fence, rock filter dams, and dust
abatement had not been installed properly. Without those devices in
place, sediment and debris from the exposed ground could be
transported to Fish Creek, potentially impacting the environmental
balance of the riverine system.63
23.
As a result of these and other concerns, the City requested that TMGS
take immediate steps to put erosion controls in place and to otherwise stabilize the
site.64
24.
In late July 2008 and again in late August 2008, TMGS resubmitted
revised applications for engineering permits.65 And on September 3, 2008, the City
received the most recent submission from TMGS.66
25.
These submissions from TMGS are still incomplete and do not satisfy
the Citys requirements for the issuance of Floodplain Permits and Clearing and
Grubbing Permits.67 For instance:
In addition, the current site plan does not show existing utilities. An
existing sanitary sewer line runs through the property and had
previously been exposed as a result of erosion over time. It is essential
63
64
65
66
67
Page 12
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 20 of 45
that this line and other utilities be marked on the site plan so that
they are not exposed or damaged during the construction.
26.
The site plan does not provide the details regarding the driveway. Offsite drainage has not been accounted for and the routing of this water
across the driveway was not analyzed. This could potentially create a
hazardous condition on Matthew Road if the off-site drainage is rerouted onto Matthew Road because of the obstruction caused by
driveway. The City also has a standard detail for the driveway
approach which was not constructed. No written request for a
variance was submitted to the City Engineer.
There is only one entrance and exit driveway for the site. The
elevation at this site is approximately 498 feet while the Base Flood
Elevation is approximately 503 feet at this location. This means that
the driveway sits several feet below the floodplain. In the event of a
flood, emergency vehicles and private vehicles would be unable to
access or exit the site. Until an alternate location for the driveway is
established, the City cannot approve the Floodplain Permit
application.
TMGS has not paid its application fee for the Floodplain Permit and
has only submitted part of the Floodplain Permit application.
TMGS did not provide the City with an updated Clearing and
Grubbing Permit application with its most recent set of site plans. 68
The City has not denied TMGSs applications for the Clearing and
Grubbing or Floodplain Permits. However, the City cannot issue a Clearing and
Grubbing or Floodplain Permit until TMGS resolves these and other issues with its
site plan and applications.69
27.
68
69
70
Page 13
Case 3:08-cv-01724-D
E.
Document 16
Filed 10/15/2008
Page 21 of 45
cannot issue a Floodplain Permit until TMGS obtains all other necessary state and
federal Floodplain Permits.71 Because of the Barnes Compressor Stations location
and impact on the Tributary and Fish Creek, TMGS will be required to obtain a
permit from the US Army Corps of Engineers (USACE) or additional
environmental analysis showing that such a permit is not required.72 Until the City
receives a copy of the USACE permit issued to TMGS for the Barnes Compressor
Station, the City will not be able to issue a Floodplain Permit.73
F.
relations campaign against the City. Amongst its many missiles, TMGS and
Chesapeake:
71
72
73
75
Page 14
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 22 of 45
the Barnes Compressor Station does not comply with Section 10;
2.
if the Barnes Compressor Station does not comply, the City will not
TMGS has obtained or applied for permits which are required before
construction of any structure. In addition to the Special Use Permit required (and
76
See Aetna Life Ins. Co. v. Haworth, 300 U.S. 227, 239-40 (1937).
77
78
79
Urban Developers LLC v. City of Jackson, 468 F.3d 281, 292 (5th Cir. 2006)
Page 15
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 23 of 45
A Driveway Permit;
A Floodplain Permit.80
TMGS has not submitted these items or obtained these necessary permits, which it
must obtain regardless of whether Section 10 applies to the Barnes Compressor
Station.81
4.
permitting process would result in any delay. Any alleged injury resulting from the
enforcement of Section 10 rests only on speculation that TMGS will submit all of
these materials and that it will be denied the necessary permits.
The existence and extent of Section 10s alleged interference with the Barnes
Compressor Station simply cannot be assessed until the permitting process has run
its course.82 In Monk, adjoining landowners filed a suit to enjoin TCEQ officials
from considering a landfill permit application.83 The district court granted the
requested injunction, but the Fifth Circuit vacated the injunction, holding that the
matter was not ripe for adjudication. The court concluded that the plaintiffs would
not suffer any deprivation unless the permit was granted, and the permitting
80
81
Lasher Aff. 19, App. 007; Sherwin Aff. 12-14, App. 137-139.
82
83
Page 16
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 24 of 45
process had not yet run its course.84 Thus, the dispute was not ripe for judicial
review until TCEQ actually issued the permit.85
Similar facts exist here, TMGS has not complied with any of the Citys
permitting procedures.86 Most significantly, the City has pointed out significant
deficiencies in TMGSs floodplain plan and TMGS is required to submit federal
permits before the City will consider the floodplain permit application.87 This
dispute is not ripe because the Citys permitting process has not yet run its course.
An injunction issued by this Court would have the same effect. TMGS has
centered its pleadings on what might happen should the City deny TMGS the right
to complete the compressor facility.88 Because TMGS could only suffer injury, if at
all, if a number of contingencies occur, this case is not ripe for adjudication.89
Finally, as the Fifth Circuit has noted in a similar context, the City may
amend Section 10 or repeal it in its entirety before it ever affects TMGS.90 Indeed,
possible amendment was discussed at the July 1, 2008 City Council meeting where
84
Id. at 283.
Id. (holding that until the TCEQ issues the permit, this dispute remains abstract and
hypothetical); see also New Orleans Pub. Serv., Inc. v. Council of New Orleans, 833 F.2d 583, 587
(5th Cir. 1987) (Had the district court granted the injunction as requested, the result would have
been an order hanging in the air, ready to become effective only if the New Orleans City Council
took one of several possible future actions.).
85
86
87
Plaintiffs Original Complaint (Compl.) 5.14; Plaintiffs Application for Temporary Restraining
Order and Preliminary Injunction (Application), p. 14.
88
This analysis applies to TMGSs standing to raise its claims as well. The standing and ripeness
doctrines often overlap in practice, particularly in an examination of whether a plaintiff has
suffered a concrete injury, and . . . injury-in-fact analysis draws on precedent for both doctrines.
Texas v. United States, 497 F.3d 491, 496 (5th Cir. 2007) (citation omitted).
89
90
United Trans. Union v. Foster, 205 F.3d 851, 858 (5th Cir. 2000).
Page 17
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 25 of 45
91
92
93
94
95
See Evergreen Presbyterian Ministries, Inc. v. Hood, 235 F.3d 908, 917 (5th Cir. 2000).
D-1684730.1
Page 18
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 26 of 45
applicant must clearly carr[y] the burden of persuasion on all four requirements.97
TMGS has not satisfied and cannot satisfy its burden for any of these factors.
1.
As TMGS recognizes, the PSA and state law preempt only safety
regulations.98 But TMGS glosses over this critical component of its preemption
claim in its analysis of Section 10. Section 10s language demonstrates that its
purposes relate to general aesthetics and community enhancement. Thus, TMGS
has no chance, much less a significant likelihood, of succeeding on the merits of its
preemption claim.
i.
The PSA preempts only state and local regulation of pipeline safety, which is
not addressed in Section 10. Accordingly, preemption does not apply to this case.
Courts have identified two categories of preemptionexpress and implied.99
Express preemption applies when Congress explicitly states its intention to preempt
state law.100 Implied preemption may be further divided into conflict preemption
97
Nichols v. Alcatel USA, Inc., 532 F.3d 364, 372 (5th Cir. 2008).
See Compl. 5.2 (alleging that Section 10 is preempted because it is a standard intended to
regulate pipeline facility safety); Plaintiffs Brief in Support of its Application for Temporary
Restraining Order and Preliminary Injunction (Pl.s Br.) at 5 (The PSA exclusively regulates
safety standards . . . .); id. at 6 ([T]he scope of the PSA encompasses safety standards applicable to
compressor stations.).
98
99
Empacadora de Carnes de Fresnillo, S.A. de C.V. v. Curry, 476 F.3d 326, 333 (5th Cir. 2007).
100
Id.
Page 19
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 27 of 45
(which exists where a state or local regulation conflicts with a federal statute) and
field preemption (which is found where Congress intended to occupy a field
exclusively).101
In the area of natural gas, Congress has expressly preempted the
establishment of safety standards for interstate pipeline facilities or interstate
pipeline transportation.102 Similarly, the Texas Utilities Code gives the Texas
Railroad Commission (RRC) exclusive jurisdiction over safety standard[s] and
practice[s] applicable to intrastate pipeline facilities and intrastate gas
transportation.103 In fact, the Utilities Code specifically acknowledges that
municipalities retain their traditional jurisdiction to regulate natural gas pipelines
and facilities.104 Thus, safety standardsand only safety standardsare expressly
preempted under federal or state law.
Implied preemption does not apply in this case, and TMGS does not seriously
argue otherwise. First, TMGS does not contend that Section 10 conflicts in any way
with either the PSA or the Texas Utilities Code, so conflict preemption is not in
dispute. Although TMGS cryptically argues field preemptionthat the PSA
implicitly preempts any regulation that could apply in any way to a compressor
stationthis argument merits little consideration.105 Field preemption requires a
101
Id. at 334.
102
103
104
Id. 121.202(b).
105
Page 20
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 28 of 45
106
Empacadora de Carnes de Fresnillo, S.A. de C.V. v. Curry, 476 F.3d 326, 334 (5th Cir. 2007).
Id. (quotation omitted); see Camps Newfound/Owatonna v. Town of Harrison, 520 U.S. 564, 61617 (1997) (noting that field pre-emption is itself suspect, at least as applied in the absence of a
congressional command that a particular field be pre-empted and that the Courts recent cases
have frequently rejected field pre-emption in the absence of statutory language expressly requiring
it); Cipollone v. Liggett Group, 505 U.S. 504, 518 (1992) (When Congress has considered the issue
of pre-emption and has included in the enacted legislation a provision explicitly addressing that
issue, and when that provision provides a reliable indicium of congressional intent with respect to
state authority, there is no need to infer congressional intent to pre-empt state laws from the
substantive provisions of the legislation. (quotations and citation omitted)).
107
See Kinley Corp. v. Iowa Utils. Bd., 999 F.2d 354, 359 (8th Cir. 1993) (discussing express
preemption of safety regulations); ANR Pipeline Co. v. Iowa St. Commerce Commn, 828 F.2d 465,
468 (8th Cir. 1987) (In the NGPSA, Congress expressly has preempted state regulation of safety in
connection with interstate gas pipelines . . . .); Natural Gas Pipeline Co. of Am. v. Railroad Commn
of Tex. 679 F.2d 51, 53 (5th Cir. 1982) (noting that Section 1672(a)(1) expressly prohibits state
adoption or enforcement of safety standards); Kern River Gas Trans. Co. v. Clark Cty, Nev., 757 F.
Supp. 1110, 1115 (D. Nev. 1990) (Defendants cannot require the Plaintiff to meet additional safety
standards as a prerequisite to applying for other appropriate permits.); Northern Border Pipeline
Co. v. Jackson Cty, MN, 512 F. Supp. 1261, 1264 (D. Minn. 1981) ([T]he provisions and legislative
history of the Natural Gas Pipeline Safety Act indicate quite clearly that federal legislation has
preempted the entire field of gas pipeline safety.); United Gas Pipeline Co. v. Terrbonne Parish
Police Jury, 319 F. Supp. 1138, 1140 (E.D. La. 1970) (noting that Congress . . . intended by the
Natural Gas Pipeline Safety Act of 1968 to give exclusive jurisdiction to the Department of
Transportation to regulate the safety of interstate transmission facilities and Congress intended
to avoid dual safety regulation of interstate transmission facilities) (emphasis supplied in all).
108
ANR Pipeline, 828 F.2d at 471 (The Supreme Court has recently held that even where federal
law preempts state regulation of certain activities in a given field, state regulation of distinct
activities in that field is permissible where the state regulation does not conflict with the federal
law.); Kern River, 757 F. Supp. at 1115 (Some permits which do not target concerns already
exhaustively reached by the Natural Gas Act may properly be the subject of County and City action.
THE CITYS RESPONSE TO PLAINTIFFS
Page 21
APPLICATION FOR PRELIMINARY INJUNCTION AND BRIEF IN SUPPORT
109
D-1684730.1
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 29 of 45
Complaint alleges only express preemption.110 Because the preemptive reach of the
PSA is limited to pipeline-safety regulations, and because, as discussed below,
Section 10 does not address pipeline safety, TMGS cannot win on the merits.
ii.
. . .); Algonquin Lng v. Loqua, 79 F. Supp. 2d 49, 50, 53-54 (D.R.I. 2000); Northern Border, 512 F.
Supp. at 1265.
Compl. 5.2 (Section 10 is a standard intended to regulate pipeline facility safety . . . .
Accordingly, Section 10 is preempted by federal law.).
110
111
Lasher Aff. 4-6, 12, App. 002-003, 005; Transcript, App. 011.
112
UDC 4.10.4(B)-(C).
113
Id. 4.10.4(E).
114
Id. 4.10.3.
115
Id. 4.10.6.
Page 22
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 30 of 45
Section 10s provisions related to location and noise level also serve to protect
property values and minimize the stations impact on City residents.116 For
example, a 300-foot setback is required for residential districts; a 200-foot setback is
required for retail and commercial districts; a 100-foot setback is required for light
industrial districts; and only a 50-foot setback is required for heavy industrial
districts.117 Exterior noise level must not exceed the pre-development ambient
noise levels.118 Section 10 emphasizes compatibility with the community
surrounding the compressor station and maintenance of property values.119 Even
TMGS agrees with the Citys goals. TMGSs website advertises that compressor
stations can be quiet and non-invasive.120 TMGS states that the Barnes
Compressor Station will include aesthetically-pleasing architectural features that
will enhance and beautify the outside appearance of the building and an existing
natural buffer of more than 50 feet of mature, densely populated trees will provide a
visual buffer for nearby residential communities.121
Section 10 and the PSA in some way regulate compressor stations, but that
does not transform Section 10 into a safety regulation. TMGSs argument that
Section 10 is a safety regulation because its provisions in some way impact the
116
117
UDC 4.2.10(A).
118
Id. 4.10.5.
119
121
Page 23
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 31 of 45
TMGS will not succeed on the merits of its eminent domain claim because (1)
eminent domain is irrelevant under the facts alleged, and (2) the Citys interest in
Section 10 is superior to TMGSs eminent domain power. Eminent domain is
irrelevant under the facts alleged because (i) the proposed Barnes Compressor
Station is to be constructed on property owned by TMGS and (ii) Section 10 neither
condemns TMGSs Property nor prevents TMGS from condemning property
required for its compressor station. Pursuant to Section 181.004 of the Texas
Utilities Code, TMGS has eminent domain power to enter on, condemn, and
appropriate the land, right-of-way, easement, or other property of any person or
corporation. In this case, TMGS is neither entering, condemning, nor
appropriating any land.
122
Id. Similarly, and bizarrely, TMGS also argues that both the PSA and Section 10 regulate the
location of compressor stations. Id. This argument is ironic, since the PSA expressly prohibits the
Secretary from prescribing the location of a pipeline facility. 49 U.S.C. 60104(e).
123
Page 24
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 32 of 45
Jeb Loveless,
attorney for
TMGS
Mayor, Charles
England
Jeb Loveless,
attorney for
TMGS
Mayor, Charles
England
Jeb Loveless,
attorney for
TMGS
124
Porter v. Southwestern Pub. Serv. Co., 489 S.W.2d 361, 363 (Tex. Civ. App.Amarillo 1972, writ
See Porter, 489 S.W.2d at 362 (an entitys eminent domain power is subject to a citys valid zoning
ordinance).
126
D-1684730.1
Page 25
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 33 of 45
Section 10, addressing aesthetics, noise control, and zoning, is not the kind of
in-state economic protectionism prohibited by the dormant Commerce Clause. The
Constitutions Commerce Clause prohibits states from engaging in economic
128
129
TMGS relies on City of Lubbock v. Austin and Austin Independent School District v. City of
Sunset Valley, but neither provides support for TMGSs eminent domain argument. In City of
Lubbock, the court merely held that a city is not bound by its own zoning ordinances when exercising
its eminent domain powers. In Austin Independent School District, the court narrowly held that a
130
city may not utilize its zoning power to wholly exclude from its boundaries proposed school facilities
that are reasonably located. These cases are irrelevant to TMGSs argument.
Page 26
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 34 of 45
West Lynn Creamery, Inc., v. Healy, 512 U.S. 186, 192 (1994); Intl Truck & Engine Corp. v. Bray,
Tex. Manufactured Housing Assn v. City of Nederland, 101 F.3d 1095, 1101 (5th Cir. 1996)
(affirming summary judgment in favor of city against Commerce Clause challenge where citys
ordinance barred trailer coach housing in most areas).
132
133
New Hampshire Motor Trans. Assn v. Plaistow, 67 F.3d 326, 333 (1st Cir. 1995).
134
Page 27
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 35 of 45
offers no allegation or evidence that its own pipeline system will traverse state
lines). Nor does TMGS explain how the requirements of Section 10 will increase
costs or significantly delay, if not wholly prevent, any pipeline company from
constructing an essential part of its natural gas facility.135 Because TMGS, which
bears the burden of producing evidence,136 has failed to offer any support for its bald
assertions, its argument must be rejected.
Even if TMGS had adduced relevant evidence, its dormant Commerce Clause
challenge would nevertheless fail as a matter of law. The challenge rests on the oftrejected ripple theoryif the ordinance is allowed to stand, it will increase costs,
will impede the delivery of natural gas (both in state and out of state), and will
make natural gas more expensive for consumers everywhere. But the dormant
Commerce Clause doctrine is concerned with state protectionism of in-state
business interests, and laws that impose the same burden on in-state and out-ofstate business interests usually do not violate the Commerce Clause.137 Similarly,
regulations do not run afoul of the dormant Commerce Clause simply because they
result in consumer price increases.138 Under TMGSs flawed argument, no city
TMGS has not even allegedmuch less offered evidencethat the City would arbitrarily deny
permits to it and to all other entities looking to build a compression station, so as to delay, if not
wholly prevent, any pipeline company from constructing an essential part of its natural gas facility.
135
136 See Nichols, 532 F.3d at 372 (noting that a plaintiff must clearly carry the burden of persuasion
in order to obtain a preliminary injunction).
See, e.g., Minn. v. Clover Leaf Creamery Co., 449 U.S. 456, 473 & n.17 (1981) (upholding
regulation regarding milk containers and focusing on equal burden to in-state and out-of-state
businesses); Nederland, 101 F.3d at 1104 (finding no constitutional infirmity in challenged law
because plaintiffs failed to demonstrate that housing built in lieu of prohibited housing would be
provided by in-state suppliers).
137
138 Exxon Corp. v. Governor of Md., 437 U.S. 117, 127-28 (1978) (upholding Maryland statute
prohibiting oil refiners from operating retail gas stations and noting that an argument directed to
increased prices relates to the wisdom of the statute, not to its burden on commerce); Intl Truck,
THE CITYS RESPONSE TO PLAINTIFFS
Page 28
APPLICATION FOR PRELIMINARY INJUNCTION AND BRIEF IN SUPPORT
D-1684730.1
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 36 of 45
Harahan.141
Even if Section 10 incidentally burdened interstate commerce, any incidental
burden would not be clearly excessive in light of the obvious legitimate functions
372 F.3d at 726 (noting that a regulations effects such as price increases or disruption of market
equilibrium speak to the wisdom of the statute, not to its constitutionality under the dormant
Commerce Clause).
139
140
Wood Marine Service, Inc. v. Harahan, 858 F.2d 1061, 1065 (5th Cir. 1988).
141
Id.
Page 29
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 37 of 45
of the ordinance.142 As described above, Section 10 works to, among other things,
maintain property values, avoid the undue crowding of land or overpopulation or
diffusion of industry; provide for the most efficient design and layout of the land;
and preserve the integrity and aesthetic quality of the community.143 These are all
indisputably legitimate governmental interests.144
Simply put, local governments are not . . . prohibited from regulating
matters of legitimate local concern, such as zoning, even though such regulation
may affect interstate commerce.145 TMGS has failed to demonstrate that Section
10 burdens interstate commerce at all, much less that any such burden is clearly
excessive given the legitimate local interests at issue. Thus, TMGS has not shown
that it is likely to win on the merits of its claim, and its request for injunctive relief
should be denied.
2.
TMGS has not shown and cannot show ANY of the prerequisites for
injunctive relief.
142
143
See Nederland, 101 F.3d 1095, 1104 (5th Cir. 1996) (Maintenance of property values has long
been recognized as a legitimate objective of local land use regulation.); Tex. Manufactured Hous.
Assn v. City of La Porte, 974 F. Supp. 602, 613 (S.D. Tex. 1996) (discussing maintenance of property
values); City of Cleveland v. City of Brook Park, 893 F. Supp. 742 (N.D. Ohio 1995) (discussing noise
regulation); Purple Onion, Inc. v. Jackson, 511 F. Supp. 1207, 1226 (N.D. Ga. 1992) (discussing
legitimacy of preserving residential neighborhoods, avoiding blight, and reducing noise and traffic).
144
145
Guschke v. Oklahoma City, 763 F.2d 379, 384 (10th Cir. 1985).
Justin Indus., Inc. v. Choctaw Securities, L.P., 920 F.2d 262, 269 (5th Cir. 1990) (citing Canal
Auth. v. Callaway, 489 F.2d 567, 576 (5th Cir. 1974)).
146
Page 30
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 38 of 45
this case, the Courts issuance of the preliminary injunction requested by TMGS
would effectively negate the Courts ability to issue a decision on the merits. If the
Court prohibits the City from enforcing Section 10 and TMGS constructs a
compressor station that does not comply with Section 10, there will be nothing left
for this Court to decide. The issuance of the permanent injunction will
fundamentally alter the status quo.
TMGS cannot prevail on the merits, but it also cannot clearly establish any of
the three other elements of injunctive relief(1) that it will suffer irreparable
injury without an injunction; (2) that TMGSs injury outweighs the Citys injury if
an injunction issues; and (3) that the injunction will not disserve the public interest.
TMGS argues that a constitutional claim or a preemption claim never require a
showing of these elements.147 Even in the cases cited by TMGS, the courts analyzed
all four requirements for injunctive relief,148 and an analysis of all four elements is
appropriate here.
Pl.s Br. at 14 (citing VRC LLC v. City of Dallas, 460 F.3d 607, 611 (5th Cir. 2006); Doe v.
Duncanville Indep. Sch. Dist., 994 F.2d 160, 166 (5th Cir. 1993); Villas at Parkside Partners v. City
of Farmers Branch, 469 F. Supp. 2d 757 (N.D. Tex. 2007)).
147
See Villas, 469 F. Supp. 2d at 776 (reviewing evidence supporting finding of irreparable harm);
Doe, 994 F.2d at 166 (holding only that district court did not abuse its discretion in finding
148
irreparable harm where school district violated the Establishment Clause of the Constitution). In
addition, both VRC and the case that it relied upon, Trans World Airlines, Inc. v. Mattox, 897 F.2d
773, 784 (5th Cir. 1990), involved permanent, rather than preliminary, injunctions. See N.Y. State
Rest. Assn v. N.Y. City Bd. of Health, 545 F. Supp. 2d 363, 368 (S.D.N.Y. 2008) (These cases
addressed the question of irreparable harm in the context of a permanent injunction, after the
appellate court had found that the state law at issue was clearly preempted by federal law. Thus,
these cases stand only for the proposition that when there is a very high likelihood of success on the
merits of the preemption claim, little or no additional showing with respect to the other three factors
is necessary.).
THE CITYS RESPONSE TO PLAINTIFFS
APPLICATION FOR PRELIMINARY INJUNCTION AND BRIEF IN SUPPORT
D-1684730.1
Page 31
Case 3:08-cv-01724-D
a.
Document 16
Filed 10/15/2008
Page 39 of 45
TMGS has not shown and cannot show any immediate and irreparable harm
if Section 10 is enforced. Absent a showing of imminent circumstances that warrant
a preliminary injunction pending a trial on the merits, an injunction is
inappropriate.149 By its own conduct, TMGS has significantly delayed its
application for an injunction. As this Court has recognized:
[D]elay in seeking a remedy is an important factor bearing on the need
for a preliminary injunction. Absent a good explanation, a substantial
period of delay militates against the issuance of a preliminary
injunction by demonstrating that there is no apparent urgency to the
request for injunctive relief. Evidence of an undue delay in bringing
suit may be sufficient to rebut the presumption of irreparable harm.150
TMGS admits it has negotiated with the City for more than a year on the
requirements of Section 10.151 Without applying for any permits or even giving
notice to the City, TMGS broke ground on the Barnes Compressor Station on or
before June 23, 2008.152 Section 10 was enacted on July 1, 2008.153 Even after the
current version of Section 10 went into effect, TMGS waited three monthsuntil
September 30, 2008to seek court intervention. Courts have repeatedly denied
preliminary injunctions in cases with similar delays.154 TMGSs own delay
149
150
Wireless Agents, L.L.C. v. T-Mobile USA, Inc., 2006 WL 1540587, *3 (N.D.Tex. June 6, 2006)
152
153
Lasher Aff. 19, App. 007; Sherwin Aff. 12-14, App. 137-138.
154 Tough Traveler, Ltd. v. Outbound Prod., 60 F.3d 964, 968 (2d Cir. 1995) (vacating preliminary
injunction where movant waited four months to seek a preliminary injunction after filing suit);
Citibank, N.A. v. Citytrust, 756 F.2d 273, 276 (2d Cir. 1985) (ten-week delay in seeking injunction
THE CITYS RESPONSE TO PLAINTIFFS
Page 32
APPLICATION FOR PRELIMINARY INJUNCTION AND BRIEF IN SUPPORT
D-1684730.1
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 40 of 45
for trademark infringement undercut claim of irreparable harm); GoNannies, Inc. v. GoAuPair.com,
Inc., 464 F. Supp. 2d 603, 609 (N.D. Tex. 2006) (five-month delay in applying for injunctive relief
rebutted any presumption of irreparable harm).
155
156 Morales v. Trans World Airlines, Inc., 504 U.S. 374, 381 (1992); Watson v. Fed. Emergency Mgmt.
Agency, 437 F. Supp. 2d 638, 648 (S.D.Tex. 2006) vacated at 2006 U.S. App. LEXIS 29382 (5th Cir.
Sept. 6, 2006).
157
Lasher Aff. 19, App. 007; Sherwin Aff. 12-14, App. 137-138.
The City assumes, for purposes of this section, that TMGS is somehow capable of succeeding on
the merits.
158
Deerfield Medical Center v. City of Deerfield Beach, 661 F.2d 328, 338 (5th Cir.1981) (An injury
is irreparable only if it cannot be undone through monetary remedies.).
159
Page 33
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 41 of 45
Morgan v. Fletcher, 518 F.2d 236, 240 (5th Cir. 1975) (quoting Virginia Petroleum Jobbers
Association v. FPC, 259 F.2d 921, 925 (D.C. Cir. 1958)) (emphasis in original).
160
161
Allied Marketing Group, Inc. v. CDL Marketing, Inc., 878 F.2d 806, 810 n.1 (5th Cir. 1989).
162
Page 34
Case 3:08-cv-01724-D
b.
Document 16
Filed 10/15/2008
Page 42 of 45
The City has a great interest in protecting property values and aesthetics in
the city limits. Because the City is a political subdivision, any injury to its
residentsor anything that makes the City less attractive to potential residents
injures the City. Thus, the Citys interest is aligned with that of its residents.
As discussed above, Section 10which focuses on aesthetics and the
preservation of property valuesprotects the interests of all City residents. If the
City were enjoined from enforcing Section 10, TMGS could erect a Compressor
Station that detracts from the Citys appearance, decreases property values, and
creates a nuisance for City residents in terms of noise and appearance. TMGS, on
the other hand, has not shown that anyone other than it is concerned with its
ability to construct the Barnes Compressor Station that complies with the aesthetic
requirements of Section 10.
A preliminary injunction will also disserve the public interest because it will
foreclose public hearing and discussion on any proposed compressor station. The
SUP process includes public hearing and notification requirements.163 The public
interest will be severely injured if Section 10 and the SUP process is enjoined by
this Court.
On balance, an injunction would disserve the public interest, and any injury
to TMGS without an injunction is outweighed by the injury that the City would
D-1684730.1
Page 35
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 43 of 45
suffer if an injunction were entered. TMGS has not clearly established the
requirements for a preliminary injunction, and its request should be denied.
3.
The Court should require TMGS to post a substantial bond if the Court elects
to enjoin the City. Federal Rule of Civil Procedure 65(c) provides that a court may
issue a preliminary injunction...only if the movant gives security in an amount that
the court considers proper to pay the costs and damages sustained by any party
found to have been wrongfully enjoined or restrained. TMGS cites an inapposite
case involving an anti-suit injunction to argue that the Court should dispense with
the bond requirement.164 But more recently the Fifth Circuit has stressed the
importance of the bond requirement: It assures the enjoined party that it may
readily collect damagesBecause of the importance of the bond requirement,
failure to require the posting of a bond or other security constitutes grounds for
reversal of an injunction.165
The bond is particularly important in this case where the issuance of the
preliminary injunction will effectively invalidate Section 10 in its entirety. If the
Court issues the preliminary injunction and TMGS builds the Barnes Compressor
Station without regard to Section 10, no decision by this Court following a final trial
on the merits will impact the already-built station. The Citys damage is also
monetarily significant a $2,000 per day fine that TMGS will incur if the Court
164
PI Br. at 16 (citing Kaepa, Inc. v. Achilles Corp., 76 F.3d 624, 628 (5th Cir. 1996)).
165
Nichols v. Alcatel USA, Inc., 532 F.3d 364, 379 (5th Cir. 2008).
Page 36
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 44 of 45
does ultimately decide that the City can enforce Section 10. In 2007, the median
time from filing to disposition for cases in the Northern District of Texas was 19.4
months.166 If this case follows that trajectory, the City could lose the collection of at
least $1.2 million in fines. The City must be able to readily collect damages
something that is not guaranteed in the current financial climate.167 This Court
should set the bond at least as high as the possible fines that TMGS will incur if
Section 10 is ultimately upheld.
Prayer
Because this case is not ripe for judicial review, the City respectfully suggests
that the Court must dismiss this case for lack of subject matter jurisdiction.
Alternatively, TMGSs motion for preliminary injunction should be denied. TMGS
fails to clearly establish any chancemuch less a likelihoodof success on the
merits, or to meet any of the other requisites for injunctive relief. In the
alternative, the City requests that, if an injunction is entered, TMGS be: (i) required
to post a substantial bond and (ii) ordered to refrain from constructing the Barnes
Compressor Station until a final determination on the merits in this case.
166
Page 37
Case 3:08-cv-01724-D
Document 16
Filed 10/15/2008
Page 45 of 45
Respectfully submitted,
/s/ M.L. Brimmage, Jr.
Marty L. Brimmage, Jr.
State Bar No. 00793386
Aimee M. Minick
State Bar No. 24026882
Lacy M. Lawrence
State Bar No. 24055913
HAYNES AND BOONE, LLP
901 Main Street, Suite 3100
Dallas, Texas 75202
Telephone: (214) 651-5000
Telecopier: (214) 651-5940
ATTORNEYS FOR DEFENDANT
CITY OF GRAND PRAIRIE, TEXAS
CERTIFICATE OF SERVICE
The undersigned certifies that a copy of the foregoing instrument was served
on the attorneys of record for all parties to the above cause in accordance with the
Federal Rules of Civil Procedure on the 15th day of October, 2008.
Michael L. Knapek
Scott M. McElhaney
Nicole L. Ruble
Jackson Walker L.L.P.
901 Main Street, Suite 6000
Dallas, TX 75202
Page 38