Portland Pipe Line Corp. v. City of S. Portland

• Decision Date: 24 August 2018
• Docket Number: 2:15-cv-00054-JAW
• Citation: 332 F.Supp.3d 264
• Parties: PORTLAND PIPE LINE CORPORATION, et al., Plaintiffs, v. CITY OF SOUTH PORTLAND, et al., Defendants.
• Court: U.S. District Court — District of Maine

332 F.Supp.3d 264

PORTLAND PIPE LINE CORPORATION, et al., Plaintiffs,

v.CITY OF SOUTH PORTLAND, et al., Defendants.

2:15-cv-00054-JAW

United States District Court, D. Maine.

Signed August 24, 2018

Catherine R. Connors, Matthew D. Manahan, Eric J. Wycoff, John J. Aromando, Nolan L. Reichl, Pierce Atwood LLP, Portland, ME, for Plaintiffs.

Mark A. Bower, Sally J. Daggett, Jensen Baird Gardner & Henry, Portland, ME, Euripides Dalmanieras, Jesse Harlan Alderman, Pro Hac Vice, Jonathan M. Ettinger, Foley Hoag LLP, Boston, MA, for Defendants.

ORDER AND JUDGMENT

JOHN A. WOODCOCK, JR., UNITED STATES DISTRICT JUDGE

A pipeline operator challenges a local ordinance prohibiting loading crude oil onto tankers and the construction of new structures for that purpose on the grounds that it violates the dormant Commerce Clause and Foreign Commerce Clause of the United States Constitution. A state or local statute can violate the dormant Commerce Clause if it (1) has an impermissible extraterritorial reach, (2) discriminates against interstate or foreign commerce, (3) excessively burdens interstate or foreign commerce, or (4) interferes with the federal government's ability to speak with one voice when regulating commerce with foreign nations. After a four-day bench trial, the Court concludes that the local ordinance does not violate the dormant Commerce Clause or the Foreign Commerce Clause of the United States Constitution.

I. PROCEDURAL HISTORY

A. The Complaint, Motion to Dismiss, and Answer

On February 6, 2015, Portland Pipe Line Corporation (PPLC) and the American Waterways Operators (AWO) (collectively, Plaintiffs, PPLC) filed a complaint with this Court against the city of South Portland (South Portland or the City) and Patricia Doucette in her official capacity as the code enforcement officer of South Portland (collectively, Defendants, the City). Compl. for Declaratory and Injunctive Relief (ECF No. 1) (Compl. ). The Complaint contains nine counts: (1) Supremacy Clause preemption of the Ordinance by the Pipeline Safety Act (PSA), 49 U.S.C §§ 60101 et seq. ; (2) Supremacy Clause preemption of the Ordinance under the President's foreign affairs power; (3) Supremacy Clause preemption of the Ordinance by the Ports and Waterways Safety Act, 33 U.S.C. Ch. 25 and 46 U.S.C. Ch. 37; (4) preemption of the Ordinance under Article III, Section 2 of the United States Constitution and the Constitution's embedded principle of federal maritime governance; (5) violation of the Commerce Clause of the Constitution; (6) violation of the Due Process and Equal Protection Clauses; (7) deprivation of rights under the Civil Rights Act, 42 U.S.C. § 1983 ; (8) inconsistency of the Ordinance with South Portland's comprehensive plan under Maine law, 30-A M.R.S. § 4352 ; and (9) preemption of the Ordinance by Maine's Oil Discharge Prevention Law, 38 M.R.S. § 556. Id.

On March 31, 2015, the Defendants filed a motion to dismiss the Complaint on justiciability grounds. Defs.' Mot. to Dismiss the Compl. Pursuant to Rule 12(b)(1) (ECF No. 16); Mem. of Law in Supp. of Defs.' Mot. to Dismiss Pursuant to Rule 12(b)(1) (ECF No. 17). The Court denied the motion to dismiss on February 11, 2016. Order on Defs.' Mot. to Dismiss (ECF No. 29). Accordingly, the Defendants filed an answer to the Complaint on February 29, 2016. Answer of Defs. City of South Portland and Patricia Doucette (ECF No. 30).

B. Summary Judgment and Renewed Motions to Dismiss

On November 17, 2016, PPLC filed a motion for summary judgment. Pls.' Mot. for Summ. J. (ECF No. 87). That same day, the Defendants filed a consolidated motion to dismiss pursuant to Rule 12(b)(1) and a cross-motion for summary judgment. Defs.' Consolidated Mot. to Dismiss Pursuant to Rule 12(b)(1) and Mot. for Summ J. (ECF No. 88).

On May 11, 2017, the Court issued a second order on the justiciability issue, ordering an evidentiary hearing. Interim Order (ECF No. 156). On August 24, 2017, after a full day of testimony on August 9, 2017, the Court issued a third order on justiciability, denying the motion to dismiss. Min. Entry (ECF No. 179); Order on Defs.' Consolidated Mot. to Dismiss under Rule 12(b)(1) (ECF No. 185) (Justiciability Order ). On October 20, 2017, the City filed another motion to dismiss after a public announcement about the cancellation of a different pipeline project. Defs.' Renewed Mot. to Dismiss Pursuant to Rule 12(b)(1) (ECF No. 194). After oral argument on November 21, 2017, on December 12, 2017, the Court issued its fourth ruling on the justiciability issue the City first raised on March 31, 2015. Order on Defs.' Renewed Mot. to Dismiss (ECF No. 199).

Meanwhile, the Court received requests for leave to file amicus briefs on behalf of both the Plaintiffs and the Defendants. On January 9, 2017, the Court granted the motions of the amici curiae. Order on Mots. to File Briefs as Amici Curiae (ECF No. 135). Three briefs were filed on behalf of the Plaintiffs by the Chamber of Commerce of the United States, the American Fuel and Petrochemical Manufacturers, the American Petroleum Institute, the Association of Oil Pipe Lines, the International Liquid Terminals Association, Portland Pilots, Inc., the Maine Energy Marketers Association, and the Associated General Contractors of Maine. Brief of the Chamber of Commerce of the U.S.A. as Amicus Curiae in Supp. of Pls.' Mot. for Summ. J. (ECF No. 136); Amici Curiae Brief of the Am. Fuel & Petrochem. Mfrs., the Am. Petro. Inst., the Ass'n of Oil Pipe Lines, and the Int'l Liquid Terminals Ass'n in Supp. of Pls.' Mot. for Summ. J. (ECF No. 138); Brief of Amicus Curiae Portland Pilots, Inc., Maine Energy Mkt'rs Ass'n, and Associated Gen. Contractors of Me. in Supp. of Pls.' Mot. for Summ. J. (ECF No. 139). For the Defendants, the Conservation Law Foundation filed a brief on January 10, 2017. Brief Amicus Curiae of the Conserv. Law Found. (ECF No. 137). On January 23, 2017, PPLC and the City each filed a response to the amicus briefs. Pls.' Mem. of Law in Resp. to Amici Briefs (ECF No. 145); Defs.' Resp. to Briefs Amicus Curiae (ECF No. 146).

On December 29, 2017, the Court issued an order on the cross-motions for summary judgment. Order on Mots. for Summ. J. (ECF No. 200) (Summ. J. Order ). The Court granted summary judgment in favor of the City on Count I (Supremacy Clause—The Pipeline Safety Act), Count II (Supremacy Clause—Foreign Affairs), Count III (Supremacy Clause—The Port and Waterways Safety Act), Count IV (Maritime Preemption), Count VI (Due Process, Excessive Delegation, and Equal Protection), Count VIII (Inconsistency with the City's Comprehensive Plan), and Count IX (State Preemption). Id. at 228. The Court denied summary judgment to PPLC on all counts, and denied summary judgment to the City on Count V (Commerce Clause) because there were genuine disputes of material facts. Id. The Court preserved an ancillary issue by dismissing without prejudice on Count VII (Civil Rights Violation) to the extent it demanded attorney's fees and costs. Id.

C. The Bench Trial

Trial was scheduled for five days beginning on June 18, 2018. Notice of Bench Trial (ECF No. 204). The parties filed four pre-trial motions on April 25 and May 11, 2018, which the Court addressed on June 1, June 13, and June 14, 2018. Defs.' Mot. for View (ECF No. 206); Pls.' Mot. in Limine to Admit into Evidence Statements by City Officials and Members of the Public (ECF No. 208); Defs.' Mot. in Limine to Exclude Irrelevant and Inadmissible Statements (ECF No. 209); Defs.' Mot. in Limine to Exclude New Summary Tables Produced by Pls.' Without Underlying Data (ECF No. 210); Order Deferring Ruling on Defs.' Mot. for View (ECF No. 218); Order on Mots. in Limine Concerning Statements of City Officials and Members of the Public (ECF No. 230); Order on Mot. in Limine Concerning Summary Tables (ECF No. 232). The parties also stipulated to certain evidentiary matters, including admitting into evidence at trial virtually all of the testimony and exhibits admitted during the August 9, 2017 hearing on justiciability. Joint Stipulation Concerning Trial (ECF No. 239).

The Court presided over a bench trial from June 18 to June 21, 2018. Min. Entry for Bench Trial (ECF Nos. 240, 242-44). On July 13, 2018, the parties submitted simultaneous post-trial briefs. Pls.' Post-Trial Br. (ECF No. 251) (Pls.' Br. ); Defs.' Post-Trial Br. (ECF No. 252) (Defs.' Br. ). The parties responded to each other's briefs on July 23, 2018. Pls.' Post-Trial Reply Br. (ECF No. 253) (Pls.' Resp. ); Defs.' Post-Trial Reply Br. (ECF No. 254) (Defs.' Resp. ).

II. FINDINGS OF FACT

A. The Parties

PPLC is pipeline company incorporated in Maine. Montreal Pipe Line Limited (MPLL) is PPLC's Canadian parent company. Three Canadian companies own MPLL: Shell Canada Limited, Suncor Energy Inc., and Imperial Oil Limited. Imperial is ExxonMobil's Canadian subsidiary. The American Waterways Operators (AWO) is a nationwide trade organization that advocates for the interests of United States tugboat, towboat, and barge owners and operators.

The city of South Portland is a municipal corporation organized pursuant to the Constitution and general laws of the state of Maine. CITY OF SOUTH PORTLAND CHARTER , http://www.southportland.org/files/4213/5994/7194/CO_Charter.pdf. The City is governed by a City Council of seven elected members serving staggered three year terms, one of whom is elected to serve as mayor for one year. Id. §§ 207, 211. The City Council appoints other officials like the City Manager. Id. § 227. Patricia Doucette was the City's Code Enforcement Director at the outset of this litigation.

B. The Pipelines

In 1941, PPLC and MPLL began constructing and operating a twelve-inch crude oil pipeline stretching from the harbor in South Portland, Maine (the Harbor), through New Hampshire and Vermont and into Quebec, Canada, terminating at oil refineries in Montreal East. Pls.' Ex. 164. PPLC added to its pipeline system in 1950 by constructing and operating an...