OPINION OF THE COURT
JORDAN, Circuit Judge.
The Natural Gas Act ("NGA"), 15 U.S.C. §§ 717-717z, allows private gas companies to exercise the federal government's power to take property by eminent domain, provided certain jurisdictional requirements are met. This appeal calls on us to decide whether that delegation of power allows gas companies to hale unconsenting States into federal court to condemn State property interests.
PennEast Pipeline Company ("PennEast") is scheduled to build a pipeline through Pennsylvania and New Jersey. The company obtained federal approval for the project and promptly sued pursuant to the NGA to condemn and gain immediate access to properties along the pipeline route. Forty-two of those properties are owned, at least in part, by the State of New Jersey or various arms of the State. New Jersey sought dismissal of PennEast's condemnation suits for lack of jurisdiction, citing the Eleventh Amendment to the United States Constitution, and, separately, arguing that PennEast failed to satisfy the jurisdictional requirements of the NGA. Broadly speaking, the Eleventh Amendment recognizes that States enjoy sovereign immunity from suits by private parties in federal court. New Jersey has not consented to PennEast's condemnation suits, so those legal proceedings can go forward only if they are not barred by the State's immunity. The District Court held that they are not barred and granted PennEast orders of condemnation and preliminary injunctive relief for immediate access to the properties. New Jersey has appealed.
We will vacate because New Jersey's sovereign immunity has not been abrogated by the NGA, nor has there been — as PennEast argues — a delegation of the federal government's exemption from the
I. BACKGROUND
The NGA authorizes private gas companies to acquire "necessary right[s]-of-way" for their pipelines "by the exercise of the right of eminent domain[,]" if three conditions are met. 15 U.S.C. § 717f(h). First, the gas company seeking to condemn property must have obtained a Certificate of Public Convenience and Necessity (a "Certificate") from the Federal Energy Regulatory Commission ("FERC"). Id. Second, it must show that it was unable to "acquire [the property] by contract" or "agree with the owner of property" about the amount to be paid. Id. Third and finally, the value of the property condemned must exceed $3,000. Id.
In the fall of 2015, PennEast applied for a Certificate for its proposed 116-mile pipeline running from Luzerne County, Pennsylvania to Mercer County, New Jersey (the "project"). After a multi-year review,
Certificate in hand, PennEast filed verified complaints in the United States District Court for the District of New Jersey, asking for orders of condemnation for 131 properties along the pipeline route, determinations of just compensation for those properties, and preliminary and permanent injunctive relief to gain immediate access to and possession of the properties
After PennEast filed its complaints, the District Court ordered the affected property owners to show cause why the Court should not grant the relief sought.
After hearings on the show-cause order,
Next, the Court held that PennEast met the three requirements of the NGA, entitling it to exercise the federal government's
The District Court went on to hold that PennEast had satisfied the familiar four-factor test for preliminary injunctive relief. To obtain a preliminary injunction, the movant must show "1) that there is reasonable probability of success on the merits, 2) that there will be irreparable harm to the movant in the absence of relief, 3) that granting the injunction will not result in greater harm to the nonmoving party, and 4) that the public interest favors granting the injunction." Transcon. Gas Pipe Line Co. v. Conestoga Twp., 907 F.3d 725, 732 (3d Cir. 2018). As to the first factor, the Court said that PennEast had already effectively succeeded on the merits, given that "the Court ha[d] found PennEast satisfied the elements of § 717f(h) and is therefore entitled to condemnation orders." (App. at 50.) As to the second factor, the Court found that, without an injunction, PennEast would suffer irreparable harm in the form of non-recoupable financial losses and construction delays. For the third factor, the Court noted that, while it had "carefully considered a wide range of arguments from Defendants regarding the harm PennEast's possession will cause," the property owners would not be harmed "by the Court granting immediate possession" because they would receive just compensation. (App. at 53, 55.) Lastly, the Court was persuaded, especially in light of FERC's conclusion about public necessity, that the project is in the public interest. Having found all four factors weighed in favor of granting a preliminary injunction, the Court ordered that relief.
New Jersey moved for reconsideration of the District Court's denial of sovereign immunity and sought a stay of the District Court's order to prevent PennEast from taking immediate possession of the State's properties. As described more fully herein, see infra Part III-B.1., it argued that, based on the Supreme Court's decision in Blatchford v. Native Village of Noatak, 501 U.S. 775, 111 S.Ct. 2578, 115 L.Ed.2d 686 (1991), the United States lacks the constitutional authority to delegate to private entities like PennEast the capacity to sue a State. The District Court denied that motion, concluding that Blatchford does not apply to condemnation actions brought pursuant to the NGA.
The State timely appealed. It also moved to stay the District Court's order pending resolution of this appeal and to expedite our consideration of the dispute. We granted that motion in part, preventing
II. JURISDICTION AND STANDARD OF REVIEW
New Jersey contests jurisdiction in these condemnation actions, asserting here, as it did in the District Court, its sovereign immunity. For the reasons that follow, we agree with it that the District Court lacked subject matter jurisdiction over the suits insofar as they implicated the State's property interests. We, however, have jurisdiction under 28 U.S.C. § 1291 to review the denial of New Jersey's claim of Eleventh Amendment immunity. Puerto Rico Aqueduct & Sewer Auth. v. Metcalf & Eddy, Inc., 506 U.S. 139, 147, 113 S.Ct. 684, 121 L.Ed.2d 605 (1993); see Cooper v. Se. Pa. Transp. Auth., 548 F.3d 296, 298 (3d Cir. 2008) ("An order denying Eleventh Amendment immunity is immediately appealable as a final order under the collateral order doctrine."). And, pursuant to 28 U.S.C. § 1292(a)(1), we have jurisdiction to review the grant of an injunction.
We exercise plenary review over a claim of sovereign immunity. Karns v. Shanahan, 879 F.3d 504, 512 (3d Cir. 2018). We review the grant of a preliminary injunction for abuse of discretion but review de novo the legal conclusions underlying the grant. McNeil Nutritionals, LLC v. Heartland Sweeteners, LLC, 511 F.3d 350, 357 (3d Cir. 2007).
III. DISCUSSION
The Eleventh Amendment declares that:
U.S. Const. amend. XI. The States' immunity from suit in federal court, however, "neither derives from, nor is limited by, the terms of the Eleventh Amendment." Alden v. Maine, 527 U.S. 706, 713, 119 S.Ct. 2240, 144 L.Ed.2d 636 (1999). Rather, that immunity is "a fundamental aspect of the sovereignty which the States enjoyed before the ratification of the Constitution, and which they retain today[.]"
Because of that immunity, States are not "subject to suit in federal court unless" they have consented to suit, "either expressly or in the `plan of the convention.'"
New Jersey asserts that it is entitled to sovereign immunity from these condemnation suits. It argues that the federal government cannot delegate its exemption from state sovereign immunity to private parties like PennEast and that, even if it could, the NGA is not a clear and unequivocal delegation of that exemption. PennEast disagrees. The company argues that a delegation of the federal government's eminent domain power under the NGA necessarily includes the ability to sue the States and that concluding otherwise would frustrate the fundamental purpose of the NGA to facilitate interstate pipelines.
A
In view of PennEast's argument, it is essential at the outset to distinguish between the two powers at issue here: the federal government's eminent domain power and its exemption from Eleventh Amendment immunity. Eminent domain is the power of a sovereign to condemn property for its own use. Kohl v. United States, 91 U.S. 367, 371, 373-74, 23 S.Ct. 449 (1875). The federal government can exercise that power to condemn State land in federal court. United States v. Carmack, 329 U.S. 230, 240, 67 S.Ct. 252, 91 S.Ct. 209 (1946). But its ability to do so is not due simply to "the supreme sovereign's right to condemn state land. Rather, it is because the federal government enjoys a special exemption from the Eleventh Amendment." Sabine Pipe Line, LLC v. Orange Cty., Tex., 327 F.R.D. 131, 140 (E.D. Tex. 2017). Thus, the federal government's ability to condemn State land — what PennEast contends it is entitled to do by being vested with the federal government's eminent domain power — is, in fact, the function of two separate powers: the government's eminent domain power and its exemption from Eleventh Amendment immunity. A delegation of the former must not be confused for, or conflated with, a delegation of the latter. A private party is not endowed with all the rights of the United States by virtue of a delegation of the government's power of eminent domain.
PennEast tries to ignore that distinction, arguing that Congress intended for private gas companies to which the federal government's eminent domain power has been delegated under the NGA to be able to condemn State property. Focusing on Congress's intent to enable gas companies to build interstate gas pipelines, PennEast fails to adequately grapple with the constitutional impediment to allowing a private business to condemn State land: namely, Eleventh Amendment immunity.
That failure is a consequence of the easier road PennEast chooses, namely citing the NGA and asserting, in effect, that Congress must have meant for pipeline construction to go forward, regardless of the Eleventh Amendment.
B
Three reasons prompt our doubt that the United States can delegate that exemption to private parties. First, there is simply no support in the caselaw for PennEast's "delegation" theory of sovereign immunity. Second, fundamental differences between suits brought by accountable federal agents and those brought by private parties militate against concluding that the federal government can delegate to private parties its ability to sue the States. Finally, endorsing the delegation theory would undermine the careful limits established by the Supreme Court on the abrogation of State sovereign immunity.
1
Looking in more detail at the caselaw, it lends no credence to the notion that the United States can delegate the federal government's exemption from state sovereign immunity. In Blatchford, the Supreme Court dealt with this issue. In that case, Native American tribes sued an Alaskan official for money allegedly owed to them under a state revenue-sharing statute. Blatchford, 501 U.S. at 777-78, 111 S.Ct. 2578. Relevant here, the tribes argued that their suit did not offend state sovereign immunity because Congress had delegated to the tribes the federal government's ability to sue the States. See id. at 783, 111 S.Ct. 2578 (explaining the tribes' assertion that, in passing 28 U.S.C. § 1362, which grants district courts jurisdiction over suits brought by Indian tribes arising under federal law, Congress had "delegate[d]" the federal government's authority to sue on behalf of Indian tribes "back to [the] tribes themselves").
The Court rejected that argument, expressing its "doubt ... that sovereign exemption can be delegated—even if one limits the permissibility of delegation ... to persons on whose behalf the United States itself might sue." Id. at 785, 111 S.Ct. 2578. The Court explained why: "[t]he consent, `inherent in the convention,' to suit by the United States—at the instance and under the control of responsible federal officers—is not consent to suit by anyone whom the United States might select[.]" Id. The delegation theory, the Court explained, was nothing more than "a creature of [the tribes'] own invention." Id. at 786, 111 S.Ct. 2578.
PennEast would have us dismiss Blatchford as "so distinguishable" as to be "useless by analogy." (Answering Br. at 41.) As PennEast sees it, the statute at issue in Blatchford was a jurisdictional statute that did not confer any substantive rights on
Courts of Appeals have been similarly skeptical that the federal government can delegate to private parties its exemption from state sovereign immunity — even when the private party seeks to assert the interests of the United States, rather than the party's own. The D.C. Circuit's decision in U.S. ex rel. Long v. SCS Business & Technical Institute, Inc., 173 F.3d 870 (D.C. Cir. 1999), is a case in point. There, the court stated that "permitting a qui tam relator to sue a state in federal court based on the government's exemption from the Eleventh Amendment bar involves just the kind of delegation that Blatchford so plainly questioned." Id. at 882. That conclusion accords with others from our sister circuits. See United States ex rel. Foulds v. Tex. Tech Univ., 171 F.3d 279, 294 (5th Cir. 1999) (holding, in the qui tam context, that "the United States cannot delegate to non-designated, private individuals its sovereign ability to evade the prohibitions of the Eleventh Amendment"); see also Jachetta v. United States, 653 F.3d 898, 912 (9th Cir. 2011) (rejecting argument that the federal government could authorize a private plaintiff to sue on its behalf as "unpersuasive" based on Blatchford). But cf. United States ex rel. Milam v. Univ. of Tex. M.D. Anderson Cancer Ctr., 961 F.2d 46, 50 (4th Cir. 1992) (concluding that "the United States is the real party in interest" in qui tam suits and therefore such suits are not barred by the States' Eleventh Amendment immunity).
While the Supreme Court and federal Courts of Appeals have not addressed the precise issue that we have here — whether condemnation actions under the NGA are barred by Eleventh Amendment immunity — the one reported district court decision to do so held that Eleventh Amendment immunity is indeed a bar. In Sabine Pipe Line, LLC v. Orange, County, Texas, the pipeline company plaintiff argued that, because the federal government could exercise its eminent domain power to condemn State property, there was "no reason to treat a delegation of the same authority any differently." 327 F.R.D. at 139. The court disagreed. It explained that, like PennEast's arguments, the plaintiff's "theory of the case erroneously assumes that by delegating one power [, that of eminent domain], the government necessarily also delegated the other [, the ability to sue the States]." Id. at 140. The court was careful not to conflate the two powers and, based on Blatchford, concluded that "a private party does not become the sovereign such that it enjoys all the rights held by the United States by virtue of Congress's delegation of eminent domain powers." Id. at 141."
We are in full agreement. Quite simply, there is no authority for PennEast's delegation theory of sovereign immunity. Indeed, the caselaw strongly suggests that New Jersey is correct that the federal government cannot delegate to private
2
Non-delegability makes sense, since there are meaningful differences between suits brought by the United States, an accountable sovereign, and suits by private citizens. Blatchford, 501 U.S. at 785, 111 S.Ct. 2578. Suits brought by the United States are "commenced and prosecuted... by those who are entrusted with the constitutional duty to `take Care that the Laws be faithfully executed[.]'" Alden, 527 U.S. at 755, 119 S.Ct. 2240 (quoting U.S. Const., art. II, § 3). Private parties face no similar obligation. Nor are they accountable in the way federal officials are. See id. at 756, 119 S.Ct. 2240 ("Suits brought by the United States itself require the exercise of political responsibility for each suit prosecuted against a State, a control which is absent from a broad delegation to private persons to sue nonconsenting States.").
Those considerations are clearly in play in the eminent domain context. There, the condemning party controls the timing of the condemnation actions, decides whether to seek immediate access to the land, and maintains control over the action through the just compensation phase, determining whether to settle and at what price. The incentives for the United States, a sovereign that acts under a duty to take care that the laws be faithfully executed and is accountable to the populace, may be very different than those faced by a private, for-profit entity like PennEast, especially in dealing with a sovereign State. In other words, the identity of the party filing the condemnation action is not insignificant.
3
There is, however, a way that Congress can subject the States to suits by private parties. It can abrogate the sovereign immunity of the States. The Supreme Court "ha[s] stressed, however, that abrogation of sovereign immunity upsets the fundamental constitutional balance between the Federal Government and the States, placing a considerable strain on the principles of federalism that inform Eleventh Amendment doctrine[.]" Dellmuth v. Muth, 491 U.S. 223, 227, 109 S.Ct. 2397, 105 L.Ed.2d 181 (1989) (alterations, internal quotation marks, and citations omitted). Accordingly, the Court has held that Congress can abrogate the sovereign immunity of the States "only by making its intention [to do so] unmistakably clear in the language of the statute" in question.
Moreover, Congress may abrogate state sovereign immunity only pursuant to a valid exercise of federal power. Seminole Tribe, 517 U.S. at 59, 116 S.Ct. 1114. Particularly relevant here, Congress cannot abrogate sovereign immunity under its Commerce Clause powers. Id. at 59, 72-73, 116 S.Ct. 1114. Instead, the Supreme Court has recognized that Congress can abrogate sovereign immunity only when it acts pursuant to § 5 of the Fourteenth Amendment.
What we take from those rules is that state sovereign immunity goes to the core of our national government's constitutional design and therefore must be carefully guarded. Yet accepting PennEast's delegation theory would dramatically undermine the careful limits the Supreme Court has placed on abrogation. Indeed, "[t]o assume that the United States possesses plenary power to do what it will with its Eleventh Amendment exemption [by delegation] is to acknowledge that Congress can make an end-run around the limits that that Amendment imposes on its legislative choices." SCS Bus., 173 F.3d at 883. We are loath to endorse a never-before-recognized doctrine that would produce such a result.
4
None of PennEast's arguments for the delegability of the Eleventh Amendment exception are persuasive. PennEast contends that "[t]here simply is no interference with state sovereignty when the United States itself has found that an interstate infrastructure project is both necessary and in the public's interest"
In the same vein, PennEast cites qui tam suits under the False Claims Act ("FCA"), 31 U.S.C. §§ 3729-3733,
PennEast is also incorrect that New Jersey's sovereign immunity simply "does not apply" in condemnation actions because they are in rem proceedings. (Answering Br. at 48.) The cases PennEast cites are confined — by their terms — to the specialized areas of bankruptcy and admiralty law. See Tenn. Student Assistance Corp. v. Hood, 541 U.S. 440, 445, 450, 124 S.Ct. 1905, 158 L.Ed.2d 764 (2004) (concluding "a bankruptcy court's discharge of a student loan debt does not implicate a State's Eleventh Amendment immunity" because "the bankruptcy court's jurisdiction is premised on the res, not on the persona"); California v. Deep Sea Res., 523 U.S. 491, 506, 118 S.Ct. 1464, 140 L.Ed.2d 626 (1998) ("Although the Eleventh Amendment bars federal jurisdiction over general title disputes relating to state property interests, it does not necessarily follow that it applies to in rem admiralty actions, or that in such actions, federal courts may not exercise jurisdiction over property that the State does not actually possess." (emphases added)).
C
Like the Supreme Court, our sister circuits, and the district court in Sabine, we are thus left in deep doubt that the United States can delegate its exemption from state sovereign immunity to private parties. But we need not definitively resolve that question today because, even accepting the "strange notion" that the federal government can delegate its exemption from Eleventh Amendment immunity, Blatchford, 501 U.S. at 786, 111 S.Ct. 2578, nothing in the NGA indicates that Congress intended to do so. "As a first inquiry, we must avoid deciding a constitutional question if the case may be disposed of on some other basis." Doe v. Pa. Bd. of Prob. & Parole, 513 F.3d 95, 102 (3d Cir. 2008).
Recall that congressional intent to abrogate state sovereign immunity must be "unmistakably clear in the language of the statute." Blatchford, 501 U.S. at 786, 111 S.Ct. 2578 (citation omitted); see also United States v. Carmack, 329 U.S. 230, 243 n.13, 67 S.Ct. 252, 91 S.Ct. 209 (1946) (explaining that statutes granting eminent domain power to non-governmental actors "do not include sovereign powers greater than those expressed or necessarily implied, especially against others exercising equal or greater public powers" and that "[i]n such cases the absence of an express grant of superiority over conflicting public uses reflects an absence of such superiority"). If delegation were a possibility, one would think some similar clarity would be in order. But the NGA does not even mention the Eleventh Amendment or state sovereign immunity. Nor does it reference "delegating" the federal government's ability to sue the States. It does not refer to the States at all. If Congress had intended to delegate the federal government's exemption from sovereign immunity, it would certainly have spoken much more clearly. Cf. Dellmuth, 491 U.S. at 232, 109 S.Ct. 2397 (rejecting the argument that a statute's frequent references to the States were clear enough to abrogate sovereign immunity); Guerrero-Sanchez v. Warden York Cty. Prison, 905 F.3d 208, 223 (3d Cir. 2018) (explaining courts must "assume that Congress does not intend to pass unconstitutional laws" given the "cardinal
Despite that, PennEast contends that, because the NGA does not differentiate between privately held and State-owned property, Congress intended to make all property subject to a Certificate-holder's right of eminent domain. The company also argues that the NGA is best understood in light of its legislative history and purpose, as well as by comparing the NGA to two other condemnation statutes, both of which include explicit carve-outs for property owned by States. Whatever the force of those arguments — and it is slight, at best
D
PennEast warns that our holding today will give States unconstrained veto power over interstate pipelines, causing the industry and interstate gas pipelines to grind to a halt — the precise outcome Congress sought to avoid in enacting the NGA. We are not insensitive to those concerns and recognize that our holding may disrupt how the natural gas industry, which has used the NGA to construct interstate pipelines over State-owned land for the past eighty years, operates.
But our holding should not be misunderstood. Interstate gas pipelines can still proceed. New Jersey is in effect asking for an accountable federal official to file the necessary condemnation actions and then transfer the property to the natural gas company. Cf. Kelo v. City of New London, 545 U.S. 469, 480, 125 S.Ct. 2655, 162 L.Ed.2d 439 (2005) (discussing how broadly the Supreme Court has defined "public purpose" under the Takings Clause). Whether, from a policy standpoint, that is or is not the best solution to the practical problem PennEast points to is not our call to make. We simply note that there is a work-around.
PennEast protests that, because the NGA does not provide for FERC or the federal government to condemn the necessary properties, the federal government cannot do so. But one has to have a power to be able to delegate it, so it seems odd to say that the federal government lacks the power to condemn state property for the construction and operation of interstate gas pipelines under the NGA. In any event, even if the federal government needs a different statutory authorization to condemn property for pipelines, that is an issue for Congress, not a reason to disregard sovereign immunity. To be sure, such a change would alter how the natural gas industry has operated for some time. But that is what the Eleventh Amendment demands.
IV. CONCLUSION
Accordingly, we will vacate the District Court's order insofar as it condemns New Jersey's property interests and grants preliminary injunctive relief with respect to those interests, and we will remand for dismissal of claims against the State.
FootNotes
To address environmental and engineering concerns raised by the public, PennEast filed 33 route modifications. FERC then provided notice to newly affected landowners. The following spring, FERC published a final EIS in the Federal Register. That final EIS sought to address all substantive comments on the draft EIS. FERC concluded that nearly all New Jersey parcels "subject to types of conservation or open space protective easements will generally retain their conservation and open space characteristics[.]" (App. at 268.)
The State has spent over a billion dollars on its preservation efforts. As of 2017, New Jersey had "helped to preserve over 650,000 acres of land[,]" and the "SADC and its partners had preserved over 2,500 farms and over 200,000 acres of farmland." (Opening Br. at 6 (citing App. at 94, 108).)
That misreads Guy. In Guy, the State of Oklahoma sued to enjoin the construction of a congressionally authorized dam, as well as related condemnations. Id. at 511, 61 S.Ct. 1050. While the respondents were private entities, federal government attorneys had instituted the condemnation actions. Id. at 511 n.2, 61 S.Ct. 1050. And the United States, not the dam company, was going to "acquire title to the inundated land." Id. at 511, 61 S.Ct. 1050. So while it is true that Oklahoma argued the dam would be a "`direct invasion and destruction' of the sovereign and proprietary rights of Oklahoma[,]" id. at 512, 61 S.Ct. 1050, that was not because the State was being sued by private parties.
And, as one of the amici, the Niskanen Center, argues, the history of Eleventh Amendment jurisprudence explains the difference in language between the NGA and the two statutes PennEast cites, the Federal Power Act ("FPA"), 16 U.S.C. § 791a et seq., and the statute authorizing Amtrak to exercise eminent domain over property necessary to build rail lines, 49 U.S.C. § 24311(a) (the "Amtrak Act"). When Congress passed the NGA and 15 U.S.C. § 717f(h), in 1938 and 1947, respectively, Congress "was legislating under the consensus that it could not abrogate states' Eleventh Amendment immunity pursuant to the Commerce Clause[.]" (Niskanen Br. at 14.) Because of that, there was no reason to include a carve-out for State-owned property. See Union Gas, 491 U.S. at 35, 109 S.Ct. 2273 (Scalia, J., concurring in part and dissenting in part) ("It is impossible to say how many extant statutes would have included an explicit preclusion of suits against States if it had not been thought that such suits were automatically barred.").
Then came Union Gas, which permitted Congress to abrogate state sovereign immunity pursuant to its Commerce powers. Id. at 23, 109 S.Ct. 2273 (plurality opinion). Seven years later, however, in Seminole Tribe, the Supreme Court overruled Union Gas and affirmed that Congress can only abrogate state sovereign immunity pursuant to the Fourteenth Amendment. Seminole Tribe, 517 U.S. at 65-66, 116 S.Ct. 1114.
The FPA and Amtrak Act, however, "were enacted or amended during [the] eight-year period" between Union Gas and Seminole Tribe, a time during which Congress was careful to address state sovereign immunity when drafting legislation. (Reply Br. at 12.) Given that context, the lack of similar language in the NGA is not as persuasive of PennEast's point as the company would like.
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