PennEast Pipeline Co. v. New Jersey

PennEast Pipeline Company obtained a certificate from the Federal Energy Regulatory Commission to construct a natural gas pipeline through New Jersey. When the state refused to sell property interests, PennEast sued in federal court to condemn the land under the Natural Gas Act. New Jersey argued that sovereign immunity barred the suit. The Third Circuit agreed. The Supreme Court reversed 5-4, holding that the Natural Gas Act delegated the federal government's eminent domain power to private parties and authorized condemnation suits against nonconsenting states. The Court ruled that state sovereign immunity did not bar such actions because the suit was not against the state as a defendant in the traditional sense but rather an exercise of federal authority over state-owned property.

The Supreme Court ruled 5-4 that the Natural Gas Act delegates federal eminent domain power to private certificate holders and authorizes condemnation suits against nonconsenting states. State sovereign immunity does not bar the suit. The Third Circuit decision was reversed and the case remanded.

Whether the Natural Gas Act authorizes a private pipeline company to sue a state to condemn state-owned land, and whether state sovereign immunity bars such a condemnation action in federal court.

The decision strengthened federal energy infrastructure projects by limiting state power to block pipeline construction through property claims. It clarified the scope of state sovereign immunity in federal eminent domain cases and reinforced federal authority over interstate natural gas transportation. The ruling drew criticism from environmental groups and state rights advocates concerned about reduced state control over land use and environmental review.