California Resources Production Corp. v. Antioch City Council

In a partially published opinion, the California Court of Appeal rejected a challenge by a company that owned and operated a natural gas pipeline to a decision by the City of Antioch and Antioch City Council to deny an application to extend the term of the franchise under which the company operated the pipeline within the City’s public right-of-way. The court found that the company’s allegations did not establish that denial of the franchise renewal was arbitrary and irrational. The court disagreed with the company’s position that the City Council’s “reliance on generalized concerns expressed by protestors regarding environmental justice, natural gas pipeline safety, and climate change, if proven, would establish an abuse of discretion.” The court also said the City Council was not required to tie these generalized concerns to the safety and operational records of the company and the pipeline. The court also ruled that the company could not sustain a “class of one” equal protection claim, a regulatory taking claim, or claims regarding extraterritoriality and preemption. The company’s preemption arguments had included that the decision on the franchise renewal was preempted because it conflicted with California law and policy to maintain natural gas as a natural resource. The court ruled that the preemption claim failed because the City had not taken any regulatory action that could be preempted.