Western Petroleum, LLC v. Williams Cty. Bd. of Commissioners

Western Petroleum, LLC, and Maxum Petroleum Operating Company, Inc., doing business as Pilot Logistics Services (Pilot), appealed a district court order affirming their appeal of the Williams County Board of County Commissioners' decision to penalize Pilot for violating the county's temporary housing regulations. In September 2011 the Williams County Board of County Commissioners adopted temporary housing regulations relating to the use of "man camps" or "crew housing facilities" in the county. The use of temporary housing on property within the county was prohibited without a conditional use permit. In 2014 the Board became aware that Pilot was using its property for temporary housing after Western Petroleum's permit expired. Pilot was out of compliance on 40 RVs since September 6, 2012, and on seven mobile home units since September 6, 2013. Pilot also had two two-story framed houses on the property that were not permitted under Western Petroleum's conditional use permit. At its July 2014 meeting, the Board assessed a $29,635,000 penalty against Pilot for violating the temporary housing regulations. The Board calculated the penalty by treating each non-permitted use as a violation subject to a $1,000 penalty per day. The Board calculated the $1,000 penalty on a per housing unit, per day basis. The Board offered Pilot a reduced penalty of $1,885,000 if paid within 10 days. Pilot did not pay the reduced penalty and the Board imposed the full penalty. The district court affirmed the Board's decision, concluding the penalty against Pilot was supported by the evidence and was not an unreasonable interpretation of the temporary housing regulations. The North Dakota Supreme Court disagreed, reversed and remanded because the Board unreasonably interpreted the regulations. View "Western Petroleum, LLC v. Williams Cty. Bd. of Commissioners" on Justia Law