Enterprise Products Operating, LLC v. Iowa Utilities Commission

── Enterprise Products Operating, LLC v. Iowa Utilities Commission ── Court: Supreme Court of Iowa Date: June 05, 2026 Category: General In the Iowa Supreme Court No. 24–1648 Submitted April 15, 2026—Filed June 5, 2026 Enterprise Products Operating, LLC, Appellant, vs. Iowa Utilities Commission, Appellee. On review from the Iowa Court of Appeals. Appeal from the Iowa District Court for Polk County, Scott D. Rosenberg, judge. A pipeline company appeals a $1.8 million civil penalty as exceeding the statutory maximum in Iowa Code section 479B.21. Decision of Court of Appeals Vacated; District Court Judgment Reversed and Case Remanded. Oxley, J., delivered the opinion of the court, in which all participating justices joined. Waterman, J., took no part in the consideration or decision of the case. Robert V.P. Waterman, Jr. (argued) of Lane & Waterman LLP, Davenport; David J. Hellstern, Amanda A. James, and Andrew G. Carlson of Sullivan & Ward, P.C., West Des Moines; and Kent Rutter, Kaylen Strench, and John D. Fognani of Haynes and Boone, LLP, Houston, Texas, for appellant. Michelle E. Rabe (argued) and Jon C. Tack of the Iowa Utilities Commission, for appellee.  2 Oxley, Justice. This case deals with the scope of the damages cap in Iowa Code section 479B.21(1) (2023). Enterprise Products Operating, LLC (Enterprise) purchased a propane pipeline and two storage facilities, unaware that it was required to apply for state permits to operate those utilities in Iowa. See id. §§ 479B.3–.4. It is undisputed that Enterprise was in full compliance with all federally required safety permits. Nonetheless, Enterprise operated the pipeline and storage caverns without any state permits in violation of Iowa law for nearly twenty-one years. By statute, the maximum civil penalty for “any related series of violations” under chapter 479B cannot exceed $200,000. Id. § 479B.21(1). After Enterprise’s failure to obtain the state permits was discovered, the Iowa Utilities Commission1 ordered Enterprise to pay a $1.8 million civil penalty, assessing the statutory maximum for each of the nine permits that Enterprise purportedly needed to obtain to do business in Iowa. Enterprise now argues that the IUC exceeded its statutory authority. As explained below, we agree: Enterprise’s civil penalty is limited to $200,000 under section 479B.21(1). I. Factual Background and Proceedings. Enterprise supplies propane for homes and businesses across the country. In July 2002, Enterprise purchased a 98% ownership interest in Mid-America Pipeline Company, LLC (MAPCO) from Williams Natural Gas Liquids, Inc. Since then, Enterprise has owned and operated two underground storage caverns that sit in Johnson County and 750 miles of pipeline that transport propane from Texas into Iowa. When Enterprise bought its interest in MAPCO, the purchase 1The name of the agency was changed from “Iowa Utilities Board” to “Iowa Utilities Commission” as of July 1, 2024. See 2024 Iowa Acts ch. 1170, § 369(2). It was known as the “Iowa State Commerce Commission” when the agency originally issued permits for the utilities at issue in this case. See 1986 Iowa Acts ch. 1245, § 740. We refer to the agency as “IUC” or “Commission” consistently throughout this opinion, regardless of its then-current name.  3 sale agreement warranted that all permits were in place for the pipeline and storage facilities. That turned out not to be true, despite Enterprise’s belief that it was for more than two decades. MAPCO had acquired nine permits under Iowa law between 1961 and 1973 as it built segments of the pipeline and the storage facilities that Enterprise now owns. Seven permits were issued coveri