The South Dakota House of Representatives recently passed a bill restricting the use of eminent domain for the construction of CO2 pipelines. This move, supported by numerous landowners, aims to prevent pipeline developers from acquiring land easements without voluntary agreements.
The legislation, House Bill 1052, sparked heated debate among lawmakers. Proponents argued it protects private property rights and prevents forced land acquisitions.
Opponents, including representatives from the ethanol and sustainable aviation fuel (SAF) industries, emphasized the economic benefits of the pipeline projects, citing job creation and potential revenue for the state.
Summit Carbon Solutions, a key player in the region’s pipeline development, expressed concerns that the bill would hinder their ability to negotiate with landowners who refuse to voluntarily grant easements.
They stressed that the pipeline would not physically occupy the land but require easements for underground installation.
Lawmakers presented diverse perspectives on the issue. Some argued that the bill was overly broad and contradicted federal policies supporting CO2 pipelines and biofuels. Others contended that the South Dakota Supreme Court had already addressed the matter, limiting the use of eminent domain for a portion of Summit’s project.
Relevant: Summit Carbon Solutions Reapplies For Pipeline Permit In South Dakota
The economic implications of the pipeline project were heavily debated. Supporters highlighted potential economic gains, including increased revenue for the ethanol industry and job creation in rural communities.
Lawmakers also discussed the impact on existing development agreements. Some argued that the bill unfairly changes the rules mid-game for companies like Summit, which had already invested significant resources in their pipeline projects based on the existing legal framework.
While acknowledging the emotional nature of the issue, some lawmakers stressed that pipeline developers, such as Summit, are not seeking to seize land but rather seeking fair compensation for necessary easements.
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The bill’s passage has raised concerns about the state’s business climate. Some lawmakers warned that the legislation could deter future investment in emerging industries like SAF production, potentially hindering economic growth.
Meanwhile, the North Dakota Legislature is scheduled to hold hearings this week on several bills related to the development of carbon capture pipelines.
These bills also address critical issues such as the use of eminent domain, as well as the designation of pipelines as common carriers, and liability in the event of a pipeline rupture.
