South Dakota Legislature Approves ‘Landowner Bill Of Rights’ For CO2 Pipeline Projects

South Dakota Legislature Approves 'Landowner Bill Of Rights' For CO2 Pipeline Projects - Carbon Herald
Photo by Travis Essinger on Unsplash

This week South Dakota saw the approval of a comprehensive set of bills aimed at facilitating the development of CO2 capture and sequestration (CCS) pipeline projects within the state. Among these measures are Senate Bill 201, House Bill 1185, and House Bill 1186, collectively referred to as the “Landowner Bill of Rights”.

Senator Casey Crabtree, R-S.D., stated after the vote that: “These bills reflect the values of South Dakota and set the path for the future of farming in South Dakota. This package of bills sets the new standard for other states to follow to secure their economic future and provide a blanket of strong protections to landowners.”

In the last several years a number of carbon capture projects involving ethanol included South Dakota in its plans and while Navigator CO2 ceased operations in October 2023, the passage of the bills is a welcome and timely development for Summit Carbon Solutions.

Lee Blank, CEO of Summit said: “We appreciate the attention and engagement from so many South Dakotans, especially our partners and agricultural leaders. We look forward to doing our part to create and maintain successful relationships going forward. As South Dakota Ethanol Producers said, this legislation is unequivocally pro-landowner, pro-business, pro-farmer, and pro-ethanol. We are excited to have a path forward that establishes best practices we are committed to following in South Dakota and across our entire project.”

Relevant: Navigator CO2 Cancels Its Carbon Pipeline Project

Senate Bill 201 introduces a mechanism for collecting payments from CO2 pipeline companies based on the length of the pipeline at the county level and is expected to provide close to $4 million in tax relief to counties every year.

HB 1185 establishes a structured process through which landowners can receive compensation and notification for granting access to companies for surveying and site selection purposes. Furthermore, it outlines a procedure for landowners to contest requests for access, with a fixed payment of $500 specified for survey access granted to the landowner.

HB 1186 sets forth specific standards for easements concerning CO2 pipeline planning endeavors in South Dakota. These easements are mandated to be documented, with a duration of 99 years and provisions for abandonment should the pipeline remain inactive for five years or more, or if the operator fails to file for permitting within the same timeframe.

Read more: Summit Carbon Solutions Secures 80% Of Easements In North Dakota

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »