Carbon capture pipeline developer SCS Carbon Transport LLC, an affiliate of Summit Carbon Solutions, is facing a $6.6 million lawsuit from Texas-based equipment supplier Patton Myhre Sourcing over an alleged breach of contract.
Filed in the US District Court for the Southern District of New York, the complaint alleges Summit failed to honor a 2022 agreement to purchase 251 specialized valves valued at over $7.3 million.
The components were originally ordered to support Summit’s multi-state pipeline network, which was designed to transport captured CO2 from Midwest ethanol plants to underground storage sites in North Dakota.
According to court filings, Summit repeatedly requested payment delays as the project hit regulatory roadblocks, including South Dakota’s ban on using eminent domain for carbon pipelines, before informing the vendor in 2025 that it no longer wanted the valves.
The lawsuit claims Summit still owes $2.3 million for the manufactured hardware, alongside $3.6 million in accrued storage fees, interest, and freight costs.
Mounting Legal Pressure Amid Rerouted Pipeline Plans
The filing marks the second time a major equipment supplier has taken legal action against Summit for canceled procurement agreements.
In 2024, Arkansas-based pipe manufacturer Welspun Tubular sued Summit for $15 million following a canceled supply agreement. That case went to trial in Delaware federal court, where a final decision remains pending.
Patton Myhre alleges that Summit’s recent route changes, including shifting the pipeline path through Nebraska toward Wyoming and exploring enhanced oil recovery applications, render the custom-designed valves unusable for the updated project.
Summit Carbon Solutions did not publicly comment on the litigation and had not formally responded to the District Court complaint as of late Thursday.
Read more: Summit Carbon Solutions Faces $15M Lawsuit As Pipeline Delays Continue
