Summit Carbon Solutions, a company working on a carbon dioxide pipeline project, has asked the courts to pause or dismiss its ongoing legal disputes with landowners and a state regulator in South Dakota.
This comes after the state passed a new law that prohibits the use of eminent domain for such projects.
Eminent domain allows entities to acquire land for public benefit projects, with compensation determined by the court. It is often used for projects like power lines, water pipes, oil pipelines, and highways.
Several South Dakota landowners who oppose Summit’s project filed lawsuits to prevent the company from conducting surveys on their properties. They argued that the surveys, which involve invasive practices like soil sampling, would violate their constitutional rights without fair compensation.
Summit asserted that it had the legal right to survey the land due to its eminent domain authority and also filed lawsuits against some landowners.
The legal battles eventually reached the South Dakota Supreme Court, which ruled that Summit had not yet proven it qualified to use eminent domain and sent the cases back to lower courts. Some lawsuits were dismissed after agreements were made or routes were adjusted, leaving four cases still pending.
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Summit has also requested a delay in its permit proceedings with the South Dakota Public Utilities Commission, citing the need for review and adjustment.
The new law restricting eminent domain has been hailed by some landowners as a victory against the $9 billion pipeline project proposed by Iowa-based Summit.
The pipeline is designed to transport carbon dioxide emissions from ethanol plants in five states to an underground storage site in North Dakota.
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The project qualifies for substantial federal tax credits aimed at encouraging the capture and sequestration of greenhouse gases.
While permits for the project have been granted in North Dakota, Minnesota, and Iowa, some of these approvals are still being challenged in court.
Summit remains committed to the project, despite the setbacks.
