PIERRE, S.D. — The South Dakota Supreme Court unanimously issued a ruling which determined that Summit Carbon Solutions is not a common carrier and cannot use eminent domain to survey land.
This decision, released on Thursday, Aug. 22, is considered a major victory for landowners and those opposed to the proposed pipeline project. The court ruled that Summit is not a common carrier and did not provide evidence to prove that they are a common carrier, and furthermore, that CO2 is not a commodity, unlike what many proponents of the pipeline have long argued.
Ed Fischbach, a farmer near Mellette, South Dakota, played a pivotal role in organizing the opposition to the carbon pipeline and “Landowner Bill of Rights” in South Dakota. The South Dakota Supreme Court announced Aug. 22 that Summit Carbon Solutions is not a common carrier and cannot use eminent domain. Photo taken in Fischbach’s corn field July 15.
Kennedy Tesch / Agweek
Ed Fischbach, a farmer near Mellette, South Dakota, and an impacted landowner, helped lead the opposition against Summit and said that without the ability for the company to use eminent domain, the entire project could be off the table considering contingencies surrounding South Dakota put in place by states such as
Iowa
and North Dakota.
“This validates
everything we have been saying
since we started this fight over three and a half years ago,” Fischbach said. “The Supreme Court upheld every one of our arguments, totally rejecting all the arguments that all the proponents of this pipeline have been making for the last three and a half years.”
In 2021, Summit announced proposal plans for their
Midwest Carbon Express
, a pipeline that would capture carbon dioxide from 57 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota and carry it to North Dakota, where it would be stored underground.
The proposed pipeline would run through 18 counties across South Dakota, and when Summit began surveying on private land without consent, a group of landowners began to push back and filed a lawsuit saying that the company had overstepped its legal abilities on surveys of private land.
The Supreme Court’s ruling also overturns a previous circuit court summary judgment on common carrier issues, saying it was “premature to conclude that SCS is a common carrier, especially where the record before us suggests that CO2 is being shipped and sequestered underground with no apparent productive use.”
Fischbach believes the new ruling will now give grounds for affected landowners to seek justice.
Jim Eschenbaum, chairman of the South Dakota Property Rights and Local Control Alliance and a Hand County commissioner. Photo taken Aug. 21 at Dakotafest in Mitchell, South Dakota.
Kennedy Tesch / Agweek
“This decision now opens the door for any landowner that was violated in any invasive surveys they did, to now come back and go after Summit for damages, if they wish,” Fischbach said.
Although the ruling proves a big win for opponents of the pipeline, Jim Eschenbaum, chairman of the South Dakota Property Rights and Local Control Alliance and a Hand County commissioner, said the group will continue to advocate against
Referred Law 21, or more commonly known as Senate Bill 201,
which would regulate carbon pipelines and require payments to landowners and counties but also would allow South Dakota Public Utilities Commission decisions in pipeline permits to automatically overrule local setback rules.
“Our goal has not changed. Referred Law 21 is still bad legislation that could have future ramifications, no matter how this Supreme Court decision affects Summit Carbon Solutions,” Eschenbaum said. “We are still asking South Dakotans to learn about Referred Law 21, and vote ‘no’ in November.”
Opponents of Referred Law 21 took to Dakotafest which was Aug. 20-22 in Mitchell, South Dakota, to get their message out. Photo taken Aug. 21 at Dakotafest in Mitchell, South Dakota.
Kennedy Tesch / Agweek
Summit Carbon Solutions said they will evaluate the South Dakota Supreme Court’s decision and “look forward to providing the information requested to the District Court that reaffirms their role as a common carrier, and that CO2 is a commodity.”
“The economic impact of carbon capture, utilization, and storage (CCUS) on rural America is significant, and will greatly benefit agriculture and farmers,” said a spokesperson for Summit Carbon Solutions in a statement. “We are committed to ensuring that these benefits reach communities across our project footprint as we continue to be a valuable partner in this growing market, and look forward to progressing this project.”
Status of Summit in other states
South Dakota is not the only state for which Summit Carbon Solutions is working to secure permits.
The Minnesota Public Utilities Commission is
taking comments on a route through Wilkin and Otter Tail counties in Minnesota through Sept. 11.
Comments may also be submitted online at
or by email at
Comments can be mailed to Consumer Affairs Office Minnesota Public Utilities Commission, 121 7th Place East, Suite 350 St. Paul, MN 55101.
The
Iowa Utilities Board on June 25 unanimously approved
Summit Carbon Solutions’ application to construct, maintain and operate a carbon dioxide pipeline in Iowa. However, the ruling also said Summit cannot begin construction in Iowa until the necessary permits are secured in South Dakota and North Dakota.
In North Dakota, two types of permits are required — one for the construction of the pipeline and the other for the sequestration facility.
The state Public Service Commission in August 2023 denied Summit’s first attempt at a route permit.
The company applied again with a new route and also applied for the sequestration permit. The hearing process is complete for both permits. Briefs in the route case were due July 22, and the PSC has not yet released its decision. The North Dakota Industrial Commission will decide on the permit for the sequestration sites.
The state of Nebraska in February 2024 denied Summit’s application there
, and the company has not begun the reapplication process.
Kennedy is a reporter for Agweek based out of South Dakota. She grew up on an organic crop farm where her family also raises cattle in eastern South Dakota. She graduated from South Dakota State University in 2023 with a major in agricultural communication and minor in agricultural business. She enjoys connecting with producers and agribusinesses across the region while reporting on all things agriculture.
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Publish date : 2024-08-22 10:17:00
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