For three years, Summit Carbon Solutions (SCS) has tried to build a carbon sequestration pipeline through five states – Iowa, Nebraska, South Dakota, North Dakota, and Minnesota, but that has seemingly come to an end.
On March 12th , SCS requested the Public Utilities Commission of South Dakota to suspend their application to build a carbon pipeline through the state.
By requesting a suspension, SCS has conceded in their application it no longer is able to construct a pipeline across South Dakota. They claim there will be significant delays that hinder their ability to conduct surveys that are necessary to decide the route.
However, the real reason this all came about is Governor Larry Rhoden signed HB 1052, just six days prior to SCS filing for the suspension of their application.
HB 1052 protects the property rights of South Dakota landowners by prohibiting eminent domain for a pipeline carrying carbon dioxide. Carbon dioxide will no longer be considered a commodity like oil and gas that can use eminent domain to condemn private property.
The prior Governor, Kristi Noem, now the U.S. Secretary of Homeland Security, signed a bill in March of 2022, that established taxes for carbon dioxide pipelines similar to oil and natural gas pipelines. In other words, it established carbon dioxide as a commodity that could use condemnation to build pipelines in South Dakota. Summit Carbon Solutions testified in favor of the bill.
That action by Noem empowered SCS to condemn over a hundred landowner’s property before they even obtained a permit from the state to build the project.
Thankfully, the counties impacted by the pipeline stepped up and passed ordinances that would protect their citizens and properties by requiring setbacks from structures and other safety measures. When Summit’s application was heard before the South Dakota Public Utilities Commission, their permit was denied because their plan did not comply with the county policies.
The county’s actions gave State leaders a chance to get HB 1052 passed through the 2025 legislative session, which had failed to pass the Senate during Noem’s Governorship.
Governor Rhoden stated: “South Dakota landowners feel strongly that the threat of involuntary easements for the proposed carbon dioxide pipeline infringes on their freedoms and their property rights. I have said many times that Summit needs to earn back trust from South Dakota landowners. Unfortunately, once trust is lost, it is a difficult thing to regain.”
After requesting suspension, Summit dropped all their lawsuits against the landowners and returned all the condemned property they had previously taken by eminent domain. Summit said it remains committed to working through this process and advancing the project in states that support energy and innovation.
This is unprecedented and a hard fought victory for South Dakotans and landowners across the five states. They have shown that the people can stand and defend our constitutionally protected property rights, even against multi-billion dollar companies funded by federal subsidies.
