South Dakota Denies Application for Summit Carbon Pipeline Again

Researched by Industrial Info Resources (Sugar Land, Texas)--South Dakota is hurting Summit Carbon Solutions' (Ames, Iowa) plans for an $8.9 billion carbon pipeline spanning the Midwest. After South Dakota banned the use of eminent domain for carbon pipelines in March, this week the state's Public Utilities Commission (PUC) voted down Summit's most recent application for its proposed pipeline route. The PUC previously denied an application in 2023.

Prior to the April 22 PUC decision, Summit had asked the PUC for time to prepare a new route, but was denied the request. "By reducing the number of participating plants, eliminating those more problematic line segments and thereby minimizing the project's footprint, (the) applicant can reduce the overall number of opposed landowners and also focus attention and resources on those who remain," Summit said in an April 17 filing.

Hence, Summit was left with the proposed route that included a substantial number of landowners who have vowed never to sign an easement agreement for the project. Noting the substantial changes that would be need to be made in the pipeline route as presented by presented Summit, the PUC voted 2-1 to deny Summit's application. "Summit's route is uncertain at this point," Commissioner Kristie Fiegen said during the meeting. "We really don't know the route. We don't know the timeframes. We don't know their plan."

Attorney Brian Jorde, representing landowners opposed to the project, said, "Is there another route? Yes, but not in this application," according to the South Dakota Searchlight.

The sole commissioner who voted to approve the project noted that Summit had said it would not challenge eminent domain law and that minor changes should be able to propel the project forward. Other PUC staff said the permit could be denied because "substantive changes" would be needed to the application if the company cannot move forward with the route it has on file. Denying the application would be "the cleanest path forward," according to the staff's filed recommendation.

South Dakota is key for the pipeline, which also covers Iowa, Nebraska, Minnesota and North Dakota. Iowa, Minnesota and North Dakota have granted permission for the project, while Nebraska has no permitting guidelines for carbon pipelines. Summit has partnered for carbon capture with 57 plants along its proposed route, including 15 in South Dakota. The captured carbon dioxide would be stored in a deep geologic formation in North Dakota.

After the PUC decision, Summit Carbon spokesperson Sabrina Zenor said in a statement to news media: "We remain committed to South Dakota as without it, the ethanol industry, farmers and land values in the state will all suffer. We will take the necessary steps to refile an application that reflects a reduced scope and continued engagement with landowners and plant partners."

For its part, Summit has said it will not challenge South Dakota's eminent domain ban. In a prior filing with the PUC, the company said, "Threatening legal action is counter-productive to attempting to do business in good faith in the state."

Reapplying in South Dakota is crucial for the project as the main trunk of the pipeline runs from Iowa through South Dakota on the way to the North Dakota carbon repository.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Project Database can learn more by viewing the related project reports.

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