South Dakota regulators refuse Summit’s request to pause its application

South Dakota regulators refused this week to pause proceedings on a carbon capture pipeline permit, instead directing Summit Carbon Solutions to present a plan during the next meeting illustrating how the company can move forward — or not — under a new state law barring its use of eminent domain.

The South Dakota Public Utilities Commission voted 3-0 Thursday to deny Summit’s request to put its application on hold.

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“What’s the plan here? And that’s the question that’s rolling around in my mind,” said Commissioner Chris Nelson.

The proposed $9 billion pipeline would carry carbon dioxide emissions captured from ethanol plants in five states including Iowa to an underground storage site in North Dakota, where some CO2 could also be used to extract oil from old wells. The project is part of a broader federal push to reduce greenhouse gas emissions and could qualify for federal tax credits tied to carbon sequestration.

Summit has been seeking a permit to build a portion of the pipeline through South Dakota since 2022. But its path forward was complicated by that state’s legislature’s passage of the eminent domain ban in March. Eminent domain is a legal process that allows qualifying entities to acquire access to private land for projects in the public interest, with compensation for landowners determined by a court.

Summit had relied on that authority to survey land and secure access from property owners unwilling to sign voluntary easements.

“If they can’t even build it, what are we doing here?” said attorney Brian Jorde, representing landowners opposed to the project.

Nelson moved for the permit to be denied, arguing that the proposed route cannot legally be constructed under the new law and citing declarations from dozens of landowners refusing access. His motion failed 2-1, with the other commissioners saying Summit should be given more time.

Summit attorney Brett Koenecke said the company needs more time to evaluate its options, but declined when pressed by Nelson to say whether Summit plans to challenge the eminent domain ban.

The commission plans to consider the matter at its April 22 meeting.

Summit has permits in North Dakota, Minnesota and Iowa, but some of the permits are being challenged in court. Nebraska does not have a permitting process for the project.

This article first appeared in the South Dakota Searchlight.