It is a case that will no doubt be watched closely across the nation.
South Dakotas highest court this past Thursday dealt a blow to Summit Carbon Solutions, ruling that the company hasnt proven it can use eminent domain to seize private land for its proposed carbon-capture pipeline.
Among the routes proposed is one right through Moody County, and local and regional landowners fighting the project are calling this a significant win.
It lets the prime sponsor (Casey Crabtree) and co-sponsor (Will Mortensen) and other state legislators that supported this bill know they got it wrong, said Clayton Rentschler, one of the most vocal county opponents to the pipeline and specifically to the use of eminent domain.
He added, Votes will outdo money every time. Get out and vote no on referral law 21.
Company officials with Summit have stated publicly that they intend to keep fighting for access in the lower courts.
The $8 billion pipeline would reportedly transport carbon dioxide from 57 ethanol plants across several states to an underground storage site in North Dakota. The pipeline would span 18 counties in eastern South Dakota.
Summit argues the project helps reduce greenhouse gas emissions and qualifies it as a common carrier, a status that allows the use of eminent domain for public benefit.
The South Dakota Supreme Court disagreed.
Justices stated that Summit hasnt shown that transporting the carbon qualifies as a public service. The ruling leaves the door open for Summit to try again but questions the projects public utility claim.
The court also questioned the companys end use of the captured carbon dioxide, questioning the claim that its in the public interest if all the company intends to do with it is store it underground.
In a prepared statement, Summit spokesperson Sabrina Zenor expressed confidence in meeting the courts demands, emphasizing the potential economic benefits for rural communities, according to the Environment + Energy Leader.
Were committed to proving that our project serves the public good, Zenor said.
While many in the state agricultural sector are pushing for its passage, landowners fighting the project argue that Summit has no right to conduct land surveys or take land through eminent domain without proving it qualifies as a common carrier.
Attorney Brian Jorde, who is representing over 1,000 landowners, called the decision validation after three years of legal battles. He also continues to raise concerns that Summit might ultimately use the captured carbon for oil extraction, which he argues would contradict the projects environmental claims.
Pipeline opponents have filed petition signatures to put the issue before voters in the November 5 general election, aiming to overturn legislative protections for Summit put in place during the last legislative session.
The protections overrode county ordinances established in recent years to protect landowners with Moody County Commissioners enacting some of the most strict landowner protections in the state.
The outcome will be one to watch as it could have far-reaching implications in the effort to build out carbon capture pipelines across the nation as well as for the rights of private landowners everywhere.
Battle for C02 pipeline far from over
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