South Dakota has just won a battle for property rights, potentially derailing a massive carbon capture pipeline spanning the Midwest. The state’s new law prohibits the use of eminent domain for such projects, forcing pipeline companies to negotiate directly with landowners instead of seizing their property.
At a glance:
• South Dakota enacted a law blocking the use of eminent domain for carbon capture pipelines
• The law affects Summit Carbon Solutions’ proposed $8.9 billion, 2,500-mile pipeline through five Midwest states
• The pipeline would transport CO2 from 50+ ethanol plants to North Dakota for underground storage
• Summit has secured over 2,700 easements but now faces having to reroute or negotiate with South Dakota landowners
• The project was fueled by Biden administration tax incentives for carbon capture initiatives
South Dakota Stands Up For Property Rights
The battle between private property rights and climate change initiatives has reached a tipping point in South Dakota – but it looks like sanity has prevailed for now. Republican lawmakers have passed legislation that prevents carbon capture pipeline companies from using eminent domain to force landowners to surrender their property for pipeline construction.
This law directly impacts Summit Carbon Solutions’ ambitious $8.9 billion project that would transport carbon dioxide from over 50 ethanol plants across five Midwest states to North Dakota for underground storage. The 2,500-mile pipeline now faces significant obstacles in South Dakota, where landowners have resisted surrendering their property rights.
Despite the setback, Summit Carbon Solutions insists that “all options are on the table” and that the project “moves forward.” The company has already secured over 2,700 easements and obtained route approvals in Iowa, North Dakota, and parts of Minnesota.
Alternatives To Forced Land Seizure
Republican Rep. Karla Lems, who sponsored the legislation, suggested that Summit could simply “negotiate with landowners in South Dakota” rather than relying on government power to seize private property. This approach respects the property rights that conservatives have long championed while still allowing for infrastructure development through voluntary agreements.
Gov. Larry Rhoden characterized the law not as an attempt to kill the project but as “an opportunity to reset.” This reset gives landowners more leverage in negotiations and returns power to property owners who would otherwise be forced to accept pipeline construction on their land.
The pipeline company now has two options: negotiate fairly with South Dakota landowners or reroute the pipeline through Minnesota. Either way, the project cannot proceed by trampling on the rights of property owners as initially planned.
The carbon capture pipeline is largely a response to tax incentives created under the Biden administration’s climate change initiatives. These federal policies have encouraged companies to pursue projects that may not be economically viable without significant government subsidies and the power of eminent domain.
Summit has faced numerous challenges since proposing the pipeline four years ago, including lawsuits and regulatory opposition from communities concerned about safety and property rights. The South Dakota law represents the latest and perhaps most significant obstacle to the Biden-backed carbon capture infrastructure.
This is a great win for now – but there are more fights ahead.
