South Dakota Public Utilities Commission rejects Summit Carbon Solutions CO2 pipeline permit request

SEPTEMBER 11, 2023:

Three weeks of hearings were scheduled, but the South Dakota Public Utilities Commission needed only this morning (Sept. 11, 2023) to deny a permit for the proposed Summit Carbon Solutions carbon capture pipeline.

PUC Staff Attorney Kristen Edwards referred to last week’s (Sept. 6, 2023) denial of a permit for Navigator CO2 Ventures to build a similar project as the reason for immediate denial of Summit’s request. During Navigator’s hearing, PUC Commissioners said they would not preempt county setback ordinances. Because of that, Edwards said Summit’s proposed route would currently fail in four counties.

Summit lawyer Brett Koenecke of Pierre said this project is going to be built and it has broad support.

Acting Commissioner Josh Haeder made the motion to deny, which was supported by Acting Chair Gary Hanson.

The Commission then voted 3-0 to deny the permit. Commissioner Chris Nelson had attempted to change the motion from a denial to a delay but that failed.

Commission Chair Kristi Fiegen recused herself from these hearing due to a potential conflict of interest.

Summit’s proposed $5.5 billion, 2,000-mile pipeline network would’ve carried greenhouse gas– or CO2– from more than 30 ethanol plants in five states to North Dakota for storage deep underground— a project involving carbon capture technology, which has attracted both interest and scrutiny in the US.

(News partner Brookings Radio contributed information to this story.)

South Dakota Public Utilities Commission hearing on proposed Summit Carbon Solutions proposed carbon capture pipeline.
Sept. 11, 2023, in Fort Pierre, SD.
Photo courtesy of Joshua Haiar, South Dakota Searchlight.

AUGUST 21, 2023:

BISMARCK, N.D. (AP) — More hearings this month and in September are set for Summit Carbon Solutions’ proposed $5.5 billion, 2,000-mile pipeline network. The pipeline system would carry carbon dioxide emissions from dozens of ethanol plants in five states to central North Dakota for permanent storage deep underground. Iowa public utility regulators on Tuesday (Aug. 22, 2023) begin a weekslong hearing for Summit’s proposal, with South Dakota regulators set to hold their hearing in September. Landowners opposed to the project are concerned about a pipeline rupture and eminent domain, or the taking of their land for the pipeline. Other CO2 pipeline projects are proposed around the country as well, with new federal tax incentives making the burgeoning technology of carbon capture an attractive enterprise.

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BISMARCK, N.D. (AP) — Public utility regulators in Iowa will begin a hearing Tuesday (Aug. 22, 2023) on a proposed carbon dioxide pipeline for transporting emissions of the climate-warming greenhouse gas for storage underground that has been met by resistant landowners who fear the taking of their land and dangers of a pipeline rupture.

Summit Carbon Solutions’ proposed $5.5 billion, 2,000-mile pipeline network would carry CO2 from 34 ethanol plants in five states to North Dakota for storage deep underground — a project involving carbon capture technology, which has attracted both interest and scrutiny in the U.S.

North Dakota regulators earlier this month denied a siting permit for Summit’s proposed route in the state, citing myriad issues they say Summit didn’t appropriately address, such as cultural resource impacts, geologic instability and landowner concerns. On Friday, Summit petitioned regulators to reconsider.

Other similar projects are proposed around the country, including ones by Navigator CO2 Ventures and Wolf Carbon Solutions, which would also have routes in Iowa.

Here is what to know about Summit’s project as more proceedings begin.

WHAT IS CARBON CAPTURE?
Carbon capture entails the gathering and removal of planet-warming CO2 emissions from industrial plants to be pumped deep underground for permanent storage.

Supporters view the technology as a combatant of climate change. But opponents say carbon capture and storage isn’t proven at scale and could require huge investments at the expense of cheaper alternatives such as solar and wind power, all at a time when there is an urgent need to phase out all fossil fuels.

Carbon capture also is viewed by opponents as a way for fossil fuel companies to claim they are addressing climate change without actually having to significantly change their ways.

“I think there’s a recognition even in the fossil fuel industry that, whether you like it or not and agree or not, (climate change) is a reality you’re going to deal with from a regulatory standpoint, and you’d better get out in front of it or you’re going to get left behind,” said Derrick Braaten, a Bismarck-based attorney involved in issues related to Summit’s project.

New federal tax incentives have made carbon capture a lucrative enterprise. The technology has the support of the Biden administration, with billions of dollars approved by Congress for various carbon capture efforts.

High-profile supporters of Summit’s project include North Dakota Republican Gov. Doug Burgum, a presidential candidate who has hailed the state’s underground CO2 storage ability as a “geologic jackpot,” and oil magnate Harold Hamm, whose company last year announced a $250 million commitment to Summit’s project.

“Carbon capture and storage is going to be more and more important every day as we go forward in America,” Hamm has said.

WHAT IS HAPPENING IN THE FIVE STATES?
The Iowa Utilities Board begins its public evidentiary hearing Tuesday in Fort Dodge, a hearing “anticipated to last several weeks,” according to a news release. The board’s final decision on Summit’s permit request will come sometime after the hearing.

Minnesota’s Public Utilities Commission has a hearing set for Aug. 31 in which the panel “will make decisions about the scope of environmental review” regarding Summit’s permit application for its pipeline in two counties, said Charley Bruce, an energy facilities planner with the commission.

A Summit attorney recently indicated to Minnesota that North Dakota regulators’ decision to deny a permit will not affect the company’s plans, including for other proposed routes in southern Minnesota.

The South Dakota Public Utilities Commission is set to begin its evidentiary hearing for the project on Sept. 11 and expects to make a final decision by Nov. 15.

Nebraska has no state-level regulatory authority for CO2 pipelines. Summit is working with counties individually in Nebraska.

Counties don’t approve or deny a route, but can institute ordinances’ setbacks for land-use purposes that can dictate where a pipeline may go, and can enter into road haul agreements and road crossing permits, said Omaha-based attorney Brian Jorde. He represents more than 1,000 landowners opposed to CO2 pipeline projects in four states.

Summit hasn’t hit “an insurmountable legal obstacle” in North Dakota regulators’ denial “because they literally said ‘try again,’” Braaten said.

“If they get over themselves I think that they could do it and get approved, but I think they certainly shot themselves in the foot and they’re making it much harder in those other states because they’re going to come in with those commissioners there looking at them with a certain level of skepticism because you literally just got denied a permit in North Dakota,” he said.

WHY ARE LANDOWNERS OPPOSED?
Landowners have raised concerns about the pipeline breaking, as well as eminent domain, or the taking of private land for the project, with compensation.

Eminent domain laws vary state by state, said Jorde, who represents hundreds of people Summit has sued in South Dakota to take their land for its pipeline.

“When you have the power of eminent domain like a hammer over a landowner’s head, you can intimidate them into doing things they wouldn’t otherwise do, which is sign easements, which Summit then turns around and says, ‘Look at all these “voluntary” easements we have. Look at all the “support” we have,’ which is completely false,” Jorde said.

Summit has submitted eminent domain requests to the Iowa board. A Summit spokesperson did not specifically address the company’s intentions related to eminent domain when asked by the AP.

“Our team remains incredibly encouraged that Iowa landowners have signed voluntary easement agreements accounting for nearly 75% of the proposed pipeline route,” spokesperson Sabrina Ahmed Zenor said in an email. “This overwhelming level of support is a clear reflection that they believe like we do that our project will ensure the long-term viability of the ethanol industry, strengthen the agricultural marketplace for farmers, and generate tens of millions of dollars in new revenue for local communities across the Midwest.”

WHAT ABOUT UNDERGROUND STORAGE?
Summit submitted a draft application for underground storage to a three-member state panel which Burgum chairs and includes the attorney general. The timeline for a hearing and decision by the panel is unclear.

Last year, Summit and Minnkota Power Cooperative agreed to “co-develop” CO2 storage facilities in central North Dakota. Their agreement gives Summit access to Minnkota’s storage site and sets a framework for jointly developing more CO2 storage nearby.

Minnkota is pursuing Project Tundra, a project to install carbon capture technology at a coal-fired power plant.

Braaten views Summit’s Minnkota partnership as a backup plan, to “piggyback on a sure thing,” he said.

A North Dakota landowners group is suing over the state’s process for allowing CO2 and gas storage on private land, and land survey laws.

Braaten said the lawsuit, which would affect the permitting of a Summit storage site in North Dakota, is not directed at Summit but is tied to longtime legal battles related to landowner rights.

AUGUST 4, 2023:

BISMARCK, N.D. (AP) — North Dakota regulators denied a siting permit Friday (Aug. 4, 2023) for a proposed carbon dioxide pipeline through five states.

The North Dakota Public Service Commission denied the permit for the Summit Carbon Solutions Midwest Carbon Express pipeline, which planned a 320-mile route through North Dakota. Summit proposed the pipeline to capture carbon dioxide from more than 30 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota, and to store it deep underground in North Dakota.

In a statement, Summit said it “respects the decision by the North Dakota Public Service Commission, and we will revisit our proposal and reapply for our permit. We’re committed to understanding and incorporating the considerations outlined in the decision. We are confident that our project supports state policies designed to boost key economic sectors: agriculture, ethanol, and energy.”

The project has raised landowner concerns of eminent domain, or the taking of private land for the pipeline, and potential dangers of a pipeline break.

The company has “legal options” it can take, commission spokesperson Stacy Eberl said. The regulators do not have jurisdiction over injection sites, she said. Summit proposed an underground injection site in central North Dakota.

The Public Service Commission held public hearings throughout North Dakota this year, during which landowners expressed many concerns, including about eminent domain, safety and requests for reroutes on their property.

“The Commission felt that Summit has not taken steps to address outstanding legitimate impacts and concerns expressed by landowners or demonstrated why a reroute is not feasible,” the regulators said in a statement. “The Commission also requested additional information on a number of issues that came up during the hearings. Summit either did not adequately address these requests or did not tender a witness to answer the questions.”

JULY 18, 2023:

PIERRE, S.D. (AP) — A group of South Dakota lawmakers has begun circulating a petition in hopes of forcing a special session to protect private property rights against the developers of a proposed carbon dioxide pipeline.

But the petition drive faces an uphill climb, needing the signatures of at least two-thirds of the membership of both the South Dakota House and Senate to succeed. While Republican Gov. Kristi Noem could also call a special session on her own, she said last week that it would be “fruitless” unless lawmakers reach a consensus.

Landowners and farmers in South Dakota and other states have objected to Summit Carbon Solutions’ plan to use the power of eminent domain to run pipelines across private land without the owners’ consent.

The company wants to build a $4.5 billion, 2,000-mile network of pipelines to transport carbon dioxide from Midwest ethanol plants to a deep underground permanent storage site in North Dakota to fight climate change. The company has said it needs to use eminent domain to build the project in a timely fashion. The project would span Iowa, Minnesota, North Dakota, South Dakota and Nebraska.

Cosponsors of the petition drive said in a statement Monday that they object to the use of eminent domain to strip property rights from landowners for the benefit of an out-of-state private company with foreign investors. Others have objected on safety grounds, and environmental groups are skeptical.

JULY 6, 2023:

Opponents of proposed carbon capture pipelines that would cut through South Dakota held a rally today (June 6, 2023) at the state Capitol in Pierre and their message was clear: They want Governor Kristi Noem to call a special session of the legislature to reform the state’s laws regarding the use of eminent domain.

Two companies, Summit Carbon Solutions and Navigator CO2 Ventures, have proposed multi-state pipelines that would run across South Dakota, taking CO2 from partner ethanol plants and moving it to underground storage in North Dakota and Illinois. Carbon dioxide is a by-product of the ethanol production process.

The current route for Summit Carbon Solutions’ pipeline would go through Brown County farmer Jared Bossly’s land. He says it’s time state leaders took action to support private property owners.

Ed Fischbach farms in northern Spink County. He says the eminent domain issue could have been remedied during this year’s legislative session with the passage of HB 1133.

South Dakota House Minority Leader Oren Lesmeister of Parade says people wanting eminent domain reform, must stick together.

Representative Karla Lems of Canton says this week’s Independence Day holiday is a reminder of what they’re fighting for.

Summit Carbon Solutions released this statement Thursday evening, “The vast majority of landowners in South Dakota and across the Midwest support projects like Summit Carbon Solutions and want to see these critical agricultural investments move forward. Currently, more than 70% of the landowners along Summit’s proposed route in South Dakota have already signed voluntary easement agreements with us. This level of support shows that landowners support Summit’s mission to partner with ethanol plants to make them more profitable by opening new markets not available to them today. This will make farmers more profitable, driving economic growth and the ag economy in South Dakota.”

Jared Bossly with stack of petitions to be turned in.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

Jared Bossly.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

Ed Fischbach.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

State Representative Karla Lems from Canton.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

South Dakota House Minority Leader Oren Lesmeister from Parade.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

Photo credit Jody Heemstra, DRG Media Group.

Photo credit Jody Heemstra, DRG Media Group.

Blank petition.
July 6, 2023.
Photo credit Jody Heemstra, DRG Media Group.

JULY 5, 2023, UPDATE:

Opponents of proposed carbon capture pipelines that would cut through South Dakota are holding a protest rally tomorrow (June 6, 2023) at noon CT at the state Capitol Rotunda in Pierre.

Two companies, Summit Carbon Solutions and Navigator CO2 Ventures, have proposed multi-state pipelines that would run across South Dakota, taking away CO2 from many of the state’s ethanol plants. Carbon dioxide is a by-product of the ethanol production process.

Thursday’s rally agenda includes messages from landowners and legislators. They say private companies shouldn’t be able to use eminent domain to access land for their private financial gain.

The South Dakota Freedom Caucus wants Governor Kristi Noem to declare a “man-made emergency” and convene a special legislative session to address what they call “the escalating property rights crisis in South Dakota, fueled by foreign interests.”

Summit Chief Executive Officer Lee Blank has said that Summit’s proposed project will cut the carbon footprint of partner ethanol plants in half, which will help ensure the long term environmental and economic sustainability of the facilities.

JULY 5, 2023:

Summit Carbon Solutions has reached the 70% milestone in acquiring voluntary easements in South Dakota and project wide for its proposed carbon capture pipeline.

Some opponents in South Dakota say the state legislature had opportunities to protect landowner rights during this year’s legislative session (2023), but Senate President Pro Tempore Lee Schoenbeck of Watertown says state laws have little to do with it.

Opponents have said the use of eminent domain by a private company for its own financial benefit should not be allowed, but Schoenbeck says a precedent has been set in South Dakota regarding the use of eminent domain by private companies.

Schoenbeck says to reach the 70% voluntary easement mark, Summit Carbon Solutions has written a lot of checks to landowners

South Dakota Governor Kristi Noem has been criticized by opponents, but Schoenbeck says the Public Utilities Commission is the decision maker, not the Governor.

Schoenbeck says there’s a lot of misinformation is being spread around.

Summit Carbon Solutions CEO Lee Blank says the company is “proud to work with so many landowners who see the priority we are putting on farmers and their unique needs throughout the lifecycle of the pipeline.” He says they are “dedicated to favorable easements for landowners across the project, underscoring our mutual goal—a robust agricultural and ethanol industry.”

Summit Carbon Solutions is partnering with 34 Midwest ethanol plants, investing $800 million investment in South Dakota. Eight of those plants are in South Dakota, including Redneck Energy at Onida.

(News partner KXLG contributed information to this story.)

APRIL 13, 2023:

The South Dakota Public Utilities Commission has approved a 10 business day discovery response deadline for a sighting docket connected to Summit Carbon Solutions’ request to construct a pipeline transporting liquid carbon dioxide across part of the state.

PUC staff attorney Kristen Edwards says this type of action is normal for larger cases such as this.

Commissioner Gary Hanson asked Edwards if state law addresses such extensions.

In February (Feb. 9, 2023), Summit Carbon Solutions announced it had gone over the 60% mark for number of property owners in five states who have voluntarily signed on to the project. Those states being Iowa, Minnesota, Nebraska, South Dakota and North Dakota.

If approved, Summit Carbon Solutions would build a pipeline to capture carbon dioxide from ethanol plants in the Midwest– including Ringneck Energy at Onida– and move it to underground storage in North Dakota.

FEBRUARY 15, 2023:

While the regulatory process is under way on their application for pipeline routes, Summit Carbon Solutions continues to sign voluntary landowner easements.

Spokesman Jessie Harris says they are making good progress.

Harris says they have a number of levels of regulation to deal with.

Harris says they are making progress with South Dakota landowners.

Summit Carbon Solutions wants to build a pipeline that would transport liquid carbon dioxide from ethanol plants across the region– including Ringneck Energy at Onida– to underground storage in central North Dakota.

FEBRUARY 9, 2023:

Summit Carbon Solutions has reached another milestone (Feb. 9, 2023) as it continues its efforts to get voluntary easements from landowners to build its carbon capture pipeline project across the Midwest.

CEO Lee Blank says they are now over the 60% mark for number of property owners in five states who have signed on to the project. He says across the five states in the pipeline project footprint– Iowa, Minnesota, Nebraska, South Dakota and North Dakota– Summit Carbon Solutions has signed 4,000 total agreements with landowners, which equates to 1,250 total miles of right-of-way.

Blank thinks landowners are embracing Summit Carbon Solutions because they know the carbon capture pipeline “will bolster the ethanol industry long-term, drive growth in our ag economy and strengthen land values and commodity prices.” He said through this infrastructure investment, the company’s ethanol and sustainable aviation plant partners will be able to sell their product at a premium in the growing number of markets that have adopted low carbon fuel standards.

Blank says the ethanol industry currently purchases approximately 40% of all the corn grown in the United States and remains a key driver of commodity prices and land values.

Additionally, Blank also says that during construction, Summit Carbon Solutions will create more than 11,000 jobs and contribute $371 million in new federal, state and local taxes. He says once operational, the company will have more than 1,100 full-time team members and will pay nearly $100 million in new taxes on an annual basis.

To learn more about Summit Carbon Solutions, please visit www.SummitCarbonSolutions.com.

NOVEMBER 17 2022:

Summit Carbon Solutions reached another major project milestone as the company has now secured easement agreements for more than 50% of the proposed pipeline route in South Dakota. Partnering with 400 landowners across South Dakota to sign 650 easement agreements, the company continues to make significant progress in advancing its carbon capture, transportation, and storage project and the $4.5 billion investment remains on track to begin construction next year and move into operations in 2024.

“Summit Carbon Solutions and our seven ethanol plant partners in South Dakota are incredibly pleased that landowners continue to embrace our project and support our efforts to maintain a strong, competitive ethanol industry,” said Summit Carbon Solutions CEO Lee Blank. “Securing easement agreements for a majority of the proposed pipeline route in South Dakota represents a significant step in advancing our project and driving growth in our ag economy long-term.”

Summit Carbon Solutions is partnering with 32 ethanol plants across the Midwest, including Dakota Ethanol in Wentworth, Redfield Energy in Redfield, Ringneck Energy in Onida, and the Glacial Lakes Energy plants in Aberdeen, Huron, Mina, and Watertown. The company’s $800 million investment in South Dakota will enable partner ethanol producers to sell their product at a premium in the growing number of markets (both states and countries) that have adopted low carbon fuel standards. Access to these markets is critical to the long-term viability of the ethanol industry that today purchases more than 60% of the corn grown in South Dakota and remains a key driver of commodity prices and land values.

While Summit Carbon Solutions has crossed the 50% mark statewide in South Dakota, there are several counties that have surpassed that pace, including Beadle County (78%), Clark County (86%), Edmunds County (68%), Hamlin County (60%), Kingsbury County (88%), Lake County (75%), and McCook County (100%). In each county where the project is proposed to be located in South Dakota, Summit Carbon Solutions will invest an average of $44 million during construction and pay an average of $650,000 in new property taxes every year once the system is operational.

South Dakota Public Utilities Commission rejects Summit Carbon Solutions CO2 pipeline permit request

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