February 24, 2025:
Monday (Feb. 24, 2025), the South Dakota Senate approved legislation requiring an offer of mediation before a utility or pipeline could use eminent domain against a property owner.
Though not mentioning carbon pipelines, supporters say the measure addresses ongoing legislative and landowner concerns about carbon pipeline development.
Senate Bill 198, sponsored by Sen. Jim Mehlhaff, R-Pierre, passed 18-17 after a failed vote Friday was reconsidered at Mehlhaff’s request.
“Eminent domain exists right now. It’s a tool that’s used by just about any developer that is doing a public use, our common carrier project throughout the United States,” Mehlhaff said. “Senate Bill 198 puts some preconditions in place before a developer can use them.”
The bill establishes a framework requiring prospective condemnors to offer, in good faith, mediation with property owners before initiating condemnation proceedings.
Developers would need to provide 90 days’ notice, propose mediators, and cover all mediation costs. The PUC would also need to first issue a permit for the project to progress.
Bill opponents said landowners did not ask for the measure. Others talked about what they claimed were abusive tactics that Summit Carbon Solutions used against elderly landowners.
Tensions flared after the final vote when Sen. John Carley, R-Piedmont, attempted to amend the bill’s title.
“Mr. President, I would like to amend the title to, quote, forcing mediation for more abuse of eminent domain,” the senator said.
Lt. Gov. Tony Venhuizen ruled that the amendment was out of order after a different senator raised a point of order.
While supporters frame the legislation as strengthening landowner protections, critics argue it benefits carbon pipeline developers seeking easements across agricultural land.
The legislation comes amid the ongoing controversy surrounding proposed carbon capture pipelines in the region that would transport carbon dioxide from ethanol plants for underground sequestration.
The bill would cover all uses of eminent domain by private companies, not just when carbon pipelines are involved.
“I know I’m not speaking for all landowners, but I know I’m speaking for a lot of them because there are a lot of landowners who really support the carbon pipeline,” Mehlhaff added.
The bill now advances to the House for consideration.
Story courtesy of the South Dakota Broadcasters Association.
February 20, 2025:
The South Dakota Corn Growers Association has announced it’s support for legislation to “establish conditions a prospective condemnor must satisfy before commencing condemnation proceedings.”
The Corn Growers say Senate Bill 198 would improve transparency and fairness in the eminent domain process. It would require an entity seeking to use eminent domain for an easement, to obtain a permit from the Public Utilities Commission before initiating proceedings. They say the bill also mandates an up-front mediation process, allowing for meaningful discussions between landowners and developers, including consideration of alternative routes for the proposed transmission facility or site.
SD Corn Growers President Taylor Sumption emphasizes the importance of fostering cooperation and voluntary agreements. He says, “We are in favor of steps that help to improve the likelihood of voluntary easements— something we should all be supportive of regarding these types of PUC-permitted projects. Senate Bill 198 is intended to facilitate discussion towards that end goal.”
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