South Dakota regulators refused Thursday 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 anew state lawbarring its use of eminent domain.
The Public Utilities Commission, meeting in Pierre, voted 3-0 to deny Summits request to put its application on hold.
Whats the plan here? And thats the question thats 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 to an underground storage site in North Dakota, where some carbon could also be used toextract 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 the Legislatures 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 cant 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 be legally 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 in court.
The commission plans to consider the matter again 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.
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