South Dakota lawmakers advanced bills Friday at the Capitol in Pierre that would put a moratorium on carbon dioxide pipelines until new federal safety rules are finalized, and would authorize landowners to sue pipeline companies for the alleged abuses of their land agents.
The bills dont name Summit Carbon Solutions, but theyre a response to the Iowa companys proposed $9 billion, five-state pipeline that would pass through eastern South Dakota. It would collect carbon dioxide emitted by more than 50 ethanol plants and transport it for underground storage in North Dakota, to capitalize on federaltax creditsincentivizing the prevention of heat-trapping emissions into the atmosphere.
Land agent bill
Rep. Kaley Nolz, R-Mitchell, is the main sponsor of thebillthat would authorize lawsuits by landowners who allege theyve suffered from deception, fraud, harassment, intimidation or misrepresentation by a land agent for a carbon pipeline company.
Landowners who file a suit within 12 months of the behavior and prove the allegations to a court could have their agreement with a company voided. The bill allows for an award of damages up to three times the amount of the agreement or highest offer.
Several landowners testified and alleged that theyd been contacted by pipeline land agents who claimed that the landowners neighbors had signed agreements, only to find out later that wasnt true. Nolz filed the bill in response to those complaints.
Clearly, the existing laws were not enough deterrence, Nolz said.
Members of the committee who opposed the bill said the alleged abuses are already illegal under existing laws.
Justin Bell, a lobbyist for Summit, said the bill could lead to excessive litigation and unfair targeting of one projects land agreements known as easements while not addressing similar agreements for other types of projects.
Im not sure I understand why, if this truly is happening and is a problem, why this would be limited to just one form of easement, Bell said.
The legislation additionally includes a provision requiring land agents for carbon pipelines to be a company employee, a resident of the state or a real estate agent licensed in the state. A similar provision was part of abroader packageof pipeline law reforms passed by the Legislature last year that wastossed outby South Dakota voters in November.
The committee voted 8-4 to send the bill to the House floor.
Moratorium bill
Rep. Richard Vasgaard, R-Centerville, is the main sponsor of themoratorium bill.
This pipeline is going to be in the ground for a long time, Vasgaard said. Lets make sure its done right.
The legislation would bar the state Public Utilities Commission from permitting carbon dioxide pipelines until the federal Pipeline and Hazardous Materials Safety Administration adopts its new safety rules for carbon pipelines. The administration issuedproposedrules last month and will finalize them sometime after a 60-day public comment period.
A lobbyist for Summit Carbon Solutions testified against the moratorium, saying it would take authority from the state Public Utilities Commission and hand it to the federal government. A majority of the House Commerce and Energy Committee disagreed and sent the bill to the House of Representatives on a 7-6 vote.
Eminent domain bill pending
Among other pending pipelinebillsisonethat would ban the use of eminent domain by carbon pipeline companies. Eminent domain is a legal process for obtaining land access from unwilling landowners for a project beneficial to the public traditionally for projects such as electrical power lines, crude oil pipelines and water pipelines. That bill has passed the House and is awaiting action by a Senate committee.
Anotherbillthat has been sent to the Senate by the Senate State Affairs Committee would reform the eminent domain process and add new requirements for those seeking to use it.
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