South Dakota governor signs eminent domain ban on carbon pipelines

Summit Carbon Solutions was recently dealt a major blow in South Dakota. Governor Larry Rhoden signed a bill removing eminent domain as an option for pipeline companies.

Carbon pipelines have been a major topic in the state over the years. The bill that was signed was in response to complaints from land owners who say Summit did land surveys without their permission. There have also been concerns of the company using misleading information to get leases signed.

Governor Rhoden says he gave the bill a lot of thought, but says Summit needs to earn back trust before moving forward.

“Without the threat of eminent domain, the opportunity might finally be available for trust to be rebuilt, and maybe more productive conversations can occur between Summit and South Dakota land owners.”

The law is considered a major win for some land owners. Still, the American Carbon Alliance says it is a lost opportunity for the state to capitalize on low-carbon biofuels. They say it comes at a time when farmers desperately need new markets to restore profitability.

Summit called the new law unfortunate, claiming South Dakota changed the rules in the middle of the game. They say, “This kind of regulatory uncertainty creates real challenges—not just for our project, but for the ethanol plants in South Dakota that now face a competitive disadvantage compared to their counterparts in neighboring states. While this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.”

Related Stories
Shaun Haney says the new blending targets could support ethanol demand as farmers face tight margins and strong export competition.
National Pork Producers Council’s Trish Cook joins us to discuss Farm Bill differences between chambers, Prop 12 concerns, and pork industry priorities moving forward.
Charles Krause says farm tours, consumer education and growing demand for dairy protein are creating new opportunities for the industry.
Ben Pratt with The Mosaic Company joins us to discuss sulfur market disruptions, fertilizer production challenges, global supply chain impacts, and implications for farmers planning future input needs.
Entomologists say catching cotton jassid early can help limit damage before populations spread through a field.
New actions aim to speed pesticide approvals, expand regenerative agriculture incentives, and strengthen farm profitability.

LATEST STORIES BY THIS AUTHOR:

A private acreage estimate points to fewer corn acres and more soybeans ahead of the USDA’s upcoming final acreage report this week.
For farmers and ranchers, the biggest near-term pieces are in the safety net.
Chip Cortez with Specialty Risk Insurance joins us to discuss farm safety priorities during National Safety Month.