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
Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.
While row crops are expected to see softer impacts, analysts say severe weather of this magnitude will not be as kind to cattle producers.
Dairy farmer and Discover Ag co-host Tara Vander Dussen joined us to discuss the Whole Milk for Healthy Kids Act, her experience at the signing, and what’s next for her family and farm.
The Farm Bureau is making an urgent call to Congress for more farm support. Colton Lacina with Farmers National Company joined us to discuss farmland values and how market dynamics for the year ahead reflect stabilization rather than collapse.
Analysts say a Supreme Court decision on tariffs could reshape protein markets, strain U.S.-China trade, and force farmers to rethink global demand strategies.
Wayne Cockrell with the Texas and Southwestern Cattle Raisers Association joined us to discuss preparedness, producer awareness, and the industry’s response to New World screwworm concerns.

LATEST STORIES BY THIS AUTHOR:

Roger McEowen with the Washburn University School of Law joined us to provide legal analysis on key cases shaping the agricultural landscape heading into the year ahead.
NASDA declared 2026 the International Year of the Woman Farmer. President Amanda Beal joins us to share NASDA’s new hub, which highlights the impact of women in agriculture worldwide.
Matt Brockman, communications director for the Fort Worth Stock Show & Rodeo, joined us to share a preview of the upcoming event.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.
RealAg Radio host Shaun Haney discusses the latest developments in the Supreme Court, trade tariffs, and the future of the USMCA under President Donald Trump.