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
Mike Knotts with the Tennessee Electric Cooperative Association joined us with the latest on storm impacts, power restoration, and safety considerations following the ice storm.
Brooks York with AgriSompo joined us with his outlook on crop insurance and risk management following the recent winter storm that tore through most of the United States, including the Midwest.
Payment totals alone do not show financial stress — production costs and net losses complete the picture.
Year-round E15 remains on the table, but procedural caution and competing regional interests pushed action into a slower, negotiated path.
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.

LATEST STORIES BY THIS AUTHOR:

Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Nearly everyone in the South Texas ag community appears extremely worried about the potential of a New World screwworm epidemic, according to a local veterinarian. RFD NEWS Correspondent Frank McCaffrey reports.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
Brian Earnest, an animal protein economist with CoBank, shares insights into current demand trends and the challenges facing broiler production.
Jack Hubbard, with the Center for the Environment and Welfare, shares context and perspective on the controversial letter about Prop 12 circulating in Washington and how a review shows it misled the public.