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Rhoden: eminent domain ban doesn’t kill carbon pipeline project

South Dakota Governor Larry Rhoden has signed a bill that would ban the use of eminent domain for carbon pipelines in South Dakota.

“We’ll continue to support the private property rights of our people and opportunities for value-added agriculture and our state as a whole.”

House Bill 1052 would add a new section to existing right-of-way carrier law preventing the use of eminent domain for pipelines carrying carbon oxide.

Rhoden says the decision was made based on his consideration of the facts, policy arguments, legislative history and his judgement for what is best for South Dakota.

He says doesn’t mean there won’t be a carbon pipeline in South Dakota, but Summit Carbon Solutions will have to earn back trust with landowners.

“Unfortunately, once trust is lost, it’s hard to regain. I encourage Summit and others to view this legislation as an opportunity to reset. Voluntary easements for this proposal will still be able to move forward. They’re not impacted by 1052.”

In response, Summit Carbon Solutions says “it’s unfortunate that, despite our approvals in Iowa, North Dakota, and Minnesota, South Dakota changed the rules in the middle of the game. This kind of regulatory uncertainty creates real challenges—not just for the pipeline 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.”