By Scout Nelson
Summit Carbon Solutions is embarking on an ambitious project to capture CO2 from 57 ethanol plants and transport it for storage in North Dakota. This project, crossing multiple states, has faced significant opposition and legal challenges, particularly around its use of eminent domain.
A pivotal issue now is whether Summit qualifies as a common carrier in South Dakota, a designation crucial for continuing construction across private lands.
In 2023, the South Dakota Supreme Court reversed a lower court's decision that had favored Summit, stating more evidence was needed to establish Summit as a common carrier. This status is vital because it grants the company limited rights to use private land against the owner's wishes, essential for the pipeline's path.
The court’s decision to remand the case for further evidence means Summit must now prove that it transports CO2 for hire, rather than just for its own disposal, to meet the common carrier criteria. This is complicated by the fact that CO2, primarily seen as waste to be sequestered, may not be considered a commodity under traditional definitions.
The summit's strategy includes new tariff-based agreements to transport CO2 owned by third parties, potentially strengthening its case.
With 15 facilities on Summit’s route through South Dakota and significant CO2 flow from neighboring states, the outcome of this legal battle is crucial.
A failure to secure common carrier status could significantly delay or derail the project, impacting dozens of ethanol producers and broader decarbonization efforts within the industry.
Photo Credit: shutterstock-dickgage
Categories: South Dakota, Crops, Corn, Energy, Government & Policy