North Dakota Regulators Deny Siting Permit for Summit Carbon Dioxide Pipeline; Company Will Reapply

August 07, 2023

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by Jack Dura (Associated Press) North Dakota regulators denied a siting permit Friday for a proposed carbon dioxide pipeline that would cross five states.

The decision complicates an already complex process for Summit Carbon Solutions, which is seeking similar authorization in the other states and is facing opposition from landowners and environmental groups. It wasn’t immediately clear how the permit denial would affect Summit’s carbon dioxide storage plans in North Dakota.

The North Dakota Public Service Commission denied the permit for Summit’s Midwest Carbon Express pipeline, which planned a 320-mile (515-kilometer) route through North Dakota. Summit proposed the $5.5 billion, 2,000-mile (3,219 kilometer) pipeline network to capture carbon dioxide from more than 30 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota, and to store it deep underground in North Dakota.

In a statement, Summit said it “respects the decision by the North Dakota Public Service Commission, and we will revisit our proposal and reapply for our permit. We’re committed to understanding and incorporating the considerations outlined in the decision. We are confident that our project supports state policies designed to boost key economic sectors: agriculture, ethanol, and energy.”

The project raised landowner concerns of eminent domain, or the taking of private land for the pipeline, and potential dangers of a pipeline break.

The company has “legal options” it can take, commission spokesperson Stacy Eberl said. The regulators do not have jurisdiction over injection sites, she said. Summit proposed an underground injection site for storage of the carbon dioxide in central North Dakota.

The Public Service Commission held public hearings throughout North Dakota earlier this year, during which landowners expressed many concerns, including about eminent domain, safety and requests for reroutes on their property.

“The Commission felt that Summit has not taken steps to address outstanding legitimate impacts and concerns expressed by landowners or demonstrated why a reroute is not feasible,” the regulators said in a statement. “The Commission also requested additional information on a number of issues that came up during the hearings. Summit either did not adequately address these requests or did not tender a witness to answer the questions.”

The commission’s statement also noted other information Summit hasn’t submitted, including how the company would address 14 areas of potential geological instability noted by the U.S. Geological Survey within the pipeline’s path. Summit also did not submit a revised report to the state’s historical preservation office regarding impacts to cultural resources. The office said Summit’s report didn’t meet its standards.

The regulators’ vote to deny the permit was unanimous.

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The pipeline has generated similar landowner concerns about eminent domain in other states, including South Dakota, where a group of lawmakers last month began a petition drive for a special legislative session to protect private property rights against Summit.

The Iowa Farm Bureau Federation and the Iowa chapter of the Sierra Club are pushing Summit to release financial agreements with ethanol companies in the project, the Des Moines Register reported. READ MORE

Carbon Pipeline Project Update: Summit's Carbon Project Faces Setback After North Dakota Denies Permit (DTN Progressive Farmer)

North Dakota nixes route for Summit Carbon pipeline (Agri-Pulse)

Summit Carbon Solutions Advances in North Dakota, Adapting in Response to Commission Feedback (Summit Carbon Solutions/PR Newswire)

Letter: Summit CEO pledges to address regulators' concerns (Summit Carbon Solutions/Bismark Tribune)

Can a CO2 pipeline developer change how farmers are treated? The CEO of Summit Carbon Solutions says his company will treat landowners well. Critics say he's making empty promises. (Politico Pro Energy Wire)

Pipeline opponents seek procedural halt in Iowa after North Dakota decision (Iowa Capital Dispatch)

Judge: Summit should reveal communities threatened by pipeline leaks (Iowa Capital Dispatch)

SUMMIT CARBON SOLUTIONS SUBMITS REVISED PIPELINE PERMIT APPLICATION: Responds to North Dakota PSC’s concerns, reroutes north of Bismarck (Summit Carbon Solutions)

During debate with S.D. lawmaker, carbon pipeline executive calls eminent domain a ‘last resort’ (Iowa Capital Dispatch)

Opponents: No second chance for carbon capture pipeline permit in North Dakota (Iowa Capital Dispatch/Des Moines Register)

Letter: We urge ND's Public Service Commission to approve proposed CO2 pipeline -- "The future is here, and it demands that we incorporate innovative solutions like carbon capture and storage to ensure the continued prosperity of our leading industries," write ND Sen. Terry Wanzek and Rep. Mike Brandenburg. (InForum)

Excerpt from Summit Carbon Solutions/PR Newswire: Securing 80% voluntary easements along the pipeline route, the company is working to ensure the future of North Dakota's energy industry. -- Summit Carbon Solutions has secured 80% of voluntary easements for its pipeline route in North Dakota and continues to negotiate with additional landowners every day. At the same time, the company is responding to the decision of the North Dakota Public Service Commission.

Summit Carbon Solutions hears the Commission, including concerns with respect to the pipeline location around Bismarck. Summit is looking at plans again and will address those issues in our reconsidered application, including reroutes. The company is determined to get this right for everyone involved. The goal is simple: to work together, understand everyone's concerns, and make sure our project fits well with what North Dakota wants for its future, especially in areas like energy and agriculture.

North Dakota landowners' support shows their trust in the company's vision. Summit Carbon Solutions is partnering with 34 Midwest ethanol plants making a $900 million investment in North Dakota. The company's success is attributed to its understanding that it will:

Giving a boost to the ethanol industry and supporting everyone involved – from plant workers to the farmers selling corn.
Helping secure a market for liquid fuels and the internal combustion engine.
Opening up new market opportunities in the region.
Making sure farmers and ranchers are treated right, from good compensation to taking care of their lands.

Summit Carbon Solutions has partnered with Minnkota Power Cooperative to have access to their sequestration site, Project Tundra. The company has also acquired nearly 90% of the pore space rights within its own sequestration sites in North Dakota. READ MORE

Excerpt from Summit Carbon Solutions: Summit Carbon Solutions (SCS) is pleased to announce the submission of a Petition for Reconsideration for their pipeline permit application to the North Dakota Public Service Commission (ND PSC), showcasing its continued commitment to the community and addressing previously raised concerns.

In the Petition, SCS addressed previously raised concerns:

· Rerouting around Bismarck: Summit has implemented specific re-routes that includes moving the pipeline almost 10 miles north of Bismarck’s city limits, addressing concerns about city growth and future development.

· Avoidance Areas: Summit has rerouted or planned drills to avoid areas of concern, including game management areas and areas that may present a geo-hazard risk such as a landslide.

· Cultural Resource Surveys: Summit is working with the State Historic Preservation Office to document the results of cultural surveys and is confident no historic or archeological sites will be affected by the Project. To date, Summit has completed cultural surveys on approximately 90% of the pipeline route.

Project Advancements:

· Landowner Support: Nearly 80 percent of the right-of-way (ROW) for the pipeline route has been secured through voluntary easements from local landowners, including parts of the new pipeline route.

· Sequestration Site Advancement: SCS has successfully secured almost 90 percent of the space needed for its carbon sequestration sites in North Dakota.

“We’re truly grateful for the trust and support shown by the landowners of North Dakota, allowing us to make substantial progress in our pipeline route and sequestration site plans,” said Summit Carbon Solutions CEO Lee Blank. “Addressing the concerns of the ND PSC is a top priority for us, and we’ve worked diligently to revise our application accordingly. Our aim is to work collaboratively, listen to everyone’s input, and align our project with the long-term vision that North Dakota has for its energy and agricultural sectors. We are confident that our efforts will contribute positively to North Dakota’s future, and we’re excited to be part of this journey.” READ MORE