Sen. Jeff Magrum Files 8 Bills Related to Summit Carbon Solutions Pipeline

January 20, 2023

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by Jeff Beach (InForUm) Summit Carbon Solutions says its $4.5 billion pipeline project will help ethanol plants and corn growers but has been met with resistance from landowners. -- The controversial Summit Carbon Solutions carbon capture pipeline has spawned at least eight bills in the North Dakota Legislature.

Two of the eight bills are directly related to the percentage of voluntary easements from property owners that would be required to obtain a pipeline permit in North Dakota.

Others are related to private property access by surveyors and underground storage space.

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The bills are:

SB 2209: Requires 85% of landowners to provide a voluntary easement to obtain right of eminent domain. Counties could set a higher standard.
SB 2212 : Removes carbon capture pipelines from being granted the right of eminent domain even if granted common carrier status.
SB 2228: Requires 100% consent for underground carbon dioxide storage from the owners of the pore space, eliminating eminent domain.
SB 2251 : Survey crews must obtain written permission from property owners. (There are currently multiple lawsuits involving Summit and surveyor access.)
SB 2310 : If a person prevails against the state in a court hearing, (as in a surveyor access case) they are entitled to be reimbursed for court costs.
SB 2313 : If property is taken by eminent domain, a court must increase the award by 33%.
SB 2314: Requires a public hearing in each county where the pipeline company is seeking common carrier status.
SB 2317 : Requires 85% of landowners to consent to underground storage space. Counties could set a higher standard.

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The pipeline route must be approved by the state Public Service Commission. The storage permit must be approved by the state’s Industrial Commission, which includes Gov. Doug Burgum, a vocal advocate for carbon capture and storage. READ MORE

N Dakota CO2 bills challenge to oil producers (Argus Media)

Carbon capture pipeline prepares ethanol industry for the future: Dana Siefkes-Lewis (Aberdeen News)

House State Affairs Committee kills two more eminent domain bills aimed at carbon dioxide pipelines (DRG News)

South Dakota committee advances bill to stop carbon pipelines from using eminent domain (Nebraska Examiner)

North Dakota House kills remaining CO2 pipeline bills (Bismark Tribune)

Excerpt from Argus Media: Several proposed North Dakota laws set for debate today could bolster rights for property owners but challenge the state oil industry's plans to use carbon dioxide (CO2) to boost future production.

Companies building pipelines to carry CO2 in North Dakota would need consent from as much as 85pc of landowners on the pipeline right of way to proceed under a draft of Senate Bill 2209 (SB2209) that will be discussed in the state senate's energy and natural resources committee hearing today. The right of eminent domain would also be stripped from CO2 projects — but not oil and gas projects — even if they are considered common carrier pipelines, under another bill, SB2212.

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The project has attracted the ire of environmental groups throughout the states who label it an attempt at greenwashing biofuel production and the oil and gas business as a whole. Indigenous groups and other landowners along the planned pipeline route have also joined in on the opposition in many states, suggestion measures similar to the ones in North Dakota.

While the Midwest Carbon Express pipeline project is aimed at eventual carbon sequestration, injecting CO2 into oil wells to mobilize otherwise stranded oil volumes is one form of enhanced oil recovery (EOR) being pursued in North Dakota, the US' third-largest oil producing state. The technique has been used for years in other fields, including the Permian basin in Texas and New Mexico, which is served by several pipelines that carry CO2. But sourcing enough CO2 for new projects in North Dakota could be a challenge, making pipelines critical for future projects.

The proposed legislation aimed at CO2 projects "would really tie the hands of the oil and gas industry," according to Lynn Helms, the head of North Dakota's Department of Mineral Resources (DMR), as operators explore other methods to sustain production in the mature but prolific Bakken field. "[Bills 2209 and 2212] would both make it extremely difficult, if not impossible, to build carbon dioxide pipelines in the state."

North Dakota would likely "sacrifice many billions of barrels of oil" that would otherwise be unreachable without CO2 injections, said Helms. READ MORE

Excerpt from DRG News: A House committee killed two more bills yesterday (Feb. 6, 2023) that would have given landowners more rights when dealing with carbon dioxide sequestration pipeline companies.

The House State Affairs Committee took about two hours of testimony Monday afternoon after having four hours of testimony and consideration on other eminent domain bills yesterday morning.

House Bill 1178 would have established a timeline for an application to construct a carbon dioxide transmission facility. Supporters said it would give the federal regulators additional time to implement regulations on carbon dioxide pipelines. They said the South Dakota Public Utilities Commission would have the latest information on permitting the pipelines.

On the other side, opponents said federal rule-making is always ongoing and that the bill would delay and discourage carbon dioxide pipelines.

The committee killed the bill 7 to 5, sending it to the 41st legislative day.

The other bill, HB 1089, would have given landowners $500 for carbon pipelines to conduct surveys on their property. It would also require service of process to the landowner that the company would be conducting a survey.

Proponents said disallowing people on their property is a “sacred right.” Landowners, they said, should be compensated for the trespass.

Opponents said that serving a landowner with formal notice of a survey would likely aggravate a difficult situation.

The committee turned the measure away on a 9 to 3 vote, also sending it to the 41st day.

In the morning committee session, the body passed two landowner-supported eminent domain issues and killed two others. The surviving bills move on to the House.

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(South Dakota Broadcasters Association) — After four hours of testimony and consideration, the House State Affairs Committee this morning (Feb. 6, 2023) passed two bills giving landowners more rights in eminent domain condemnations for some pipelines. These bills, and two more the committee will hear this afternoon, arise from landowner complaints about the proposed Summit Carbon Solutions and Navigator CO2 carbon dioxide sequestration pipelines.

Landowners complained to the committee that both companies were using the state’s current eminent domain laws to leverage one-sided right-of-way agreements to place the carbon pipelines on their land.

The two carbon dioxide pipelines and representatives from investor-owned utilities and other business groups say the current process is fair and “works.” They also said that using eminent domain by a pipeline company is a last resort, and they prefer working out the easements with farmers and ranchers instead.

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The main bill, HB 1133, would not allow the use of eminent domain in the case of a “non-commodity”- -i.e., something that has no value and is placed in the ground. It will also deny the use of eminent domain if the pipeline receives federal tax credits.

Bill supporters say that shows the pipeline is not hauling something of value. However, opponents said carbon dioxide is a commodity, as it is used to make dry ice, to carbonate drinks and is used in some cattle feeds. The pipelines and ethanol plant operators say carbon sequestration is essential, as many businesses and governments will only buy fuels that have a low carbon footprint. They say this would reduce the carbon footprint of South Dakota ethanol plants by about 50%.

The pro-pipeline supporters say carbon dioxide will become a valuable resource in the future in making plastics and other items and processes, including jet fuel.

HB 1133 passed 8 to 5.

The other bill that passed, HB 1230, would change when a private entity pipeline that hauls a “commodity” must file its “final offer” with the court in an eminent domain lawsuit. Current law says that must be filed before a condemnation trial begins. The bill moves that deadline back to when the action is filed with the court.

Proponents say that will encourage the pipelines to compromise with landowners sooner. They also say it will not stop further settlement negotiations and the filing is necessary because if the jury returns with a verdict 20% more than the “final offer,” the defendant– the landowner– can also receive attorneys fees and costs.

Landowners say it will encourage the pipelines to give their best offer for the easement sooner, thus possibly avoiding more litigation. The pipelines and other opponents say the current system works.

HB 1230 passed 10 to 2. READ MORE

Excerpt from Bismark Tribune:

he North Dakota House of Representatives on Tuesday killed the remaining bills proposed by a state lawmaker seeking to bolster private property rights in connection with carbon dioxide pipelines.

Sen. Jeff Magrum, R-Hazelton, brought several bills dealing with CO2 pipelines and eminent domain -- the seizure of private property rights against a landowner's wishes -- in response to Summit Carbon Solutions’ proposed CO2 pipeline that is being reviewed by the North Dakota Public Service Commission.

Senate Bill 2251 failed in a 46-46 vote. It sought to require survey crews to get written consent from landowners or a court order before entering their property. The bill needed 48 votes to pass.

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Senate Bill 2313 failed 40-51. It was for an optional interim 2023-24 legislative study of "fair and just compensation in all eminent domain proceedings." READ MORE