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Yahoo
31-01-2025
- Business
- Yahoo
Landowners, energy industry at odds over bills limiting CO2 pipelines in North Dakota
David Moch of Hazelton testifies Jan. 30, 2025, on a bill related to carbon dioxide pipelines. (Jeff Beach/North Dakota Monitor) David Moch signed an easement agreement with Summit Carbon Solution allowing the carbon capture project developer to put a pipeline through his land, but he said signed only because of the threat of eminent domain — a court ordering him to provide a right-of-way for the pipeline. Moch, of Hazelton, said he spent $9,600 on a lawyer to ensure he had the strongest agreement possible, but he is still opposed to the pipeline and its potential use of eminent domain. Moch was among those who testified Thursday in favor of bills that limit the ability of Summit and other carbon pipeline developers to use eminent domain. Carbon pipeline bills set for hearings in North Dakota this week Summit Carbon Solutions is an Iowa-based company seeking to build a $9 billion five-state network of pipelines capturing CO2 emissions from ethanol plants. Summit's pipeline would send the CO2 for permanent underground storage in western North Dakota. Summit Carbon Solutions officials and representatives from the ethanol, coal and oil and gas industries testified against the bills. 'This will disqualify current projects in development and immediately stop the investment in the North Dakota CO2 industry,' said Charlie Adams, manager of agriculture and stakeholder relations with Summit. Several opponents of the bills pointed to a study by the North Dakota tax commissioner projecting the tax revenue that could come from oil production if enhanced oil recovery — using carbon dioxide to force more oil out of wells — were adopted in North Dakota. David Nehring, who also works as manager of agriculture and stakeholder relations with Summit, said Summit has not been approached about using its CO2 for enhanced oil recovery but could be in the future. 'I would like to see it be used in the Bakken for EOR,' he said. Summit's pipeline permit in North Dakota specifies that the carbon dioxide be stored permanently. Moch and Nehring testified on House Bill 1292 that strips common carrier status from carbon pipelines. Being a common carrier pipeline — transporting goods for hire — is a factor in pursuing eminent domain. Two other bills heard Thursday, Senate Bill 2322 and House Bill 1414, would also strip common carrier status from carbon dioxide pipelines and more specifically state that eminent domain could not be used for carbon pipelines. Adams testified that Summit has signed about 85% of landowners to voluntary easement agreements. Frances Robinson of Emmons County said Summit bullied landowners with the threat of eminent domain to obtain easements. 'If they tried the same tactics now, there would be a very different result,' she testified. Study pegs potential $9 billion tax impact for CO2 in North Dakota oil wells Sen. Jeff Magrum, R-Hazelton, the sponsor of the Senate bill, argued that it is too easy to claim common carrier status in North Dakota and that the only way to show a company like Summit is not a common carrier is to take the company to court, which is expensive for landowners. He also cited a South Dakota Supreme Court ruling that said Summit has not shown that it is a common carrier. Ron Ness, executive director of the North Dakota Petroleum Council, said the bills are not just about the Summit project but other pipelines yet to be planned that could carry carbon dioxide to North Dakota oil wells. 'What are we going to need in two years, five years, 10 years down the road?' Ness asked. 'It's going to take a lot of gas to supercharge the Bakken.' Zach Cassidy of the Dakota Resource Council, an environmental group, was among those who questioned the safety of such a large high-pressure hazardous materials pipeline. 'People's lives are potentially at risk,' Cassidy said. 'It should be their choice whether or not to take that risk for their family, for the paycheck that they get.' No action was taken on the bills, which represent just a few related to carbon capture. Senate Majority Leader David Hogue, R-Minot, and House Majority Leader Mike Lefor, R-Dickinson, on Thursday issued a news release supporting carbon pipelines. 'Our baseload coal industry must capture and store its CO2 to stay viable. Our corn and ethanol industries must access low-carbon fuels markets to stay competitive and keep the internal combustion engine competitive,' Hogue said. Also Thursday, the House voted 86-7 to advance House Bill 1258, which gives the state authority over setback rules for electric transmission lines, similar to the rules for pipeline regulation. The bill goes to the Senate for further consideration. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
27-01-2025
- Business
- Yahoo
Carbon pipeline bills set for hearings in North Dakota this week
Signs in protest of a carbon pipeline project sit along Highway 281 south of Ellendale, North Dakota, on Nov. 12, 2024. (Jeff Beach/North Dakota Monitor) Several bills related to carbon capture pipelines are set for hearings this week in the North Dakota Legislature covering topics including eminent domain, common carrier status and liability in the case of a pipeline rupture. Iowa-based Summit Carbon Solutions plans to build a pipeline to transport carbon dioxide from ethanol plants in five states to underground storage sites in western North Dakota. It has the needed permits in North Dakota but is still facing some landowner resistance. If a company such as Summit is not able to negotiate an agreement with a landowner for construction on their property, it can resort to a legal proceeding known as eminent domain. With eminent domain, a landowner can be forced to allow construction of a project with a public benefit, such as roads, utility lines and, under current North Dakota law, carbon pipelines. The landowner would be paid if a court allows eminent domain. North Dakota regulators say state rules trump local pipeline ordinances Bills introduced in the Legislature propose to change when eminent domain can be used. House Bill 1414 specifies that the state may not use eminent domain for carbon dioxide pipelines and revokes common carrier status for carbon pipelines. Being a common carrier, allowing other companies to use the pipeline for a fee, can be a factor in determining if eminent domain can be used. The bill also removes solar, wind and hydrogen energy projects from being able to use eminent domain. House Bill 1292 also removes common carrier status for carbon pipelines but without specific changes to eminent domain. House Bill 1210 specifies that carbon dioxide pipeline companies are liable for damages if a pipeline leaks or ruptures. Carbon dioxide is a hazardous material and a rupture is potentially fatal. All three bills are scheduled for 2:30 p.m. Thursday in the Coteau Room before the House Energy and Natural Resources Committee. Written testimony can be submitted online until 1:30 p.m. Thursday. Senate Bill 2322 is similar to House Bill 1414, revoking common carrier status for carbon pipelines and limiting use of eminent domain. The hearing is at 9 a.m. Thursday in Room 216, Senate Energy and Natural Resources Committee. Senate Bill 2320 removes property tax exemptions for interstate carbon pipelines. Current law exempts carbon pipelines from property taxes for 10 years. The hearing is at 9:30 a.m. Wednesday in the Fort Totten Room, Senate Finance and Taxation Committee. Senate Bill 2333 would encourage carbon capture. It creates a carbon fuels fund for incentives to ethanol plants to produce lower-carbon fuels. Carbon capture and storage would be among the projects eligible for funding. The state would put $3 million into the fund each biennium. A hearing is set for 10:30 a.m. Wednesday in the Fort Totten Room before the Senate Finance and Taxation Committee. Sen. Jeff Magrum, R-Hazelton, tried to limit carbon dioxide pipelines in the 2023 session with several bills that were voted down. He noted that there are more sponsors of anti-carbon pipeline bills in the current session. 'People have become aware of the attack on private property rights,' Magrum told the North Dakota Monitor. The controversial Summit pipeline was also referenced last week during a hearing on a bill related to power lines. House Bill 1258 would give the state of North Dakota authority over setback rules for electric transmission lines, similar to pipelines, where state rules override county and township ordinances. Change is 'eminent': Property-rights fight transforms this year's SD Legislature The North Dakota Public Service Commission approves the route permits for both pipelines and power lines, but currently, pipeline companies follow state rules on setbacks while electric utilities follow local ordinances. The bill changes which rules the utilities must follow from local to state. Rep. Mike Brandenburg, R-Edgeley, is the lead sponsor of the bill and referenced his support of the Summit pipeline that runs through his district when he testified Thursday before the House Energy and Natural Resources Committee. A planned powerline from Jamestown to Ellendale would also run through his district and he fears the project could be hindered by restrictive local ordinances. Power companies also lined up in favor of the bill. The committee gave the bill a do-pass recommendation. The PSC last year interpreted state law to determine that state rules over setbacks for pipelines take precedence over local rules. The determination came during the permitting of the Summit Carbon Solutions pipeline. Emmons and Burleigh counties had passed zoning ordinances that Summit felt were overly restrictive. Summit asked the PSC for clarification of what it argued was a law saying that state rules preempt local ordinances for pipeline siting. The PSC ruled in favor of Summit and later granted the company a route permit for its carbon capture pipeline. Emmons and Burleigh counties are challenging the PSC permit for Summit in court. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
