Summit Carbon Solutions pitches Davison County leaders on potential pipeline

Apr. 23—MITCHELL — Summit Carbon Solutions came to the Davison County Commission for the first time to discuss potentially constructing a carbon sequestration pipeline in the county.

It brings the Mitchell area into the hot-button conversation around carbon pipelines for the first time, as Summit Carbon Solutions looks to build a connecting pipeline from the Poet ethanol plant north of Mitchell and connect it to its proposed main line that runs from the Sioux Falls area and into Iowa to a proposed storage site in western North Dakota.

Tuesday's meeting with the commission was a discussion only, with representatives from Summit Carbon Solutions updating the board with information about the company's proposed carbon sequestration pipeline.

Summit applied for a permit with the South Dakota Public Utilities Commission (PUC) to construct a pipeline through several South Dakota counties in February 2022. Summit's plan would collect carbon dioxide from nearly three dozen ethanol plants, including as many as 15 plants in the state. The entire pipeline plan covers nearly 2,000 miles, with around 490 miles in the state. The PUC denied the application in September 2023, citing the route conflicted with ordinances in four counties.

Much of Tuesday's discussion centered around operational or logistical aspects of the project but many of the specific details aren't being disclosed, including the proposed route the pipeline is projected to take through Davison County. Sabrina Zenor, director of community relations for Summit said they are working to plot a new route in the state now that they have acquired the Poet plants. That route however won't be released until landowners whose property falls in its path have been contacted by Summit officials.

"We are committed to visiting with landowners and we are making our way through meeting with those individuals in Davison County who the project may affect," said Aaron Eldridge, a project manager with Summit. "We're working on solidifying relationships for years to come. We are shaking hands with more folks regarding easements every day."

Zenor said Summit officials will be refiling their permit request with the state in the near future once they iron out differences and obtain the voluntary easements needed to site the project.

"We continue to work with landowners and community leaders across the state to find a mutually agreeable path," Zenor said. "We plan to refile our application once we have a path through the state."

Poet, which has a bioprocessing plant about 10 miles northwest of Mitchell near Loomis, announced its partnership with Summit earlier this year. The facility consumes approximately 24 million bushels of locally grown corn to produce 86 million gallons of bioethanol annually. With the deal, Poet's five South Dakota ethanol plants — Big Stone City, Chancellor, Groton, Hudson and Mitchell — are signed up to connect with the carbon pipeline.

Eldridge also addressed liability questions and the safety of the pipeline. Eldridge explained Summit Carbon Solutions has an operations center that monitors the system 24 hours a day, seven days a week, 365 days a year. This control center automatically alerts of any change in pressures or flows.

Some concerns were interjected by the commissioners and county residents at the meeting. Commissioner Denny Kiner questioned what the proposed depth of the pipeline was. Eldridge said the proposed minimum depth of burial is 48 inches from the top of the pipe.

"Summit will work with landowners to place the pipe lower to accommodate other infrastructure or land features," Eldridge said.

Mitchell resident Dwight Stadler questioned how the company plans to handle landowners who stonewall them and refuse to sign voluntary easements. Eldridge said they have secured them from 75% of South Dakotans. If they hit a roadblock with owners, there is always the option to try to reroute the path off their property but that isn't always possible either. Eminent domain is a last resort, Eldridge said.

Some of the most contentious, emotionally charged topics that have been raised since the start of the Summit Carbon Solutions proposal have been about property rights and whether or not a private company can use eminent domain to force the carbon dioxide pipeline onto land against the owner's will. In March, South Dakota Legislators passed legislation that will take effect July 1, including one that requires pipeline companies to serve written notice to examine or survey potential pipeline ground and to compensate owners with a one-time $500 payment for entering property if a common carrier pipeline project is being constructed.

A second law enacts a landowner's bill of rights and allows counties to tax carbon pipelines. It also allows for state PUC permits for pipelines to override local regulations, which opponents of the legislation see as a loss of local control and have circulated petitions to potentially refer the topic to voters for a possible November 2024 election.