South Dakota Supreme Court is ordering a lower court to reconsider its a case granting a carbon pipeline company eminent domain power.
The ruling marks a legal victory for landowners challenging a major CO2 pipeline project.
One of the most contentious issues when the state was approached by Summit Carbon Solutions for a carbon sequestration pipeline was whether the carbon captured and piped through the state is a commodity.
Summit needs that classification so it can be considered a common carrier. That would allow the company to use eminent domain – which may be needed to complete the pipeline.
A circuit court ruled in Summit’s favor. A group of landowners appealed. On Thursday, the South Dakota Supreme Court reversed that decision, saying the lower court was essentially premature in deeming Summit as a common carrier.
Justices said Summit didn’t fully establish they’re transporting a commodity, noting the CO2 would simply be stored underground and not used by an industry. They also said Summit didn’t provide landowners with documents needed to build their case.
The ruling sends the issue back to the circuit court, which must reconsider the case following the Supreme Court’s guidance.
Summit Carbon Solutions has not yet reapplied for PUC permission and have previously stated waiting for the Supreme Court Ruling. The ruling does not mean the pipeline can’t be built, but it does require Summit to build a stronger case before the company moves forward.
Summit Carbon Solutions did not immediately respond to a request for comment on the ruling.
