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South Dakota voters to get asked about PUC process changes, pipeline charges

Lake County resident Aaron Johnson.
Lee Strubinger
/
SDPB
Lake County resident Aaron Johnson.

A GPS system takes over Aaron Johnson’s 1994 Case IH 7240 Magnum tractor as the chisel plow claws into the dry ground.

There’s a major pipeline located under his certified organic field in rural Lake County, south of Madison. Another pipeline is proposed for the same field.

“Right now, we are in between the Dakota Access Pipeline and the proposed pipeline for Summit Carbon Solutions," Johnson said.

The Dakota Access Pipeline carries crude oil from North Dakota south, down to the Gulf of Mexico. In 2016, that pipeline caused major unrest in North Dakota where it crossed under the Missouri River just north of the Standing Rock Sioux Tribal reservation.

Johnson noted the juxtaposition—of the pipeline byway his field might become.

“It just goes to show what the real intent of this carbon dioxide pipeline is, to get carbon dioxide north so they can send oil south and push more oil out of the ground using highly pressurized carbon dioxide," he added.

The proposed Summit Carbon Solutions, 2,500-mile carbon pipeline would capture carbon dioxide from 57 ethanol plants in multiple midwestern states and liquify it for storage underground in North Dakota.

Johnson fought the proposed pipeline for three years, which could run about 700 feet from his house. He worries what a pipeline rupture would do to his organic farm certification - let alone, his wife and three kids.

He and other Lake County residents have urged the county commission to pass a carbon pipeline ordinance with setbacks, like other counties in the wake of this project.

But a recent law passed by state lawmakers has many worried county setbacks would get overruled in favor of projects like these.

“It’s deceitful legislation. It’s a sellout to corporate America," said Jim Eschenbaum, a retired farmer and current Hand County commissioner, who is leading an effort to overturn Senate Bill 201, which is now known as Referred Law 21.

Eschenbaum said the law erodes local control and wants voters to reject it.

“When it says that the state must permit and construct. In my opinion, that takes away authority of the Public Utilities Commission," he added. "If the permit comes before them, they must permit and construct.”

Last year, the PUC denied permits for the carbon pipeline company, Summit Carbon Solutions, saying its proposed route did not follow ordinances set by the counties it runs through.

Referred Law 21, however, shifts the burden—from companies—to local and county governments to convince the PUC whether its ordinances should apply to linear projects that cross the state, like a pipeline.

Eschenbaum and his group gathered over 31,000 signatures to refer the law. He only needed 17,500 to make the ballot.

Eschenbaum points to an op-ed by North Dakota state lawmakers calling for more carbon from the companies like Summit to “double the output of the Bakken [oil fields] today.”

“With that said, I’m not against oil. I’m not against enhanced oil recovery. I’m not against pipelines. I’m not against ethanol," Eschenbaum said. "But, be honest about what this project is about and the fact that taxpayers are going to pay for this enhanced oil recovery.”

Summit Carbon Solutions hopes to capitalize on federal tax credits that incentivize removing carbon from the atmosphere. In a statement, the company said its agreements are for permanent geologic sequestration of CO2. It supports Referred Law 21.

The issue has also reshaped the next state Legislature. In the spring primary election, 11 incumbents who voted for the law lost their seat in the state Legislature. Three other Republicans attempting to switch chambers came up short. Turnout for the June primary was 17 percent, a historic low.

Republican Representative Roger Chase, who is term limited in the state House of Representatives, said Referred Law 21 gives counties and property owners tax relief, protections, and requires the company release a dispersion study in the event of a pipeline leak or rupture.

“But, in any good legislation, no one is particularly happy with how things turn out," Chase said.

South Dakota voters will weigh in on Referred Law 21 as though they are a state lawmaker themselves. A 'yes' vote is to approve the law—a 'no' vote is to reject it.

With the carbon pipeline is proposed to run through his farm ground also, Chase said if voters vote down referred law 21, the only entity that will benefit is the pipeline company.

“Because they’re still going to have the ability to get permitted. And if they do get permitted and we repeal Senate Bill 201, or referred law 21, then all of that goes away," Chase said.

If voters reject Referred Law 21, current law still allows the PUC to override county setbacks.

Back at Johnson’s farm around his kitchen table, he worries the proposed law could upend decades of local control and private property rights.

Aaron Johnson's organic field in Lake County that the Dakota Access Pipeline runs underneath. Summit Carbon Solutions has proposed it run their carbon pipeline through the same field.
Lee Strubinger
/
SDPB
Aaron Johnson's organic field in Lake County that the Dakota Access Pipeline runs underneath. Summit Carbon Solutions has proposed it run their carbon pipeline through the same field.

“We’re on the right side of history. We want, not only South Dakotans to know, but the nation to know, that these were our God-given rights as United States citizens. It’s paramount that we preserve these things.”

Early voting is currently underway. Voters have until November 5 to vote on Referred Law 21.

Regardless of the outcome, Summit Carbon Solutions officials say they intend to reapply for pipeline permits in South Dakota.

Lee Strubinger is SDPB’s Rapid City-based politics and public policy reporter. Lee is a two-time national Edward R. Murrow Award winning reporter. He holds a master’s in public affairs reporting from the University of Illinois-Springfield.