Pipeline Project Faces Legal and Political Hurdles in South Dakota

A company planning a carbon dioxide pipeline across five Midwest states, with underground storage in North Dakota, has faced significant legal challenges. An analysis revealed that the company filed hundreds of lawsuits against landowners in recent years.

The majority of this litigation was concentrated in South Dakota, where the company initiated eminent domain lawsuits. This legal action sparked considerable opposition from farmers. Consequently, the governor of South Dakota signed a bill into law that prohibits the use of eminent domain for carbon dioxide pipelines, casting doubt on the project's future.

The analysis, conducted by The Associated Press and Lee Enterprises, involved a review of numerous court cases across multiple states and interviews with landowners, attorneys, academic experts, and local officials. The investigation found that the company filed 232 lawsuits against landowners in South Dakota, North Dakota, and Iowa, including those seeking property access for surveys. All 156 eminent domain actions were filed in South Dakota.

A company spokesperson stated that voluntary agreements are the company's priority, and that most easements have been secured voluntarily. The company continued filing eminent domain lawsuits in South Dakota until late August 2023. Court records indicate that some landowners signed easements after being sued. However, after the South Dakota Public Utilities Commission rejected the company's permit application in September 2023, the company paused or dismissed the legal actions.

The ethanol industry is a significant consumer of the nation's corn crop. With the rise of electric vehicles, some in the Midwest see passenger jet fuel as a potential new market for ethanol. Carbon capture projects, like the proposed pipeline, are seen as a way to reduce emissions and support the ethanol industry.

The company's legal actions and land survey controversies fueled local opposition. One farmer, in particular, became a central figure in the opposition. He fought the company in court to prevent surveys on his farm. The company filed eminent domain lawsuits against him and accused him of threats, which he denies. The company eventually surveyed his property, and the incident gained widespread attention.

In 2024, opponents of the project in South Dakota achieved political victories. Several state lawmakers who supported the pipeline lost their seats to candidates who opposed the project and the use of eminent domain. The new composition of the state legislature, along with pressure from opponents, led to the approval of the new eminent domain law.

The company's future in South Dakota remains uncertain. The company's spokesperson stated that the company is focused on advancing the project in states that support investment and innovation, but also expressed the belief that there is a path forward in South Dakota.