(C) South Dakota Searchlight
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Farmers voice concern about accidental damage to proposed carbon pipeline [1]
['Joshua Haiar', 'More From Author', '- August']
Date: 2023-08
Farmers expressed concerns Friday about the potential for accidental damages to a proposed liquid carbon dioxide pipeline.
It was the eighth day of a permit hearing in Fort Pierre before the state Public Utilities Commission for the Heartland Greenway project proposed by Navigator CO2. Commissioners said the hearing will continue Saturday and probably also next week.
As South Dakota regulators were conducting the hearing Friday, their counterparts in North Dakota rejected a permit for a separate carbon pipeline, proposed by Summit Carbon Solutions, that would also enter South Dakota. Officials for that company indicated they might file a revised application in North Dakota.
At the Navigator CO2 hearing in South Dakota, Denis Anderson, who has farmland near Brandon and Valley Springs, said carbon pipelines are “one of the worst things for a community.”
Anderson and others worry that heavy farm machinery might disturb Navigator CO2’s proposed 1,300-mile, five-state pipeline. They also fear its installation could harm their drain tile, which is perforated pipe installed beneath cropland to manage water levels.
The planned $3 billion project would capture carbon dioxide emissions from 21 ethanol and several fertilizer plants, converting the gas into a liquid for transport. The carbon could then be deposited underground in Illinois or utilized for industrial and commercial applications, including oil extraction or dry ice production.
The pipeline could qualify for $1.3 billion annually in federal tax credits for atmospheric carbon reduction, to help fight climate change. It would stretch across 112 miles in five South Dakota counties: Brookings, Moody, Minnehaha, Lincoln and Turner. South Dakota is the initial state to host hearings for the project.
The scrutiny of carbon pipeline regulations has intensified at the federal level following a 2020 Mississippi pipeline leak, which resulted in a carbon dioxide plume that hospitalized 45 people. California has subsequently paused new CO2 pipeline construction pending a federal review of regulations. Navigator CO2 has said federal regulators are aware of the project and have not raised concerns.
Navigator’s analysis estimates an annual 1% risk of a leak or rupture every 1,000 miles. Some farmers are concerned about potential liability should they accidentally damage the pipeline. Jeffrey L. Pray, a property insurance agent at Fischer Rounds & Associates, said such mishaps would typically be covered by insurance.
“The policy will cover that,” Pray said, “It’s an accident.” Though, he distinguished between damage to a pipeline and “damage caused by the release of a pollutant,” which he said may not be covered.
Pray noted that each policy varies and would not necessarily prevent farmers from getting sued by the company.
So far, the company has secured easements from 30% of impacted landowners, offering an average of $24,000 per acre, company officials have said. Navigator has not yet exercised eminent domain, which is a legal process for gaining access to land when an agreement can’t be reached with a landowner.
The hearing is scheduled to conclude Saturday, but commissioners said it’s likely to continue on Tuesday. A decision is expected by Sept. 26.
The other carbon pipeline proposed in South Dakota, by Summit Carbon Solutions, which has used eminent domain, is scheduled to have its permit hearing Sept. 11-22.
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https://southdakotasearchlight.com/briefs/farmers-voice-concern-about-accidental-damage-to-proposed-carbon-pipeline/
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