Carbon Pipeline Bills Set for Hearings in North Dakota This Week

North Dakota lawmakers are gearing up for a series of hearings on carbon pipeline legislation this week, addressing key issues like eminent domain, liability, and the role of common carriers.

As North Dakota continues to become a battleground for carbon pipeline projects, a new wave of legislative action is set to take place. This week, lawmakers will hear several bills that could significantly reshape the future of carbon capture pipelines in the state. The bills focus on limiting the use of eminent domain, redefining the role of carbon pipelines as common carriers, and addressing the legal and financial implications of pipeline ruptures.

Summit Carbon Solutions’ Pipeline Plans

At the center of the legislative debate is Summit Carbon Solutions, an Iowa-based company that has ambitious plans to build a pipeline stretching across five states. The pipeline would transport carbon dioxide captured from ethanol plants to underground storage sites in western North Dakota. Summit has already obtained the necessary permits to operate within the state but faces stiff resistance from some landowners.

The company has been engaging in negotiations with landowners to secure rights to build the pipeline on their properties. However, when these negotiations fail, the company can invoke eminent domain, a legal process that allows it to compel landowners to sell or lease their property for public use, in this case, for the construction of a carbon pipeline.

The Role of Eminent Domain in Pipeline Projects

Eminent domain has been a key tool for companies like Summit when dealing with landowners who do not voluntarily agree to allow construction on their property. Under current North Dakota law, carbon dioxide pipelines are eligible for eminent domain, as they are considered to serve the public good. The state has argued that local ordinances cannot supersede state rules, reinforcing the use of eminent domain for these types of projects.

However, there’s growing concern among opponents who argue that the use of eminent domain for carbon pipelines is an overreach. These critics contend that allowing a private company to force landowners into agreements could set a dangerous precedent, particularly when the projects are intended to benefit specific industries rather than the public at large.

The Bills on the Table

Three key bills have been introduced in the North Dakota Legislature that could alter the use of eminent domain and other aspects of carbon pipeline projects. These bills are expected to be heard at a 2:30 p.m. session on Thursday in the House Energy and Natural Resources Committee, held in the Coteau Room.

1. House Bill 1414: This bill proposes a significant shift by prohibiting the use of eminent domain for carbon dioxide pipelines. It also revokes the “common carrier” status for these pipelines, which has been a key factor in enabling eminent domain. A common carrier is a business that operates a pipeline available for use by other companies for a fee. Under current law, being a common carrier is a key condition that allows a company to use eminent domain. The bill also seeks to remove the ability for solar, wind, and hydrogen energy projects to utilize eminent domain.
2. House Bill 1292: This bill takes a slightly less aggressive approach but still removes common carrier status for carbon pipelines. However, it does not introduce specific restrictions on eminent domain, leaving that aspect of the law largely unchanged.
3. House Bill 1210: The final bill on the docket focuses on pipeline safety and liability. It specifies that carbon dioxide pipeline companies will be held liable for damages if their pipeline leaks or ruptures. This is an important issue, as carbon dioxide is considered a hazardous material, and a rupture could potentially be catastrophic.

The Impact of Potential Changes

The outcome of these hearings could have a profound impact on how future carbon pipeline projects are handled in North Dakota. If the bills pass, they could significantly reduce the ability of companies to use eminent domain to acquire land for pipeline construction, potentially stalling or even derailing certain projects.

The debate over carbon pipelines is not just about land rights—it’s also about environmental and safety concerns. Pipeline leaks, especially involving hazardous materials like carbon dioxide, can be deadly. The proposed bills aim to hold companies accountable for these risks, requiring them to take on liability for any potential damage caused by pipeline failures.

Looking Ahead: A Critical Week for North Dakota’s Energy Future

As the hearings draw near, the tension between landowners, environmental advocates, and pipeline companies continues to build. North Dakota’s legislature faces the difficult task of balancing economic interests with the rights of landowners and the safety of its citizens. With carbon capture seen as an important part of reducing greenhouse gas emissions, the state’s approach to these pipelines will set a precedent for other states grappling with similar issues.

As the bills move through the legislative process, it remains to be seen how lawmakers will navigate these complex issues. The hearings this week could mark a turning point for North Dakota’s energy landscape and the broader discussion around carbon capture technology.