South Dakota Supreme Court

The South Dakota Supreme Court has unanimously ruled against Summit Carbon Solutions, halting the company's ability to use eminent domain for its proposed carbon dioxide pipeline project. The court determined that Summit failed to prove its status as a common carrier, a designation required for such powers, and also rejected the company's argument that CO2 qualifies as a commodity under state law. This decision, celebrated as a victory by landowners and environmental advocates, complicates Summit's plans for an $8 billion pipeline designed to transport CO2 from ethanol plants to underground storage in North Dakota. The ruling sends the matter back to lower courts for further examination, emphasizing that the company did not demonstrate it was serving the public interest. Advocates contend this ruling validates their long-standing opposition against what they describe as Summit's attempts to overreach its legal authority. The project, which would affect 18 counties in South Dakota, now faces significant hurdles without the power of eminent domain.