In a significant legislative move, the South Dakota House recently passed a bill aimed at safeguarding landowner rights by limiting the use of eminent domain for constructing carbon pipelines. This decision, concluded with a 49-19 vote, underscores the robust advocacy for property rights within the state.

Karla Lems, a dedicated Representative from Canton and chair of the House Commerce and Energy Committee, was the primary force behind HB 1052. Her efforts, combined with the support of 45 co-sponsors, reflect a strong commitment to fortifying landowner protection, a priority she passionately shared as fundamental to “the pursuit of happiness.” Lems, speaking on the House Floor, emphasized the Bill of Rights, articulating the intrinsic value of property ownership as a pillar of individual liberty and state ethos.

Karla Lems

Karla Lems, sponsor of HB 1052.

The bill faced opposition from several representatives who believed in the economic potential of carbon pipelines. Notably, William Shorma from Dakota Dunes argued that the advancement of such projects could bolster the local economy by increasing the demand for low carbon fuel. Despite his economic rationale, the House remained resolute, prioritizing landowner rights over speculative economic gains.

William Shorma

William Shorma opposes the bill.

In an interesting legal context, the South Dakota Supreme Court had previously ruled that the Summit Carbon Pipeline does not qualify as a common carrier, thus removing its ability to exercise eminent domain. Representative Hughes from Sioux Falls pointed out potential federal tax credits Summit Carbon Solutions might receive, estimated up to $1.5 billion, highlighting complexities in monitoring the project’s ownership and accountability.

The bill now progresses to a Senate Committee where it will be subject to further scrutiny. It must pass through the Senate and receive the Governor’s signature to become law. This piece of legislation is pivotal in preserving the state’s dedication to protecting landowner rights amidst evolving energy infrastructure needs.

In contrast to South Dakota’s stance, neighboring North Dakota faced its own contentious issues. The North Dakota Industrial Commission’s recent approval for a plan to store carbon dioxide underground, involving ‘amalgamation’ laws, has met with fierce opposition. The Northwest Landowners Association has already launched a lawsuit, challenging the constitutionality of forcing landowners into compliance. This legal battle could set a critical precedent for property rights across the region.

South Dakota’s proactive measure in passing HB 1052 not only aligns with its historical advocacy for property rights but also places the state in a leadership role in national conversations surrounding land use and energy development. This action could provide a framework for other states balancing economic aspirations with the fundamental rights of property ownership.

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