PIERRE, S.D. (SDBA) — Monday, the South Dakota Senate approved legislation requiring an offer of mediation before a utility or pipeline could use eminent domain against a property owner.
Though not mentioning carbon pipelines, supporters say the measure addresses ongoing legislative and landowner concerns about carbon pipeline development.
Senate Bill 198, sponsored by Sen. Jim Mehlhaff, R-Pierre, passed 18-17 after a failed vote Friday was reconsidered at Mehlhaff’s request.
Mehlhaff discuss when eminent domain should be put in place.
The bill establishes a framework requiring prospective condemnors to offer, in good faith, mediation with property owners before initiating condemnation proceedings.
Developers would need to provide 90 days’ notice, propose mediators, and cover all mediation costs. The PUC would also need to first issue a permit for the project to progress.
Bill opponents said landowners did not ask for the measure. Others talked about what they claimed were abusive tactics that Summit Carbon Solutions used against elderly landowners.
Tensions flared after the final vote when Sen. John Carley, R-Piedmont, attempted to amend the bill’s title.
Lt. Gov. Tony Venhuizen ruled that the amendment was out of order after a different senator raised a point of order.
While supporters frame the legislation as strengthening landowner protections, critics argue it benefits carbon pipeline developers seeking easements across agricultural land.
The legislation comes amid the ongoing controversy surrounding proposed carbon capture pipelines in the region that would transport carbon dioxide from ethanol plants for underground sequestration.
The bill would cover all uses of eminent domain by private companies, not just when carbon pipelines are involved.
“I know I’m not speaking for all landowners, but I know I’m speaking for a lot of them because there are a lot of landowners who really support the carbon pipeline,” Mehlhaff added.
The bill now advances to the House for consideration.
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