South Dakota Denies Permit for Summit Carbon Solutions' 495-Mile CO2 Pipeline Segment

(Reuters) — South Dakota's Public Utilities Commission on Monday denied a permit application from Iowa-based Summit Carbon Solutions to build 495 miles (796 km) of pipeline through the state to transport captured carbon dioxide from ethanol plants to an underground storage site.

The three-member commission voted unanimously to deny the company's application on what was set to be the first day of three weeks of evidentiary hearings on the project.

Summit said in a statement that it respects the commission's decision and plans to refine and refile its application.

On Friday, the PUC's staff recommended in a filing that the commission reject the application because the project would violate county ordinances related to setbacks and other aspects of the pipeline route.

“We are hopeful that through collaborative engagement with these counties we can forge a path forward to benefit South Dakota and its citizens," said Summit CEO Lee Blank in the statement.

The company said that 73% of landowners along its proposed South Dakota route have signed voluntary agreements allowing Summit to access their land to build the pipeline.

The PUC on Sept. 7 denied an application from Navigator CO2 Ventures for its carbon dioxide pipeline, citing safety concerns and lack of support from landowners along the pipeline route.

Summit's proposed pipeline would span more than 2,000 miles (3,218 km) across Iowa, North Dakota, South Dakota, Nebraska and Minnesota.

Regulators in North Dakota denied Summit's permit application on Aug. 4, saying the company had failed to show its project would not harm the environment and the state's residents. Summit on Aug. 19 said it had submitted a revised application.

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