Mar 20, 2024   SOURCE: BusinessWire

South Dakota Landowners: Property Rights Lost Out to Corporate Interests in 2024 Legislative Session

The 2024 South Dakota Legislative session left property rights proponents without solutions and concerned for the future of South Dakota and the country. Landowners for Eminent Domain Reform (LEDR) has been a consistent and present voice for property rights since carbon dioxide pipeline developers began suing landowners with the power of condemnation dating back to 2021 yet have not gained much traction in their home state.

“It’s a sad day for American property rights and our children,” said Joy Hohn, landowner and farmer. “South Dakota citizens’ rights have been left behind for the corporate interests of a single developer and proposed hazardous carbon dioxide pipeline.”

Hohn continued, "When it comes to CCS and these large-scale carbon dioxide pipeline projects, we are putting the cart before the horse. Backward logic driven by lucrative tax credits is incentivizing the rush to build out carbon dioxide pipelines at the expense of people and basic American freedoms.”

Fourteen bills were introduced during the session related to the carbon dioxide pipeline, yet no landowner-championed bill survived, and a referendum has already been filed on SB201.

“Every citizen should take notice of the lack of property rights we have in South Dakota,” said Craig Schaunaman, landowner, farmer and former legislator. “They’ve taken an approach of public benefit for economic growth and not public use – that’s a defining line.”

The public agrees. An independent 2023 poll, conducted by Embold Research revealed, “More than 80% of South Dakota voters oppose eminent domain for private use.”

“The use of the power of condemnation by a private company for the benefit of potential future markets is not worth the dangerous precedent it sets for future generations,” Schaunaman added. “Eminent domain is a restricted authority, reserved for public use. This is just the beginning of projects that will justify potential economic benefit to infringe on the rights of citizens for private profit.“

The package of bills touted as a so-called “Landowner Bill of Rights,” did not address eminent domain. This leaves South Dakota landowners with fewer property rights protections than other states, like Minnesota and Texas, where eminent domain is not allowed for carbon dioxide pipelines or economic development.

“Rebranding existing rights doesn’t advance the ball,” said Hohn. “Regardless of what you may have heard, here in South Dakota, impacted landowners and concerned citizens still stand alone when it comes to their property rights. No landowner is safe from a lawsuit condemning your property for their path and profits.”

The “new protections” in the bills simply codify terms from legal agreements or precedents, typically negotiated between parties, to admittedly correct some of the mistakes of the pipeline developer, while also easing and accelerating their path through the state.

Last year, the South Dakota Public Utilities Commission denied permits to both Navigator Heartland Greenway (Navigator) and Summit Carbon Solutions (Summit). Navigator failed to meet multiple burden of proof points regarding compliance with applicable laws, threat of serious injury, safety and future development. Navigator, who disclosed only 30% of landowners had signed easements, withdrew their project while Summit plans to resubmit an application.

Summit’s proposed pipeline would collect carbon dioxide emissions from 57 ethanol plants, and transport it thousands of miles for underground storage in North Dakota. Doing so would make the project eligible for up to $18 billion in federal tax credits over the 12-year period that incentivize greenhouse gas sequestration.

“Billions of dollars in tax incentives are shifting priorities, driving bad decisions and justifying bad behavior,” added Hohn. “A startup venture, backed by foreign investors, is bullying their way through the Midwest ­– the breadbasket of America – disrespecting people, laws and property rights. They are chasing U.S. tax credits that incentivize a hazardous project to have a minimal impact, if any, on the climate. How does this make sense?” asks Hohn.

Both ethanol producers and Summit claim eminent domain is the only way to achieve the project. Yet utilities in the state have emphasized they have rarely, if ever, recalled exercising the power of condemnation–noting the importance of relationships in working with landowners to move projects forward as they have for nearly a century.

“The entire ethanol industry and large water systems have been built in the last 25 years without the use of eminent domain,” added Schaunaman. “It’s safe to say we would not all be here if a ‘bad actor’ had not stormed into the state leading with lawsuits and abusing the power of condemnation.”

Summit does not currently have a permit application on file with the South Dakota Public Utilities Commission and new routes are not known to have been released.

“When they update the routes, another group of property owners will be hit with the same threat of condemnation and there is nothing they can do about it,” concluded Schaunaman, “This session is over, but there’s an election every two years.”

“Our children deserve better. South Dakotans deserve better. It may be years before we realize the full consequences of our actions today,” concluded Hohn. “Let’s remember, we are first human beings – and should look out for our neighbors. We are first Americans, living in the freest country in the world – central to property rights. So, when the South Dakota way departs from humanity and American freedoms for tax credits and economic development, I would say that we’ve completely lost our way.”

About Landowners for Eminent Domain Reform (LEDR)
LEDR was formed in 2021 to unite landowners, farmers, elected officials, and concerned citizens advocating for the protection of personal property rights central to American freedoms. The group is committed to increasing awareness and sharing important facts and information regarding eminent domain, personal property rights and potential impacts of hazardous carbon dioxide pipelines. For more information visit: www.sdledr.com