Iowa Grants Permit to Build Pipeline

LINCOLN, Neb. (DTN) -- The Iowa Utilities Commission this week granted a construction permit to Summit Carbon Solutions to build a large segment of its proposed carbon pipeline that would connect to 57 corn-ethanol plants.

According to the commission's Aug. 28 order issuing a construction permit, Summit continues to try to make modifications to various parcels of land as called for by the commission.

On June 25 the commission approved Summit's project and cleared the way for the Iowa segment of the pipeline that covers 688 miles across 29 counties. Summit was also given the go-ahead to use eminent domain to acquire the land needed for the project, https://www.dtnpf.com/….

At the time the commission asked Summit to submit numerous compliance documents, which were filed by the company on Aug. 5.

"Summit Carbon states it is attempting to comply with the commission's order but if it is unable to obtain the necessary modifications on adjoining parcels, it will request the commission allow it to use the initial route proposed by Summit Carbon," the order said.

"Besides conditioning the modifications ordered by the commission on obtaining modified or new voluntary easements, Summit Carbon asked the commission to determine between two routing options."

A group of Iowa landowners led by Omaha attorney Brian Jorde, who also represents landowners in other states along the pipeline route, filed numerous objections with the commission against issuing a construction permit in Iowa.

That includes alleging Summit did not follow the commission's routing requirements on several land parcels.

"Jorde landowners state Summit Carbon is attempting to make its own rules when it comes to not complying with the commission's order," the commission said in its order.

The commission said this week it believes Summit has provided all of the necessary information requested.

"Summit Carbon will be required to address some additional issues, as discussed below, but such issues can be addressed after the issuance of the permit," the commission said.

"The issuance of the permit does not allow Summit Carbon to immediately commence construction, as there are still several conditions from the commission's June 25, 2024, order Summit Carbon must establish prior to commencing construction."

The commission said it found "most of the Jorde landowners' issues to be meritless and need no further discussion."

During the permitting process, Summit made what the commission said was a "commitment" to have $100 million in insurance in the event there is damage to property during construction.

However, the commission has asked for more information from Summit on the insurance issue.

"The commission agrees with the Jorde landowners that Summit Carbon's commitment for insurance is not a filing of proof of insurance as required by the commission," the order said.

"Summit Carbon is still required to file proof of insurance prior to commencing construction."

The company continues to jump through regulatory hoops to build a pipeline in North Dakota, South Dakota, Minnesota, Nebraska and Iowa.

On Aug. 22, 2024, the South Dakota Supreme Court sided with landowners in the state in an ongoing legal fight on the project.

The court held that Summit had not presented enough evidence to show it was considered by law to be a common carrier able to exercise eminent domain to acquire and inspect land. The high court sent the case back to a state district court.

Todd Neeley can be reached at todd.neeley@dtn.com

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