PSC staff outline legal options for landowners in Summit pipeline battle

Members of the public examine maps showing the route of the Summit Carbon Solutions pipeline on display before a Public Service Commission meeting in Mandan on April 22, 2024. (Kyle Martin/For the North Dakota Monitor)

(North Dakota Monitor) – North Dakota landowners who feel they were deceived or intimidated into signing an easement agreement with Summit Carbon Solutions can file suit, according to Public Service Commission staff.

During a PSC work session on Monday on the Summit site approval, staff discussed the law that allows five or more landowners who feel unfairly treated by the negotiation tactics to file a complaint in district court.

If the court rules in favor of the landowners, the easement agreements can be canceled.

At public hearings on Summit's carbon capture pipeline project, landowners complained that Summit representatives threatened them with legal action if they did not voluntarily sign an easement agreement giving Summit the right to lay a pipeline through private property.

They also complained about a lack of communication and the fact that during negotiations about easements, communication was sometimes made with the wrong family member.

According to Century Code 49-22.1-14, “If at least five landowners are united in their efforts to acquire easements for a property or facility through the conduct of one or more persons acting on behalf of the same utility company, they may elect to bring before the appropriate district court the alleged use of chicanery, misrepresentation, deception, fraud or other unfair tactics by the person or persons acquiring or attempting to acquire the easement.”

“It seems like it pretty much covers everything we've been hearing all along and what's alleged to be happening,” PSC Chairman Randy Christmann said of the landowners' complaints about Summit. “There's a process for that.”

The law adds that if the court rules in favour of the landowners, the PSC can revoke or suspend the route permit, affecting landowners who have demonstrated that they have been wronged.

Victor Shock, the commission's public utilities director, pointed out that the commission does not have jurisdiction to negotiate easements. “But that's something the court could do,” Shock said.

PSC attorney Zack Pelham said the law has been in effect since 2017. He said he was not sure if there were earlier versions of the law.

Iowa-based Summit Carbon Solutions has been seeking approval for a pipeline route in North Dakota since 2022. The company's goal is to capture carbon emissions from ethanol plants in five states and use the pipeline to transport carbon dioxide to North Dakota and store it underground.

However, Summit faced resistance and lawsuits from some landowners.

The PSC denied Summit a route permit in 2023, but allowed the company to revise its application and go through a second round of public hearings.

Monday's work session was an opportunity for the three-member commission to discuss the bill, including negotiating tactics and other legal issues related to the pipeline while the PSC considers a permit decision.

The Commission instructed its staff to request more detailed information about Summit's insurance policies.

Another PSC work session on the pipeline has been tentatively scheduled for 9:30 a.m. Sept. 16 in the Brynhild Haugland Room at the Capitol. Christmann said in an interview last week that he expects several work sessions on the project before the PSC is ready to vote on approval.