The Senate Agriculture and Natural Resources Committee has tabled a bill that eliminates an oil and gas mediation program provided by the South Dakota Department of Agriculture.
Dani Hanson with the State Department of Ag supports Senate Bill 33. She says the oil and gas plan is separate from the agency’s ag loan mediation program.
Hanson says creditors must go into mediation to collect ag debt of more than $50,000, and 70 percent of the program’s funding comes from the U.S. Department of Agriculture. Hanson says oil and gas mediation does not have the same amount of financial support.
“There is no mandate, however, for participation by any party in our oil and gas or water mediation programs; nor, is there any dedicated funding for these programs. Potential program participants can use the program only if both parties agree to mediation, and both parties agree to pay for the cost of mediation. To date, neither of these programs have ever been used – and, so Senate Bill 33 repeals these unused programs. It’s important to remember that those wishing to mediate an issue involving oil and gas or water disputes regardless of this bill will still be able to do that. Parties wishing to engage in mediation can, and likely have been engaging in mediation without the department’s participation,” Hanson says.
David Niemi from Buffalo opposes the measure. He says it’s important to have a framework for oil companies and landowners to settle differences before going to court.
“I have been through a mediation process. I was a participant in a mediation suit that was done on a federal level with a federal magistrate as the mediator. And, we were at a lot of difference for the entire period in time, and it took all day. But, when the day was over, we did come to resolution. And, we do have an ability now to at least have some communication with each other,” Niemi says.
Niemi says the oil and gas mediation program is similar to the one used in North Dakota. Other opponents included representatives with the American Petroleum Institute, the South Dakota Stockgrowers Association, and the South Dakota Farmer’s Union.
Senate Agriculture and Natural Resources moves the bill to the 41st legislative day on an eight-nothing vote with one committee member excused.