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Senate advances 'compromise' pipeline bill


The state Senate has passed a bill changing how pipelines are regulated in South Dakota.

SB 201 restricts the abilities of counties and other local governments to regulate pipelines, including creating their own setback limits.

It also requires pipeline companies to pay a surcharge to counties in which they operate.

The bill is in response to a proposed carbon sequestration pipeline. The project, backed by Summit Carbon Solutions, would take carbon dioxide produced by ethanol plants across the Midwest and store it underground in North Dakota.

Supporters say it’s a compromise that protects landowners while supporting the ag industry. They say counties would earn $3.5 million annually from the surcharge.

Opponents say it strips control from local governments and limits their ability to protect landowners.

The bill initially came with an emergency clause which would allow the bill to be enacted sooner, but the vote came short of the 2/3 majority needed to include that clause. Lawmakers promptly amended the bill removing the emergency clause and passed it on a simple majority vote.

The bill next heads to the House for consideration.