A proposed pipeline project in South Dakota has been thrown into uncertainty due to a new law that requires companies to have a surety bond before obtaining a permit for a large oil pipeline. The Summit pipeline, a project by Summit Carbon Solutions, which aims to transport carbon dioxide from several Midwest states to North Dakota for storage, is now facing setbacks as the company navigates the new legal requirements.
The new law, known as SB 183, was signed by Governor Kristi Noem in March and requires companies seeking permits for pipelines with a capacity of more than 12 inches in diameter to have a financial guarantee in place before the permit can be issued. This has put Summit Carbon Solutions in a difficult position as they strategize how to move forward with their pipeline project.
Industry experts have highlighted the potential impact of this new law on future pipeline projects in South Dakota, as companies may now face additional financial hurdles and uncertainties when seeking permits for their projects. The surety bond requirement could delay projects and increase costs, ultimately affecting the viability of such projects in the state.
The Summit pipeline project has been met with mixed reactions from the public, with some supporting the economic benefits it could bring to the region, while others raise concerns about the potential environmental impact of transporting carbon dioxide. With the new legal requirements in place, Summit Carbon Solutions will need to carefully consider their next steps in order to secure the necessary permits and move forward with the project.
Overall, the Summit pipeline project is now in limbo as the company works to comply with the new law and continue its pursuit of permits. The future of the project remains uncertain as stakeholders monitor developments in the regulatory landscape.
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