Senator Mike Rounds: Summit Carbon gave itself a 'black eye' after controversial land surveys

Sen. Mike Rounds did not mince words when talking about Summit Carbon Solution's controversial carbon dioxide pipeline that's planned to run through eastern South Dakota.

"[Summit Carbon] had some people in there basically blowing their way through, and that irritated a whole lot of people, and I don't blame them," Rounds told Rotarian Tony Nour, during Rotary Club of Downtown Sioux Falls' weekly meeting on Monday.

The Republican U.S. senator commented on the company's proposed pipeline while taking a part in a dialogue with club members.

A portion of his comments referred to a series of controversial land surveys conducted by the company. Summit Carbon's actions are considered particularly notorious in the eyes of landowners opposed to carbon dioxide pipelines.

More: Farmers say Summit Carbon Solutions using ‘intimidation’ while targeting McPherson County land

This included Brown County farmer Jared Bossly, who told Argus Leader in June he suffered damage to his some of his corn crop when surveyors drove a large drilling machine through his farmland.

South Dakota Fifth Judicial Court Judge Richard Sommers issued a court order in April that allows Summit Carbon to perform the surveys necessary to build its proposed $4.5 billion Midwest Carbon Express pipeline.

The order came a few weeks before allegations arose that Bossly had threatened the lives of Summit Carbon surveyors who came to perform land surveys on May 3. Bossly has since denied the incident took place.

Bossly was never held in contempt for the alleged threat, and Sommers, who presided over a hearing on the matter, allowed the company to continue its survey work on a mutually-agreed date in June.

Related: PUC moves Summit Carbon pipeline hearing to September

Rounds told the club members he had since spoken with representatives of Summit Carbon "to hear their side of the story." The South Dakota senator said he brought up the unresolved public relations problem to the company in this conversation.

"You have really created a black eye for yourself because of the method in which you went after landowners, trying to get them to allow for their property to be accessed," Rounds said, paraphrasing his comments to the company. "I said that part is now one you have to solve because the public relations on that are not good for you."

Summit Carbon's public relations problems are also going to cost them money, Rounds added.

Summit responds to Rounds' statements

Summit Carbon Solutions was not immediately available for comment, but a company official later responded to Argus Leader late Monday evening with the following statement:

"We respect Senator Rounds and other South Dakota policymakers for their service to the state. We will continue to meet with the Senator and all policymakers — keep them updated — and respond to any questions they have about the project. Additionally, we will continue hosting safety information events throughout the state to answer questions and hear feedback from landowners and stakeholders, while highlighting the longstanding record pipelines enjoy as the safest form of transporting materials," the company said.

Summit Carbon also pointed to the company's progress in acquiring signed voluntary easement agreements, writing that it has secured 75% of its proposed route through these partnerships.

Nour brought up Summit Carbon's number of signed agreements, which the company often touts as a supporting evidence of the popularity of their Midwest Carbon Express pipeline. Rounds said he had heard they acquired about 70% of their easements ― it is unclear if he was referring to a South Dakota-specific or overall figure.

Nour suggested the remaining 30% would be the most challenging.

"Safety is going to be the key factor," Rounds responded. "[The South Dakota Public Utilities Commission] is going to look at this, and you're going to have the obligation to show that you can actually do this pipeline and do it safely, or it won't get built."

Rounds: 'I think carbon is a commodity'

Rounds also provided his opinion on the issue of eminent domain, which is the process Summit Carbon could use to acquire land easements from uncooperative landowners against their wishes.

The company has taken the preliminary steps toward utilizing eminent domain by filing dozens of condemnation proceedings against said landowners in April.

"You have some folks that talk about whether or not this should be identified as far as a taking and whether or not you can legally come in and say, 'I get to put this pipeline on your land,'" Round said. "That's going to be decided in the courts where it should be.

Related: South Dakota landowners call on Noem, lawmakers to pick a side in pipeline battle

The process of utilizing eminent domain requires a company to qualify as a common carrier, or a group that holds itself out to the public to transfer goods for a fee.

The question of whether Summit Carbon fits that description, however, is one pipeline opponents have levied at the company.

South Dakota's legislature took it up, in part, during the most recent legislative session after Rep. Karla Lems introduced a bill to specifically exclude carbon dioxide as a commodity when delivered by carbon capture companies for sequestration or to qualify for tax credits. However, this attempt failed after the state Senate Commerce and Energy Committee unanimously voted to kill the bill in February.

Rounds was the most recent voice to renew the topic Monday after giving his "message to landowners": "I think carbon is a commodity."

"I think the courts will tell you that there is, through this public pipeline … it is an allowed item to be transported, and they can use a right of way," Rounds said. "Now, that's my opinion. I think the courts are going to go that direction, but the safety is totally on the company."

Argus Leader Political Reporter Annie Todd contributed to this article.

Dominik Dausch is the agriculture and environment reporter for the Argus Leader and editor of Farm Forum. Follow him on Twitter and Facebook @DomDNP and send news tips to ddausch@gannett.com.

This article originally appeared on Sioux Falls Argus Leader: Controversial land surveys hurt Summit Carbon's image, Sen. Rounds says