North Dakota state’s utility regulator has granted reconsideration for a carbon dioxide (CO2) pipeline project by Summit Carbon Solutions earlier rejected for concerns including safety.

The North Dakota Public Service Commission (NDPSC) had rejected the permit application for the Midwest Carbon Express project due to “broad concerns” relayed to the regulator during public consultations, the agency said in a decision released August 4. The concerns span “eminent domain, safety, the policy of permanent CO2 sequestration and storage, setback distances, irreparable harm to underground drain tile systems, impacts on property values, and the ability to obtain liability insurance due to the project”, the regulator’s rejection announcement said.

Summit had proposed for the pipeline to cross through the counties of Burleigh, Cass, Dickey, Emmons, Logan, McIntosh, Morton, Oliver, Richland and Sargent, according to the commission statement August 4. As part of its petition for reconsideration, Summit now said it would implement a reroute around the state capital, Bismarck.

Summit had said the project would serve 12 ethanol plants in the company’s home state of Iowa. While the $4.5 billion project would be based in Iowa, it targets permanent storage of CO2 underground in North Dakota, according to a Summit news release March 11, 2022. “In all, Summit plans to have 681 miles of pipeline routed through Iowa, running through 30 Iowa counties” while the entire length “measures just under 2,000 miles”, that announcement said.

Announcing the rejection of the permit application in August, the North Dakota regulator said, “Landowners and intervenors testified that the project would cause adverse effects on the value of their property and residential development projects… Landowners repeatedly testified that they had contacted Summit with requests for reroutes across their properties or other mitigation steps but heard nothing back from the company”.

The regulator also noted issues relating to eminent domain and safety but said that it had no jurisdiction over these aspects, which are overseen by the Pipeline and Hazardous Materials Safety Administration of the Transportation Department.

Summit had also failed to address concerns by the North Dakota State Historical Preservation Office (SHPO), whose “concurrence is commonly required by the Commission for issuance of a siting permit”, the NDPSC added.

Furthermore, “The U.S. Geological Survey noted 14 areas of potential geological instability within the project corridor”, it continued. “Summit has not submitted information to the Commission demonstrating how it has addressed these concerns”.

In a press release announcing the granting of the reconsideration, Summit said, “Subsequently, we rerouted around Bismarck, made adjustments to drill or bypass game management and geo-hazard areas, and collaborated with the State Historic Preservation Office to record the findings of cultural surveys”.

“Summit Carbon Solutions remains deeply committed to supporting North Dakota’s energy industry, and working with farmers, ranchers, and the broader community”, the company added. “To date, Summit Carbon Solutions has partnered with more than 76 percent of landowners along the route in North Dakota, and has acquired nearly 90 percent of the pore space for sequestration”.

In its own announcement about the granting of the reconsideration, the NDPSC said, “In its petition, Summit has requested an opportunity to present relevant evidence at a hearing or hearings to demonstrate on the record that it has addressed, or will address, the deficiencies noted in the PSC’s Aug. 4, 2023, order to deny the permit”.

“Today’s decision took that into account as a decision to deny the reconsideration would have forced the company to reapply and start the permitting process all over, including throwing out all information currently in the record”, the regulator added. “That record includes information gathered at five different public hearings held across the state, which included lengthy and valuable testimony from the company, intervenors and the public.

“The Commission will determine at a future date any details regarding a hearing or hearings and what issues will be considered during that process”.

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