"Big beautiful bill" seizes federal power for CO2 pipeline land grabs
The current budget reconciliation bill threatens American property rights. At the center of the fight: a controversial CO2 pipeline project backed by some GOP megadonors.
The budget reconciliation bill contains a provision that would grant the federal government authority to override the will of private property owners when it comes to installing carbon dioxide pipelines.
Under Sec. 41001 of the reconciliation bill, developers could pay $10 million to apply for the power to use federal eminent domain authority to seize land for pipeline construction, overriding state and local laws.
This amendment has flown under the radar. Opponents say it poses a serious threat to American property rights.
Controversial pipeline project supported by Biden admin and GOP megadonors
At the center of the debate is a major $5.5 billion pipeline project set to carve its way over 2,5000 miles from Iowa to North Dakota.
Backed by Summit Carbon Solutions, the project would collect CO2 from ethanol plants in the Midwest and funnel it into a pipeline laid a mile underground, entombing some 18 million metric tons of CO2 every year in subterranean rock formations to “mitigate climate change.”
Thanks to the Biden administration, companies can get $85 from the federal government per metric ton of CO2 gathered from industry and permanently stored. Summit would receive some $1.5 billion annually for this pipeline.
Summit’s project has been divisive, with many landowners fearing their property will be seized. Rumors of threatening behavior from Summit are rife in the ranching community. Leaders across party lines have raised concerns about the safety and environmental impact of CO2 pipelines, including Health Secretary Robert F. Kennedy, Jr.
South Dakota citizens defeated land grabs for CO2 pipelines in a grassroots victory. Corporate lobbyists promptly headed to D.C.
The Summit project hit a roadblock last year in South Dakota when citizens gathered enough signatures to force a vote on SB201, the bill permitting eminent domain for pipelines that had been signed into law, against major public protest, by Governor Kristi Noem.
South Dakota then passed HB102, an outright ban on eminent domain for carbon dioxide pipelines.
Earlier this month, the Iowa Senate passed similar legislation. House File 639 now goes to the governor’s desk for signature.
Sources say after HB102 passed, lobbyists for Summit began working D.C.
“I’m deeply concerned with the House Energy and Commerce proposal for the budget reconciliation bill, which would grant federal oversight on the permitting of carbon dioxide pipelines,” says Amanda Radke, a fifth-generation South Dakota rancher, speaker, and writer. Radke was a leader in the fight to force a vote on the eminent domain bill. “This proposal would open the door for federal overreach and eminent domain abuse, especially with the $10 million price tag to fast-track these projects.”
Radke is urging her followers to contact their representatives and ask Congress to amend and strike the language from the bill before its passage.
South Dakota state senator Mark Lapka questions how an amendment curbing private property rights found its way into the budget bill.
“Not only is this topic outside of the scope of what should be included in a budgetary proposal, but this language is in direct contrast to President Donald Trump’s America first, energy dominance agenda,” Lapka wrote. “This would further advance Biden’s Green New Deal carbon sequestration boondoggle and rubber-stamp an out-of-date, foreign-backed carbon pipeline project through the state of South Dakota.”
Radke says the amendment goes against the will of the American people.
“While we’ve been told this language would be cut on Wednesday morning, farmers and ranchers are waiting for reassurance from Congressional leaders that our land is, in fact, not for sale to the highest bidder,” she says.
America’s private property rights for sale at $10 million?
With that application fee of $10 million, carbon pipeline developers would be able to apply for a Certificate of Public Convenience and Necessity under the Natural Gas Act. If a developer received this certificate, they would be able to utilize eminent domain power to seize land for pipelines.
Big money in the mix
Individuals close to the Trump administration have connections to Summit. Harold Hamm, the billionaire oil tycoon who has raised millions of dollars for the Trump campaign, is a financial backer of the pipeline. Securities and Exchange Commission (SEC) filings show Hamm’s North Dakota company, Continental Resources, is set to own about a fourth of Summit’s parent company.
"Continental Resources has been in North Dakota for over 25 years,” Hamm said in a statement announcing his company’s investment in Summit. “The regulatory environment is second to none and we are grateful to North Dakota's leadership, who has been laying the groundwork for a project like this and been a leader in sequestration for nearly 20 years.”
Hamm has close ties with former North Dakota governor Doug Burgum, Trump’s pick to head the Department of the Interior. Many believe Hamm, said to advise Trump on energy policy, is the reason Burgum was nominated to Interior Secretary.
Continental donated $250,000 to a pro-Burgum super PAC in 2024, according to reporting by CNN.
Gary Tharaldson, another major Summit investor, gave $1 million to the pro-Burgum super PAC in 2023. Tharaldson is the wealthiest resident of North Dakota and owns a major ethanol plant that will supply CO2 for the Summit pipeline.
Burgum, himself a successful businessman worth at least $100 million, has supported the pipeline project, but has so far abstained from supporting any use of eminent domain.
“I support private property rights,” Burgum told an Iowa citizen during a heated moment at a presidential campaign event. “Just say no, and they’ll move it to your neighbor and your neighbor can get the big check.”
Former South Dakota governor Noem, also now a member of the Trump cabinet as Secretary of Homeland Security, has supported the pipeline project as an economic boost for her state. Noem has been criticized for a potential conflict of interest; she is an investor in a Summit-partnered Minnesota ethanol plant. Summit was also one of five platinum sponsors for Noem’s second inauguration.
Summit has been subjected to scrutiny for its significant foreign backing. North Dakota state senator Jeff Magrum stated Summit’s investors include interests from South Korea, China, and Saudi Arabia.
How dumb are these people? WE need CO 2 for our plants. They give off oxygen. This is not what America needs. Please stop this land grab by the greedy pigs at the trough.
Well, I don't enjoy saying this, but if the farmers are going to make a living off of that damned Ethanol, they shouldn't be surprised if it bites them in the ass.