Summit Forfeits Two CO2 Storage Permits in North Dakota, Continues Legal Fight Over Third

Summit Carbon Solutions is abandoning two-thirds of its planned project to store carbon dioxide underground in North Dakota.

The company, which had been granted permits to store CO2 in three designated areas in central North Dakota, has requested permits for two of the areas to be canceled.

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“Summit #1 and Summit #2 have determined as a matter of business judgment that they will not proceed with development, construction, operation, or implementation of either proposed storage facility,” Summit said in a filing with the North Dakota Supreme Court.

A North Dakota district court voided permits for all three areas earlier this year. Summit and the state are appealing that decision. But the company is now asking the Supreme Court to limit the appeal to one of the storage areas, known as Summit #3.

The company’s decision to abandon two of its storage facility permits is a victory for many of the landowners opposing the project. Most of those landowners have objected to what they characterize as the company’s unwillingness to negotiate on matters of liability and compensation. Only one of the landowners involved in the litigation owns property in the third storage area.

In an email last week, Summit said it is prioritizing Summit #3, where the company has about 98% of the storage rights secured.

Summit’s filing stated the Industrial Commission, a three-member board chaired by Gov. Kelly Armstrong that regulates CO2 storage among other things, had approved the two permit cancellations.

The company’s original proposal involved transporting carbon dioxide from ethanol plants in five states to central North Dakota where it could be injected into rock layers deep underground. The injection sites were located at the intersection of Mercer, McLean and Oliver counties.

Summit announced a change of plans earlier this year. The company now plans to transport carbon dioxide to a storage site in Wyoming for injection underground, but did not close the door on continuing to pursue its North Dakota operations to some degree.

Summit said in an email that its North Dakota pipeline route easements and storage rights are still valuable assets.

“Over time, we expect to further develop and utilize these assets as opportunities materialize,” the statement said.

The company’s storage permits from the Industrial Commission, the state law authorizing the Industrial Commission to issue those permits, and the pipeline route permit from the Public Service Commission are all the subject of litigation in North Dakota. District court judges have voided the storage permits and struck down the underlying law; both cases are on appeal to the Supreme Court. The third case is waiting on a decision from the district court.