Editorial: Pipeline problems

North Dakota’s utility commissioners threw a big wrench into the Summit pipeline works when they voted unanimously last week to deny a permit for construction. The three-member commission cited unanswered environmental and safety concerns. Summit could appeal to state court, but instead it said it would resubmit its application to the commission.

Summit is marching toward an Aug. 22 hearing with the Iowa Utilities Board over its eminent domain plans. Carbon sequestration pipelines serving the ethanol industry have become a hot property-rights topic in Iowa. Former Congressman Steve King is trying to insert himself into the debate, and this is one topic he understands extremely well. Significant opposition is forming to the establishment money invested in Summit (the same money that ousted King from Congress). What we thought were greased skids are starting to develop some friction.

It could take several months for Summit to figure out how to address North Dakota’s concerns without bollixing up the works in Iowa while a populist campaign is building. This pipeline might not be a done deal after all. It will be interesting to see how the pace changes in Iowa as the late August hearing commences. A lot of big money already is sunk into this deal. A lot of big money stands to be made if it gets laid from federal carbon reduction programs. The ethanol industry is four-square behind the pipeline, but many of the farmers who feed the stills with corn are not on board. Other pipelines hang in the balance. All eyes will be on Iowa.