Pipeline personel answer landowner questions

Summit Carbon Solutions representatives met with area landowners, May 18, in the former Orchard School building, to answer questions about a potential carbon dioxide pipeline slated for construction in the area. Jake Ketzner, vice president of government and public affairs at Summit Carbon, opened the meeting with a brief overview of the new carbon pipeline that would cut through Iowa, Nebraska, South Dakota and North Dakota, if approved. The Ames, Iowa-based company plans to run the pipeline through both Antelope and Holt counties.

"We think this project is so important to make sure our ethanol plants can continue to operate profitably, not just for the next year or two, but for decades to come," Ketzner stated.

He also pointed out that just shy of 30% of land owners have signed on in Iowa, while 20% of land owners approved easements in Nebraska.

Carbon will be transferred to North Dakota to be sequestered because North Dakota has cap rock. Summit Carbon will co-develop the line with Project Tundra, the world's largest carbon capture facility located in North Dakota. Around 70 to 80% of landowners in the area of Project Tundra have already signed easement agreements to inject CO2 at the North Dakota location.

After Ketzner's presentation, the meeting changed to a question and answer format to allow landowners time to ask questions.

Nancy Mosel, of Orchard, asked if landowners will be paid up front for a three-year crop loss. Ketzner responded that anyone who wants to be paid up front for all three year's of crop loss could receive it that way.

Mosel asked for clarification that if any damage is done, who's responsibility would it be to take care of the cost?

Project manager, Kylie Kretz, responded, "If there is damage that is proven to be done by us, sitting on top of our pipeline, in the coming years after installing it, we will come back and have a look."

Mosel asked how many years it would take.

Kretz answered, "I don't know, I don't believe we have a date. Depending on if we have looked at your land, what types of systems, pivots, and it kind of changes everything, but if it was damage done by us, our construction team will repair it."

Mosel mentioned that a packet sent to landowners talked about compensation for corn and beans, but nothing was included for Conservation Reserve Program acres. Ketzner told her they would be compensated, but landowers would have to talk with their land agent to make sure they have the most updated prices as everything is changing.

Bob Krutz, of Orchard, asked about the federal government guidelines for safety.

Kretz explained that the pipeline is regulated by the Pipeline and Hazardous Materials Safety Administration and DOT 195. Summit Carbon Solutions is also required to have an automatic valve every 20 miles that will shut off if there is a leak or a change in pressure or temperature. If there were to be a leak, change in pressure or temperature, the system will automatically lock that section in.

There is also a control center in Ames, Iowa where someone will sit and manually monitor it as well.

Every five years the company will run a smart tool to see corrosion rates, dents and anything that may have changed since installation.

Mosel asked if the pipeline were to be decommissioned, if the landowner would have ownership of the pipe itself.

Kretz said decommissioning would consist of purging the pipe with water, filling it with a couple of pounds of nitrogen, to help with corrisivity in the pipe, depending on the county. The pipe could then eventually be removed, but in most cases, it is left in the ground.

Ketzner added that the pipeline is strictly used for CO2 only, so the easement is tied to the singular pipeline.

Kretz said if the pipeline is decommissioned and not functioning for over five years, and another company wanted to purchase the pipeline, the purchaser would have to secure another easement.

Krutz asked about the structure of the pipeline itself.

According to Summit Carbon officials, the pipeline is high-grade carbon steel made in America. It has an epoxy coding on it. There is a .26 to .76 scheduling of the pipe. Connections will be welded with butt welds. Every weld will also be x-rayed by an independent contractor.

Ketzner said, "Long story short, sir, we want to make sure we do this the right way and a pipeline that is constructed properly, maintained and operated properly, can operate basically indefinitely."

Kretz informed landowners a full-time position that maintains Holt, Pierce, and Antelope County regulations.

Krutz asked if Summit Carbon Solutions would pay taxes of if they would use their tax incentives since they are a private company.

"No, we want to pay taxes. This is an example where we want to do the right thing, so we're in the similar structures in Minnesota where we are exempt from taxes there too, but we are declining that. We want to be good partners in your community," Ketzner said.

Seth Harder, general manager of Husker Ag LLC, was in attendance at the meeting as well.

When talking about global warming, Harder said, "Now a lot of people will say, 'I don't believe in that. I don't care. I live in Nebraska that doesn't affect me.' You may not, but my job is to take care of 700 shareholders and about 600 corn farmers in the area and then the 2.5 million cattle that are in Nebraska. That's my job, so it doesn't really matter what I think. It's what the world is right now. My job is to try and keep that (ethanol) plant viable and surviving."

Larry Mosel, of Orchard, asked how long the ethanol plant would have to be shut down while the pipeline is installed.

Harder said the plant will not need to shut down. Summit Carbon Solutions will add its own plant by the maintenance shop, down by the corn piles, on to the edge of Husker Ag.

"They will just need to shut the carbon scrubber down for about an hour for installation then they can get it back going immediately after." Harder said, "It (CO2) is an asphyxiant. I don't want to undersell it. This is why no houses or buildings are placed on it, in case it would spring a leak on a structure."

Krutz asked if there are any additives to make the CO2 smell.

Harder said you cannot smell CO2. This is why it is monitored automatically and manually.

"If there is a small leak, the concentration of CO2 is an asphyxiant. The only way it would be an asphyxiant is if a large amount of CO2 is in a small area. Adding a smell to it wouldn't add much value," said Kretz.

The meeting concluded with Ketzner letting everyone in attendance know that they are welcome to ask individual questions to team members. Landowners are invited to email [email protected] with any questions.