North Dakota Supreme Court Allows Landowner Challenge to CO2 Storage Law to Proceed

North Dakota Supreme Court. (Photo by Kyle Martin/For the North Dakota Monitor)

(North Dakota Monitor) – The North Dakota Supreme Court has ordered a lower court to take another look at a legal challenge related to underground carbon dioxide storage projects – a case that could have long-term effects on carbon pipelines, ethanol producers and power plants.

The Northwest Landowners Association, a North Dakota group formed to defend property rights, is suing the state of North Dakota and the state Industrial Commission, which approves permits for permanent underground storage of carbon dioxide.

The association in 2023 sued over a state law that requires landowners to allow carbon dioxide storage beneath their property if 60% of the affected landowners agree to the project, a procedure referred to as amalgamation. The group argues the law is unconstitutional because it allows companies to use private property without letting landowners use the court system to argue for just compensation.

The Supreme Court gave landowners a partial win, reversing a district court judge’s opinion that affects carbon storage, but upholding the judge’s rulings on two other property rights issues.