Once again a bill to impose a fee on certain pipelines carrying crude oil and to create a crude oil pipeline compensation fund that may be used in the event of a crude oil spill was up for a vote in the South Dakota Legislature this year. The same or very similar bills have been presented for consideration and passage during the previous two legislative sessions. Earlier postings relate to the previous legislation.
This year, Senator Rhoden identified that he had come full circle with his opinion on this proposed legislation. When the bill was presented to the Senate State Affairs committee and on the Senate floor, Senator Rhoden voted in favor of the bill. His stated reason for supporting the bill was to protect property owners from financial ruin resulting from the liability for an oil spill on their property.
Thank you for your votes in favor of this legislation, Senator Rhoden. Senator Rhoden also mentioned that his neighbors and others in his district were influential in changing his opinion on this legislation. Unfortunately, once again a one vote margin stopped the passage of this legislation.
This is a disappointing outcome. Hopefully, this issue will be successfully revisited again in the next legislative session. Support for new business is important to the strength of the state’s economy. However, the desire to make accommodation to attract new business to our state should not outweigh our consideration for existing business. This is especially true with regard to the oil pipeline companies. The pipelines need to cross our state in order for the pipeline companies to conduct their business and existing land owners/businesses have been required to make concessions. The full impact of these concessions was not necessarily apparent to everyone concerned when the project was first proposed to or considered by the legislature.
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