In the midst of the political whirlwind surrounding former President Donald Trump's potential comeback, North Dakota Governor Doug Burgum, a fervent Trump supporter, finds himself grappling with a colossal carbon dioxide pipeline project in his home state.
According to ABC News, this $5.5 billion venture has polarized North Dakota and placed Burgum in a precarious political position as Trump and current President Joe Biden present contrasting approaches to climate change.
Burgum, a Republican with limited recognition beyond North Dakota, is a strong contender for Trump's vice-presidential pick. His executive experience, business acumen, and close connections with wealthy energy industry CEOs, whose financial support Trump seeks for his third presidential campaign, set him apart in the narrowing field of potential running mates.
Burgum is a staunch advocate for the pipeline project, which aims to collect CO2 from ethanol plants across the Midwest and store the gas a mile underground. This initiative aligns with Biden's climate change strategy, potentially placing Burgum at odds with Trump. However, Burgum has been careful to frame the pipeline and other carbon capture initiatives as lucrative business opportunities for North Dakota that could ultimately benefit the fossil fuel industry, rather than as environmentally friendly measures.
This has nothing to do with climate change, Burgum stated on a North Dakota radio program in early March. This has to do with markets.
The Midwest Carbon Express, as the CO2 pipeline is known, is funded by hundreds of investors and will be constructed by Summit Carbon Solutions of Ames, Iowa. The pipeline route extends 2,500 miles through Iowa, Minnesota, Nebraska, and South Dakota, ending in west central North Dakota. Here, up to 18 million metric tons of CO2 will be stored annually in underground rock formations.
The North Dakota Industrial Commission, chaired by Burgum, is expected to decide in the coming months whether to approve Summits application for a permit to store all the CO2 it collects. Regulators in neighboring states are also considering approval of the pipeline.
As part of Bidens investment in combating climate change, companies may receive $85 from the federal government for every metric ton of CO2 collected from industrial facilities and permanently sequestered. They can also get $60 for each ton stored and later used to produce more oil, a process known as enhanced oil recovery (EOR). Summit could receive up to $1.5 billion annually from these tax credits. The company has stated that it has no plans to use CO2 in oil drilling, but its carbon dioxide storage permit application seems to leave this possibility open.
Our business model is for 100% sequestration, the company said in an emailed response to questions. No customers have ever approached us to move their CO2 for EOR.
However, several environmental and public interest groups argue that providing tax credits for more climate-polluting oil is a handout to oil drillers that undermines the goal of transitioning corporations and consumers away from fossil fuels.
Its just not the right answer, said Brett Hartl, government affairs director at the nonprofit Center for Biological Diversity. Youre incentivizing the extension of the use of fossil fuels for many more years or decades to come.
Burgum has praised North Dakota's underground CO2 storage capacity as a geologic jackpot, claiming the state can store 250 billion tons of carbon dioxide underground. This message has been echoed by North Dakotas mineral resources department, which estimates that CO2 can help extract billions more barrels of oil from the rich Bakken shale formation.
However, the Summit project has faced significant backlash in North Dakota, with Burgum caught in the middle. Concerns range from the potential for a lethal CO2 cloud in the event of a pipeline rupture to plummeting property values if the pipeline passes under private land. Landowners have also expressed outrage over what they perceive as Summit's aggressive tactics to secure easements for the project.
Burgum has largely sidestepped the contentious issue of eminent domain, suggesting that if landowners oppose the pipeline on their property, the route can be adjusted, and the "big check" can go to someone else.
Julia Stramer, a landowner in Emmons County who opposes the pipeline, described Summit's offer for a 99-year easement as insulting. I have informed Gov. Burgum that we have not received an offer of the big check, she told North Dakota's Public Service Commission earlier this month.
Kurt Swenson, who owns or has an interest in 1,750 acres at or near the proposed CO2 storage site, issued a stern warning at a public hearing on Summit's storage permit application. It seems like everybody wants what isnt theirs, Swenson said. Youre going to end up taking it from my cold, dead hands. And youre going to see how that works out for you.
Despite these challenges, Summit claims it has secured easement deals with landowners along 82% of the pipelines route in North Dakota and obtained 92% of the lease agreements needed at the storage site. The company also asserts that the project is supported by state lawmakers and emergency managers.
However, concerns over Summits project led the Burleigh County Commission to approve an ordinance restricting the pipeline from running too close to residential areas, churches, and schools. I have not gotten one single contact from anybody thats not affiliated with Summit asking me to support this pipeline, said Brian Bitner, the Burleigh County Commission chairman. Every contact has asked me to oppose it.
Gaylen Dewing, a farmer and rancher near Bismarck for over 50 years, criticized Burgum for what he perceives as the governors shift to the left. Dewing believes Burgum's support for carbon neutrality aligns him with the "Green New Deal people."
Although he professes to be a conservative, he is anything but when it comes to environmental issues, Dewing said.
While campaigning for Trump, Burgum has accused the Biden administration of attempting to shut down the oil and gas industries and asserted that Trump would reverse the federal rules and mandates he believes are stifling energy companies. Trump, who has previously called global warming a hoax, claims on his campaign website that Biden has surrendered to the crazed climate crusaders.
Oil and gas interests have already donated nearly $8 million to Trumps 2024 presidential campaign, according to the political money website Open Secrets. With his close ties to North Dakota's dominant industry, Burgum could potentially boost such donations as a running mate.
Should Burgum not be selected as the GOP's vice-presidential nominee and not take a position in a second Trump administration, he can return to North Dakota to complete his final term, with key decisions about the pipeline still pending.
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