The Iowa Utilities Board hearing for the proposed Summit Carbon Solutions pipeline has entered its third week.
Summit’s chief operating officer was first to take the witness stand today. James Powell is in charge of design, construction and operation of the pipeline. He said Summit’s project is about ensuring ethanol plants that connect to the pipeline make a profit.
“I think the benefits are to more than just Summit Carbon,” Powell said. “The benefits are to the ethanol plants, their workers and the farmers who supply corn to those ethanol plants.”
Brian Jordy, a lawyer for pipeline opponents, suggested the Utilities Board is being asked to pick pipeline investors as winners and property owners who don’t want the pipeline on their land will be the losers. Powell responded. “We’ve reached agreement with 73% of the landowners in this state, so we fully expect that we can reach agreement with the remaining landowners that’ll e affected,” Powell said.
Jordy said: “There’s no such thing as when the threat of eminent domain is hanging over landowners head.”
Powell replied: “Mr. Jordy, we’ve been negotiating with Iowa landowners for almost two years in this state and we have not had and still do not have the right of eminent domain.”
Powell said the company has rerouted its proposed pipeline 1500 times in Iowa. “Many of those were due to survey results, avoiding cultural features, environmental/biological features,” Powell said, “or landowner preference.”
Under questioning, Powell said he does not know the full slate of investors in Summit Carbon Solutions. However, Powell did tell attorney Brian Jordy the pipeline company is a spin off of Summit Ag Group, which is owned by Bruce Rastetter, an entrepreneur who’s made investments in the pork and biofuels industries.
“Why is it that Mr. Rastetter isn’t here to testify and defend the supposed value of this project?” Jordy asked.
Powell responded: “I think he entrusts his management team to defend the value of the project.”
Jordy continued: “And so, by that answer, do you agree that you esentially work for him when you reference: ‘His management team?'”
Powell replied: “No, I work for the board of directors, of which he is one member of.”
Summit Carbon Solutions is seeking eminent domain authority so unwilling landowners would be forced to grant the company permanent access to more than 900 parcels, or sections of property. Landowners opposed to the project testified during the first two weeks of the Utilities Board hearing, which is being held in Fort Dodge.