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PUC Green Lights Dakota Access Pipeline to Plow thru Charlie Johnson’s Organic Farm

Our friend and neighbor Charlie Johnson will see his long-standing organic farm disrupted by the Dakota Access Pipeline. The Public Utilities Commission approved the Bakken oil pipeline yesterday on a 2–1 vote.

In a comment submitted last week, Johnson said Dakota Access had not replied to an April 30 letter from his attorney asking how Dakota Access would mitigate damages or loss of organic certification. Yesterday, the company and the PUC said Johnson, who whose landlord* has accepted a damages payment from Dakota Access, is simply hosed:

Brett Koenecke, a lawyer from Pierre representing Dakota Access, said there didn’t appear to be any way for the company to satisfy the requirements of the organization that granted the organic designation to Johnson.

Mahmoud said South Dakota doesn’t have state laws defining organic farming.

One of the commission’s lawyers, Kristen Edwards, said she couldn’t find a way to protect the organic designation, and the landowner had already signed the deal with Dakota Access [Bob Mercer, “Dakota Access Pipeline Route OK’d in South Dakota,” Aberdeen American News, 2015.12.01].

Response #1: Sure, there’s a way to protect Johnson’s organic designation: change the pipeline route so it doesn’t plow through the land he farms.

Response #2: No state laws defining, protecting, or promoting organic farming? We just found a subject for a really good bill for the 2016 Legislature to write and pass… after it has raised teacher pay and expanded Medicaid.

Commissioner Chris Nelson (appointed by Governor Dennis Daugaard in 2011, elected in 2012, and facing re-election in 2016) and Acting Commissioner Rich Sattgast (appointed by Governor Daugaard to sit in for Commissioner Kristie Fiegen, who sat out due to a conflict of interest) voted for Dakota Access. Commissioner Gary Hanson, the only commissioner who owes his seat on the PUC entirely to the voters, voted against the pipeline. Commissioner Hanson said Dakota Access is building too close to the fast-growing communities of Tea and Harrisburg. Commissioner Nelson responded that Tea and Harrisburg didn’t file any opposition to the pipeline cutting through potential suburbia.

Commissioner Nelson did propose amendments to the pipeline permit conditions that require Dakota Access to repair and replace any damaged drain tile and help landowners maintain designated land as organic “throughout construction, reclamation, and operation.” However, Mercer’s report suggests that Nelson withdrew that proposal. See a partially amended draft of the conditions here; PUC doesn’t appear to have posted the final version yet. The approved conditions may not be enough to forestall a lawsuit: Commissioner Hanson says he’s heard some parties will appeal the PUC’s decisions.

Commissioner Hanson couldn’t stop the pipeline, but he at least provided the rare pleasure of a South Dakota Republican sticking up for South Dakota landowners against an “abusive” corporation:

Public Utilities Commissioner Gary Hanson
Public Utilities Commissioner Gary Hanson

After he lost his attempt to deny the permit, Hanson said Dakota Access hasn’t fulfilled its responsibility yet to be a good corporate citizen. He said it was “reprehensible” the company had sued landowners before its South Dakota permit was in place and described the company as “abusive.”

Hanson called on Dakota Access to apologize to those landowners and reimburse them for legal expenses. He recalled the community meetings set by the commission along the route early in 2015.

“There are very few people in favor of this pipeline,” Hanson argued. “By far, the testimony across South Dakota was against this pipeline” [Mercer, 2015.12.01].

At least one South Dakota Republican can see that some things are more important than letting oil companies make money. Commissioner Hanson needs to have lunch with his party leaders and knock some of that sense into their heads. Then maybe the SDGOP would get back to standing up for South Dakota farmers like Charlie Johnson.

*Update 16:31 CST: Correction! I misread Mercer’s original report to say that Johnson had accepted a crop damages payment rather than the landlord of one portion of the land Johnson farms. I have revised my text to reflect that fact.

43 Comments

  1. Rorschach 2015-12-01 08:47

    It’s bad strategy to settle first and ask for a better deal later.

  2. Steve Hickey 2015-12-01 08:57

    Brett Koenecke is on the wrong side of every issue. Money rules the day, phooey on the little guy– the landowner, the poor and elderly.

    He’s the lobbyist and lawyer for Chuck Brennan and the payday industry in Pierre and also the diocese lawyer for the ELCA lutherans who are curiously sitting out the payday loan scuffles in our state. The denomination has a clear statement supporting our issue and the ELCA has been a strong coalition member in other states, but not here, we only get the cold shoulder from the top. We are told Koenecke’s best friend is the bishop here. Go figure. That’s South Dakota state politics for you. Koenecke started a ballot committee to oppose our initiative which the phoney name: South Dakotans for Fair Lending. We do have the support of a bunch of ELCA lutheran pastors.

  3. jerry 2015-12-01 09:04

    Good for Gary Hanson that he stood against another giveaway to the corporations. They will not forget that act of courage in his next election. He will have a ding a ling from the extreme right to start the scream. Kathy Tyler found that out and look what we got in return, like trading in a F-150 for a Yugo. Tyler did the job for the people and the trade in does his job on the floor for others to step in.

  4. Paul Seamans 2015-12-01 09:11

    Yesterday’s PUC hearing was very interesting. Commissioner Chris Nelson made the case that the PUC is largely bound by South Dakota Codified Law No. 49-41B. The law concerns the building of pipelines in SD. The law doesn’t give the PUC any say on things like eminent domain or the route of the pipeline. Chris Nelson interprets the law to arrive at the conclusion that Energy Transfer Partners can meet the requirements for a permit and made a motion, with added conditions, to approve the permit. When Chris Nelson was partially through his motion Commissioner Gary Hanson interrupted him briefly to mention that he would be offering a substitute motion to deny.

    It appears that Chris Nelson interprets the law to mean that the PUC cannot unduly deny the permit to an applicant while it appears that Gary Hanson feels that his job is to protect the people of South Dakota. Two honorable men coming up with two totally different views of what their duty is.

    While I totally agree with Gary Hanson’s position on this pipeline permit I can see Chris Nelsons side of the issue. The PUC is largely bound by laws that have been made by our state legislature. If we would like to see different results coming from the PUC then we first need to get some of these laws overhauled. No small task.

    This whole issue may get interesting. Gary Hanson was sticking up for the cities of Tea and Harrisburg, both large growth areas. The pipeline route comes within a few hundred yards of Harrisburg and runs along the same corridor of a huge power line. Can you imagine a company willing to mix volatile Bakken crude with high voltage electricity? Tea and Harrisburg have been largely silent up to this point. Their future involvement in an anticipated court challenge to the PUC decision is what could add the fireworks.

  5. Porter Lansing 2015-12-01 09:42

    Awww …. the black dirt between the big rivers is so special that the state could lead central USA in organic vegetable production. Those continually on the wrong side of history so often embrace the “negativity bias” that stops new things and ideas and offers only immediate dismissal of so many progressive opportunities. SoDak has NO state laws defining organic farming? My goodness, why not? It’s culinary agriculture at it’s most attractive and profitable.

  6. Porter Lansing 2015-12-01 10:36

    PS … the ethanol “corn cow” dried up yesterday. Another stellar opportunity for Republicans to fight it and plant their feet again in the cement of the “wrong side of history”.
    Q – Who’s the largest purveyor of organic food in USA?
    A – The uber-conservative, employee oppressive and union hating Wal-Mart. Doesn’t that spark a rise in your GOP brains and trigger some opportunistic twinges?

  7. Don Coyote 2015-12-01 11:02

    @ Porter Lansing: Hmmmm, Business Insider says Whole Foods (libertarian) is the largest seller of organic food in the US but might be surpassed in 2015 by Costco (phew, Liberal).

    http://www.businessinsider.com/costco-becomes-top-seller-of-organic-food-2015-6

    Personally I don’t purchase organic foods because of the expense. Studies by Stanford and the American Journal of Clinical Nutrition have also shown that organic food is neither safer nor more nutritious. The organic food industry is built entirely on sketchy research and deceptive marketing.

  8. larry kurtz 2015-12-01 11:08

    Food raised under organic standards reduces pollution in watersheds at risk to industrial agriculture.

  9. larry kurtz 2015-12-01 11:10

    Know why the weather sucks in South Dakota? Because it deserves it.

  10. caheidelberger Post author | 2015-12-01 11:40

    Koenecke’s connections alarm me.

    Larry, it’s a beautiful day for shoveling. I’m not leaving South Dakota, so contribute some constructive ideas or hold your tongue.

  11. Charlie Johnson 2015-12-01 11:43

    DAPL has yet to respond to a letter written on April 30 th by my attorney citing three concerns- organic certification , route of the pipeline through the farm, and field drain tiles .

  12. caheidelberger Post author | 2015-12-01 11:44

    Paul, I too am intrigued at how two commissioners of the same party can come to differing conclusions about their authority and responsibility. And I too can see Nelson’s point about how Tea and Harrisburg didn’t seem alarmed enough about the pipeline to participate in the hearing. Is Hanson overstating the local urban opposition? Or might those municipalities share Nelson’s interpretation of the PUC’s limited authority and thus be saving their fire for a court challenge?

    But I wonder: can entities who did not participate as intervenors in the PUC permit process file an appeal of the permit decision?

  13. caheidelberger Post author | 2015-12-01 11:46

    Oh, Coyote, you and your “science” standing in the way of free enterprise… ;-)

  14. Charlie johnson 2015-12-01 11:54

    Organic laws and regulations are handled at the federal level. But one would have to assume that DAPL and others need to follow federal rules in their construct process. My attorney provided DAPL with a copy of a previous organic mitigation approved by the Minnesota Utility Board in granting a pipeline permit across an organic farm near Eaggen, MN . Again no response.

  15. Charlie johnson 2015-12-01 12:00

    I agree with commissioner Hanson. Why is DAPL hanging so tight to the Sioux Falls metro area or actually the two interstates(29 and 90) ? My hunch it’s for plan B. If Iowa fails to grant permit status, the line will end at Sioux Falls. At which it will turn into a terminal farm with trucks or rail being loaded with crude oil. Plan C? Revival of the gorilla project in SE South Dakota ?

  16. mike from iowa 2015-12-01 12:11

    iowa’s Futilities Board members were all appointed by Terry Braindead. There is this little paragraph just below the member’s biographies.

    Reminder:
    Any communications with individual members of the Iowa Utilities Board on material issues in contested cases pending before the Board may constitute a prohibited ex parte communication, Iowa Code section 17A.17. If you wish to comment on the record on a pending matter, please do not contact individual Board members but instead submit your comments to the Board’s Electronic Filing System, citing the docket number, and clicking on the “Submit Filing” tab and following all instructions to submit filing as a guest. If you have a complaint or inquiry about a utility, please contact Customer Service staff toll-free, 877-565-4450 or by e-mail at customer@iub.iowa.gov.

    Just what the doctor ordered-an electronic run-around.

  17. caheidelberger Post author | 2015-12-01 12:14

    The Gorilla Project? Hyperion resurrected? Holy cow!

  18. jerry 2015-12-01 12:25

    Hyperion and Keystone XL will never be dead until they are forced to payout more than they can ever possibly take in for the pollution of our mother. Elections have consequences even here.

  19. Paul Seamans 2015-12-01 12:36

    Cory, I agree how can two people listen to the same evidence and come up with differing conclusions. I think it is just a matter of Nelson narrowly interpreting the law and Hanson having a broader interpretation.

    As to why Tea and Harrisburg didn’t file as intervenors I have no answer. To file is a simple matter and it is no problem if you don’t want to participate. I filed as an intervenor in this case but because of time constraints I did not actively participate. I attended two days of hearings and I funneled all my questions through DRA’s lawyer. This worked quite satisfactorily. Tea and Harrisburg could have been involved in a similar manner but that is hindsight.

    While Tea and Harrisburg probably couldn’t invoke an appeal they could offer support to active intervenors and act as witnesses and lend financial support. It took a while for interest in the DAPL hearings to gather interest and for people to realize what was happening and get organized. Maybe that is Tea and Harrisburg’s problem. I also would not count out Hartford in this matter. I think that the Dakota Access comes pretty close to them.

    Dakota Access has said that the route is designed to affect the fewest number of landowners. If that is the case why not run it through West River South Dakota, or did we learn them that was not a wise choice after seeing what was in store for the Keystone XL.

  20. mike from iowa 2015-12-01 12:57

    Did Daugaard appoint an affirnative vote to get the desired result? What was the pressing need for for a third vote? I hardly imagine a simple conflict of interest would bother most SD pols.

  21. mike from iowa 2015-12-01 13:00

    Paul,they are running clear across iowa. I guess that route misses alot of Dakota landowner’s lands. I suppose I should be thankful they didn’t route it through the Great Lakes corridor and endanger the entire watershed.

  22. Porter Lansing 2015-12-01 13:07

    @Coyote … I stand corrected and very pleased. I used research from a couple years ago but it’s great that Costco (a exceptional store to work for) has taken the lead as WalMart’s market share is falling.
    Now, about your choices of coyote chow … hmmm? I’m sure all here would like to see you as healthy as can be accomplished so you live a long and contrary life.
    I live in a city and organic is now just slightly higher in cost, much higher in quality, taste and appearance; pesticide free and in higher demand. Organic farming practices are designed to benefit the environment by reducing pollution and conserving water and soil quality.

  23. larry kurtz 2015-12-01 13:13

    Saw word of appeal, Paul: talk about that?

  24. Paul Seamans 2015-12-01 13:44

    larry,
    There has been talk all along of an appeal of the PUC decision. Most landowners were represented by a very capable lawyer, his name slips my mind right now. I think that other individual intervenors also have lawyers. The Rosebud Sioux Tribe (Sicangu Oyate) was also ably represented by a very capable lawyer as was Dakota Rural Action. I would guess that an appeal will come from the consolidated landowner group, maybe with other intervenors joining the suit. Commissioner Gary Hanson mentioned, in his motion to deny, that his remarks will probably be used in an appeal.

    People are finally waking up to the fact that these pipeline companies are not nice people. As common carriers they have the power of eminent domain and they wield it like a huge club. People are starting to react against this abuse. So where is our Republican party on the issue of property rights?

  25. moses 2015-12-01 14:16

    Sattgast what a joke then the great Chris Nelson is their any better than these two.Gary Hanson is the man right now I hope he votes against X CEL. \I always though Nelson was smart, he finally “‘proved it on this vote to me that he isn’t.

  26. moses 2015-12-01 14:17

    Porter what do you think of the two of our two puc jokers.

  27. Porter Lansing 2015-12-01 14:33

    @Moses … Thanks for asking. I’m a national political pundit. There’re so many knowledgeable liberals on this blog that focus on SoDak issues. My opinions haven’t much validity.
    Nationally, I stand with our President. i.e. Making it cheaper and easier to stay addicted to carbon fuels (and make rich pollution producers even richer by risking the soil) isn’t what’s in USA’s best interest, long term.

  28. Lanny V Stricherz 2015-12-01 14:36

    Gary Hanson, the best mayor Sioux Falls has had in my lifetime and now standing up on the PUC. Thanks Mr Hanson.

  29. Lanny V Stricherz 2015-12-01 14:38

    Shame on Chris Nelson, you know the guy who ran as the candidate for PUC with experience in 2014 after being appointed to the job in 2012? Shame, Shame, shame!!!!!

  30. Lanny V Stricherz 2015-12-01 14:50

    Porter Lansing hit the nail right on the head at 9:42. Any idea why organic produce is so much higher than regular in the grocery store? You always thought that it was those organic producers were cutting a fat hog right? Just the opposite is true. The organic producers do not get some of the same breaks that the other guys do, but more than that, the law of supply and demand kicks in and the demand for organic is so high that producers cannot keep up.

    State government of South Dakota, talk about an economic development issue that has been left unaddressed.

  31. Lanny V Stricherz 2015-12-01 15:05

    Some of you guys who doubled your income by going to corn when ethanol took off, can double it again by turning the beautiful black dirt that Mr Lansing spoke of, into organic farming. Just look how much you will save not paying Monsanto.

    Come on legislature, how about thinking positive about some laws to help organic out. Once they have made the switch they won’t need help any more.

  32. mike from iowa 2015-12-01 15:46

    Monsanto owns Congress and Congress will tell the Scotus to pretzel the 14th amendment one more time to stop organic growers from causing Monsanto irreperable harm if they don’t purchase GMO seeds with the Monsanto brand. Besides,any organic seed can easily be contaminated with patented genetics which means organic farmers are stealing from Monsanto. They have the deck stacked seven ways from Sunday.

  33. Porter Lansing 2015-12-01 17:24

    … #SellCornShort

  34. Porter Lansing 2015-12-01 17:26

    Currently … The use of genetic engineering, or genetically modified organisms (GMOs), is prohibited in organic products. This means an organic farmer can’t plant GMO seeds, an organic cow can’t eat GMO alfalfa or corn, and an organic soup producer can’t use any GMO ingredients.

  35. Paul Seamans 2015-12-01 18:11

    When TransCanada offered their first easements for the Keystone XL in 2008/2009 they were offering around $8000 per mile. In other words they would cross a section of your land (640 acres) and give you a one time payment for their perpetual use of your land.

    Let’s assume that the easement is only for 100 years to make figuring easier. You receive $8000 for a 100 year easement or you get an average yearly payment for their use of your section of land for only $80/year/640 acres or $0.11/acre/year for their use of your section of land.

    In 2009 TransCanada thought that they were cutting a fat hog in the ass by basing their easement payment on a $600/acre value for Jones County farmland. The latest auction price for such farmland in Jones County was $2500. TransCanada has probably spent more on media ads and building playgrounds to curry favor of towns along the line than they have paid for easements.

  36. mike from iowa 2015-12-01 18:36

    Porter,how do you propose to stop GMO infiltration in organic seeds if birds and bees can carry seeds and pollen for miles and miles and the courts have decided that non GMO plants that get contaminated is the fault of the non GMO growers.

  37. Porter Lansing 2015-12-01 18:44

    Infiltration into row crops is partially mitigated by distance from organic field to GMO field and is an issue, for sure. Vegetables are usually grown from clones started in green houses.
    As for my proposal? Get rid of GMO food. Now that ethanol isn’t needed why do we need GMO corn? Perennial corn would be more useful to world hunger.

  38. John 2015-12-01 18:47

    Again the State of SD has violated the publics trust and the State Constitution for monetary gain.

    ” § 4. Corporations subject to eminent domain–Police power. The exercise of the right of eminent domain shall never be abridged or so construed as to prevent the Legislature from taking the property and franchises of incorporated companies and subjecting them to public use, the same as the property of individuals; and the exercise of the police power of the state shall never be abridged or so construed as to permit corporations to conduct their business in such manner as to infringe the equal rights of individuals or the general well-being of the state.”

    History: Repeal proposed by SL 1975, ch 3, rejected Nov. 2, 1976.

    Again SD property owners have been subjected to the threats and coersion of eminent domain and court actions so Dakota Access could gain survey and Right of Way easements. ” Read the above State Constitution”.

    Property owners rights are being disguarded for state and private gain while property owners are subjected to unfair and bad faith negociation conditions.

    At todays hearing it was said that some of the cities did not speak up. If you have not been subjected to being concidered an outcast because your ideas are not as greedy as others then you have no idea of high dollar thinking people and what they are willing to do to have their way.

    I would like to commend Commissioner Hanson on his statements though I thought much more could have been said about how property owners are being bullied and coerced in to agreements.

    Those of you who are holding out demand to be paid for every day your property is to be used or sign nothing which is what I would suggest. You do not owe the State of SD or Dakota Access an anual income while you get screwed and take on liability risk and property devaluation.

    John Harter

  39. moses 2015-12-01 20:03

    your the man porter you and Lanny

  40. Les 2015-12-01 20:50

    Go a little easier on Chris Nelson, Lanny. Nelson has always been a faithful follower of the law while representing our state.

    As one of my friends in the judicial side of life here says when I blow off steam, well Les, let’s look at how the law interprets this.

    As to commissioner Hanson, we have two decent choices on the GOP side for Governor in 18. Hanson or Mickleson. Mark a nice guy, just doesn’t fill Gary Hanson’s or daddy’s shoes.

  41. daleb 2015-12-01 23:37

    be nice to mr hanson but not too nice… heh. with out him a lot of rabble rousing wouldnt have been possible. if a marxist political blogger is too nice to him the GOP might grow nervous. Then SD would be out of maybe one of the last decent politicians in the GOP.

    I think Chris Nelson is a good guy, but I wouldnt trust anyone who owes a favor to Doogood.

  42. grudznick 2015-12-01 23:50

    I have a question about organic farms. Do organic farms produce more or better crops, or do they produce less and lesser crops but ones that sell for more money because the people at the yuppie grocery will pay more if that word, “organic”, is associated with the product.

    Organic honey butter with soy peas and raisins. Only $25 an ounce.

  43. mike from iowa 2015-12-02 06:20

    Let’s see if SDCL was amended in favor of korporate amerika and then see how the courts interpret it.

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