Alcester Union & Hudsonite Online

PIERRE (CNS) – A bill requiring companies using oil pipelines to pay a fee that establishes a compensation fund passed, 6-3, in Senate State Affairs Committee on Jan. 28. Introduced by State Sen. Gary Hanson, D-Sisseton, Senate Bill 190 applies particularly to pipelines carrying crude oil. It imposes a 2-cent fee per barrel (42 gallons measured at 60 degrees Fahrenheit) of crude oil.

The money generated will be used to clean up any spills.

“We've got to have a fund. There is nothing down on paper that definitely says they are responsible for any breaks or damages,” said Hanson.

The compensation fund will have a minimum of $5 million and a maximum of $30 million. Once funds reach the maximum, they will be transferred to the water and environment fund.

The bill excludes any company on average transports less than 10,000 barrels of crude oil per day.

Dennis Duncan with Transcontinental Canada said the bill is unnecessary because similar funds are already in place in case of a spill. He also said the bill is discriminatory against the company.

Sen. Majority Leader, David Knudson, R-Sioux Falls, does not support the bill. He said before action was taken on the bill, the Senate State Affairs Committee should consult the Public Utilities Commission and the Department of Environmental and Natural Resources.

However, Sen. Minority Leader, Scott Heidepriem, D-Sioux Falls, said even thought the bill needs “tweaking,” it is a step to protect citizens.

“We have to remember we are the stewards of the land and water for South Dakota for many generations to come,” he said.

The bill now moves to the full Senate for consideration.

A similar bill, Senate Bill 138, died in the Senate Agriculture and Natural Resources Committee on Jan. 22. The bill required these companies to take out a bond to pay for any environmental damages.

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