03/06/23 CO2 Pipeline Project Differences

There are 3 CO2 sequestration pipeline projects under development with two, Summit Carbon Solutions and Navigator CO2 Ventures crossing our region, locally. I have clients who are dealing with both companies asking easements from them. I have personal experience with Summit Carbon Solutions, having signed an easement with them, with second hand information from clients and others dealing with Navigator. I can tell you that the two projects are both attempting to build pipelines to connect ethanol plants to deep CO2 sequestration sites, but the structure and progress of the two are about as different at this point as night and day.   The largest difference between them starting out is that Summit is buying an easement and Navigator is buying a 3-year option to acquire an easement. Summit is paying more than Navigator, more than twice as much, according to someone dealing with both I am told. Summit pays the landowner 100% of the amount immediately after signing. They are also negotiating terms for pipeline construction, indemnity, and other issues while structuring the payments in a tax favorable way to the landowners. Easements typically are structured combining the three components of crop damage, temporary easements and permanent easements which…