Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Landowner Protections topic
No spam. Unsubscribe anytime.
House approves new penalties for deceptive tactics in easement negotiations tied to carbon oxide projects
Summary
House Bill 12 49 narrowly passed the House on Feb. 25, 2025. The bill creates a civil cause of action and remedies for landowners alleging deception, fraud, harassment, intimidation, misrepresentation or threat in pursuit of easements; sponsor narrowed the measure to apply to carbon oxide facilities.
The House passed House Bill 12 49 on Feb. 25, creating a statutory cause of action for landowners who say they were subjected to deceptive or coercive tactics during attempts to acquire easements or easement options.
Representative Cole Knowles, the sponsor, said the bill responds to landowner complaints about improper conduct by entities seeking easements for carbon oxide facilities. "This bill is really born out of real experiences that should not be occurring in our state," Knowles told the House, and he said the proposal lays out specific types of prohibited conduct and remedies so courts can deter the behavior.
Knowles told the committee and the floor that the proposal was narrowed in response to stakeholder concerns; he said the bill now focuses on conduct tied to carbon oxide facilities rather than a broader class of linear projects. The text contains a 12-month statute of limitations for bringing a claim and places the burden of proof on the landowner.
Opponents said existing civil-law remedies already cover fraud, misrepresentation and harassment. Representative Steven Stevens argued the measures are unnecessary because courts can hear these causes of action under current law. Other critics warned the bill's language could be vague and tempted litigation that could make the state less attractive for investment.
Supporters — including some who said elderly or vulnerable landowners had felt pressured — said the legislation provides a clear remedy for victims and would deter bad-faith conduct. Representative Hughes and others described examples of targeted contacts and said that courts, not the legislature, should have clearer tools when misconduct occurs.
The House approved the bill on a recorded vote: 36 ayes, 34 nays. The clerk displayed the vote and declared House Bill 12 49 passed. Sponsor Knowles said he modeled the bill in part on North Dakota law and stressed it was not intended to block legitimate transactions.
The measure references contract law principles already in statute (the sponsor cited SDCL section 53-11) and would allow courts to issue injunctions and other relief when deception or harassment is proven under the bill's standards.
Speakers quoted in this article are listed below. The House vote took place on Feb. 25, 2025.
