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Natural Resource Issues in Modern Real Estate Deals

Posted on: May 25th, 2022
by David Ganje

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natural resource issues in modern real estate deals

Property Rights and Water Rights

Posted on: April 9th, 2020
by David Ganje

Website: lexenergy.net
Phone: 605-385-0330
Fax: 605-385-0330
davidganje@ganjelaw.com

DAVID L. GANJE
ATTORNEY AT LAW
GANJE LAW OFFICES
17220 N Boswell Blvd
Suite 130L
Sun City, AZ 85372

______________________________________________________________________________

March 27th, 2020

Via Mail and Email

Chairperson
Davison County Drainage Board                                 
200 E. 4th Ave.
Mitchell, SD 57301-2631

Davison County Planning and Zoning Administrator    (via email)

Davison County Auditor    (via email for distribution to parties in interest)

RE: John Millan Permit (Parcel) Number: 03000-10361-301-00, 03000-10361-292-00, 03000-10361-303-00, and 03000-10361-304-00

Dear Chairperson, members of the Davison County Drainage Board and other interested parties:

  1. By way of introduction I represent Kenneth Hostler of 39872 252nd St, Mt. Vernon, SD 57363 with regard to a pending drain tile permit application filed with Davison County by an applicant described in the permit application as follows  “Name: Millan, John  Address: 25563 406th Ave. Mitchell, SD 57301” with a date of February 27th, 2020.  My client owns affected land described as the southeast Quarter of Section 19 Range 61 West in Davison County South Dakota.  The Drainage Board held a hearing on the application on March 17th, 2020.  Upon information received, the Board made a tentative, non-final decision to grant the permit. As of now, the Board’s informal decision to grant the permit has not been formalized.
  2. My client’s property and legal rights are prejudiced by the described drainage project application. I respectfully report to the Drainage Board and Davison County that the formal granting of this drain tile permit application would be an error of law. The permit should not be granted.
  3. The Board and interested parties should be aware of legal problems and issues with the permit application and the Board’s process regarding the application and hearing, even though I have yet to be favored with information that I requested from the county on this matter.  This letter is not intended as an exhaustive discussion of the problems and legal issues.
  4. The hearing on the Millan drainage project, including its process, denied my client due process under the South Dakota and United States Constitutions.
  5. The applicant did not provide information, data, analysis and facts on the matters listed below, which are all legally required by both due process of law and by the plain language of the Davison County Drainage Ordinance. 
  6. The below requirements at a. through h. were not in the application and were not discussed at the hearing by the applicant and the Board.  Further, the Board’s findings and decision did not consider the following relevant, required information, analysis,  data and facts:
  • a. Flood hazard zones
  • b. Erosion potential
  • c. Water quality and supply
  • d. Agricultural production 
  • e. Environmental quality 
  • f. Aesthetics
  • g. Fish and Wildlife values
  • h. Considerations of downstream landowners and the potential for adverse effect thereon including consideration of the following criteria:
  • i. Uncontrolled drainage into receiving watercourses which do not have sufficient capacity to handle the additional flow and quantity of water shall be considered to have an adverse effect.
  • ii. Whether drainage is accomplished by reasonably improving and aiding the normal and natural system of drainage according to its reasonable carrying capacity, or in the absence of a practical natural drain, a reasonable artificial drain system is adopted.
  • iii. The amount of water proposed to be drained.
  • iv. The design and other physical aspects of the drain.
  • v. The impact of sustained flows.
  1. The project, as planned, will cause surface water to flow in unnatural quantities over and onto my client’s property to reach Dry Run Creek. The application states the outlet distributes collected water from lengthy drain tile, which then “flows into Dry Run Creek.”  The proposal is to have the water flow over and onto my client’s property and then into the described creek, Dry Run Creek, which is on my client’s real property.
  2. The location of the outlet just south of my client’s real property will result in excessive and unnatural distributions of surface water onto my client’s agricultural lands, which are used for crop production, given the total linear feet of drain tile proposed in the application.
  3. The application provides the following representations regarding the project: Length of Solid Drain (Feet) is I5,000; the Length of Perforated Drain (Feet) is 300,000 and with a Total Length of all Drain (Feet) of 315,000. The application contains no adequate disclosure of the amount of water to be drained. The applicant’s response to the county’s required “Explanation of Drain Design” states that it is to “Improve farm ground to increase yields.”  These limited representations do not provide enough information from which a reasonable person could make a decision concerning the drain tile permit application.  And among other deficiencies, the application does not explain how the applicant’s project would comply with drain tile industry standards.
  4. County officials considering granting a permit for land-use under the Davison County Comprehensive Plan are to rely upon scientific and technical sources in evaluating the proposed use.  That was not done in this matter.
  5. The ambiguity of the project as described by the applicant prevented the Board from analyzing its potential impact. For example, the project has an “outlet into [1] unnamed intermittent stream which goes into SD DOT ROW and north across interstate into [2] unnamed intermittent stream which outlets in NE ¼ of Sec 30[.]” This can be read as to mean the first unnamed intermittent stream carries surface water directly into the second intermittent stream. Or it can be read to mean the first intermittent stream goes through the interstate and into the SD ROW, which then channelizes water towards and into the second intermittent stream. A reasonable person cannot make an informed decision from this information.
  6. Upon information and belief the named applicant, John Millan, is not the legal owner of the real properties proposed to be tiled in the application.  An approval of a permit under these circumstances indicates a failure of due diligence in analyzing the tile drainage project and the pending application.  It also indicates that an incomplete and inadequate application has been submitted the Board.
  7. The Board acted arbitrarily in preliminarily granting the permit before considering the factors it was required by law to review. The project if approved will cast unreasonable quantities of water onto my client’s property.
  8. The comments and discussion contained in this letter should not be construed as a waiver of any additional claims or issues of my client not stated.  Nothing in this letter operates as a waiver or release of my client’s legal rights, remedies, powers or privileges including the right to assert other claims.  My client reserves all legal and equitable rights in full with respect to this matter.

                                                                                 Sincerely,

                                                                                David L Ganje

Cc: to applicant

Wind Energy Brief

Posted on: July 12th, 2019
by David Ganje

BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF SOUTH DAKOTA

­­­­­­­_____________________________________________________________________________

                                                                                                EL 19-003

IN THE MATTER OF THE

APPLICATION BY CROWN

RIDGE WIND, LLC FOR A                                                  INTERVENORS’

PERMIT OF A WIND ENERGY                                          POST-HEARING BRIEF

FACILITY IN GRANT AND                                               

CODINGTON COUNTIES

­­­­­­­                                STATEMENT OF THE CASE AND INTRODUCTION

  1.  On January 30, 2019, the South Dakota Public Utilities Commission (Commission) received an Application for a Facility Permit for a wind energy facility (Application) from Crowned Ridge Wind, LLC (Crowned Ridge or Applicant) to construct a wind energy conversion facility to be located in Grant County and Codington County, South Dakota (Project or proposed project). The Project would be situated on approximately 53,186-acres in the townships of Waverly, Rauville, Leola, Germantown, Troy, Stockholm, Twin Brooks, and Mazeppa, South Dakota. The total installed capacity of the Project is claimed not exceed 300 megawatts (MW) of nameplate capacity. The proposed Project includes up to 130 wind turbine generators, access roads to turbines and associated facilities, underground 34.5-kilovolt (kV) electrical collector lines, underground fiber optic cable, a 34.5-kV to 345-kV collection substation, one permanent meteorological tower, and an operations and maintenance facility. On January 31, 2019, the Commission electronically transmitted notice of the filing and the intervention deadline of April 1, 2019, to interested persons and entities on the Commission’s PUC Weekly Filings electronic listserv. On February 6, 2019, the Commission issued a Notice of Application; Order for and Notice of Public Input Hearing; Notice of Opportunity to Apply for Party Status. On February 22, 2019, the Commission issued an Order Assessing Filing Fee; Order Authorizing Executive Director to Enter into a Consulting Contracts; Order Granting Party Status. On March 20, 2019, a public input hearing was held as scheduled. On March 21, 2019, the Commission issued an Order Granting Party Status. On March 25, 2019, Patrick Lynch filed an Application for Party Status. On March 26, 2019, Commission staff filed a Motion for Procedural Schedule. On March 27, 2019, Crowned Ridge filed its Responses to the Motion for Procedural Schedule. On March 28, 2019, lntervenors filed a Response to Crowned Ridge’s Response to the Motion for Procedural Schedule. On April 5, 2019, the Commission issued an Order Granting Party Status; Order Establishing Procedural Schedule. On April 25, 2019, lntervenors filed a Motion to Deny and Dismiss. On April 30, 2019, the Commission issued an Order For and Notice of Motion Hearing on Less Than 10 Days’ Notice. On April 30, 2019, Commission staff and Crowned Ridge each filed a Response to Motion to Deny and Dismiss. On May 6, 2019, lntervenors filed a Reply Brief in Support of Motion to Deny and Dismiss. On May 10, 2019, the Commission issued an Order Denying Motion to Deny and Dismiss; Order to Amend Application. On May 10, 2019, the Commission also issued an Order for and Notice of Evidentiary Hearing. On May 17, 2019, Intervenors filed a Second Motion to Deny and Dismiss. On May 23, 2019, Commission staff filed a Request for Exception to Procedural Schedule and Crowned Ridge filed its Response to lntervenors Second Motion to Deny and Dismiss and, as a part of its response, Crowned Ridge requested a Motion to Strike. On May 28, 2019, Intervenors filed a Reply Brief and Motion to Take Judicial Notice. On June 12, 2019, the Commission issued an Order Granting Request for Exception to Procedural Schedule; Order Denying Motion to Take Judicial Notice; Order Denying Motion to Strike.  The Commission has not ruled on the Second Motion to Deny and Dismiss.  The Commission has jurisdiction over this matter pursuant to SDCL Chapters 1-26 and 49- 41 B, and ARSD Chapter 20: 10:22.  The evidentiary hearing was held, beginning on June 11, 2019, and ending on June 12, 2019, with one Staff witness heard prior to the scheduled evidentiary hearing.  At the conclusion of the evidentiary hearing, a briefing schedule and decision date was set by the Commission.  Intervenors, through undersigned counsel, submit this Post-Hearing Brief.  Applicant is seeking a permit from the Commission to build a wind farm in Grant and Codington Counties South Dakota. As the permit applicant, Applicant shoulders the burden of proof to establish its proposed project satisfies the provisions of SDCL 49-41B-22.  Intervenors do not have the burden of proof to show the proposed project does not satisfy SDCL 49-41B-22.  If there remains a question as to whether the proposed project complies with SDCL 49-4 lB-22, the permit application must be denied. As shown below, Applicant has not satisfied its burden. Therefore, Intervenors respectfully request the Commission deny Applicant’s permit Application.  Citations to facts contained in the record are included in this Post-Hearing Brief and in the Intervenors’ Proposed Findings of Fact and Conclusions of Law which are incorporated into this Brief.

                                                               ARGUMENT

2.     The Legislature intended for an extensive and complete review of a wind farm permit application by the Commission.  The legislature would not have done so if it did not expect its statutory requirements to be a high bar.  In this proceeding, as of the conclusion of the evidentiary hearing, the Application is still, at best, materially incomplete. It is also accurate to say the Application at completion of the evidentiary hearing is unavailable as an understandable proposed project.  See for example the findings set forth in Intervenors’ Proposed Findings of Fact and Conclusions of Law on the issue of due process.

3.      Intervenors’ Proposed Findings of Fact and Conclusions of Law are filed with this Brief as Exhibit A and are incorporated into this Post-Hearing Brief by reference.  The insufficiency of Applicant’s evidence and facts, the unaddressed relevant legal issues in this proceeding, as well as the failure of the Applicant to satisfy legal requirements following applicable siting law and rules under the mandate of SDCL 49-41B-22(1) are presented in detail as findings and conclusions in Exhibit A.

4.      Applicant’s statutory burden of proof under SDCL 49-41B-22 has not been met in this proceeding.  Additionally, ARSD 20:10:01:15.01 is one of the Commission’s Rules of Practice, and it also applies to this matter.  The rule requires: In any contested case proceeding, the complainant, counterclaimant, applicant, or petitioner has the burden of going forward with presentation of evidence unless otherwise ordered by the commission.  The complainant, counterclaimant, applicant, or petitioner has the burden of proof as to factual allegations which form the basis of the complaint, counterclaim, application, or petition. ARSD 20:10:01:15.01  Applicant’s evidence supporting its regulatory compliance obligations are matters within the possession of the Applicant.  The burden to produce evidence is on the Applicant.  Davis v. State, 2011 S.D. 51, 804 N.W.2d 618, 628 (S.D. 2011); Eite v. Rapid City Area School Dist. 51-4, 739 N.W.2d 264 (S.D. 2007); Meacham v. Knolls Atomic Power Lab., 554 U.S. 84 (2008); Dubner v City and County of San Francisco, 266 F3d 959, 965 (9th Cir 2001)  This burden remains upon Applicant regarding all wind energy siting statutes and concerning all wind energy siting rules throughout every stage of the proceeding.  Gordon v. St. Mary’s Healthcare Ctr., 617 N.W.2d 151   The facts and issues regarding the denial of due process of the law raised by Intervenors also reflect Applicant’s failure to meet its statutory and administrative burden of proof in this proceeding.  Wind farm siting laws and the related administrative rules have disturbed Applicant’s efforts to obtain a permit.  The proposed Application, at the completion of the evidentiary hearing, does not meet Applicant’s burden of proof under which this Commission might have approved a permit — even with proposed conditions.  In this matter the Applicant and Staff submitted proposed permit conditions.  As the record reflects, Intervenors were not invited to, and did not participate in, the writing or negotiation surrounding the creation of the proposed conditions.  Under these circumstances the Intervenors do not accept the terms of the proposed conditions.  Applicant must prove to the Commission compliance with all the elements of South Dakota’s siting statutes and each of the applicable siting rules by a greater convincing force of the evidence.  Applicant’s burden of proof is that the “proposed facility will comply with all applicable laws and rules.”  That’s not a maybe. That’s not a might.  The Applicant is not allowed to get kind of close to complying with applicable laws and rules.  An applicant must comply with all applicable laws and rules.  Applicant has not done this.

5.      In this proceeding are the Applicant’s requested 45 db(A) and 50 db(A) sound levels for the proposed project standards which the Commission should approve?  No.  Are Applicant’s requested 45 db(A) and 50 db(A) sound levels supported by the testimony and writings of Staff witness Hessler and supported by the testimony and writings of Applicant’s principle health witness Ollson?  No.  Applicant must prove to the Commission compliance with all the elements of South Dakota’s siting statutes and each of the applicable siting rules by a greater convincing force of the evidence.  Applicant has failed to meet that burden on the issue of health and welfare.  SDCL 49-41B-22(3)   Staff witness Hessler wrote in a 2011 professional article that 40 db(A) is recommended.  Staff witness Hessler testified in a prior 2018 South Dakota PUC hearing that 40 db(A) should be the design goal.  Staff Witness Hessler advised the Minnesota Public Service Commission in a 2011 report that any new project should maintain a mean sound level of 40 db(A) or less. Staff witness Hessler advised the Wisconsin Public Service Commission in a 2012 report that a 39.5 db(A) or less should be used for all non-participating residences. Staff witness Hessler testified in the current proceeding that for many years he recommended as the ideal performance level of 40 db(A).  Staff witness Hessler testified also in the present preceding that he recommended 40 db(A) as an ideal design goal.   Staff witness Hessler acknowledged as his professional opinion that a 40 db(A) for every non participant was recommended.  Staff witness Hessler reported in his pre-filed testimony in this proceeding that anytime sound levels are higher than about 40 db(A) he anticipates complaints with the number of complaints and the severity of complaints increasing exponentially as sound levels approach 50 db(A). Staff witness Hessler told the Commission that 40 db(A) sound level maximums would be better for the public than 42 db(A).  Staff witness Hessler testified that 40 db(A)  would be acceptable to the welfare of the public as a permit condition.  Staff witness Hessler testified in this proceeding that he agreed with a professional article found at Exhibit I – 8 reporting that the level of 40 db(A) is a design goal intended to protect the public.  Staff witness Hessler also agreed with a 2017 professional article at Exhibit I-4 indicating that wind turbine farms designed to a level of 40 db(A) or lower for  non-participating receptors have an acceptable community response.  Staff witness Hessler acknowledged that a report he gave to the Wisconsin Public Service Commission recommended a 40 db(A) level for non-participating residences.  Applicant’s principle health Witness Christopher Ollson agreed that a 2011 World Health Organization noise guideline of 40 db(A) is a health-based limit value.  Applicant witness Ollson acknowledged he wrote in a 2014 professional article recommending that preference should be given to sound emissions of approximately 40 db(A) for non-participating receptors and that this level was the same as the World Health Organization night noise guideline. Applicant’s witness Ollson wrote in a 2014 presentation that noise from wind turbines can be annoying to some and associated with sleep disturbance especially when found at levels greater than 40 db(A).  Applicant’s witness Ollson wrote in a 2014 presentation that preference should be given to sound emissions of 40 db(A) or less for non-participating individuals.   Ollson further testified that the limit of 40 db(A) or less for non-participating was the same guideline as the World Health Organization guideline.  Applicant’s witness Ollson admitted that he had previously testified in a 2014 Canadian wind farm proceeding that 40 db(A) was reasonable and sufficient to protect against human effects.  Ollson also testified he had recommended in a prior application proceeding that best practices include a preference for sound emissions of 40 db(A) or less for non-participating receptors.  In his testimony in this proceeding Applicant witness Ollson acknowledged that he expressed a preference to be given to sound dimensions of 40 db(A) or less for non-participating receptors in a 2014 professional article he had written.  When asked in this proceeding, Ollson stated that he had not changed any of his writings or his opinion on the opinion recommending sound emissions of 40 db(A) or less.  Intervenor’s Proposed Findings of Fact and Conclusions of Law cite to and provide reference to the record on the above statements for each of the two witnesses.  The preceding is substantial evidence, by Applicant and Staff witnesses, against approving Applicant’s requested sound level standards in this proceeding.  Considering this evidence, Applicant has not presented its case for sound standards with a greater convincing force of the evidence.  The Commission cannot and should not approve the Applicant’s requested sound standards for the proposed project.

  •     When one considers the essential information needed to obtain permit approval under wind energy siting law, one appreciates the law’s purpose in requiring that an applicant place before all interested parties a competent and full disclosure as well as a public explanation of how the proposed project complies with applicable siting law and rules and how the project would affect the health, safety and welfare of inhabitants.  Applicant has not met its burden of proof under the administrative rules and under wind energy siting statutes.  By way of illustration, Applicant states that it may agree to move 7 turbines because of the opinion of Staff witness Hessler who recommended to the Commission that 16 turbine locations should be moved.  Staff witness Hessler testified, “The 16 units that I believe are unduly and unnecessarily affecting non-participating residences are circled in black. . .”  (citation for  the record and quotations in this Post-Hearing Brief are found in Intervenors’ Proposed Findings of Fact and Conclusions of law)  The recommendation Staff witness Hessler expressed to the Commission regarding the welfare of inhabitants is not reflected in the proposed minimal acts of Applicant.  Applicant suggested it may move seven of the recommended 16 turbines. “Q. You’re not going to move 16 of them? A. We have agreed to moving seven turbine locations. Q. You haven’t agreed to move 16? A. That’s correct. We agreed to move 7.”  Applicant’s position is far from a commitment to do what is recommended.  And further, Applicant does not represent to the Commission that the 7 turbine sites which it may move are to be withdrawn sites or are to be terminated as project turbine location sites.  Applicant will still maintain those 7 sites as a ‘back up.’  None of this ‘moving of 7 turbines’ complies with the Staff witness’ recommendations.  Applicant is not taking adequate action to protect the health, safety and welfare of project inhabitants.  The Applicant’s several witnesses in this proceeding do not show any dispute or criticism regarding the recommendations of Mr. Hessler that 16 turbines should be relocated.  Applicant’s proposed action does not adequately protect non-participators.  This effort to sway to the Commission is too little.  Applicant is over-careful regarding its own interests at the expense of the project community, the inhabitants and non-participators.  A proposed move of a minimal number of the turbine relocations contrary to the recommendation by Staff witness Hessler does not meet Applicant’s burden of proof regarding the health and welfare of the inhabitants pursuant to SDCL 49-41B-22(3).

7.      The materially incomplete Application is shown by the lack of a full avian use survey report.  Applicant’s purported avian study for the proposed project is found at Appendix E of the Application. The study ended in November of 2017.  See page 58 of Appendix E.  The avian use survey report fails to include a significant portion of the proposed project.  The northeast area of the proposed project was not included in the report.  This unsurveyed project area consists of 15,500 acres of land and 25 proposed turbine sites or alternate turbine sites.  Applicant’s avian survey map, Exhibit A1-E p2, reveals the failure to survey this large northeastern area of the project. The map included with the survey is Applicant’s document filed in support of its assertion that Applicant completed a survey of the proposed project area. The northeastern area of the project was acquired by the Applicant at the end of November 2017 but well over one year before the Applicant formally filed the pending Application.  Application Exhibit A1 p 88 “Cattle Ridge Wind Farm, LLC was acquired by the CRW on November 22, 2017 for inclusion with the Project.”   Applicant did not do an avian use survey report on the northeast area of the proposed project.  The fact that the Application contains no avian use study of the completed project area is confirmed by Applicant witness Sappington’s testimony.  “Mr. Ganje Q. I would refer you to Exhibit A1-E…”  “Mr. Ganje Q. So then no avian study report was done for that portion of the project, was it? Sarah Sappington A. No Avian Use Survey.”  The dashed lines on A1-E show the limits of the survey area.   “Q. I would ask you please to refer to A1-B page 80.  And is the — referring now to page 80 of the exhibit, please. Is page 80 the colored area, the area of interest that was studied by your company?” Sarah Sappington “A. This was studied as of July 2017.  Q. Yes. And does that study area include the northeastern portion of the proposed project that I referred to you in a previous question and showed you on a previous map? A. Are you referring to that northeast portion? Q. That is correct. A. No. This map does not have it.”  The purple area shown on A1-B does not include the northeast area of the proposed project.  And, Figure 1 of the “study area” on page 2 of the Avian Use Survey Report is clear evidence the Application is materially incomplete.  See Appendix E to the Application.  Applicant cannot be granted a permit by the Commission.

8.      In this proceeding the problem of denial of the Intervenors’ due process rights is set forth with citations in the findings and conclusions found at Exhibit A to this Brief.  The lack of due process issue is stark. The issue warrants a review in this Brief.  The right to be informed of, to access, to know and to challenge an Application is not available to Intervenors where material information has not been timely placed on the record – even at the end of the final evidentiary hearing.  Applicant has not implemented a fair and adequate procedure under which Intervenors could understand the facts necessary for the Commission to reach a decision.  Applicant has not followed a fair and adequate procedure necessary for the Commission to reach a decision on the impacts of the proposed project.  Since the day of filing the Application, Interveners have been deprived of adequate information from which to understand, research and challenge the Application under its ever-evolving and materially-changed proposed project. Up to the last day of the hearing substantial and material proposed project changes were submitted to the Commission.  Adequate notice and due process of law do not permit an applicant in such a complicated public siting process to change material facts and technical representations on the final day and at the final hour of the submission of evidence.  Further, the Application is still incomplete in multiple, material respects, and should be denied by the Commission.

9.      Instances of denial of due process. 

9a.)   At the close of the evidentiary hearing, Applicant filed two documents Exhibits: A67 and A68, as so-called updated shadow flicker tables.  The shadow flicker tables list 70 nonparticipating and 61 participating receptors, which are homes, with 4 participants listed as pending. The table is missing 56 of 59 of nonparticipators receptors in Stockholm and Waverly.  Exhibit A1 page 75   And at this late date Intervenors still do not know the participators.  Applicant fails to provide information on who is participating, who is not, and the effects on these receptors.  Of the 131 receptors listed on the table, more than half are non-participators and this table does not include the 56 non-participating receptors in the two towns inside the proposed project.  This brings the total of the non-participators inside the project boundary at 129 vs 61 participating.  In the last 2 days of the evidentiary hearing Applicant submitted exhibits A57, A67 and A68. The exhibits are presented as updated sound and flicker modeling for the proposed project. Except for modeling four receptors in Waverly and one in or near Stockholm, Applicant failed to consider, model or include receptors and residences in the towns of Stockholm and Waverly.  While the proposed project offers setbacks away from the towns of Waverly and Stockholm, setbacks do not address the issue of the effects of sound and flicker on the residences of Waverly and Stockholm.  The Applicant’s modeling buffer zone, as well as the proposed project site, includes the towns of Waverly and Stockholm, but Applicant did not consider, model or include all the receptors and residences in the two towns.  The large number of town residences within the proposed project is identified in the Application.   See Application page 75  Applicant did not do complete sound and flicker modeling for Waverly and Stockholm.  Applicant’s evidence is void of material and necessary information concerning the consequences of sound and flicker on the residents of Stockholm and Waverly.  The lack of relevant and material evidence makes it impossible for Intervenors to evaluate a complete Application which covers 53,186 acres of South Dakota.

 9b.)  Applicant’s astonishing last-minute presentation of Application evidence included Exhibit A55 –Proposed Turbine Drops and Moves.  This exhibit was presented to the Intervenors and the Commission on the first day of the evidentiary hearing June 11th, 2019.  Revealing for the first time in a 6 month application process several proposed turbine drops and several proposed turbine moves.  This last-minute disclosure did not provide adequate and timely notice to Intervenors on a substantive and material aspect of the Application.  Applicant’s Exhibit A55 represents that turbines will be ‘dropped’ from the project.  However the testimony of Applicant witness Wilhelm at the evidentiary hearing contradicts this proposition.  Mr. Wilhelm testified during the evidentiary hearing that, 1. The turbines will not be dropped but will actually be reserved for possible later use, and that, 2. The relocation of the turbines that Applicant offered to move is not to be disclosed.  Applicant provided no coordinates for the turbines to be relocated.  Further, the so-called dropped turbines proposed do not address witness Hessler’s recommended 16 turbine relocations.  The representations of Applicant regarding the so-called dropped turbines, and Applicant’s suggested turbines to be moved, found in Exhibit A55 are misleading at best.  Turbines identified as CRII – 127 and CRII – 129 are included among the so-called dropped turbines.  These turbines are not turbines sites for the proposed project. These turbines sites are part of a different wind farm project altogether.  And, three turbine sites to be ‘moved’ (CR II Alt 3, CRII 126, CRII 133) are not a part of the proposed project. The three turbines are a part of a different wind farm project altogether.  Further, and just as material, Applicant’s proposal found in Exhibit A55 does not move ten of the turbines sites recommended to the Commission by Staff witness Mr. Hessler for relocation.  See Exhibit S1a   Applicant provides no designated placement sites for the ‘moves’ it suggests it would make.  The map produced by Applicant at A55 and the accompanying proposal is an attempt by Applicant to offer something of no relevant value to the legitimacy of the proposed Application in exchange for approval of the proposed project by the Commission, the Intervenors and the affected property owners.  Applicant’s proposal should be labeled a dance of dissemblance.  The lack of relevant and material information makes it impossible for Intervenors to timely evaluate a completed Application which covers 53,186 acres of South Dakota. 

9c.)   Although it is a requirement of the permit process, the Applicant did not timely file documents needed to evaluate the Application and its impacts to the environment and citizens.  Applicant represented from and after January 2019 that no turbines would be placed on grasslands or wetlands.  Application page 79   Applicant’s representation is not true.  On June 4, 2019 Intervenors learned through data request responses in Exhibit A45-3 the matter of missing USFWS easements.  An Applicant may only place turbines on the upland portion of a federal wetlands easement parcel. The maps submitted by Applicant do not adequately reflect the location of wind turbines on parcels designated as federal wetlands parcels.    In this proceeding a reasonable person cannot determine the location of turbines proposed to be located in the 7 wetland parcels.  The lack of relevant and material information makes it impossible for Intervenors to evaluate a completed Application for a proposed project that covers 53,186 acres of South Dakota, without all the required information timely provided. 

9d.)  Applicant misled the parties concerning a claimed, completed Avian Study. The Applicant provided an incomplete Avian Study in which 15,500 acres were not included, although the written Application represents that all such matters are good to go.  And Applicant did not provide biological studies and information concerning native grasslands and mammals. The lack of relevant and material information makes it impossible for Intervenors to evaluate a completed Application for a proposed project that covers 53,186 acres of South Dakota, without all the required information timely provided. 

9e.)  Intervenors’ Second Motion to Deny provides an illustration of the Applicant’s failure to timely disclose and failure to provide proper notice, adequate information and failure to provide Intervenors due process.  In paragraph 14 of the Patrick Lynch affidavit in support of the motion, Applicant’s misrepresentation to the record, to the Commission and to Intervenors is recited. Patrick Lynch Affidavit filed 5/17/2019   The Lynch Affidavit reveals Applicant’s failure to disclose a material fact.  Until Applicant was obliged to respond to the Second Motion, Applicant withheld the fact that it did not have legal access to 25 proposed turbine locations.  In its motion response Applicant did not deny Applicant’s lack of an easement, even though Applicant had represented in its filings from January 2019 until the Second Motion was filed (the end of May 2019) that it had legal access to the 25 proposed turbines. The false representation was made for 4 months of the 6 month application process allowed by law.  Applicant knew the easement did not exist.  And in response to the Second Motion Applicant further admitted there were six expired land agreements; while in a separate disclosure in June 2019 Applicant admitted that there were seven material land agreements necessary for the project. Without knowledge of the location of turbines, the location of easements and collection lines it is and was impossible for Intervenors to understand, research and timely challenge a completed Application

10.     Intervenors incorporate by reference into this Brief:  Intervenors’ filed Brief in support of their First Motion to Deny and Dismiss, Intervenors’ filed Reply Brief in support of their First Motion to Deny and Dismiss, Intervenors’ filed Brief in support of their Second Motion to Deny and Dismiss, and Intervenors’ filed Reply Brief in support of their Second Motion to Deny and Dismiss.  Intervenors also incorporate by reference into this Brief Intervenors’ hearing Brief on Intervenors’ Motion to Strike testimony of witness Haley.

                                                CONCLUSION

11.      The Application does not meet the criteria required by South Dakota Codified Laws.  The construction of the project does not meet the requirements of South Dakota Codified Law 49-41B.   Applicant has not demonstrated that the proposed facility will comply with all applicable laws and rules.  Applicant has not demonstrated that the facility will not pose a threat of serious injury to the environment nor to the social and economic condition of inhabitants or expected inhabitants in the siting area.  Applicant has not demonstrated that the facility will not substantially impair the health, safety or welfare of the inhabitants. 

12.      Even if reviewed in the best light (which is not the legal standard for assuring a party due process of the law, and does not comply with Applicant’s required burden of proof) the pending Application is murky, muddled, incomplete and with material information unknown.  The Commission and the Intervenors should not have this many unanswered questions, and the Applicant unfulfilled legal obligations, all at this stage of the proceeding. Because there are so many and because of the significance of the unanswered questions as well as an incomplete Application, the Commission should deny the permit application.  Further, based upon the arguments described in this Post-Hearing Brief and based upon the findings and law described in Intervenors’ Proposed Findings of Fact and Conclusions of Law the Application should be denied.  In addition, the application process in this proceeding has denied and infringed upon Intervenors’ due process rights including their opportunity to be heard at a meaningful time and in a meaningful manner. Mathews v. Eldridge, 424 U.S. 319, 333 (1976). The Applicant has failed to meet its burden of proof under SDCL 49-41B-22 and ARSD 20:10:01:15.01.  The Application should be denied.

Dated this _____ day of __________, 2019

/s/ David L Ganje

Ganje Law Offices

17220 N Boswell Blvd   Suite 130L, Sun City, AZ 85373

Web: lexenergy.net

Phone 605 385 0330

Proposed Campbell County Temporary Zoning ORDINANCE #2019-1

Posted on: January 28th, 2019
by David Ganje

To:  Campbell County Commissioners

 

From:  David L Ganje, attorney   //   605 385 0330

davidganje@ganjelaw.com

 

Re: Proposed Campbell County Temporary Zoning ORDINANCE #2019-1  (called in this memo the “proposed ordinance”) ((reference also made to the first memo I sent to the Commissioners, which is on file with Campbell County Auditor and is dated August 15th, 2018))

  1. PROPOSED ORDINANCE CONTAINS INAPPROPRIATE SUBJECTS. As a whole, the proposed ordinance was not reviewed by those in charge. Extensive subjects are included in the temporary ordinance which are not a part of a temporary, emergency ordinance under South Dakota law. The ordinance covers several subjects immaterial to wind energy development. Under state law, temporary ordinances are not to be comprehensive. A temporary zoning ordinance “regulates uses and related matters as constitutes the emergency.”[i] The immediate issue before the commission is the proposed phase 2 of a wind energy project. Yet the proposed ordinance addresses “Bed and Breakfast Establishments,” “Concentrated Animal Feeding Operations,” “Asphalt Mixing Plants,” and other non-wind farm matters. The proposed ordinance contains improper subjects “not necessary to protect the public health, safety, and public welfare.” This is particularly true because Campbell County does not yet have, and has not yet publicly considered or adopted, a written comprehensive zoning plan for the county. It is unusual for a law-drafter to put in more language than is necessary when writing a law. The proposed ordinance leaves me puzzled and concerned.  That which “constitutes an emergency” is not 99 pages of stuff dealing with bed and breakfasts, CAFOs, asphalt plants and the like.
  2. PROPOSED ORDINANCE IS A FULLY INTEGRATED ZONING ORDINANCE. The 99 page proposed ordinance cannot be legally adopted. It is a fully integrated planning and zoning ordinance — it even presents itself as such. It is not an emergency, temporary ordinance.  By way of illustration, the following language is found in the proposed ordinance, “WHEREAS, the Planning Commission and Board of County Commissioners has given due public notice to a hearing relating to zoning districts, regulations, and restrictions, and has held such public hearings.” Not only is this false—no such public hearings will be held before February 7th, 2019—these procedures are not for temporary zoning ordinances, they are for a fully integrated zoning ordinances, which are comprehensive. The word ‘temporary’ only shows up once in the whole ordinance — in its title. Just as problematic, the proposed ordinance asserts a comprehensive plan has been adopted by the county. This has not occurred. The county has not adopted a comprehensive plan. These statements and assertions are false. A fully integrated zoning ordinance cannot be enacted under the state’s temporary zoning statute.
  3. THE COMMISSION CANNOT ADOPT THE PROPOSED ORDINANCE. Because the proposed ordinance contains subjects unrelated to an emergency and holds itself out to be a fully integrated zoning ordinance, it is not a “temporary zoning ordinance.” The county did not follow lawful procedures for ordinance adoption. SDLC Chapter 11-2 requires two separate and publicly noticed meetings for a county to enact a general zoning ordinance that is not temporary.  First, after public notice, “[t]he planning commission shall hold at least one public hearing on the … zoning ordinance [and] … submit its recommendation to the board.”[ii] Second, “[a]fter receiving the recommendation of the planning commission[,] the board shall hold at least one public hearing on the … zoning ordinance[.]”[iii] These two provisions require at a minimum two public meetings for zoning ordinance adoption.  Without correct content and procedures an ordinance is invalid, and it may be challenged.[iv]
  4. ONLY THE PHASE 2 PROJECT DEVELOPER WAS CONSULTED ON PROPOSED ORDINANCE. It is inappropriate that the commissioners held no public meetings or public working meetings with residents on the proposed ordinance yet consulted with a project developer (sometimes called an operator or facility owner). On January 18th, a representative of the county, its zoning expert, told me the Campbell County Commissioners sought the advice of c­­ounty residents, the county state’s attorney, and the developer for the phase 2 wind farm project on the ordinance. My clients are not aware of any county resident that was approached by the commissioners. I know I was not approached by the commissioners, even though I submitted for my clients an extensive memo that addressed the ordinance last August. I am concerned about a conflict of interest for commissioners should a wind farm developer later seek a permit from the same county officials, some of whom may have worked with the developer in the writing of the very same proposed ordinance.
  5. FAILURE IN ORDINANCE WRITING PROCESS — NO PUBLIC ADVICE. On the subject of a new wind ordinance, in the August memo referenced above, I asked the commission not to do everything at the last minute: “Campbell County in July outsourced to a consulting agency the preparation of a wind farm zoning ordinance. I understand the county wishes to adopt an emergency and temporary ordinance. While commissioners will be the ones to formally adopt any ordinance after normal county public notice procedures, it is respectfully submitted that the process would be well served by requiring that the consultants themselves seek public input from landowners and residents at the early drafting stage, rather than wait until final ordinance readings.” In this memo, I also asked the commission to make efforts to educate the public early in the process: “I respectfully suggest the commission regard in a comprehensive manner, and help the public understand, any proposed ordinance as well as related land use issues …. Uncertainty… often leads to controversy.” The recent 99 page proposed ordinance was just sprung on the public. Why weren’t there any commission work sessions open to the public for a committee or the commission to discuss the ordinance terms? Why didn’t the county’s hired expert hold any public listening sessions? In August of 2018, I invited the commissioners to contact me. Neither I nor my clients heard from them. Neither I nor my clients heard from any special committee members the commissioners appointed either. Finally, on January 16th, 2019, the commission issued a 99 page proposed ordinance and—at the same time—set one public hearing for it. Interested residents and landowners experienced radio silence concerning the language of a proposed ordinance from July 2018 until the proposed ordinance was filed and presented to the public for the first time on January 16th, 2019. While the commission may argue it is acceptable to hold only one public meeting at the end of a serious lawmaking process, I observe here a disregard by the county for any meaningful participation in the lawmaking process by interested county residents.
  6. PROPOSED ORDINANCE IS 99 PAGES. We have a handsome number of legal issues in the proposed ordinance. The commission should nevertheless please understand I was not hired to write an ordinance. Please further understand it is not my charge to either rewrite the proposed ordinance or to critique the whole 99 pages. Therefore, I will, wherever possible, only address the current emergency zoning issue at hand, which means the proposed ordinance’s language and terms related to wind energy. In addressing the various legal issues the commission should please recall that an emergency and temporary ordinance should “protect the public health, safety, and public welfare.”
  7. SETBACK PROVISIONS IN PROPOSED ORDINANCE ARE INADEQUATE. We start with paragraph 5.24.03.2. of the proposed ordinance, entitled “setbacks.” The proposed language provides for a greater setback from a town than it does from a rural residence. That is unsupportable – a home is the same wherever a home is.[v] Further, a relevant portion of the proposed ordinance states, “Distance from existing off-site residences, shall be at least one thousand (3,960) feet.” The numbers (3,960) do not reflect the stated distance (one thousand feet). The preceding quoted language is vague, void, and not enforceable. Equally as important, the suggested setback distances in the proposed ordinance are inadequate. I submit the correct distance from off-site residences in the proposed ordinance should be “one and a half (1 ½) miles.” A distance of a mile or more is found in South Dakota[vi] and in other jurisdictions[vii]. “If there is a consensus among independent authorities, it is for more distant setbacks, measured in miles. The same pattern is shown in jurisdictions that have taken the time to research the topic and reach their own independent conclusions.[viii] The proposed ordinance only protects “existing” off-site residences and measures this setback from a “primary building.” The word “existing” causes ambiguity in the proposed ordinance (i.e., how do we know if a residence is “existing,” who determines if a residence is “existing,” etc.?) It also prejudices future non-commercial construction and development of rural private property. What if my clients, or any private citizen, wants to construct a residence on a property after the ordinance is adopted? Future construction is not protected by the current ordinance terms.
    Sub-paragraph 5.24.03.2.b. should read: “Distance from off-site residences, business, churches, and buildings or structures, shall be at least one and one-half (1 ½) miles. Distance to be measured from the wall line of the neighboring principal buildings to the base of the WES turbine.”
  1. PROPOSED ORDINANCE DOES NOT PROTECT ROADS. County road haul agreements are contracts between the county and a developer. These standard agreements REQUIRE permitted wind farm developers or those completing other county permitted activities to restore public roads back to their original condition.[ix] Written road haul agreements are useful and are quite common throughout the state. The boilerplate (one might call it form language) Campbell County language in the proposed ordinance DOES NOT require a road haul agreement.[x] This Campbell County language was unsuccessfully used a few years ago in another South Dakota county; in 2016, Codington County adopted identical ordinance language.[xi] But in 2018, Codington County experienced road problems and amended its ordinance.[xii] Road damage needed to be addressed in the ordinance. The template language did not protect the county and its residents from road damage, which was allegedly caused by wind farm development.[xiii] The exact language Campbell County wants to adopt failed to protect Codington County roads because it did not require a road haul agreement. Why would Campbell County adopt the same “cut and paste” language without considering its history? Why the county take did six months to write and pay others to write an ordinance whose form language all but guarantees problems from the get-go? The Campbell County language is a cut and paste job from other ordinances. The danger of “cutting and pasting” from other old ordinances is one of the risks I mentioned in the August memo. That advice was ignored by Campbell County ordinance drafters.
    The following ordinance language is reasonable: Along with a written and county approved county road haul agreement, it is required, at the time of permitting a project, that a project applicant must prove financial assurance is in place to promptly repair damaged county roads. 
  1. NO REQUIREMENT FOR SITE PLAN AND ENGINEERING DRAWINGS. The proposed ordinance does not have a requirement for a developer to submit a site plan and engineering drawings when the developer files a conditional use permit application. The only requirement is to submit a site plan and engineering drawings “for the feeder lines before commencing construction.” Under the proposed ordinance, the public has no information on the technical terms and nature of a proposed new project even though the county could still “approve” such a project.
    The following is missing in the proposed ordinance: a conditional use permit application for a project shall include a completed site plan and related engineering drawings.
  1. SERIOUS DECOMMISSIONING PROBLEMS IN PROPOSED ORDINANCE. Under the proposed ordinance, a decommissioning plan IS NOT to be publicly filed until “120 days after construction is completed.” Under this ordinance term, a wind farm would be fully completed and then, and only then, would the developer tell the public how it handles the project’s “end game.”[xiv] Further, the ordinance provides NO PUBLIC REVIEW, hearing, and approval process for a decommissioning plan. The developer sets the terms without consideration of a public hearing and approval process. The public and county should have a right to understand and approve the specifications a developer has in its written decommissioning plan at the same time the developer seeks approval for the very project. It is a little late for the car owner to buy car insurance after he has had an accident.[xv] The construction of any wind development project is significant.[xvi] Under the proposed ordinance, for example, the developer only has an obligation to remove underground cables, foundations, buildings, and ancillary equipment to a depth of four (4) feet. Contemporary turbines are larger than in the past, electrical requirements are critical, more roads are necessary, and wiring and cabling of substations is expensive and requires a lot of construction activity.[xvii] Should all of this development be approved by the county without the public first being told how it will all be dismantled by the operator if and when dismantling becomes necessary? If a developer knows its plan, does the economic tests for project feasibility like a cost-benefit analysis, and takes the advice of engineers and experts who have reviewed and approved a proposed project, then that developer will also have sufficient project information and technical savvy to — at the same time as applying for a permit — disclose how the developer plans to decommission its project.
  2. NO PUBLIC NOTICE AND HEARING FOR SOIL EROSION PLANS. The proposed ordinance does not require any public participation or county approval—all following a public hearing with requisite notice— on the important matter of a soil erosion, dust management, and sediment control plan.[xviii] The ordinance merely requires a developer “file” a soil plan. Further, under the proposed ordinance the plan need not be filed at the time of the permit application. The proposed ordinance, throughout, consistently allows for modest disclosure without an effort to provide due process for county residents and property owners.
  3. NO ADEQUATE BONDING REQUIRED FOR WIND ENERGY PROJECTS.  The proposed requirements for financial assurance are nonexistent. The proposed ordinance states, “After the tenth (10th) year of operation of a [wind farm], the Board may require a performance bond. . . .” The Board is not required to set a bond or required to ask for financial assurance of any type. The county has the authority to waive the requirement entirely or set it too low to really matter. Financial assurance by the developer should be required at the time the project is approved. Projects involving some government oversight are usually regulated because of a project’s environmental or property rights impact. The purpose of regulation is to safeguard the public in the event of a problem arising from such a project. End-of-life decommissioning is a common contingency event.  Proper planning, evolving around the full life of a proposed project, is key.  But government is not always well endowed with the skills to protect the public from end-of-life events. What if a project is abandoned or bankrupt in year one, two or three? And indeed what are the financial criterion for the county in setting the financial amount for a project? There are none under the proposed ordinance. Recent experiences in South Dakota on this subject spotlight this problem. A few years back, a state-licensed grain company (in the old days we called them grain elevators) by the name of Anderson Seed Company went belly up. Authority for setting bonds was then and still is given to the S.D. PUC. The bond for Anderson was set at $100,000 — $2.6 million was lost. The insolvency of the company resulted in a little over 4 cents on the dollar paid back to those parties who lost money in the insolvency. The bond was inadequate. The payout to the innocent grain sellers/producers was inadequate. The end-of-life planning was not well done. This experience resulted in a change in the law, but that change is itself an incomplete effort at planning a project end-of-life, that is, a decommissioning event.
  4. NO LIABILITY INSURANCE REQUIREMENT IN PROPOSED ORDINANCE.  The proposed ordinance has no insurance requirements for a wind farm operation or wind farm construction. Why would Campbell County not require general liability insurance on a large construction project and also not have the county named as an additional insured? The U.S. Department of Energy recommends local wind ordinances have an insurance provision.
    One recommendation states there “shall be maintained a current general liability policy covering bodily injury and property damage. Certificates shall be made available to the county.”
  1. PROPOSED ORDINANCE DOES NOT REQUIRE ANY INDUSTRY STANDARDS.     The proposed ordinance does not require inclusion of wind industry standards for construction, operation or demolition of a wind farm project, other than those required for aircraft safety.  However the Campbell County proposed ordinance requires industry standards for other non-wind projects. Why would a wind farm project get a free pass on industry standards when other non-wind farm projects to be approved by the county do not get a free pass on industry standards?
    An acceptable industry standard for a wind energy facility would state, “The design of a Wind Energy Facility shall conform to applicable industry standards, including those of the American National Standards Institute.  The Applicant shall submit certificates of design compliance obtained from relevant certifying organizations.”
  1. CONCLUSION AND ADVISORY NOTE.  This memo does not cover all legal issues that exist on the proposed ordinance. You are respectfully advised that issues, statements, and questions presented herein do not constitute a complete statement of, or a waiver of, any legal rights my clients may have now or in the future.

 

Thank you.

 

Endnotes (Matters The Commission Should Also Read And Consider)

[i] SDCL § 11-2-10.1 (2018) (South Dakota’s temporary zoning statute).

[ii] SDLC § 11-2-18 (2018).

[iii] SDLC § 11-2-19 (2018).

[iv] See Wedel v. Beadle County Com’n, 2016 S.D. 59 (S.D. 2016) (citation omitted).

[v] See Robert Bryce, Wind power is an attack on rural America, Los Angeles Times (Feb. 27, 2017) (“Rural residents are objecting to wind …. They don’t want to live next door to industrial-scale wind farms. They don’t want to see the red-blinking lights …, all night, every night for the rest of their lives. Nor do they want to be subjected to the audible and inaudible noise ….”), at https://www.latimes.com/opinion/op-ed/la-oe-bryce-backlash-against-wind-energy-20170227-story.html.

 

[vi] See David Ganje, Wind turbines ordinances revisited, Capital Journal (Nov. 8, 2017) (discussing South Dakota’s Lincoln and Walworth County setbacks, which exceed one mile) (“A[n] expert in property valuations … used a [] two-mile minimum as a benchmark for turbine setbacks.”), at https://www.capjournal.com/opinions/columnist/wind-turbine-ordinances-revisited/article.html.

[vii] Trempealeau County, Wisc. (1-mile setback from all homes and workplaces); Mason County, Ky. (1-mile setbacks at property line, shadow flicker limitations, decommissioning); Sumner, Me. (1-mile setback from property line, low-frequency noise/shadow flicker limitations, decommissioning). Each county name is a link to the actual ordinance.

[viii] See Tony Fleming, Wind Ordinance Debate: The 1,000-foot Set-Back Standard (Are environmentalists underregulating themselves?), Master Resource (Jan. 23, 2012), https://www.masterresource.org/wind-offset-distance/wind-ordinance-offset-debate/.

[ix] See Paul W. Wilke, Road Use Agreements to Mitigate Impacts of Energy Developments on Low Volume Roads, Applied Research Ass’n (2017) (On average, 43 truckloads are needed to build 1 wind tower foundation, 35 truckloads for the main crane of each wind tower, 25 truckloads for support cranes for each wind tower, and 313 truckloads per mile of road built), at https://www.countyengineers.org/assets/Presentations/2017/wed 2pmfinan wilke.pdf.

[x] Campbell County Ordinance #2019-1 § 5.22.03 (2018).

[xi] Codington County Amended Ordinance # 68 § 5.22.03 (2018), at https://www.codington.org/wp-content/uploads/2018/04/Ordinance-68-Wind-Energy-Systems-1.pdf.

[xii] Id. at § 5.22.03.1.f.ii. (Requiring road agreement approved by county); id. at § 5.22.03.15.ii.b., d., g., h., i. (Amending mitigation and CUP application requirements to address problems with haul roads).

[xiii] See J.T. Fey, County working on road haul agreement with Apex Energy, Watertown Public Opinion (Aug. 8, 2018) (The commissioners had dealt with another road haul issue before.”) J.T. Fey, Concerned citizen raises question about road damage, Watertown Public Opinion (July 27, 2018) (“[D]amage to a Codington County road has one citizen concerned about … construction on wind towers ….”).

[xiv] See Joshua Conaway, Be Aggressive with Wind Energy: Blow Away the Decommissioning Fears, 2 Oil & Gas, Nat. Resources & Energy J.621 (2017) (“Without proper regulations, a strong likelihood exists that these turbines will remain in place long after their useful lives have expired.”), at http://digitalcommons.law.ou.edu/onej/vol2/iss6/3.

[xv] See David Ganje, Wind Energy Development Memo // Decommissioning (2018), at http://www.windaction.org/ganje-memo-on-decommissioning.

[xvi] See Hayes Stripling, Wind Energy’s Dirty Word: Decommissioning, 95 Tex. L. Rev. 123 (Nov. 2016) (There is no easy answer for when a surety bond should be required. But “[w]hat is clear is that …  security [should] be in place on or before a project’s payout date.”), at http://texaslawreview.org/stripling.

[xvii] Id. (Avg. of 10 WES decommissioning cost $129,000 per turbine, ranging from $27,000 to over $650,000 per turbine.); see also Conaway supra note XIV (“These costs, if allocated on a per-turbine basis, are $25,899 and $92,463 respectively per turbine, solely for road removal.”) (emphasis added).

[xviii] Lisa Linowes, The Incompatibility of Wind and Crop ‘Farming’, Master Resource (July 1, 2013) (“[F]armers tell us that the ground is never the same…. The [once] fertile soil around the towers is … compacted resulting in lower crop yields. Since compaction is assumed to be a construction-related impact, crop-loss payments are often time-limited …. However, … the massive cranes [are] brought back … throughout the life of the project. And it’s not limited to existing roads or turbine pads….”), https://www.masterresource.org/linowes-lisa/incompatibility-wind-crop-farming/.

Dispelling the myth that South Dakota is a private property state

Posted on: March 1st, 2018
by David Ganje

The legislature is considering a pending animal waste pipeline bill which gives business interests the right to apply under existing statutes to create private animal waste pipelines over other landowner’s private property along rights of way. Concerning property rights the SD Supreme Court has held, “It is universally recognized that an owner of land abutting on a conventional street or highway has certain private rights in the street or highway distinct from that of the general public. . . Right of access is one of these private property rights which cannot be taken for public use or materially impaired without compensation. . . This has long been the settled law of this state.” This new 2018 bill (HB 1184) allows for animal waste pipelines by piggy-backing animal waste pipeline authorization into existing law. These existing statutes give county commissions the authority to take private property for use by telephone companies as well as electrical power companies or municipalities in the course of using and distributing electrical power and telephone services. These statutes have a “public use” basis to their existence. The pending bill specifically allows for the, “laying and construction of force mains to dispose of animal waste.”

The bill is an advocacy piece granting for-profit businesses the use of public rights-of-way for the purpose of transporting waste over another landowner’s property. In the world of business such transportation expenses are accepted as the costs of doing business, and are usually included in an operation’s business plan and cost projections.

The legislature’s problem with this new bill is that public rights-of-way are often on private property. By way of illustration, a property owner’s land may be taken by the government for highway and road purposes. When these rights-of-way are created other supplemental rights may arise such as the right to hunt or fish on the right of way, but the property itself is still owned by the property owner.

Creating a right-of-way does not however take away the owner’s title to the land. This continued ownership is significant enough to be secured by the state constitution which provides that title to land taken for highways remains with the landowner. (SD Const Art VI, § 13.) Yet this bill would have a neighbor’s property available as a ‘public highway’ for another neighbor’s business purposes all without compensation. How the can this bill be considered a property rights law? It cannot. Confined animal feedlot operations are not a public utility. A legislature should not by fiat convert a private business or enterprise into a pseudo public utility.

In 2006 the South Dakota legislature became so concerned about misuse by government agencies on the issue of taking property for private use that it created a new law which holds that no county, municipality, or housing and redevelopment commission may acquire private property by use of eminent domain for transfer to any private person, nongovernmental entity, or other public-private business entity. The legislature in passing its general condemnation and eminent domain laws also restricts it to the taking or damaging of private property for public use.

For such a disposal of animal waste bill to be constitutional it should either provide for compensation to a landowner for the use of private property, or the legislature should require a finding that a private landowner’s property rights may be infringed in order to preserve the general public welfare (not private welfare.) The bill provides for no compensation and provides for no direction that the process make a finding that property rights may be imposed upon to preserve the general public welfare.

David Ganje practices in the area of natural resources, environmental and commercial law.