We’re Heading Toward a New Oil‑Gold Rush in the Midwest
Hold onto your hats, because Iowa is about to turn into the biggest copper‑plate of crony capitalism you’ve ever seen.
What’s the Deal?
Governor Kim Reynolds just fired a veto at House File 639. That bill was meant to put handcuffs on the stunt of taking land for Summit Carbon Solutions’ $9 billion CO₂ pipeline. Instead, the governor gave the green light to the grand scheme that many folks are calling a side‑deal heavy with Big Oil’s fingerprints.
Why It Matters
- Hands on land: Eminent domain, the power copy‑edited by the state to seize property, is being weaponised like a hefty sack of money.
- Oil oligarchs: Investors – who have serious ties to the oil industry – are playing devil‑dice with political favors.
- Some folks still digging: The state is attracting the kind of combustible conversations that spill over into suburban lawn parties or back‑room floor‑plans.
What We’re Seeing
Picture a big table, a wall filled with blueprints, and a handful of senators, lawmakers, executives, and gas‑giant insiders swapping thoughts. That’s the reality for those pushing President William “Willy” Big‑Oil to blast through Iowa’s border line with a £9 bn tidal wave of carbon.
Bottom Line
From a political shockwave to a pratfall in the swamp, showing how the “intellectuals”’ high‑falutin heuristics come up short when the real money is on the line: the unwesting of the trinkets that are up to the prime couple’s family.
When Carbon Capture Turns Into a Gilded Pipeline
Meet the Playmaker
Bruce Rastetter isn’t just your average agribusiness tycoon; think of him as the secret chef behind the big‑oil pot. Years of running 57 ethanol plants have fed blendstock to giants like Phillips 66 and Valero, raking in roughly $50–$100 million a year. Now he’s laser‑focused on Summit Carbon Solutions, the newest brainchild that flips the “green” narrative on its head.
The 688‑mile “Eco‑Highway”
- Approved by the Iowa Utilities Board (IUB) on June 25, 2024.
- Snake‑like pipeline stretching 688 miles across 29 counties.
- Zeroes in on 18 million tons of CO₂ per year from those 57 ethanol plants.
- Stores the CO₂ in North Dakota’s Stark County, a mere 5‑15 miles from the Bakken oil fields.
- Panics voters: 45Q tax credits + a $600 million USDA loan guarantee mean tax dollars are on the line.
The “Save‑the‑Planet” Facade
Picture this: a fleet of CO₂ trucks breathing out their load right into tired oil wells, squeezing out more black gold. That’s what Enhanced Oil Recovery (EOR) looks like when you slice through homes, schools, and farms like a highway through the Midwest. Big Oil—think Hess or ExxonMobil—gets a taxpayer‑backed pipeline, and for 5‑15 miles, they’re getting the exact gas they need to keep pumping more oil.
HF 639: The Landowner’s Last Chance
The bill would have required:
- Only “common carriers” with proven public use could claim eminent domain.
- Insurance coverage for any pipeline mishaps.
- Limited the pipeline life to 25 years.
Reality check: Governor Reynolds, with a $175,000 war chest from Summit, slammed the bill away. Her “threat to Iowa’s economy” is a polite way of knocking out the big‑oil dream that aligns with Summit’s goals.
The Constitutional Conundrum
Iowa’s own Constitution (Article I, Section 18) says eminent domain may only be used for a public use. In 2019, the state Supreme Court defied the U.S. Supreme Court’s expand‑on‑economic‑development logic from Kelo v. New London—especially after the Dakota Access pipeline saga. Yet, the IUB signed off on Summit’s application, riding on a flimsy “economic development” rationale that would have been better left in the back‑court.
Cross‑State Pressures & Big Oil’s Footprints
From North Dakota’s Governor Doug Bergum (now Secretary of Interior) to South Dakota’s 2024 ban on eminent domain for CO₂ pipelines, Summit is flexing its financial muscles. The big oil sector, API’s carbon capture push, BlackRock’s fund, and the EPA’s ethanol mandates—all combine into what feels like a corporate heist. The plan is simple: taxpayers fund the infrastructure, corporations keep the profits, and farmers end up with a tragic story of property loss.
Bottom Line
Carbon capture looks green on paper but, in practice, it’s a “Green Trojan Horse” that lets big oil extract more oil under the guise of climate action. Even if lawsuits start to bubble and public outcry grows, the groundwork is already laid—literally, with concrete pipelines inching forward. The heartland’s battle line is drawn, and the stakes are high.