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House Commerce and Energy Minutes 3/1/2017 10:00 AM

92nd Legislative Session _ 2017

Committee: House Commerce and Energy
Wednesday, March 01, 2017

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
P    Beal
P    Gosch
P    Greenfield (Lana)
P    Hawley
P    Johnson
P    May
P    McCleerey
P    Mills
P    Pischke
P    Steinhauer
P    Willadsen
P    Zikmund, Vice-Chair
P    Rounds, Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Representative Rounds, Chairman.

MOTION:    TO APPROVE THE MINUTES OF FRIDAY, FEBRUARY 24, 2017

Moved by:    Willadsen
Second by:    Zikmund
Action:    Prevailed by voice vote.

    SB 60: revise certain provisions regarding the sale of consumers power district assets.

Presented by:    Drew Duncan, Heartland Consumer Power District

MOTION:    DO PASS SB 60


Moved by:    Gosch
Second by:    Zikmund
Action:    Prevailed by roll call vote. (11-0-2-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, McCleerey, Mills, Steinhauer, Willadsen, Zikmund, Rounds

Excused:    May, Pischke

MOTION:    PLACE SB 60 ON CONSENT CALENDAR

Moved by:    Gosch
Second by:    Greenfield (Lana)
Action:    Prevailed by voice vote.

    SB 88: revise the definition of an electric transmission facility.

Presented by:    Representative Kettwig (Handouts: #1)
Proponents:    Senator Wiik
        Brett Koenecke, South Dakota Electric Utility Companies
        Bill Van Camp, Next Era Energy
        Steven Kolbeck, Xcel Energy
        Justin Smith, South Dakota Wind Energy Association
        Representative Mills (Handouts: #2)

MOTION:    DO PASS SB 88

Moved by:    Steinhauer
Second by:    Zikmund
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND SB 88

88bb

    On page 1, line 7, of the printed bill, after "highway," insert "all landowners who are both adjoining and within three hundred feet of the transmission line have given written permission,".


Moved by:    Mills
Second by:    Zikmund
Action:    Failed by voice vote.

MOTION: DO PASS SB 88

Moved by:    Steinhauer
Second by:    Zikmund
Action:    Prevailed by roll call vote. (13-0-0-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, Johnson, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen, Zikmund, Rounds

MOTION:    PLACE SB 88 ON CONSENT CALENDAR

Moved by:    Gosch
Second by:    Willadsen
Action:    Failed by voice vote.

    SB 104: protect certain easement holders and rural customers from shutoffs by certain energy companies.

Presented by:    Representative Anderson
Proponents:    Senator Bolin
        Brett Koenecke, South Dakota Electric Utility Companies (Handouts: #3)
        Steve Willard, South Dakota Electric Utility Companies
Opponents:    Laura Demman, Northern Natural Gas
        Margo Northrup, Northern Natural Gas

MOTION:    DO PASS SB 104

Moved by:    Gosch
Second by:    Willadsen
Action:    Was not acted on.

MOTION:    SUBSTITUTE MOTION AMEND SB 104

104df

    On the Senate Commerce and Energy Committee engrossed bill, delete everything after the enacting clause and insert:

"    Section 1. That the code be amended by adding a NEW SECTION to read:

    Terms used in this Act mean:

            (1)    "Farm tap," a natural gas piping connection to an interstate or intrastate transmission pipeline, that is made available to a farm tap customer;

            (2)    "Farm tap customer," a person who receives natural gas through a farm tap distribution system;

            (3)    "Farm tap distribution system," a customer owned pipeline system that extends from an interstate or intrastate transmission pipeline to deliver natural gas to a farm tap customer; and

            (4)    "Farm tap service provider," any third party provider of farm tap distribution system services to:

            (a)    A farm tap customer; or

            (b)    An interstate or intrastate natural gas transmission pipeline holding one or more farm tap easements.

    Section 2. That chapter 43-13 be amended by adding a NEW SECTION to read:

    A farm tap easement is an easement for the location, construction, operation or maintenance of a pipeline which includes, as part of the consideration for the easement, the provision of natural gas to and for the use of the grantor through a direct connection to the pipeline. In any court action seeking enforcement of a farm tap easement, a prevailing grantor or successor to a grantor of a farm tap easement may receive specific performance as a portion of the remedy from the farm tap easement grantee or its successor.

    Section 3. That the code be amended by adding a NEW SECTION to read:

    The farm tap customer is responsible for the safety and reliability of the farm tap distribution system, unless the farm tap customer has contracted with or transferred ownership of his farm tap distribution system to a farm tap service provider pursuant to a written agreement which expressly transfers the responsibility for the safety and reliability of the farm tap distribution system to the farm tap service provider.

    Section 4. That the code be amended by adding a NEW SECTION to read:

    The farm tap customer may not extend service from a farm tap distribution system to a third party without the express written permission of the interstate or intrastate transmission or gathering pipeline operator and the farm tap service provider, if any. Farm tap customer service to any third parties must be separately metered.

    Section 5. That the code be amended by adding a NEW SECTION to read:

    The farm tap service provider is not liable for damages related to or arising out of a farm tap or a farm tap distribution system, unless the damages are solely caused by the negligence of the farm tap service provider.

    Section 6. That § 49-7A-15 be amended to read:

    49-7A-15. Underground facilities owned or operated by the landowner on his own land which do not extend beyond the boundary of the private property are not subject to the provisions of this chapter Any person owning or operating underground facilities, including a farm tap customer owning a farm tap distribution system, which serves third parties or which crosses a property line or is located in a public highway shall register with the one call notification system as an operator pursuant to chapter 49-7A. "



Moved by:    Hawley
Second by:    Mills
Action:    Failed by voice vote.

MOTION:    DO PASS SB 104

Moved by:    Gosch
Second by:    Willadsen
Action:    Prevailed by roll call vote. (10-3-0-0)

Voting Yes:    Beal, Gosch, Greenfield (Lana), Hawley, May, McCleerey, Mills, Pischke, Steinhauer, Willadsen

Voting No:    Johnson, Zikmund, Rounds

MOTION:    ADJOURN

Moved by:    Pischke
Second by:    Beal
Action:    Prevailed by voice vote.

    

Shirley Ellwein

____________________________

Committee Secretary
Tim Rounds, Chair


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