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SD Democrat Will Propose Bonding For Oil Pipelines

January 14, 2012, 10:18 AM

SD Democrat Will Propose Bonding For Oil Pipelines
PIERRE, SD - Senate Democratic Leader Jason Frerichs of Wilmot says he will ask the South Dakota Legislature
to approve a measure requiring any company building a large oil pipeline to post a $500 million bond to cover damage in case of leaks.

Frerichs says Nebraska has imposed a similar bonding requirement on the proposed TransCanada Keystone XL pipeline that also would cross South Dakota as it carries oil from Canada to the Gulf Coast.

He says Nebraska also has won a change in the route, and Montana and North Dakota have agreements to connect the pipeline to oil fields in those states.

Frerichs says South Dakota also should require bonding to cover damage to underground water supplies that would arise from a leak.

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