This is a developing story.

PIERRE, S.D. (KELO) — The South Dakota Public Utilities Commission has denied a permit for the Summit Carbon Solutions pipeline in the state.

It was the state commission’s first decision as the SCS hearing started Monday morning in Fort Pierre at the Casey Tibbs South Dakota Rodeo Center.

The lead staff attorney for the South Dakota Public Utilities Commission had formally requested Friday that the commission deny the application from SCS Carbon Solutions for a state permit for a proposed carbon-dioxide pipeline.

The attorney, Kristen Edwards, contended that SCS no longer could meet pipeline ordinances passed in four counties. South Dakota law requires that a transmission project meet all state and local requirements.

Commissioner Gary Hanson of Sioux Falls served as the chair for this specific hearing. The governor appointed state Treasurer Joshua Haeder to replace commission chair Kristie Fiegen on this docket. Fiegen had recused herself because of a conflict of interest.

A variety of South Dakota ethanol production facilities intervened on behalf of Summit Carbon Solutions’ application.

Summit attorney Brett Koenecke on Monday asked the commission for leeway to develop a new procedural schedule after commissioner Haeder indicated he would move to deny the permit.

In response, commission staff attorney Edwards suggested Summit could roll the application into a second phase that would add the proposed GEVO plant-based aircraft fuel plant at Lake Preston.

Commissioner Chris Nelson moved to indefinitely continue the permit hearing.

But Hanson said he wouldn’t support Nelson’s motion for an indefinite extension and would instead support Haeder’s motion to deny the permit.

Haeder’s motion to deny then unanimously passed 3-0.

Summit can reapply.