ENTITLED, An Act to protect certain easement holders and rural customers from shutoffs by certain
energy companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
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 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 5. That § 49-7A-15 be amended to read:
49-7A-15. 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.
An Act to protect certain easement holders and rural customers from shutoffs by certain energy
companies.
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I certify that the attached Act
originated in the
SENATE as Bill No. 104
____________________________
Secretary of the Senate
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____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate Bill No. 104
File No. ____
Chapter No. ______
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Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
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The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
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