Policy Bulletin 308 - Crop Damage, Site Acquisition, and Eminent Domain​
Adopted 2007/12, Revised 2014/12
​

1. Crop Damage:
   

   1. General. Grassland and fallow damage will be paid for damages caused by the original construction of the main transmission pipeline as is provided herein; also, crop damages will be paid for the original construction ofthe mian transmission pipeline and for the operation ofthe secondary distribution pipeline as is provided in subparagraph (g).
   2. Definition. "Main transmission pipeline" means pipeline as defined in policy no. 101.
   3. Crop Damage. If crops are damaged because of the installation of main transmission pipeline, the owner or owners (as their interests may appear) of the crops shall be compensated based upon that crop year's actual average yield for the field in which the damage occurs, with compensation to be based upon the price of the damaged crop at thetimeofharvest. Reasonable harvesting costs shall be deducted from the amount of compensation.
   4. Damages from Continuing Operation. Southern Black Hills will reimburse the owner or owners (as their interest may appear) for crop damage resulting from the repair, operation and maintenance of main transmission pipeline as well as secondary main distribution pipeline. Southern Black Hills will only pay crop damage which accrued after that protion o f the pipeline has been constructed and is in operation. Also, this Policy Statement does not relieve any contractor which might be deemed responsible for the crop damage as may be provided in contract documents between Southern Black Hills and the contractor. Southern Black Hills will assist the owner or owners of the crop when making claims against the contractor for crop damages. Compensation for crop damages shall be based upon that crop year's actual average yield for the field in question, based upon the price of the damaged crop at the time of harvest.
   5. Determination of Damages. If the owner or owners and Southern Black Hills cannot agree upon the amount of crop damage, then such damages will be ascertained and determined by three disinterested persons, one to be appointed by the owner or owners, one to be appointed by Southern Black Hills and a third to be appointed by the two previously appointed individuals. Their determination of damages shall be binding upon the owner and Southern Black Hills.

2. Site Acquisition.
   Southern Black Hills will negotiate with the owner of the subject real estate to arrive at a mutually acceptable purchase price of sites for secondary pumping stations, pneumatic pump stations, main line pressure- reducing or control valves and water storage tanks. If Southern Black Hills deems it appropriate, Southern Black Hills will engage the services of a qualified third party to appraise some of the larger sites. The appraised price will then be used as a base for further negotiations.
3. Eminent Domain.
   Nothing contained in this policy shall be construed as a waiver of Southern Black Hills power of Eminent Domain.