South Dakota’s Public Utilities Commission appears to be on the verge of denying a pipeline construction permit to Iowa-based Summit Carbon Solutions.

The IOWA Utilities Board hearing on Summit’s request to build its carbon pipeline through Iowa started in August. A similar hearing before South Dakota regulators is scheduled to start Monday. However, the Sioux Falls Argus Leader is reporting a motion filed by staff for South Dakota’s Public Utilities Commission states Summit’s proposed route in South Dakota does not follow ordinances in four South Dakota counties. Those counties require buffer zones between the pipelines and city limits as well as around homes. The document filed in South Dakota says that mans the company’s permit application violates South Dakota law.

Summit could resubmit its construction permit application in South Dakota if it gets waivers from counties or changes the pipeline route in South Dakota. Summit Carbon Solutions has proposed a two-thousand mile pipeline through Iowa and four other states to ship liquid carbon from Midwest ethanol plants to underground storage in North Dakota.