George Nelson | Oct 01 2025 14:00
Rails-to-Trails in South Dakota: Do Landowners Have Compensation Rights?
Understanding Rails-to-Trails
Across South Dakota, abandoned rail corridors are being converted into public recreational trails under the federal Trails Act—a process known as railbanking. While these projects benefit communities and outdoor enthusiasts, they often come at the expense of private landowners whose property lies beneath or alongside the former railroad tracks. In many cases, the land was never fully owned by the railroad but held only as an easement. When the railroad stops using the land for rail purposes, ownership should revert to the landowner. If it doesn’t, you may be entitled to compensation through Rails-to-Trails litigation.
How the Trails Act affects South Dakota landowners
Under the National Trails System Act, the federal government can delay the formal abandonment of a railroad line to allow trail groups to assume management of the corridor. This prevents the land from reverting to adjoining owners, effectively imposing a new public-use easement. Courts—including the U.S. Court of Federal Claims—have repeatedly ruled that this process can amount to a Fifth Amendment taking. Landowners from Pennington County to Charles Mix County and beyond have valid claims for the fair market value of the land used for trails, even when the government frames it as a temporary conversion.
The compensation process for landowners
When a Notice of Interim Trail Use (NITU) is issued, the clock starts ticking for affected landowners. To recover compensation, your attorney will:
- Review property deeds and railroad easement records.
- Determine whether the easement legally terminated.
- File a claim in the U.S. Court of Federal Claims within the required timeframe.
- Work with expert appraisers to establish the fair market value of the taken property.
- These cases often involve multiple landowners along the same corridor, which can make joint representation more efficient and cost-effective.
Why local representation matters
Many South Dakota landowners are unaware that a recreational trail could legally affect their property rights. Federal agencies and trail groups sometimes give minimal notice before conversion begins. A Rails-to-Trails litigation attorney familiar with both federal takings law and South Dakota property law can help protect your interests. George Nelson has represented landowners across the state and understands the complex overlap between federal policy, historical easement records, and local property rights.
Challenges and opportunities in Rails-to-Trails cases
Railroad land cases are highly technical, but they often result in meaningful compensation for landowners who act quickly. The federal government defends these claims aggressively, so having an attorney who knows the process is essential. Even if your property lies in a rural area near Sturgis, Custer, or Hot Springs, or on agricultural land outside Rapid City, your rights remain the same. Don’t assume that “public use” means you have no say—these claims exist to protect landowners like you.
Learn more and take the next step
If you’ve received notice that a railroad corridor near your property may become a public trail, or you’ve seen new construction on former rail land, contact us immediately. George Nelson represents South Dakota landowners in Rails-to-Trails litigation to ensure they receive the compensation they deserve. Learn more on our Rails-to-Trails Litigation page or reach out directly for a consultation. We’re proud to help protect property rights across Rapid City and throughout Western South Dakota.