Dakota Access Pipeline must close, judge orders


In its decision, the United States District Court for the District of Columbia evicted an easement granted by the US Army Corps of Engineers that allowed Dakota Access to build a segment of the pipeline under Lake Oahe in North Dakota and South Dakota.

The court had previously ruled that the Corps violated the National Environmental Policy Act when it granted the easement because it had not produced an Environmental Impact Statement.

Now the court says the pipeline should be closed and emptied while the environmental impact report is being prepared. The Corps has said that it will take approximately 13 months to create such a report.

“Fearing serious environmental consequences, American Indian tribes on nearby reserves have sought for several years to invalidate federal permits that allow the Dakota Access pipeline to transport oil under the lake,” wrote Judge James Boasberg in the ruling. “Today they finally achieve that goal, at least for the moment.”

Spanning more than 1,100 miles, the pipeline transports crude from the North Dakota Bakken oil shale oil field to a key center in Illinois, where it can be transported to refineries on the Gulf Coast or the East Coast.

The court acknowledged that the shutdown will cause “disruption,” but said “the seriousness of the Corps’ deficiencies outweighs the negative effects of stopping the flow of oil for the thirteen months,” the review is estimated to take. The National Environmental Policy Act of 1970 (NEPA) requires agencies to consider the environmental consequences of their actions, including permit approvals.

“Today is a historic day for the Standing Rock Sioux Tribe and the many people who have supported us in the fight against the pipeline,” said Mike Faith, president of the Standing Rock Sioux Tribe, in a statement. “This pipeline should never have been built here. We told you that from the beginning.”

Energy transfer (ET), which developed the pipeline, did not immediately respond to a request for comment. Shares of the energy company fell 7% on Monday, a strong selloff compared to a broad rally in the stock market. Analysts say Energy Transfer will likely appeal the closing order.

If Biden wins, the pipeline could be in trouble

The ruling marks a setback for President Donald Trump’s energy domination agenda. Within days of taking office in January 2017, Trump signed executive actions that advanced both Dakota Access and the Keystone XL pipeline.

“The court’s frustration with what it sees as the Trump administration’s sloppy handling of NEPA reviews has finally faded,” Bob McNally, president of consultancy Rapidan Energy Group, told CNN Business.

The ruling suggests that the fate of the pipeline could now be related to the November presidential elections.

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“If Donald Trump wins, DAPL could restart after 10-12 months, assuming a solid NEPA overhaul would follow,” said McNally, a former energy official under President George W. Bush. “Yes [Joe] Biden wins, we believe DAPL is indeed dead. ”

After months of protests and lawsuits, the Dakota Access Pipeline began operating in June 2017. The $ 3.7 billion project spans 1,172 miles and transports crude from the North Dakota shale fields to Illinois.

Opponents have argued that the pipeline could contaminate drinking water and destroy Native American burial and prayer sites.

“It took four long years, but today justice has been done at Standing Rock,” Jan Hasselman, an Earthjustice attorney representing the Standing Rock Sioux tribe, said in a statement. “If the events of 2020 have taught us anything, it is that health and justice must be prioritized from the beginning in any decision-making process if we want to avoid a crisis later on.”

‘Terrible failure’

Dakota Access supporters criticized the decision.

“Today’s order to close Dakota Access jeopardizes our national and energy security and raises important concerns about the future of US investment in energy infrastructure,” said Craig Stevens, spokesman for the GAIN Coalition, which promotes key investments in infrastructure.

Stevens noted that since its launch three years ago, the Dakota Access Pipeline has safely transported more than half a million barrels of oil per day.

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“Despite its safe operation and having received the necessary permits and approval from state and federal regulators, Judge Boasberg has decided to side with environmental activists to shut down our nation’s critical natural resources,” said Stevens.

Republican Senator Kevin Cramer of North Dakota warned of “devastating consequences” for his state and for the nation’s energy security.

“This terrible ruling must be quickly appealed,” Cramer wrote in a statement.

The orderly closure of Dakota Access comes just a day after the cancellation of the Atlantic Coast Pipeline, a natural gas pipeline announced in 2014. Dominion Energy and Duke Energy (DUK) They said they decided that continued delays, litigation and expected cost increases threatened the viability of the project, which faced intense criticism and legal challenges from environmental and other groups.
Richmond, Virginia Domain (re) promises to become a “pure game” regulated clean energy company. The utility announced Sunday a $ 10 billion deal to sell natural gas transmission and storage assets to Warren Buffett’s. Berkshire Hathaway (BRKA).

The American Petroleum Institute, which represents oil and gas companies, said the ruling proves that the United States’ permit system is broken.

“Between the cancellation of the Atlantic Coast pipeline and now the decision to close the Dakota Access pipeline, we are deeply concerned about these setbacks for the energy leadership of the United States,” said Mike Sommers, CEO of the American Petroleum Institute. “Our nation’s outdated and convoluted permitting rules are opening the door to a barrage of groundless litigation, led by activists, undermining American energy progress and denying local communities the environmental, labor and economic benefits of modern pipelines “

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