Court Orders Dakota Access Pipeline To Shut Down Pending Environmental ReviewForbes, by Elana Lyn Gross, Jul 6, 2020
Three years after the Dakota Access pipeline first started carrying oil, a federal judge ordered Monday that the pipeline must be shut down during a court-ordered environmental review that is necessary because the U.S. government violated federal environmental law, in a decision seen as a victory for the Standing Rock Sioux Tribe and a defeat for the oil industry and President Donald Trump, who backed it in 2017.
- In 2016, the Standing Rock Sioux, Cheyenne River Sioux and other American Indian tribes sued the U.S. Army Corps of Engineers for approving the Dakota Access pipeline, saying it put tribal water supplies and cultural resources at risk.
- The Obama administration paused the project in 2016 after thousands of pipeline opponents protested, but Trump put it back on track after taking office in 2017.
- U.S. District Judge James Boasberg wrote that the court found that the U.S. Amy Corps of Engineers violated the National Environmental Policy Act when it granted an easement to Dakota Access to create a segment of the crude-oil pipeline without writing the required Environmental Impact Statement.
- Energy Transfer Partners, the parent company of the Dakota Access pipeline, argued that the project could lose as much as $643 million in 2020 and $1.4 billion in 2021 and that the shutdown would have serious consequences for the North Dakota oil industry and the entire state of North Dakota because its economy is largely dependent on revenue from oil and gas taxes; the tribes argued that the projections were “wildly exaggerated” because a collapse in oil prices, demand and production had already caused production to plummet.
- The court noted the “serious effects” the shutdown would have for many states, companies and workers but wrote that, “given the seriousness of the Corps’ … error, the impossibility of a simple fix, the fact that Dakota Access did assume much of its economic risk knowingly, and the potential harm each day the pipeline operates, the Court is forced to conclude that the flow of oil must cease.”
- Energy Transfer told Bloomberg Law it plans to immediately ask Boasberg to freeze the decision and will head to the U.S. Court of Appeals if the request is denied.
“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,” Standing Rock Sioux Tribal Chairman Mike Faith said in a statement provided to Bloomberg Law. “This pipeline should have never been built here. We told them that from the beginning.”
The decision states that the pipeline must be shut down within 30 days and can not re-open until the report is created. The court expects it will take 13 months.