NEW YORK—The operators of the Dakota Access oil pipeline (DAPL) argued to a federal court on April 19 that the system’s shutdown would be even more harmful than previously anticipated, in their final plea to keep the line open after a key permit was scrapped.
The operators, led by Energy Transfer, told the U.S. District Court of the District of Columbia that an “immediate economic shock” would occur if the line were shut during a court-ordered environmental review. The company’s revenue losses while closed would be 10% higher than previously projected, at between $3.44 million and $4.28 million per day, they said.
The 570,000 barrel-per-day (bbl/d) DAPL pipeline began operating in 2017 but has been locked in legal battles with Native American tribes and activists since before the line started construction.
Last year, the D.C. Court canceled a permit allowing DAPL to operate below the Lake Oahe waterway in North and South Dakota. DAPL is the biggest system carrying oil from the Bakken shale basin of North Dakota and Montana.
The court also ordered the U.S. Army Corps of Engineers to conduct an environmental review, expected to be completed in March 2022, that will determine whether the line remains permanently open.
The current filing is hoping to sway Judge James Boasberg to keep DAPL open during that process.
The tribes argue that DAPL endangers their water supply from Lake Oahe.
Dakota Access says the line meets the energy needs of the Midwest and Gulf Coast and provides for the economies of North Dakota and other states.
The Corps of Engineers has not sought to shut the line.
The tribes must tell the court by April 23 whether they will respond to DAPL’s filing. A decision on the tribes’ request for the shutdown is expected in May.
Recommended Reading
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Petro-Victory Buys Oil Fields in Brazil’s Potiguar Basin
2025-02-10 - Petro-Victory Energy is growing its footprint in Brazil’s onshore Potiguar Basin with 13 new blocks, the company said Feb. 10.
Report: Diamondback in Talks to Buy Double Eagle IV for ~$5B
2025-02-14 - Diamondback Energy is reportedly in talks to potentially buy fellow Permian producer Double Eagle IV. A deal could be valued at over $5 billion.
Apollo Funds Acquires NatGas Treatment Provider Bold Production Services
2025-02-12 - Funds managed by Apollo Global Management Inc. have acquired a majority interest in Bold Production Services LLC, a provider of natural gas treatment solutions.
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.