Illinois regulators late on Oct. 14 approved an expansion of the Dakota Access oil pipeline, the largest pipeline running out of North Dakota’s Bakken shale basin, rejecting a bid by environmental groups to block the project.
The Dakota Access Pipeline can transport about 570,000 bbl/d of crude oil from North Dakota to the Midwest, with connections to the Gulf Coast. It had been a source of controversy prior to its completion in 2017, and there is an ongoing legal challenge over whether the line should remain operational after a federal court earlier this year scrapped a key permit.
The Illinois approval is separate from that case.
RELATED:
Despite DAPL Setback, Energy Transfer Vows to Keep Fighting
In an order on Oct. 14, the Illinois Commerce Commission (ICC) said additional pumping stations and equipment needed for the pipeline's capacity to be nearly doubled to 1.1 million bbl/d are necessary and would promote the security and convenience of the public.
"We are pleased with the decision by the ICC ... this now allows us to proceed with the optimization of the pipeline and allows our labor union partners to go to work," Energy Transfer spokeswoman Lisa Coleman said in an email.
Environmental groups including Save Our Illinois Land and the Sierra Club, which opposed the expansion, had told the ICC that the oil price downturn caused by the coronavirus pandemic reduced the need for the expansion.
Sierra Club did not immediately respond to a request for comment.
Last month, Energy Transfer told investors it expects to have expanded capacity available on the line by the third quarter of 2021.
In July, the U.S. district court for the District of Columbia determined that the pipeline violated environmental law and vacated its permit to operate on federal land. The company has appealed the district court's decision.
Recommended Reading
Japan’s JAPEX Backs Former TreadStone Execs’ New E&P Peoria
2025-03-26 - Japanese firm JAPEX U.S. Corp. made an equity investment in Peoria Resources, led by former executives from TreadStone Energy Partners.
Mach Prices Common Units, Closes Flycatcher Deal
2025-02-06 - Mach Natural Resources priced a public offering of common units following the close of $29.8 million of assets near its current holdings in the Ardmore Basin on Jan. 31.
Utica Oil Player Ascent Resources ‘Considering’ an IPO
2025-03-07 - The 12-year-old privately held E&P Ascent Resources produced 2.2 Bcfe/d in the fourth quarter, including 14% liquids from the liquids-rich eastern Ohio Utica.
Phillips 66’s Brouhaha with Activist Investor Elliott Gets Testy
2025-03-05 - Mark E. Lashier, Phillips 66 chairman and CEO, said Elliott Investment Management’s proposals have devolved into a “series of attacks” after the firm proposed seven candidates for the company’s board of directors.
The Private Equity Puzzle: Rebuilding Portfolios After M&A Craze
2025-01-28 - In the Haynesville, Delaware and Utica, Post Oak Energy Capital is supporting companies determined to make a profitable footprint.