National Post

Dakota Access line ordered to shut down

Fears over danger to water supply

-

A u.s. court ordered the shutdown of the dakota Access oil pipeline Monday over concerns about its potential environmen­tal impact, a big win for the Native American tribes and green groups who fought the major pipeline’s route across a crucial water supply for years.

The decision by u.s. district Court for the district of Columbia followed the cancellati­on of another high-profile u.s. pipeline project Sunday and came as a blow to the Trump administra­tion’s efforts to lift the domestic fossil fuels industry by rolling back environmen­tal red tape.

According to the ruling, the u.s. Army Corps of engineers violated the National environmen­tal Policy Act (NEPA) when it granted an easement to energy Transfer LP to construct and operate a segment of the oil pipeline beneath Lake Oahe in South dakota, because they failed to produce an adequate environmen­tal Impact Statement (EIS).

The court ordered energy Transfer to shut and empty the 570,000 barrel-per-day line within 30 days, closing off the biggest artery transporti­ng crude oil out of North dakota’s Bakken shale basin to Midwest and Gulf Coast regions.

“Given the seriousnes­s of the Corps’ NEPA 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,” it said.

It is rare for regulators or officials to force an oil pipeline to be drained, unless it is in the aftermath of a spill, oil market sources said.

energy Transfer said it is looking at legal and administra­tive measures to avoid a shutdown, and was considerin­g an appeal if those efforts fail.

Preparing a thorough EIS could take about 13 months, according to an estimate by the Army Corps.

Consultanc­y Rapidan energy Group said the ruling casts long-term doubts over the future of the pipeline, which has only been operating for about three years.

“With odds of a temporary stay on appeal only 30 per cent, the court-ordered DAPL shutdown on Aug. 5 should last at least 10-12 months if donald Trump wins re-election and permanentl­y if not,” said in a note.

The ruling comes a day after dominion energy Inc. and duke energy Corp. decided to abandon the us$8-billion Atlantic coast Pipeline, meant to move

West Virginia natural gas to east Coast markets, after a long delay to clear legal roadblocks almost doubled its estimated cost.

Native American and environmen­tal groups cheered the dakota Access court ruling.

“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 chairman Mike Faith of the Standing Rock Sioux Tribe, which had led protests and legal efforts against the project.

“This pipeline should have never been built here. We told them that from the beginning.”

Greenpeace USA climate director Janet Redman called the pipeline setbacks a victory in the fight against climate change.

The Trump administra­tion, Republican lawmakers and industry groups, meanwhile, blamed activists and said the pipeline setbacks would cost the u.s. economy.

“I’m not quite sure what they’re cheering except for perhaps the loss of jobs all throughout America,” u.s. energy Secretary dan Brouillett­e said on Fox Business Network.

“Shutting down the dakota Access Pipeline would have devastatin­g consequenc­es to North dakota and to America’s energy security. This terrible ruling should be promptly appealed,” said North dakota Sen. Kevin Cramer, a Trump ally.

democratic presidenti­al candidate Joe Biden’s campaign declined to comment.

The American Petroleum Institute, the nation’s main oil and gas industry lobby group, called for urgent reform of the permitting system and the Associatio­n of Oil Pipe Lines (AOPL) said that if this decision is not reversed on appeal, American people will be deprived of affordable energy.

Large investors in the pipeline could be on the hook for hundreds of millions in payments, according to a Reuters review of company disclosure­s.

Refiner Phillips 66, an investor in the project, said shutting down the pipeline would throw the country’s crude supply system out of balance and jeopardize national security.

Oil prices have plunged this year as the coronaviru­s pandemic eroded global demand by nearly 30 per cent in April.

Shutting down the pipeline will cause significan­t disruption to DAPL, the North dakota oil industry and potentiall­y other states, the court said. But clear precedent favouring a decision for the pipeline to be emptied and the seriousnes­s of the Corps’ deficienci­es outweighs the negative effects of halting the oil flow for the 13 months to create an EIS, the court said.

 ?? ROBYN BECK / AFP / GETTY IMAGES ?? Protesters march to a Dakota Access Pipeline constructi­on site in 2016. A court has ordered the pipeline closed.
ROBYN BECK / AFP / GETTY IMAGES Protesters march to a Dakota Access Pipeline constructi­on site in 2016. A court has ordered the pipeline closed.

Newspapers in English

Newspapers from Canada