Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. judge orders that Dakota Access oil pipeline can remain open

WorldMay 21, 2021 05:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Law enforcement officers advance into the main opposition camp against the Dakota Access oil pipeline near Cannon Ball, North Dakota, U.S., February 23, 2017. REUTERS/Terray Sylvester/File Photo

By Devika Krishna Kumar

NEW YORK (Reuters) -A U.S. federal court judge on Friday denied a request from Native American tribes to shut the Dakota Access oil pipeline after a key environmental permit was scrapped last year, arguing the tribes had failed to prove the line's continued operation would cause irreversible harm.

The 570,000 barrel per day (bpd) pipeline out of North Dakota that travels under a Missouri River reservoir is now likely to stay running at least until a new federal environmental review is completed next year.

The pipeline's continued operation provides some clarity to market participants after months of uncertainty. A closure of the pipeline threatened to roil oil markets and create congestion on rail lines out of the region.

The pipeline, operated by Dallas-based Energy Transfer (NYSE:ET) LP, entered service in 2017 following months of protests by environmentalists, Native American tribes and their supporters. The pipeline's opponents said its construction destroyed sacred artifacts and posed a threat to Lake Oahe, a critical drinking supply, and the greater Missouri River.

Washington-based U.S. District Judge James Boasberg denied a request for an injunction to shut the pipeline and ordered the parties in the case to file a joint status report by June 11 on potential next steps. The judge said the tribes did not clear the "daunting hurdle" of proving that keeping the line open would create irreparable injury.

The U.S. Army Corps of Engineers is expected to complete its review of the pipeline in March 2022.

Operators of the pipeline, including Energy Transfer, have argued that it has complied with regulatory and safety requirements.

Boasberg last year handed a setback to the pipeline's proponents by stripping it of its permit to cross under Lake Oahe and requiring that portion of the pipeline to undergo an environmental review.

"The Court acknowledges the Tribes' plight, as well as their understandable frustration with a political process in which they all too often seem to come up just short," Boasberg wrote in his decision on Friday.

Energy Transfer did not immediately respond to a request for comment.

"We believe the Dakota Access Pipeline is too dangerous to operate and should be shuttered while environmental and safety implications are studied - but despite our best efforts, today's injunction was not granted," the group Earthjustice, which represents the Standing Rock Sioux tribe in the lawsuit, said in a statement Friday.

"The unacceptable risk of an oil spill, impacts to Tribal sovereignty and harm to drinking water supply must all be examined thoroughly in the months ahead as the U.S. Army Corps conducts its review of this pipeline," Earthjustice added.

Shares of Energy Transfer were up 1.4% to $10.16 following the ruling while shares of Phillips 66 Partners (NYSE:PSXP), which has a stake in the pipeline, rose more than 6%.

Shares of Bakken-focused producers, which would rely on the line, also rose on the news. Oasis Petroleum (NASDAQ:OAS) was up 6.8% to $85.41, while Continental Resources (NYSE:CLR) was up 2.5% to $30.80.

A coalition of businesses, trade associations and labor groups called Grow America's Infrastructure Now (GAIN) applauded the court's decision.

"We continue to believe that if the government and the courts make their decisions based on the facts – not politics – DAPL will be allowed to remain operational," Craig Stevens, spokesman for the GAIN Coalition, using the abbreviation for the Dakota Access pipeline.

"We hope that the administrative process is allowed to move forward, allowing the Army Corps of Engineers to complete its work – free of political pressure," he added.

 

U.S. judge orders that Dakota Access oil pipeline can remain open
 

Related Articles

China’s Virus Flare-Up Stokes Oil-Demand Fears
China’s Virus Flare-Up Stokes Oil-Demand Fears By Bloomberg - Aug 03, 2021

(Bloomberg) -- China is renewing restrictions and canceling flights as a Covid-19 resurgence in Asia’s top oil consumer sends jitters across the crude market. Local governments are...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
OVER CULL
OVER CULL May 23, 2021 3:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good job Judge!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email