ET Confident Dakota Access Pipeline Will Not Shut

by Andreas Exarheas | Rigzone Staff | Wednesday, July 08, 2020

Energy Transfer has stated that it is confident that once the law and full record are fully considered the Dakota Access Pipeline will not be shut down.

“We believe that the ruling issued … from Judge Boasberg is not supported by the law or the facts of the case,” Energy Transfer said in a company statement.

“Furthermore, we believe that Judge Boasberg has exceeded his authority in ordering the shutdown of the Dakota Access Pipeline, which has been safely operating for more than three years,” the company added.

“This pipeline is the safest, most environmentally responsible method for moving North Dakota’s crude oil to refining markets around the country. Shutting down this critical piece of infrastructure would throw our country’s crude supply system out of balance, negatively impact several significant industries, inflict more damage on an already struggling economy and jeopardize our national security,” Energy Transfer continued.

The company said the economic implications of the judge’s order are “too big to ignore” and noted that billions of dollars in tax and royalty revenue will be lost by state, local and tribal governments in North Dakota, South Dakota, Iowa and Illinois.

Energy Transfer stated that it would be immediately pursuing “all available legal and administrative processes” and confirmed that it intends to immediately file a motion to stay the decision. If this is not granted, Energy Transfer said will pursue a stay and expedited appeal with the Court of Appeals.

US Energy Sec Disappointed

Commenting on the pipeline ruling, U.S. Secretary of Energy Dan Brouillette said, “it is disappointing that, once again, an energy infrastructure project that provides thousands of jobs and millions of dollars in economic revenue has been shut down by the well-funded environmental lobby”.

“The Dakota Access Pipeline safely provides affordable and reliable American-produced crude oil across the Midwest, and has created approximately 10,000 jobs,” he added.

“Our country is blessed with an abundance of natural resources that can contribute enormously to our economy if we build out the appropriate infrastructure, like the Dakota Access Pipeline, while simultaneously protecting our environment and lowering emissions,” Brouillette continued.

American Petroleum Institute President and CEO, Mike Sommers, said, “between the Atlantic Coast Pipeline cancellation and now the ruling to shut down the Dakota Access Pipeline – we are deeply troubled by these setbacks for U.S. energy leadership”.

“Our nation’s outdated and convoluted permitting rules are opening the door for a barrage of baseless, activist-led litigation, undermining American energy progress and denying local communities the environmental, employment and economic benefits modern pipelines provide,” he added.

On Monday, a U.S. district court ruled that the Dakota Access Pipeline will have to shut by August 5. The pipeline, which went into service on June 1, 2017, transports 570,000 barrels of oil per day, according to Energy Transfer’s website. The asset consists of approximately 1,172 miles of 12, 20, 24 and 30-inch diameter pipeline traversing North Dakota, South Dakota, Iowa and Illinois, Energy Transfer’s website shows.

Energy Transfer owns a 36.37 percent interest in the Bakken Pipeline, which comprises the Dakota Access Pipeline and the ETCO Pipeline. MarEn holds a 36.75 percent stake and PSXP holds a 25 percent interest.

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