The Dakota Access Pipeline remains on track to shut down after a federal judge denied an emergency stay request July 9, but expressed a willingness to extend a deadline beyond Aug. 4 to allow Energy Transfer more time to empty the crude pipeline.
An expedited status hearing was held on July 9, with the quick denial issued in order to allow Dakota Access Pipeline more time to appeal to another court before it is forced to close down pending a more thorough environmental review of the 570,000 b/d pipeline that opened more than three years ago.
Energy Transfer, the pipeline operator, said it would take 86-101 days for the full logistical challenge of emptying and shutting down the pipeline. On July 8, Energy Transfer said it was still keeping the pipeline open and accepting nominations for volumes in August because of the potential for a successful appeal on short notice.
Judge James Boasberg of the US District Court for the District of Columbia said in his July 9 order that he is willing to consider modifications to the timing of the shutdown.
"Dakota Access, mindful of the running clock, told the court that it preferred an immediate ruling denying the motion to stay if the court was only waiting to try to resolve the logistical and timing issues, rather than the merits," Boasberg stated in his latest order. "The court is thus obliging Dakota Access by issuing this expedited order, although it remains willing to assist in mediating (or ultimately deciding) any dispute regarding such logistical and timing issues if jurisdictionally permitted to do so."
The four-state Dakota Access Pipeline originates in North Dakota and runs to a hub near Patoka, Illinois, where it connects with the Energy Transfer Crude Oil Pipeline, which runs to Nederland, Texas. The system provides an outlet for crude producers in the Bakken Shale and Three Forks areas of the Williston Basin to ship their barrels south.
Research firm ClearView Energy Partners said it was possible the US Court of Appeals for the District of Columbia Circuit could act quickly to temporarily stay the pipeline shutdown, but such a stay likely would only remain in place while the court considered the merits of the appeal.
A long fight
Boasberg on July 7 previously denied Energy Transfer's emergency request for a stay, meaning Energy Transfer must rely on appeals or some kind of intervention from the White House.
The unprecedented ruling to shutter an existing pipeline — which was completed three years ago amid a series of intense environmental protests and arrests — came after the judge determined the US Army Corps of Engineers failed to conduct a proper environmental review as required by the National Environmental Policy Act.
Energy Transfer has argued Boasberg exceeded his authority and does not have the jurisdiction to shut down the pipeline or stop the flow of crude oil. However, the pipeline company has said it is not suggesting it would defy any court orders.
The Trump administration has pushed the Corps to fast-track the review processes for pipeline projects that were moving along much more slowly under former President Barack Obama. The industry concern is that if presumptive Democratic nominee Joe Biden beats Trump in November's election, then the Dakota Access Pipeline could be permanently closed and other pipeline projects shelved indefinitely.
