Page 8 - NorthAmOil Week 21 2021

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

Court allows Dakota Access to keep

operating during environmental review

US MIDWEST A US federal district court ruled last week that Opponents of pipeline projects more broadly
the Dakota Access pipeline should not be forced and Dakota Access in particular had hoped that
to shut down while a new environmental review after cancelling the cross-border permit for the
is carried out. According to the May 21 ruling, Keystone XL pipeline on his first day in office,
there is a minimal threat of oil spills from the Biden would now turn his attention to other
pipeline but the risk fails to rise to the necessary contentious pipeline projects. However, Biden
“irreparable harm” level needed to shut it down. did not take the chance to intervene in the pro-
The ruling can be appealed against, but comes ject, which he could have done via the US Army
a relief for operator Energy Transfer, which is in Corps of Engineers, which is carrying out the
the unusual position of requiring a new envi- new environmental review for Dakota Access.
ronmental review for a pipeline that has already Instead, the Army Corps passed the decision
been operational for some time. Last year, a on whether the pipeline should keep operating
judge vacated a permit allowing Dakota Access over the environmental review period back to
to operate, raising the possibility that it could the courts. The possibility that the Biden admin-
be shut down while a more thorough environ- istration will change its mind on intervening in The ruling is also
mental review was completed – or indeed upon such pipeline cases in the future cannot be ruled
completion of the review. out, however. good news for
The case is being closely watched, given that it The Army Corps anticipates completing the
could set a precedent for future attempts to force new environmental review by March 2022. It is Enbridge’s Line 5
shutdowns of operational pipelines and other still possible that the new review will not go in
energy infrastructure. Dakota Access’ favour, but given that the regu- pipeline, which is
Energy Transfer has been fighting to keep lator has previously approved the pipeline, this at the centre of
the pipeline open, and has sought to stress its would be at least a little surprising.
importance to energy security and the scale of In the meantime, producers in the Bakken a fight with the
disruption that would be caused if regulators play are likely to feel more confident about ramp-
or courts opted to shut it down. Dakota Access ing up production in the knowledge that suffi- State of Michigan.
has the capacity to carry 570,000 barrels per day cient takeaway capacity will be available.
(bpd) from North Dakota’s Bakken play to Illi- The ruling is also good news for Enbridge’s
nois. In the event of a shutdown, some of that oil Line 5 pipeline, which is at the centre of a fight
could be shipped by rail instead, but this would with the State of Michigan and could also face a
create transport bottlenecks in the region, given shutdown. Michigan Governor Gretchen Whit-
that North Dakota relies on rail to transport over mer has ordered Enbridge to shut the pipeline
70% of its agricultural production. while the case is being resolved – a demand with
However, in the wake of the court ruling and which Enbridge is not complying. While the
US President Joe Biden’s decision not to inter- matter will ultimately be decided in court, it now
vene in the pipeline case, Dakota Access is in a looks less likely that Enbridge could be forced to
stronger position than before. suspend operations before a verdict is reached.™

P8 www. NEWSBASE .com Week 21 27•May•2021