Page 10 - NorthAmOil Week 06 2021

NorthAmOil PIPELINES & TRANSPORT NorthAmOil

The decision on the fate
of the existing Dakota
Access pipeline is still
being awaited.

Pipeline battles in the spotlight

US SEVERAL high-profile battles are under way to predict that Biden could yet attempt to shut
to determine the fate of major oil and gas pipe- down Dakota Access, and indeed, oil prices in
line projects in the US. Some of these fights are North Dakota have surged to their highest level
being watched particularly closely in the wake in around six months, which has been attributed
of US President Joe Biden’s cancellation of the in part to doubts over the fate of the pipeline.
cross-border permit for the Keystone XL oil Even without any kind of intervention from
pipeline, which effectively killed that project. Biden, the US Army Corps of Engineers can In recent days
Much of the focus has since shifted to the order Dakota Access to be shut down if its envi-
Dakota Access oil pipeline out of North Dakota. ronmental review finds that the pipeline should a federal
The pipeline has been embroiled in a court case, not be operating.
with a judge ordering a new environmental Separately, in recent days a federal court court denied a
impact review for the project last year, after it had denied a request to halt construction on
already been operational since 2017. In late Jan- Enbridge’s Line 3 oil pipeline replacement across request to halt
uary, a federal appeals court upheld this ruling. northern Minnesota, upholding a water quality construction on
And this week the federal government – which is permit granted to the project by the Army Corps.
reviewing former US President Donald Trump’s The judge said the tribal and environmental Enbridge’s Line
oil and gas policies – asked for more time to groups that filed for an injunction in December
bring new officials up to speed on the Dakota had failed to prove that any permanent harm 3 oil pipeline
Access case. As a result, a hearing scheduled for would result from allowing the work to proceed.
this week has been moved to April 9. Indeed, the judge ruled that the harm of stop- replacement.
There is speculation that Biden could opt to ping construction, which began on December 1,
order a shutdown of Dakota Access – though this outweighed the environmental risks of the Line
would be an unprecedented move given that the 3 replacement.
pipeline is already in operation. However, Biden Meanwhile, it emerged last week that a dis-
is taking a tougher line than Trump on envi- pute over the $1bn PennEast pipeline, which
ronmental goals – and former President Barack is being blocked by the State of New Jersey,
Obama, under whom Biden served as vice-pres- would be heard by the US Supreme Court.
ident, had sought, unsuccessfully, to block Energy groups have welcomed the news that the
Dakota Access in 2016. This has prompted some Supreme Court will hear this case.™

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