[Editor’s note: This article was updated at 2:40 p.m. CT July 9.]
A U.S. federal judge on July 9 rejected the latest effort by Dakota Access, LLC, to avoid a court-ordered shutdown of its 570,000 bbl/d oil pipeline, paving the way for the company to file an appeal with a higher court.
The decision marks the latest legal twist since the U.S. District Court for the District of Columbia this week ordered the largest oil pipeline out of North Dakota to shut and empty within 30 days because of a faulty environmental permit.
Dakota Access had asked the court to stay its order pending a legal challenge—a measure that would have bought it more time to comply—after the court had rejected an emergency request for reconsideration.
District Judge James Boasberg said in a hearing July 9 he would not reconsider his order but would allow Dakota Access to negotiate with Native American tribes on granting more time to shut and empty the pipeline.
RELATED:
Despite DAPL Setback, Energy Transfer Vows to Keep Fighting
A portion of the line runs under South Dakota’s Lake Oahe, a drinking-water source for the Standing Rock Sioux tribe, which long opposed the pipeline.
Dakota Access said it would prefer the judge deny the request outright so it could pursue its appeal in a higher court.
“We want to get to the D.C. Circuit (court) to be able to seek a stay if your honor won’t give us one,” David Debold, a lawyer for Dakota Access, said at the hearing.
Boasberg said he would do so by the end of the day.
Dakota Access, controlled by Energy Transfer LP, says it would lose $2.8 million to $3.5 million each day the line is idled in 2020 and as much as $1.4 billion for the whole of next year. Purging the line, which runs 1,172 miles (1,886 km) from the Bakken shale region in North Dakota to Patoka, Illinois, would take about three months and cost roughly $27 million, it said.
Recommended Reading
Beyond Energy: EnergyNet Expands Marketplace For Land, Real Assets
2024-09-03 - A pioneer in facilitating online oil and gas A&D transactions, EnergyNet is expanding its reach into surface land, renewables and other asset classes.
Weatherford Announces Acquisition of Technology Company Datagration
2024-09-03 - The acquisition gives Weatherford International digital offerings for production and asset optimization and demonstrates its commitment to continuously driving innovation across its technology portfolio, the company said.
Voyager Midstream Buys Haynesville G&P Assets from Phillips 66
2024-09-03 - Voyager Midstream acquired about 550 miles of natural gas pipelines, 400 MMcf/d of gas processing capacity and 12,000 bbl/d of NGL production capacity.
DNO Buys Stakes in Five Norwegian Sea Fields from Vår Energi
2024-09-03 - DNO’s acquisition of stakes from Vår Energi includes interests in four producing fields—Norne, Skuld, Urd and Marulk— and the Verdande development.
Transocean Scores $232MM Contract for Deepwater Atlas
2024-09-11 - Transocean’s newest $232 million ultra-deepwater contract follows the company’s $123 million contract for six wells offshore India by Reliance Industries.