The U.S. Army Corps of Engineers asked a federal appeals court to reinstate Dakota Access Pipeline permit and reverse a lower court’s ruling
““The district court’s decision will create a new, heightened standard of judicial review that will be impossible for agencies to meet as they consider vital infrastructure projects,” ACE said in the brief.”Reuters, 8/26/2020
Source article (opens in new tab): U.S. Army Corps asks appeals court to reverse Dakota Access pipeline ruling
- U.S. Army Corps of Engineers requested a reversal of a ruling that vacated an environmental permit allowing the Dakota Access crude oil pipeline to operate on U.S. land.
- In early August, a federal judge ordered the U.S. Army Corps of Engineers (ACE) to detail options by the end of the month for resolving the loss of the permit.
- The loss of the permit could require pipeline owner Energy Transfer to shut and drain the 570 MBbl/d pipeline, the biggest in the Bakken region.
The loss of DAPL would have a major impact on Bakken price differentials. The discount to Cushing for Bakken crude is around $2/Bbl for the Clearbrook forward curve. A $2/Bbl discount is likely not pricing in the high likelihood of DAPL going offline since the Bakken without DAPL would probably command a steeper discount as producers utilize more crude-by-rail.