A US Court on Monday ordered Energy Transfer to shut and empty the Dakota Access oil pipeline due to concerns on potential environmental harm. According to the court, the US Army Corps of Engineers failed to provide an adequate Environmental Impact Statement (EIS) when granting allowance to Energy Transfer to build and operate a segment of the pipeline beneath Lake Oahe in South Dakota.
Energy Transfer is given 30 days to shut the 570,000-bpd pipeline which has been the primary transporter of crude oil from North Dakota’s Bakken shale basin to Midwest and Gulf Coast regions. Energy Transfer said it was considering an appeal if legal and administrative measures to avoid shutdown failed.
The company has sought a temporary stay to the order citing expensive steps and time-consuming process to shut the pipeline safely, suggesting that the shutdown may require more than 30 days. It will file a stay pending an appeal in the Washington, DC, circuit court if the one filed tp the district court is denied, the company said.
The shutting of the pipeline became the latest blow to the US fossil fuel projects and came after President Donald Trump pledged to support the industry by rolling back environmental red tape. Previously, Dominion Energy announced the cancellation of the $8-billion Atlantic Coast gas pipeline after years of delays. Separately, the US Supreme Court did not approve the construction of TC Energy Corp’s Keystone XL oil sands pipeline.
