Setback for Energy Transfer: Dakota Pipeline Denied Permits

Dakota Access Pipeline denied easement

Energy Transfer Group companies including Energy Transfer Partners (ETP), Sunoco Logistics Partners (SXL), and Energy Transfer Equity (ETE) received a major setback. The U.S. Army Corps of Engineers denied easement for the Dakota Access Pipeline to construct a section of pipeline under Lake Oahe.

Setback for Energy Transfer: Dakota Pipeline Denied Permits

“The Army will not grant an easement to cross Lake Oahe at the proposed location based on the current record” noted a statement issued by the U.S. Army. According to Jo-Ellen Darcy, assistant secretary of the U.S. Army, “The best way to complete that work responsibly and expeditiously is to explore alternate routes for the pipeline crossing.” Earlier, the U.S. Army Corps of Engineers got input from the Standing Rock Sioux Tribe regarding the proposed pipelines.

Native Americans and environmental activists protested against the current route of the Dakota Access Pipeline because it passes through North Dakota’s Lake Oahe. Lake Oahe is a burial site and a major source of drinking water for the Standing Rock Sioux reservation settled along the Missouri River.

Management’s commentary

Energy Transfer issued a statement after the announcement by the U.S. Army Corps of Engineers. It said that the decisions were “purely political action.” According to the related press release, “This is nothing new from this Administration, since over the last four months the Administration has demonstrated by its action and inaction that it intended to delay a decision in this matter until President Obama is out of office.” Energy Transfer ruled out any options to reroute the pipeline. In the next part, we’ll look at how the Dakota Access Pipeline easement denial could impact Energy Transfer.