"Environmental Impact Assessment Omitted"... US Court Orders Shutdown of North Dakota Oil Pipeline
Pipeline Already Operating but Must Close Within a Month
[Asia Economy Reporter Naju-seok] A U.S. federal court ordered the suspension of operations of a large oil pipeline currently in operation, citing the failure to properly conduct an environmental impact assessment. This deal a blow to the deregulation policy promoted by U.S. President Donald Trump to increase domestic oil production.
On the 6th (local time), a U.S. federal court ordered the closure of the large oil pipeline "Dakota Access Pipeline (DAPL)," which stretches 1,900 km from North Dakota through Iowa to Illinois, by next month.
This pipeline was built by Dakota Access, a subsidiary of Energy Transfer Partners (ETP), with an investment of $3.8 billion (4.53 trillion KRW), transporting 570,000 barrels per day. The pipeline was expected to be a "game changer" for North Dakota crude oil production. However, environmental activists as well as Native American residents living along the pipeline raised concerns about potential oil spills into water bodies.
For these reasons, during former President Barack Obama's administration, the project was delayed due to the need for additional environmental impact assessments. However, after President Trump took office, the project resumed, and the pipeline began full operation in 2017.
The federal court's decision was based on the issue that the environmental impact assessment, which should have been submitted during the pipeline's construction, was missing. Foreign media interpreted this decision as a victory for Native Americans and environmental groups living in the areas through which the pipeline passes.
According to the court, the U.S. Army Corps of Engineers did not conduct an environmental impact assessment when DAPL was constructed under Lake Oahe. The court ruled that the pipeline cannot operate until the environmental impact assessment is completed. Foreign media expect the report to take 13 months to be released.
In its ruling, the U.S. federal court stated, "Although we are aware that this pipeline closure decision could significantly impact oil businesses in North Dakota and other regions despite the recent decrease in oil demand," it added, "considering the seriousness of the matter and the difficulty of quickly rectifying it, we have made this decision."
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