May 25, 2021: is the US Army Corps of Engineers' EIS even needed any more? Did the judge's decision make that issue moot?
May 22, 2021: updates today.
Later, 8:28 p.m. CT: From Geoff Simon:
A federal judge today issued an order rejecting the request of the Standing Rock Sioux Tribe for an injunction that would have shut down the Dakota Access Pipeline while an environmental review is conducted.
Judge James Boasberg, who had previously ruled the initial environmental analysis was inadequate thereby invalidating DAPL's easement to cross the Missouri River, issued a ruling today that the tribe had failed to demonstrate a likelihood of irreparable injury from the pipeline's continued operation. The judge's 31-page opinion expressed frustration with the Corps of Engineers' inaction, despite the fact that, as Boasberg put it, "the pipeline was ... an unlawful encroachment on federal land."
"Even though this Court vacated the easement for DAPL to cross beneath Lake Oahe, and even though the D.C. Circuit affirmed such vacatur, the pipeline has maintained operations as if none of these developments had occurred," Boasberg wrote. "Those seeking an explanation for the persistence of this surprising state of affairs over the past ten-odd months need look no further than the Defendant in this case: the Corps."
At a previous hearing on the tribe's request for the injunction, Boasberg was visibly annoyed by the Corps' reluctance to take a position on shutting down the pipeline. It's apparent from his ruling today the judge is still irked by the Corps' unwillingness to order that the flow of oil in the pipeline be stopped.
"Ever since this Court’s vacatur order in July 2020, and across two presidential administrations, the Corps has conspicuously declined to adopt a conclusive position regarding the pipeline’s continued operation, despite repeated prodding from this Court and the Court of Appeals to do so."
Boasberg's decision allows the pipeline to continue to operate because the tribe's arguments didn't pass the traditional four-factor test for a plaintiff: (1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction.
Senator Kevin Cramer praised the ruling, noting that “once again, reason prevails over political pressure."
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Original Post
Paywall. Will look to find another source also.
This was critical for Oasis and many others.
Link to SeekingAlpha here. I have not yet read the article.
I'm tempted to move to Bakken_5.0 but we will see where we are a few months from now.
I wish I had the numbers just prior to the decision, but let's see where some Bakken operators finished:
- Oasis: up an astounding 7.01%; up $5.61; closed at $85.61
- CLR: up 1.76%, up 53 cents; closed at #30.58
- WLL: up 2.43%; up almost a buck; closed at $41.23
- HES: flat; trading at $81.94
- NOG: flat at $16.82; choppy all day
- MNRL: down 0.35; down 5 cents; closed at $17.87; yields 7.16%;
- BRK-B (CBR): up 0.4%; up $1.07; closed at $287.74
- UNP (CBR): flat; closed at $221.52.
- KMI: up 0.11%; up 2 cents; closed at $18.72; pays 5.77%
- ENB: flat; closed at $38.61; pays 7.11%
- EPD: down 0.4%; down 10 cents; closed at $23.71; pays 7.59%
Who owns/operates DAPL?
Energy Transfer (ET): up almost 2%; up 19 cents; closed at $10.19; pays almost 6%;
From SeekingAlpha, link above:
Energy Transfer (ET +1.7%) shares spike higher before calming down following a favorable court ruling for its Dakota Access Pipeline.
The U.S. District Court for the District of Columbia rules the pipeline may remain in service even though it lacks a valid federal easement for a water crossing in North Dakota.
The Army Corps of Engineers has said it expects to finish a court-ordered environmental impact statement for the project in spring 2022, and today's ruling appears to mean DAPL will not have to shut down while the analysis is conducted.
Energy Transfer is "dramatically undervalued" over the longer term based on its continued free cash flow strength, The Value Portfolio writes in a bullish analysis newly posted on Seeking Alpha.
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I lost a huge bet on this one.
How in the world could the judge rule this way when the pipeline lacks a valid federal easement?
Will the US Supreme Court step in?
The Colonial Pipeline fiasco is probably on everyone's mind.
On a completely different note, Oasis cut their losses quickly and share price surges; ATT dilly-dallied around for years; finally cut their losses (?) as well as its dividend and share price plunges.
And, still, farther afield, my earlier opinion regarding Saudi Arabia's PIF: selling Suncor and buying video game companies -- I've changed my mind. Saudi doing the right thing. Back to this later, perhaps.
