Dakota Access Pipeline Update - May 24

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Selman Akyol an analyst at Stifel
The US district court ruled today that the Dakota Access Pipeline (DAPL) can continue to operate while the Army Corps of Engineers completes its ongoing environmental impact statement (EIS). Judge Boasberg in his ruling stated “Whether framed in terms of likelihood or imminence, plaintiffs have not made a successful showing of irreparable harm based on the threat of an oil spill at Lake Oahe.” Additionally, given the Army Corps did not elect to shut down the pipeline in an early April hearing, Boasberg in his opinion noted the agency “conspicuously declined to adopt a conclusive position regarding the pipeline’s continued operation”. We note, Judge Boasberg previously ruled the pipeline was in violation for lacking a water crossing easement. While the ruling could be appealed, the decision in the near-term is a win for ET/PSXP and other involved parties.

This is good news for Continental Resources (CLR)