Regulators Deny Permit For Dakota Access Pipeline

Date: December 05, 2016

Obama Administration Halts Job-Creating Energy Project

After months of debate, the US Army Corps of Engineers has announced that it will not grant an easement for the Dakota Access oil pipeline in southern North Dakota, saying that “alternative routes” should be considered. Politico reported that the US Army on Sunday “pulled the easement permit for a disputed section of the Dakota Access Pipeline,” a move that will “stall the project.” In response, Interior Secretary Sally Jewell said, “The thoughtful approach established by the Army today ensures that there will be an in-depth evaluation of alternative routes for the pipeline and a closer look at potential impacts.” She added that the decision “underscores that tribal rights reserved in treaties and federal law, as well as nation-to-nation consultation with tribal leaders, are essential components of the analysis to be undertaken in the environmental impact statement going forward.” Reuters quoted a US Army statement as saying it “will not grant an easement to cross Lake Oahe at the proposed location based on the current record.” The Army added, according to Bloomberg News, that the rejection was based on factors that included the mandates in the Mineral Leasing Act and the involvement of the historic tribal homelands. The AP reports that Assistant Secretary for Civil Works Jo-Ellen Darcy said in a news release that the decision was based on the need to “explore alternate routes” for the pipeline’s crossing.

What This Means For Small Businesses

Small businesses working in the oil and gas and construction sectors could have benefited greatly from this and similar projects. And more broadly, the pipeline would have
increased the supply of affordable energy, on which most small businesses rely.
 While this Administration continues it appears that such economic investments will be stalled.

Additional Reading

The AP also covered the story.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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