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Environmental Review of Dakota Access Pipeline Coming; Unlikely Shutdown Would Clog Rail Lines, Cause Ag Losses

The Army Corps of Engineers is due to release an environmental review of the Dakota Access oil pipeline that runs through East River this month. Commodity market analysis Elaine Kub warns that if the review prompts a shutdown of the pipeline, the oil industry’s switch to rail transport of all that Bakken oil would cause losses of $161 million to South Dakota grain producers, $131 million to South Dakota ethanol producers, and $2.4 million in ag inputs. The losses to the national ag sector could top $3 billion.

But the Army Corps of Engineers probably won’t shut down the pipeline:

But Sen. John Hoeven, R-N.D., says such a shutdown is unlikely.

Hoeven said he met with representatives from the Army Corps of Engineers, which is doing the review, in early August. He said a draft of the much-anticipated environmental review could be filed by the end of the month.

“That statement will have a variety of options in it — operate as is, operate with enhancements,” he said.

A judge in 2020 ordered the environmental review and pulled back a key permit, but the pipeline, which became operational in 2017, has continued to carry oil — the equivalent of 1,100 rail cars per day.

Hoeven said because the pipeline has been operating safely for years, a shutdown is unlikely. And when the draft is issued, there will then be a comment period, likely at least 90 days, so it will be months before anything becomes final.

“Ultimately, I believe the Corps will pick the option to continue as is, and of course, if they don’t pick that option, obviously it would end up in the courts,” he said [Jeff Beach, “Oil Pipeline Shutdown Could Cost Ag Billions of Dollars, Study Shows,” Mitchell Republic, 2023.08.14].

Of course, in the unlikely event the Army Corps of Engineers did say the environmental impact of the Dakota Access pipeline was too severe to allow its continued operation, we could all avert any price impact on ag producers by using less oil.

7 Comments

  1. P. Aitch

    Do you realize how much taxpayer money could be saved and redirected by using AI to write tedious and absolutely necessary reports like this?
    A couple skilled curators and editors to task the algorithm and edit the results and a couple hundred thousand bucks would be easily saved.
    Cory’s very valuable and highly enjoyable graphs and charts could also be completed in less time. Cory could quickly learn to curate/edit, I’d predict. And I’m an expert, if I do say so my own happy self. #grins

  2. Edwin Arndt

    Cory, using bike transportation is, for a variety of reasons, just not an option for a
    great many people.

  3. e platypus onion

    Slightly OT Montana judge ruled Montana kids have a right to clean environment. Storty behind paywall at NYT.

  4. Counsel for Dakota Excess has a lousy record of defending attacks on Indigenous people.

    Counsel for the Texas family who filed the lawsuit against ICWA also includes the massive international law firm Gibson, Dunn & Crutcher, according to the court petition. That firm represented the Dakota Access pipeline, a multibillion-dollar project estimated to carry half-a-million barrels of oil per day.

    And.
    https://www.npr.org/2023/06/15/1182121455/indian-child-welfare-act-supreme-court-decision

  5. grudznick

    Mr. P.h, are you suggesting they need to determine their risk appetite and then use the AI for productivity optimization?

    They should use grudznAIck, the only AI without hallucinations.

  6. When grud can’t defend the Republican line it turns on the messenger. How conservative.

  7. P. Aitch

    They should use grudznAIck, the only AI without hallucinations?
    Excuse me. What does this even mean?
    You don’t have the courage to even trust the “blue links” to get information and you have less than zero curiosity about new things and ideas.
    You need to take a seat, young fella grudznick.
    Your arms aren’t long enough to box with liberals.

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