Dennis Ward
APTN National News
The company behind the Dakota Access Pipeline says there are no contractual obligations tied to the beginning of 2017.
And Energy Transfer Partners expects a different take on the construction of the controversial pipeline once President Elect Donald Trump is sworn in on January 20th.
Earlier this month, a report called “The High-Risk Financing Behind the Dakota Access Pipeline: A Potential Stranded Asset in the Bakken Region of North Dakota” was released.
The report from the Institute for Energy Economics and Financial Analysis and Sightline Institute states that the project has a deadline before losses will be felt.
“DAPL faces a looming financial deadline,” researchers wrote. “The pipeline’s principal backer, Energy Transfer Partners, has conceded in court proceedings that is has a contractual obligation to complete the project by January 1, 2017. If it misses the deadline, companies that have committed long-term to ship oil through the pipeline at 2014 prices have the right to rescind those commitments and may well exercise that right.”
And according to media sources in the United States, Sunoco Logistics Partners has announced a nearly $20 billion merger with Energy Transfer Partners.
In an email to APTN, Energy Transfer Partners spokesperson Vicki Granado said is false.
“There is nothing contractual tied to the January 1 date. That was an initial in-service target date. The contractual dates are further out and pose no issue to the project.”
Granado said the company has no worries that investors will start pulling out of the project. The company currently has equipment on site and ready to drill under the water to complete the North Dakota portion of the four-state pipeline. The company is capable of drilling even during a harsh North Dakota winter.
The company currently has equipment on site and ready to drill under the water to complete the North Dakota portion of the four-state pipeline. The company is capable of drilling even during a harsh North Dakota winter.
The Army Corps of Engineers has hit the pause button on the project while it continues its discussions with Standing Rock Sioux Tribe. The prospect a re-route was mentioned by United States President Barack Obama. But the company says it is not interested in a reroute and has filed a lawsuit alleging there is political interference at play.
The prospect a re-route was mentioned by U.S. President Barack Obama. But the company says it is not interested in a reroute and has filed a lawsuit alleging there is political interference at play.
The IEEFA report also makes the case the regional oil transport infrastructure is overbuilt already and suggests DAPL is superfluous.
The Dakota Access Pipeline Limited has resulted in violent clashes between heavily armed police and National Guard forces and the Standing Rock Sioux Tribe and thousands of Native Americans and First Nations people who have come together to support them.
To date, hundreds of people have been arrested and injured during clashes with police.
An eviction notice was issued by USACE for Dec. 5. The Corps then clarified it would not forcibly remove people. That was followed by Executive Order by ND Gov calling for the camp to be evacuated.
