North Dakota Tribes Try to Halt a Second Pipeline

Three American Indian Tribes have asked a federal appeals court to uphold their mineral rights under Lake Sakakawea that are in jeopardy from a pipeline project. 

Related: Violence Erupts at Pipeline Protest

Last week, a judge granted Paradigm Energy Partners permission to temporarily continue construction on the Sacagawea pipeline, while the situation is under investigation. Last month the Mandan, Hidatsa and Arikara Nation demanded that work be halted because the company could not promise that their water supplies would remain safe.

This tense situation is the second project this month in North Dakota that is being challenged by native tribes. The Standing Rock Sioux Tribe have been protesting construction of the Dakota Access Pipeline about 150 miles away. Those protest made national headlines as they became violent as tribal leaders feared the pipeline threatened the tribe's main water source. 

Paradigm Energy Partners told ABC News that their oil pipeline project already is complete and the company is looking to complete its $16.6 million gas pipeline by November 1st. 

Violence Erupts at Pipeline Protest

Construction on the Dakota Access Pipeline has come to a halt as demonstrations turn violent over the holiday weekend. 

Related: Dalrymple at Odds with Sioux Tribe Over Pipeline

What had been peaceful protests in the small town of Cannonball Dakota turned ugly after the pipeline company allegedly used bulldozers to destroy sacred tribal sites. Things escalated with guards using pepper spray and dogs to curb the situation.

Tribe spokesman Steve Sitting Bear told CBS news that six people had been bitten by dogs, including children. The oil company accused protesters of escalating the situation by breaking through a fence an attacking workers.

On Tuesday, U.S. Judge James Boasberg granted part of a temporary restraining order effectively halted work for the time being. 

Demonstrators are concerned about the environmental impact of the pipeline, including contamination of the Missouri River, which is the primary water source for the Standing Rock Sioux Tribe. Tribal leaders are also upset that the pipeline will disturb sacred burial grounds. 

I confronted the man that pepper sprayed me and I said, ‘Did you know you just pepper sprayed a pregnant woman?.’ In the native culture, the pregnant women are held sacred, so to do that against our women and to a woman that is pregnant, that should tell you what kind of character they have. I am a mother. I am protecting another mother. I am fighting for another mother and her children and that’s mother earth.
— Trisha Etringer to SiouxLandMatters.com

When complete, the 1,172 mile pipeline willconnect the Bakken and Three Forks production area to Illinois and will transport approximately 470,000 barrels of crude per day. 

 

Energy Transfer Partners Sell Part of Dakota Pipeline

Energy Transfer Partners, L.P. will sell 36.75% of the Bakken Pipeline Project to Marathon and Enbridge. 

Related: State of Emergency over Pipeline

Marathon Petroleum Corporation and Canada based Enbridge Energy Partners, L.P. will purchase a minority share of the Dakota Access Pipeline (DAPL) and the Energy Transfer Crude Oil Pipeline through its jointly-owned MarEn Bakken.

The $2 billion deal is expected to close in the third quarter of the year. When complete, Energy Transfer and Sunoco will own 38.25% of the DAPL and Phillips 66 will continue to own 25%. 

Just last week North Dakota Gov. Jack Dalrymple took action against the mounting protests in his state over the pipeline by issuing an emergency declaration for southwest and south central North Dakota. Demonstrators are concerned over the proposed 1,172-mile pipeline designed to connect the Bakken and Three Forks production areas to Patoka, Illinois, transporting approximately 470,000 barrels of crude per day.

Concerns range from how the pipeline will degrade topsoil to contamination of the river, which is primary source of water for the Standing Rock Sioux tribe. Supporters believe that more pipelines are needed in order to reduce the high use of rail and truck transportation to move the highly flammable Bakken crude oil.

 

Dalrymple: State of Emergency over Dakota Pipeline

Protests against the Dakota Access Pipeline have gotten out of control in parts of North Dakota.

Related: Railroads Are Moving 70% Of Bakken Oil Productio            

North Dakota Gov. Jack Dalrymple took action last week against the mounting protests in his state over the Dakota Access Pipeline. In light of what he characterized as 'significant public safety concerns', Dalrymple issued an emergency declaration for southwest and south central North Dakota, 

As many as 1500 people have gathered where the pipeline is scheduled to cross the Missouri River, near Cannonball and hundreds more marched on the state capital. at least 29 arrested during recent demonstrations.

Demonstrators are concerned over the proposed 1,172-mile pipeline designed to connect the Bakken and Three Forks production areas to Patoka, Illinois, transporting approximately 470,000 barrels of crude per day. Concerns range from how the pipeline will degrade topsoil to contamination of the river, which is primary source of water for the Standing Rock Sioux tribe. Supporters believe that more pipelines are needed in order to reduce the high use of rail and truck transportation to move the highly flammable Bakken crude oil.

If protests continue, the resources needed by local officials to provide safety could cost from $750,000 to $1 million.

North Dakota Oil Production at Lowest Level Since 2014

Crude prices continue to take a toll on shale producers across the country, with North Dakota currently experiencing their lowest production levels in over two years. 

Related: Has the Bakken Peaked?                 

North Dakota's Department of Mineral Resources released the latest data showing that state oil production dropped 2% in June, falling to its lowest level since 2014.

The state agency reported last week that total production fell to 30.8 million barrels of oil in June, down from 32.5 million barrels in May. 

We’re still looking at a $50 price point for increased hydraulic fracturing activity in North Dakota. We really do expect to drop below one million barrels a day pretty soon. It’s going to take a significant amount of time and effort to move it back up again.
— Lynn Helms, Director of ND Department of Mineral Resources

In 2014, North Dakota joined Texas to become the first states to produce over 1 MMbpd of crude. Since peaking at 1.23 MMbpd in December of 2014, production has dropped slightly but not as fast as drilling declines, which dropped 35% last year.  

Last week, the Bakken-Three Forks rig count increased by one with Baker Hughes reporting 29 rigs running across our coverage area by midday Friday.