Updated DAPL Filing Depicts Significant Economic Detriment of Potential Shutdown

Attorneys for Dakota Access LLC this week filed new and updated declarations from experts and community stakeholders regarding the serious impact of a DAPL shutdown. The filing included critical perspective from Mark Fox, chairman of the Mandan, Hidatsa & Arikara (MHA) Nation, which explained that as an oil-producing tribe in western North Dakota, the Affiliated Tribes could lose more than $160 million if the pipeline is offline until the Corps completes its additional review. This comes after Fox requested formal consultation with the Corps before any action is taken against the pipeline.

Key points from Dakota Access’ latest filing include:

  • The MHA Nation (Three Affiliated Tribes) opposes a shutdown of DAPL, which the Tribes rely on to transport more than 60% of their oil production and would add five new traffic fatalities a year for those Tribes.
  • Oil producers would lose between $3.0 billion and $5.4 billion in 2021 alone
  • In 2021, for North Dakota alone, a shutdown would cost employees between 14,540 and 24,090 jobs.
  • North Dakota would lose between $770 million and $1.4 billion in tax revenue from oil production in 2021.
  • Higher gasoline, diesel, and oil demand far exceed the erroneous projections that Plaintiffs’ sole economic-effects witness made.
  • Higher oil production levels in North Dakota again contradict Plaintiffs’ projections.
  • Current data confirms severe rail congestion from a DAPL shutdown.
  • DAPL continues a spill-free record for its nearly 1,200 mile mainline.

GAIN recently applauded the Corps’ decision to allow DAPL to continue operations while the agency conducts additional review on the project. The pipeline’s safe operation is key to our nation’s economic, national security, and energy security goals. Shuttering DAPL will only lead to an increased reliance on foreign energy sources, as well as further dependence on transport by truck and train – both of which present additional environmental and safety risk.