SD pipeline opposition may not make much of a difference

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3 min readDec 22, 2015

Although the $3.7 billion pipeline proposed for South Dakota has been approved, opponents have an opportunity to reverse the permit approval.

But no matter what kind of fight they put up, it probably will not make much of a difference to delay construction.

The Public Utilities Commission issued its “final order of approval” for the Dakota Access Pipeline that would travel through South Dakota Monday.

Intervening parties have about three more weeks to appeal the permit for the 272-mile stretch of a 1,134-mile pipeline poised for construction the beginning of 2016.

As of Monday Dakota Rural Action and the Indigenous Environmental Network have joined two American Indian Tribes and several landowners that have voiced opposition to the project.

Their main argument is to protect landowners’ rights and the Plains for future generations.

But Kristen Edwards, a staff attorney with the Public Utilities Commission, said that any action, unfortunately, would not delay construction.

She told Evan Hendershot with the Forum News Service, said “… the PUC cannot stay its order if appealed, and the order is not automatically delayed when appealed in any of the counties affected by the pipeline. If the appellant wants the court to issue a stay of the permit approval, they would have to prove irreparable damage caused by installation of the pipeline.”

In addition to South Dakota, the article reported that Energy Transfer, the Texas-based company funding the project, has received approval from the state of Illinois and a decision from North Dakota and Iowa is expected by the end of January.

As planned, the Dakota Access Pipeline will connect the Bakken and Three Forks production areas in North Dakota to existing pipelines in Illinois. Once built it will have the capability to transport approximately 450,000 barrels per day with a capacity as high as 570,000 barrels a day or more. This, according to Energy Transfer, could represent half of Bakken current daily crude oil production.

The proposed pipeline set for construction in early 2016 will travel through 274 miles of South Dakota prairieland once complete. Image courtesy of the South Dakota Public Utilities Commission

Early estimates report the construction would yield 4,000 temporary positions in just South Dakota and 12 to 15 permanent jobs will be created once the project, which will include one pump station in the state, is finished. In addition, the company cites statistics that report the pipeline will generate an estimated $50 million annually in property taxes and nearly $74 million in sales taxes to the states of North Dakota, South Dakota, Iowa and Illinois.

The funds can be used by each state for services to support schools, roads, emergency services and more.

Company spokeswoman Vicki Granado estimates the project could be finished by the end of the year, but noted there are still some major hurdles to jump over including the finalization of voluntary easements with all landowners along the line.

Dakota Access has made easement agreements with 91 percent of landowners along the 274-mile route through South Dakota and 82 percent of landowners across the entire route.

Granado said the remaining agreements may require the utilization of eminent domain to access all land along the route.

A few of the benefits, as reported by Energy Transfer, is that the pipeline will enable domestically produced light sweet crude oil from North Dakota to reach major refining markets in a more direct, cost-effective, safer and environmentally responsible manner. The pipeline will also reduce the current use of rail and truck transportation to move Bakken crude oil to major U.S. markets to support domestic demand.

In turn, it will provide greater energy independence for the United State, the third largest producer and number one consumer of crude oil in the world.

South Dakota — By The Numbers

• $820 million Total estimated project cost in South Dakota

• $38.5 million Estimated sales tax revenue to be generated during construction

• $13.5 million Estimated property tax revenue to South Dakota during the first year in service

• $2.9 million Estimated local sales tax revenue to be generated during construction

• 99 Percent of civil, cultural and environmental land surveyed in South Dakota

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Heather Murschel is a writer with a background in journalism and media ethics. She resides in the Black Hills of South Dakota.