UPDATE: Bakken Pipeline Construction Begins

May 3, 2016

The start of the long-anticipated $3.8 billion Bakken oil pipeline outlet comes following Thursday's announcement by the Iowa Utilities Board (IUB) that it has denied all of the remaining motions for rehearing in the approval it finalized earlier this month. Iowa was the last of the four states to authorize the project.

Earlier this year, nine Iowa landowners filed suit against the Iowa Utilities Board saying the planned underground crude oil pipeline to be built by Dakota Access LLC doesn't qualify as a public utility and should not be granted the use of eminent domain rights.

The suit filed by Northwest Iowa Landowners Association and individual landowners  says the board's decision to grant eminent domain would violate the U.S. Constitution's Fifth Amendment, which requires a public use, public purpose or public improvement to justify taking private land. The lawsuit also contends the Iowa Constitution's Article I, Section 18, limits the exercise of eminent domain and protects the plaintiffs' rights to possess and protect their own property.

"The board noted that this order is the final agency decision on all pending motions for rehearing or reconsideration," said an IUB spokesperson, noting that Dakota Access still has some paperwork to complete with the IUB based on some of the compliance requirements. Further challenges would have to be done in court based on judicial review timelines starting April 28.

The pipeline is expected to start operations late 2016. Dakota Access will have 100,000 b/d of capacity for its initial segment to the Stanley and Ramberg tank terminals in North Dakota, from which takeaway capacity would be expanded to carry up to 600,000 b/d between Watford City's tank terminal and the South Dakota border.

Read more about Iowa's decision here:

Source: Shale Daily