Tag Archives: North Dakota Pipeline

Energy Transfer digs in on North Dakota pipeline expansion despite oil slump, sources say

By Laila Kearney and Devika Krishna Kumar

NEW YORK (Reuters) – U.S. pipeline company Energy Transfer has taken the rare step of invoking force majeure – normally used in times of war or natural disaster – to prevent oil firms from walking away from a proposed expansion of the controversial Dakota Access pipeline, according to two sources familiar with the matter.

Energy Transfer wants to nearly double the size of the line, and some companies that signed up say it is no longer necessary due to the sharp fall in U.S. oil production after the coronavirus pandemic. North Dakota is one of the costliest spots in the United States to produce crude, and its output has dropped by about one-third from last year, more than most other oil-producing states.

DAPL is the largest pipeline running out of North Dakota’s Bakken shale basin. It has capacity to ship 570,000 barrels per day (bpd) of crude to its endpoint in Illinois. Users say an expansion to 1.1 million bpd is unlikely to be filled because the state’s production is not expected to rebound soon.

“Honestly, DAPL is not needed,” said one customer who committed to space on the expanded line, speaking on condition of anonymity. “They’re trying to build a house that all these people signed up for. Even if there’s no longer a need for the house, you can’t really walk away from it. Would I like to get out? Yes, for sure.”

Energy Transfer, however, has invoked force majeure because it could not get the permits by a certain date, according to one shipper on the line and another familiar with the declaration. That buys the company more time to get regulatory approvals and prevents customers from walking away from their commitments.

The company declined to comment on the force majeure. Energy Transfer spokeswoman Lisa Coleman reiterated previous company statements that it has received enough interest to increase the pipeline’s capacity.

Pipelines are generally built after companies find customers willing to commit to shipping oil. That helps pipeline builders to line up financing for such projects, which take years to complete. Contracts to use future pipeline space usually allow customers to walk away from those agreements when substantial delays occur.

In an April filing with Illinois regulators, Energy Transfer said that “not one shipper has sought to withdraw from an existing agreement” despite the oil downturn and that demand exceeds DAPL’s current capacity. The company said in legal filings that the downturn is temporary.

North Dakota’s production has dropped by 450,000 bpd, down from a peak of nearly 1.5 million bpd reached last year, according to the Energy Information Administration’s data.

The expanded line is currently expected to enter service in late 2021.

At least a half-dozen U.S. oil pipeline projects have been put on hold indefinitely so far this year, according to U.S. Energy Department data. U.S. production has dropped from a record 12.9 million bpd in late 2019 to roughly 11 million bpd.

OPPOSITION IN ILLINOIS

DAPL drew thousands of people to North Dakota in 2016 in support of Native American tribes and environmental groups protesting the line’s initial construction. It eventually started in mid-2017 after months of delays.

To expand the line, Energy Transfer needs approval from regulators in North Dakota, South Dakota, Iowa and Illinois.

The first three have said yes, but environmental groups brought numerous legal challenges in Illinois starting a year ago. They argued the application was improperly filed and that an expansion increases the risk of large-scale leaks. The challenges may force the company to resubmit its application.

“They’re in force majeure right now because they did not get the permits,” one source with direct knowledge of the matter said.

An administrative law judge in Illinois could issue findings on the legal dispute as early as this month, though there is no timeline for that report. Once those findings are released, and both Energy Transfer and the opposition respond, the Illinois Commerce Commission will vote on whether the expansion can go forward. That vote has not been scheduled.

Even if producers wanted to fight Energy Transfer’s declaration of force majeure, they may be hesitant to initiate legal action due to the time and cost involved, said Ted Borrego, who has practiced oil and gas law for over 45 years and teaches at the University of Houston Law Center.

“Rarely will you see a shipper trying to bail out of a contract,” he said.

DAPL customers such as Hess Corp and refiner Marathon Petroleum, which invested in the original DAPL project, declined to comment specifically on any contractual agreements on DAPL or on the proposed expansion. Continental Resources, another large Bakken producer, did not respond to requests for comment.

“Hess believes that DAPL has and will continue to be a critical piece of U.S. energy infrastructure, which allows for transportation of crude oil into expanded domestic markets in the U.S. and abroad,” company spokesman Rob Young said.

Bakken crude producers generally break even on drilling at a price of about $46.50 a barrel, according to Deutsche Bank analysts, higher than other parts of the country. The U.S. crude oil benchmark is trading just below $40, after averaging just $17.50 in April and $33.70 in May.

While output in North Dakota has rebounded somewhat from its fall in May to less than 1 million bpd, production is expected to remain lower than its peak.

“At the moment I don’t think the demand is there from shippers for more DAPL, given the decline in Bakken output,” said Sandy Fielden, director of oil and products research at Morningstar in Austin, Texas.

(Reporting by Laila Kearney and Devika Krishna Kumar; Editing by Marguerita Choy)

New North Dakota governor expects controversial pipeline to be built

man holds American flag at Dakota Access Pipeline protest

By Ernest Scheyder

(Reuters) – North Dakota Governor Doug Burgum, who took office last month in the height of tensions surrounding the Dakota Access Pipeline, said he believed the line would eventually be built and asked opponents to clean their protest camp before spring floodwaters create a potential ecological disaster.

A centrist Republican with no prior political experience, Burgum was elected in a landslide on a platform of streamlining government and improving relations across the state. Burgum built a successful software business before selling it to Microsoft Corp <MSFT.O> in 2001.

Burgum told Reuters that approval of the pipeline appeared to be a foregone conclusion once Donald Trump moved into the White House.

“I expect the world’s going to change dramatically on that day relative to finding resolution on this issue,” Burgum said in an interview. “I would expect that (Energy Transfer Partners <ETP.N>) will get its easement and it will go through.”

A coalition of Native American groups, environmentalists, Hollywood stars and veterans of the U.S. armed forces protested the $3.8 billion oil project at a North Dakota camp, which at one point held more than 5,000, though that number has shrunk in size during the winter.

Opponents contend construction would damage sacred lands and any leaks could pollute the water supply of the Standing Rock Sioux tribe.

Last month, President Barack Obama denied a key permit needed to complete the pipeline, but Trump has said he will review that decision.

Local law enforcement have voiced concerns that any reversal by the federal government could cause the area to swell again with protesters, straining resources.

David Archambault, chairman of the Standing Rock Sioux tribe, has repeatedly asked protesters to leave the area and let the pipeline fight play out in courts.

Burgum said he agrees with Archambault and asked protesters to help clean up the camp before it threatens the environment itself. More than 300 vehicles, along with dozens of temporary dwellings and other detritus, have been abandoned at the campsite, which sits in a flood plain that is likely to be overrun by spring rain and snowmelt.

State officials are concerned that floodwaters could carry that material away.

“The amount of cleanup that needs to take place is enormous,” Burgum said. “We’ve got a potential ecological disaster if this land floods and all the debris flows downstream into tribal lands.”

(Reporting by Ernest Scheyder; Editing by Andrew Hay)

North Dakota governor warns pipeline protesters of possible March flooding

Vehicles and campsites at North Dakota Pipeline Protest

By Timothy Mclaughlin

(Reuters) – North Dakota’s new governor warned on Tuesday that protesters remaining at the construction site of the Dakota Access Pipeline should vacate their main camp before spring because of the risk of flooding.

The site of the $3.8 billion project, which crosses four states, was the scene of demonstrations by Native Americans, environmentalists, military veterans and celebrities who said the North Dakota portion would harm water resources and sacred lands.

In early December, the U.S. Army Corps of Engineers denied an easement needed to allow the pipeline to run under Lake Oahe, a reservoir formed by a dam on the Missouri River.

The Standing Rock Sioux, whose land is adjacent to the pipeline, asked the thousands of protesters to disperse after the decision. Most did so, but some have remained despite the harsh winter conditions.

“The main protest camp is located directly in the floodplain of the Cannonball-Missouri River confluence. Given the snowfall we’re having this winter and historic data on the Cannonball River, that camp will likely flood in early March,” Governor Doug Burgum said in his State of the State address in Bismarck.

“Anything less than a complete restoration of the area prior to the early March flood will endanger the lives of the protesters and of our first responders,” added Burgum, a Republican who took office last month.

Burgum, who supports completion of the pipeline, reiterated the position of law enforcement officials who have said many of the demonstrators were from outside North Dakota and had undercut genuine concerns over water rights.

“Those original concerns have been hijacked by those with alternative agendas,” he said.

Burgum, a tech industry veteran who was elected in November, pledged to begin meeting with tribal leaders this week. The pipeline, he said, had highlighted the need to address historic injustices against Native Americans.

“The history of American settlement and westward expansion contains many tragic episodes of broken promises, displaced native peoples, and forced assimilation. It is in this context that the Standing Rock situation must be understood.”

Energy Transfer Partners LP, which is building the pipeline, has gone to federal court for a permit to complete the job. It has said the 1,172-mile (1,885-km) pipeline, which is nearly finished, would be a more efficient and safer means to transport oil from the Bakken shale of North Dakota.

(Reporting by Timothy Mclaughlin in Chicago; Editing by Peter Cooney)

At Dakota pipeline protest, activists gird for fight ahead

Veterans gathering for Pipeline protest

By Ernest Scheyder and Terray Sylvester

CANNON BALL, N.D. (Reuters) – Thousands of protesters in North Dakota celebrated the federal government’s ruling against a controversial pipeline but girded for a protracted struggle as President-elect Donald Trump’s transition team said on Monday it supports the project and would review it after he takes office.

Standing Rock Sioux Chairman Dave Archambault said in an interview with Reuters on Monday that he hopes to speak with Trump about the Dakota Access Pipeline.

He said non-Sioux protesters could go home because no action was likely until late January after Trump takes office.

“Nothing will happen this winter,” Archambault said. “The current administration did the right thing and we need to educate the incoming administration and help them understand the right decision was made.”

The company building the pipeline, Energy Transfer Partners, said late on Sunday that it had no plans to reroute the line, and expected to complete the project.

The U.S. Army Corps of Engineers said on Sunday it rejected an application for the pipeline to tunnel under Lake Oahe, a reservoir formed by a dam on the Missouri River.

Native Americans and activists protesting the project have argued that the 1,172-mile (1,885-km) Dakota Access Pipeline would damage sacred lands and could contaminate the tribe’s water source.

Late on Sunday, Energy Transfer Partners said in a joint statement with its partner Sunoco Logistics Partners that it does not intend to reroute the line and called the Obama administration’s decision a “political action.”

Protesters at the Oceti Sakowin camp in Cannon Ball, North Dakota, were upbeat after the Army Corps of Engineers announcement but expressed trepidation that the celebration would be short-lived.

“This is a temporary celebration. I think this is just a rest,” Charlotte Bad Cob, 30, of the Pine Ridge Reservation in South Dakota, said on Sunday. “With a new government it could turn and we could be at it again.”

Hundreds of U.S. veterans have joined the protesters. Several veterans at the camp told Reuters they thought Sunday’s decision was a tactic to get protesters to leave. They said they had no plans to leave because they anticipate heated opposition from Energy Transfer Partners (ETP) and the incoming administration.

The pipeline is complete except for a 1-mile (1.61 km)segment that was to run under Lake Oahe, which required permission from federal authorities.

The U.S. Army Corps of Engineers said it would analyze possible alternate routes, but any other route is likely to cross the Missouri River.

Tom Goldtooth, a member of the Lakota people from Minnesota and co-founder of Indigenous Environmental Network, said he expected Trump to try to reverse the decision.

“I think we’re going to be in this for the long haul. That’s what my fear is,” he said.

The chief executive of ETP, Kelcy Warren, donated to Trump’s campaign, while the president-elect has investments in ETP and Phillips 66, another partner in the project.

As of Trump’s mid-2016 financial disclosure form, his stake in ETP was between $15,000 and $50,000, down from between $500,000 and $1 million in mid-2015. He had between $100,000 and $250,000 in shares of Phillips, according to federal forms.

(Writing by David Gaffen; Editing by Toni Reinhold and Alan Crosby)

With Dakota denial, outlook for U.S. pipelines turns murky

People celebrate the temporary win of the North Dakota Pipeline

By Liz Hampton

HOUSTON (Reuters) – The U.S. Army’s denial of an easement for the Dakota Access Pipeline, after permitting and legal obligations were followed, sets an uncertain precedent for new projects despite President-elect Donald Trump’s promise to support energy infrastructure.

The decision came after months of protests by the Standing Rock Sioux tribe and others who said the line could desecrate tribal grounds, or a spill could contaminate drinking water.

While most of the 1,172-mile (1,885-km) pipeline is complete, Energy Transfer Partners, the line’s owner, needed an easement from the U.S. Army Corps of Engineers (USACE) to drill under Lake Oahe. The lake, a water source formed by a dam on the Missouri River, has been the focus of protesters.

The Army’s intervention sets an unsettling precedent, analysts and industry groups told Reuters, because Energy Transfer had undergone the necessary environmental reviews and permitting processes to move ahead with construction.

“I think it sends a horrible signal to anyone wanting to invest in a project and I strongly suspect those policies will be discontinued on Jan. 20th,” said Brigham McCown, the former head of the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) under George W. Bush, referring to the inauguration of President-elect Donald Trump.

Still, the decision to deny the easement tempers some of the optimism pipeline companies assumed following the election of Trump, who is seen as more supportive of oil and gas projects.

Energy Transfer Partners said in a statement the decision was politically motivated and it did not intend to reroute the line.

(For graphic on the Dakota Access Pipeline, click http://tmsnrt.rs/2cqkRJ7)

DELAYS &amp; RISING COSTS

Beyond the federal approval issues, state and local governments have also mobilized against pipelines. Earlier this year, Georgia’s state legislature passed a bill to restrict pipeline developments, stopping a gasoline line from Florida to South Carolina from being built.

Energy Transfer chief executive Kelcy Warren, a donor to Trump’s campaign, said his election was a positive. Last week Trump for the first time voiced support for the Dakota Access project.

Trump has also said he would support TransCanada Corp’s Keystone XL, which the Obama Administration rejected last year.

Denying permits for an already-approved pipeline adds a new level of uncertainty to projects. Oil companies have already been facing growing resistance from environmental groups that have resulted in delays or unanticipated costs.

Equipment used for the Dakota Access line has been set on fire, and in October, a group of protesters turned off valves on pipelines transporting oil from Canada to the United States. Together, those lines had capacity to move some 2.8 million barrels per day of oil.

“Until you see that Trump has a track record of approving things and showing that things can get built in time, it’s tough to say it’s not a murky environment for pipelines,” said Sarp Ozkan, manager of energy analytics for Drillinginfo.

That means pipelines could face higher risk premiums and have a harder time getting volume commitments from shippers that underpin such projects, Ozkan said.

Energy Transfer has said it expects to lose almost $84 million each month the Dakota Access pipeline is delayed, and that losing shippers could result in its cancellation, according to a court filing.

“I think midstream companies will hope that each project can be decided based on necessary permitting approvals, but there will be increased risk where agencies like USACE are involved,” said Sandy Fielden, director of research in commodities and energy at Morningstar.

While the Standing Rock Sioux have said they would support a rerouting of the line, others, such as the Indigenous Environmental Network (IEN), want it canceled.

“Given Trump’s support of the Dakota Access, and the Keystone XL, we remain cautious,” said Dallas Goldtooth, a spokesman for IEN.

(Reporting by Liz Hampton in Houston; Editing by Tom Hogue)

North Dakota to block supplies from pipeline protesters’ camp

The Oceti Sakowin camp is seen at sunrise during a protest against plans to pass the Dakota Access pipeline near the Standing Rock Indian Reservation, near Cannon Ball, North Dakota, U.S

(Reuters) – North Dakota law enforcement will begin to block supplies from reaching protesters at a camp near the construction site of an oil pipeline project in an effort to force demonstrators to vacate the area, officials said on Tuesday.

Supplies, including food and building materials, will be blocked from entering the main camp following Governor Jack Dalrymple’s signing of an “emergency evacuation” order on Monday, Maxine Herr, a spokeswoman from the Morton County Sheriff’s Department, said. Activists have spent months protesting plans to route the $3.8 billion Dakota Access Pipeline beneath a lake near the Standing Rock Sioux reservation, saying the project poses a threat to water resources and sacred Native American sites.

(Reporting by Timothy Mclaughlin in Chicago; Editing by Matthew Lewis)

North Dakota governor orders pipeline protesters expelled

Women hold a prayer ceremony on Backwater Bridge during a protest against plans to pass the Dakota Access pipeline near the Standing Rock Indian Reservation, near Cannon Ball, North Dakota,

By Terray Sylvester

CANNON BALL, N.D. (Reuters) – North Dakota’s governor ordered the expulsion of thousands of Native American and environmental activists camped on federal property near an oil pipeline project they are trying to halt, citing hazards posed by harsh weather as a blizzard bore down on the area.

The “emergency evacuation” order from Governor Jack Dalrymple came days after the U.S. Army Corps of Engineers, which manages the site, set a Dec. 5 deadline for the demonstrators to vacate their encampment, about 45 miles (72 km) south of Bismarck, the state capital.

The Army Corps has insisted, however, that it has no plans to forcibly remove protesters, many of them members of the Standing Rock Sioux Tribe. The agency instead urged a “peaceful and orderly transition to a safer location.”

Late Monday, Standing Rock Chairman Dave Archambault II denounced Dalrymple’s order as a “menacing action meant to cause fear,” and accused the Republican governor of trying to “usurp and circumvent federal authority.”

Archambault noted that the evacuation order, which the governor said he issued for the campers’ well-being in the face of dangerous winter weather, came a week after police turned water hoses on protesters in sub-freezing temperatures.

Activists have spent months protesting against plans to route the $3.8 billion Dakota Access Pipeline beneath a lake near the Standing Rock Sioux reservation, saying the project poses a threat to water resources and sacred Native American sites.

The governor did not specify how he intended to enforce his order other than by directing state and local agencies to refuse emergency assistance and other services to anyone who remained at the site. He said the order was effective immediately and would stay in force “until rescinded.”

But Standing Rock Sioux spokeswoman Phyllis Young told a news conference Monday night the tribe would stand its ground.

“We have lived for generations in this setting. That is our camp. We will continue to provide for our people there,” she said. “This is Lakota territory. This is treaty territory, and no one else has jurisdiction there.”

Protest leaders suggested a forced evacuation could prove more dangerous to the activists than staying put.

“We’re in the heart of winter now. To even think of a forced removal is terrifying,” said Dallas Goldtooth, an organizer with Indigenous Environmental Network, who estimated there were about 5,000 people in the camp.

Morton County Sheriff Kyle Kirchmeier added to the pressure by issuing a video statement urging protesters to avoid subjecting themselves to “life-threatening conditions” by remaining exposed to the elements with little shelter.

The National Weather Service has posted a storm warning for most of western and central North Dakota, forecasting the possibility of heavy snow through Wednesday.

The 1,172-mile (1,885-km) pipeline project is mostly complete except for a segment that is supposed to run under Lake Oahe, a reservoir formed by a dam on the Missouri River.

The Obama administration in September postponed final approval of an Army Corps permit required to allow tunneling beneath the lake, a move intended to give federal officials more time to consult tribal leaders. The delay also led to escalating tension over the project.

The companies say the pipeline would carry Bakken shale oil more cheaply and safely from North Dakota to Illinois en route to U.S. Gulf Coast refineries than it could be shipped by railroad or tanker trucks.

(Additional reporting by Timothy Mclaughlin in Chicago; Writing by Steve Gorman; Editing by Leslie Adler, Robert Birsel)

Police fire water cannon at Dakota protesters in freezing weather

Police use a water cannon to put out a fire started by protesters during a protest near the Standing Rock Indian Reservation.

By Chris Michaud and Stephanie Keith

NEW YORK/CANNON BALL, N.D. (Reuters) – Police fired tear gas and water at hundreds of protesters in North Dakota opposed to an oil pipeline in freezing weather late Sunday and early Monday, in the latest violent clash between law enforcement and activists over the $3.7 billion project.

An estimated 400 protesters mounted the Backwater Bridge just north of Cannon Ball, North Dakota, and attempted to force their way past police in what the Morton County Sheriff’s Department initially described as an “ongoing riot.”

A joint statement from several activist groups said protesters were trying to remove the burned vehicles blocking Backwater Bridge in order to restore access to the nearby Standing Rock encampments so emergency services and local traffic can move freely.

Police fired volleys of tear gas at the protesters to prevent them from crossing the bridge. Law enforcement also sprayed protesters with water in sub-freezing temperatures, and fired rubber bullets, injuring some in the crowd.

“It is below freezing right now and the Morton County Sheriff’s Department is using a water cannon on our people – that is an excessive and potentially deadly use of force,” said Dallas Goldtooth, a spokesman for the Indigenous Environmental Network, one of the organizations involved in protests.

A statement from the sheriff’s’ department said one arrest had been made by 8:30 p.m. local time (0230 GMT Monday), about 2-1/2 hours after the incident began 45 miles (30 miles) south of Bismarck, the North Dakota capital. About 100 to 200 protesters remained after midnight.

The protest was latest in a series of demonstrations against the Dakota Access Pipeline that Native American activists and environmentalists say threatens water resources and sacred tribal lands.

Kazlin Red Bear,4, from the Standing Rock Sioux tribe jumps from a hay bale in an encampment near the Standing Rock Indian Reservation.

Kazlin Red Bear,4, from the Standing Rock Sioux tribe jumps from a hay bale in an encampment near the Standing Rock Indian Reservation. REUTERS/Stephanie Keith

The Dakota Access project has drawn steady opposition from activists since the summer, led by the Standing Rock Sioux tribe, whose tribal lands are adjacent to the pipeline.

Supporters of the pipeline, owned by Energy Transfer Partners, said the project offers the most direct route for taking shale oil from North Dakota to Gulf Coast refineries and would be safer than road or rail transportation.

Completion of the pipeline, set to run 1,172 miles (1,185 km) from North Dakota to Illinois, was delayed in September so federal authorities could re-examine permits required by the Army Corps of Engineers. A final decision on the permit has been deferred for more consultation with the tribe.

The latest confrontation began after protesters removed a truck that had been on the bridge since Oct. 27, police said. The North Dakota Department of Transportation closed the Backwater Bridge, which crosses Cantapeta Creek north of the Standing Rock Sioux tribe’s camp, due to damage from that incident.

The Morton County Sheriff’s Department said officers on the scene of the latest confrontation were “describing protesters’ actions as very aggressive.”

Demonstrators tried to start about a dozen fires as they attempted to outflank and “attack” law enforcement barricades, the sheriff’s statement said. Police said protesters had hurled rocks, striking one officer, and fired burning logs from slingshots.

(Reporting by Chris Michaud in New York and Stephanie Keith in Cannon Ball, North Dakota; Editing by David Gaffen and Marguerita Choy)

Police clash with North Dakota pipeline protesters, arrest one

police surround north dakota pipeline protesters

By Chris Michaud

(Reuters) – Hundreds of protesters opposed to a North Dakota oil pipeline project they say threatens water resources and sacred tribal lands clashed with police who fired tear gas at the scene of a similar confrontation last month, officials said.

An estimated 400 protesters mounted the Backwater Bridge and attempted to force their way past police in what the Morton County Sheriff’s Department described as an “ongoing riot,” the latest in a series of demonstrations against the Dakota Access Pipeline.

A media statement from the agency said one arrest had been made by 8:30 p.m. local time (0230 GMT Monday), about 2 1/2 hours after the incident began some 45 miles (30 miles) south of Bismark, the North Dakota capital.

The Backwater Bridge has been closed since late October, when activists clashed with police in riot gear and set two trucks on fire, prompting authorities to forcibly shut down a protesters encampment nearby.

The Morton County Sheriff’s Department said officers on the scene of the latest confrontation were “describing protesters’ actions as very aggressive.”

Demonstrators tried to start numerous fires as they attempted to outflank and “attack” law enforcement barricades, the sheriff’s statement said.

Police said they responded by firing volleys of tear gas at protesters in a bid to prevent them from crossing the bridge.

Activists at the scene reported on Twitter that police were also spraying protesters with water in sub-freezing temperatures and firing rubber bullets, injuring some in the crowd.

Police did not confirm the use of rubber bullets or water.

The clashes began after protesters removed a truck that had been on the bridge since Oct. 27, police said. The North Dakota Department of Transportation closed the Backwater Bridge due to damage from that incident.

The $3.7 billion Dakota Access project has been drawing steady opposition from Native American and environmental activists since the summer.

Completion of the pipeline, set to run 1,172 miles (1,185 km) from North Dakota to Illinois, was delayed in September so federal authorities could re-examine permits required by the Army Corps of Engineers.

Plans called for the pipeline to pass under Lake Oahe, a federally owned water source, and to skirt the Standing Rock Sioux Reservation by about half a mile. Most of the construction has otherwise been finished.

The Standing Rock tribe and environmental activists say the project would threaten water supplies and sacred Native American sites and ultimately contribute to climate change.

Supporters of the pipeline, owned by Energy Transfer Partners, said the project offers the fast and most direct route for bringing Bakken shale oil from North Dakota to U.S. Gulf Coast refineries and would be safer than transporting the oil by road or rail.

(Reporting by Chris Michaud in New York; Editing by Steve Gorman and Paul Tait)

Dakota Access pipeline to be completed despite protests, official tells PBS

Protesters gather in front of the Bank of North Dakota in Bismarck during a protest against plans to pass the Dakota Access pipeline near the Standing Rock Indian Reservation, North Dakota, U.S

NEW YORK (Reuters) – The company behind the controversial Dakota Access crude pipeline will seek to complete the project even if protests against its construction continue, its chief executive told the PBS NewsHour television news program late on Wednesday.

“This is not a peaceful protest,” said Kelcy Warren of Energy Transfer Partners. “If they want to stick around and continue to do what they’re doing, great, but we’re building the pipeline.”

Dakota Access, halted by the federal government in September after protests, has drawn opposition from the Native American Standing Rock Sioux tribe and environmentalists who say it could pollute water supplies and destroy sacred historic tribal sites.

Demonstrators fanned out across North America on Tuesday to demand that the U.S. government either halts or reroutes the pipeline, while Energy Transfer asked a federal court for permission to complete it.

Energy Transfer has said the pipeline would be a more efficient and safer way to transport oil from the Bakken shale of North Dakota to the Midwest and onto the U.S. Gulf Coast.

(Reporting by Ethan Lou in New York; Editing by Bernadette Baum)