DES MOINES, Iowa (AP) – The completion of the Dakota Access oil pipeline has been delayed after the U.S. Army declined to grant an easement for the final few thousand feet under a Missouri River reservoir in North Dakota pending further study. Pipeline company Energy Transfer Partners originally was expected to finish the pipeline before the end of this year, but the Army’s move likely delays it by several months. That will be costly to the Dallas-based company, but industry experts say it’s unlikely to kill the project completely. Here’s a look at some of the ways the delay could impact the pipeline:
WHAT IS THE FINANCIAL IMPACT?
Delays have already cost Energy Transfer Partners more than $450 million, the company said in court documents last month, and continued delays cost $83.3 million per month. The Army Corps of Engineers isn’t very sympathetic saying in court filings that the company knowingly began construction prior to receiving all necessary approvals “at its own risk.”
HOW LONG OF A DELAY IS LIKELY?
The Army’s decision likely halts progress on the project until after President-elect Donald Trump takes office on Jan. 20. Trump, who supports the pipeline and holds stock in Energy Transfer Partners, hasn’t said whether he will try to overturn the Army’s decision. Dakota Access has said tunneling under Lake Oahe is likely to take at least 60 days once digging begins and some industry experts say it could take as long as 90 days. So, if the Trump administration were to immediately reverses course and authorize construction, the pipeline likely wouldn’t be completed until April or May.