Dakota Access Pipeline: ND Offers To Settle Over Improper Construction Diversion

BISMARCK, ND — North Dakota regulators unanimously agreed to offer to settle for $15,000 state allegations that the developer of the Dakota Access oil pipeline failed to properly report the discovery of American Indian artifacts during construction.

An independent inspector alerted the state Public Service Commission that crews in October 2016 diverted construction of the pipeline around Native American artifacts. The Texas-based Energy Transfer Partners received approval from the State Historic Preservation Office, but not the commission, which oversees pipelines. The artifacts weren't disturbed.

The PSC the following month proposed a fine of at least $15,000 against ETP, even though the commission can legally levy up to $200,000 in fines.

The three-member commission Monday agreed to offer a settlement under which ETP would make a $15,000 "contribution" to the State Historic Preservation Office or another mutually agreed-upon entity. The company would not have to admit fault, and the issue would be dismissed. (For more information on this and other North Dakota stories, subscribe to Patch to receive daily newsletters and breaking news alerts. If you have an iPhone, click here to get the free Patch iPhone app.)

ETP didn't immediately comment on the proposal. The company has 10 days to accept the offer. If it rejects it, the PSC will move forward with the complaint. The next step would be a public hearing.

ETP maintains it did nothing intentionally wrong and has fought the proposed fine. The pipeline cost $3.8 billion. Last month it began moving oil from North Dakota to a distribution point in Illinois.

Commissioners said they decided to make the offer to try to put an end to the dispute. The group in recent weeks has been meeting with its attorneys in meetings closed to the public, but Commissioner Julie Fedorchak said the attorneys did not indicate to regulators that the state would have a tough time proving its case.

"It wasn't a matter of whether the case is strong or weak," she said. "It was really an effort to recognize that it's taking a long time to get to, actually, the heart of the matter, and we're not interested in being tangled up in procedural delays indefinitely, and that seemed to be what was happening from the company's standpoint."

The commission also is looking into whether ETP removed too many trees and improperly handled some removed soil while laying pipe in the state. A public hearing is scheduled Thursday, after which the PSC is to determine whether to proceed with a formal complaint and a possible fine, as it did in the artifacts case.

ETP on Monday asked the PSC to delay the hearing to give company and state attorneys more time to discuss a resolution. The PSC did not immediately decide.

By BLAKE NICHOLSON, Associated Press

Photo credit: Jose Luis Magana/Associated Press