Energy Transfer's Dakota Access Pipeline Wins a Temporary Reprieve to Keep Flowing
A federal appeals court will allow the Dakota Access Pipeline to continue shipping oil for the time being. The temporary administrative stay will allow the pipeline's operator Energy Transfer (NYSE: ET) to keep the oil flowing, pending its appeal of a judge's order to shut down and drain the system by Aug. 5. That closure would remain in effect until the completion of another environmental review, which could take 13 months.
The District of Columbia's U.S. Circuit Court of Appeals, which issued the administrative stay, made it clear that it's temporary and "should not be construed in any way as a ruling on the merits." Instead, it will allow the pipeline, which has been operating since 2017, to continue shipping oil until the court rules on the appeal.
If Energy Transfer and its partners win, they'll be able to maintain the pipeline's operations during the environmental review. If not, they'll need to shut the line down, while likely appealing the ruling to the U.S. Supreme Court.
Source Fool.com
