Background on the Dakota Access Pipeline

The Dakota Access Pipeline, a significant infrastructure project completed at a cost of $3.8 billion, has been operational since June 2017. Spanning 1,172 miles, it transports oil from the Bakken shale formation in North Dakota to refineries in Patoka, Illinois, traversing South Dakota and Iowa. Energy Transfer, the pipeline’s owner, claims this means of transport is both cost-effective and efficient compared to rail, which would significantly increase shipping costs.

Legal Ruling and Claims

A jury in North Dakota recently awarded Energy Transfer over $660 million in damages due to Greenpeace’s involvement in protests against the pipeline’s construction. This ruling came after Energy Transfer sued multiple Greenpeace entities—two in the U.S. and one in Amsterdam—attributing claimed damages of around $300 million to Greenpeace’s actions that allegedly delayed construction and damaged property.

Energy Transfer contended that Greenpeace supported and funded numerous protests that escalated into vandalism and violence, which, according to the company, jeopardized their reputation and impeded progress on the pipeline. The jury’s decision is notably higher than the damages claimed.

Protests and Community Impact

The protests, particularly focused on the section under Bismarck, North Dakota, near the Standing Rock Sioux Tribe’s reservation, gained significant national attention during 2016 and 2017. The tribe raised concerns about a lack of consultation during federal planning, potential contamination of their water supply, and impacts on sacred land. Despite these assertions, Energy Transfer was able to present a strong case during the trial based on its permitting record.

Numerous individuals, including prominent political figures, participated in the protests. Alexandria Ocasio-Cortez, for instance, has credited her involvement with impacting her political career.

Greenpeace’s Response and Future Actions

Greenpeace has announced plans to appeal the jury’s verdict in the North Dakota Supreme Court, arguing that the substantial financial penalty could jeopardize its operational capabilities in the U.S. Furthermore, they are also preparing a separate counterclaim in the European Union, invoking the anti-SLAPP (Strategic Lawsuits Against Public Participation) legislation that will come into effect in 2024, which seeks to protect activists against retaliatory lawsuits.

A trial concerning this counterclaim is set to commence in July 2024, marking an important test of the EU’s anti-SLAPP directives. In solidarity with Greenpeace, over 400 environmental organizations have publicly expressed their support, emphasizing the importance of continuing advocacy for environmental issues despite legal pressures.

Energy Transfer’s Position

Founded in 1996, Energy Transfer has grown to become one of the largest pipeline companies in the U.S., operating over 125,000 miles of pipeline infrastructure. In response to the jury’s ruling, Trey Cox, Energy Transfer’s lawyer, stated, “This verdict is a powerful affirmation of the First Amendment. Peaceful protest is an inherent American right; however, violent and destructive protest is unlawful and unacceptable.”