Dakota Access developer granted hearing delay in dispute

August 15, 2017 12:25 PM

BISMARCK, N.D. (AP) — North Dakota regulators on Tuesday granted a request by the developer of the Dakota Access pipeline to postpone a public hearing on whether the company violated state rules, though not without dissent.

Public Service Commissioner Julie Fedorchak expressed frustration with continued delays in the prolonged case and a related lengthy investigation, saying she's "concerned that we keep pushing things back and just aren't making forward progress."


Her comments came a day after she said Texas-based Energy Transfer Partners at times had been "somewhat dismissive" of the PSC's concerns.

Company attorney Lawrence Bender on Tuesday declined comment on ETP's dealings with the PSC.

The commission is looking into whether ETP removed too many trees and improperly handled some soil during construction of the $3.8 billion pipeline that began moving North Dakota oil to Illinois in June. Thursday's hearing was to provide information for the PSC to decide whether to pursue the case and possibly fine ETP.

The company on Monday requested a delay to give company and PSC attorneys more time to discuss a resolution. The commission voted 2-1 Tuesday to grant a delay, with the hearing is to be rescheduled, likely for late September. Fedorchak voted against the move.

"We can't determine with the facts that we have on the table right now whether to proceed with a complaint or not, so this investigation was supposed to be a process to get to the bottom of those issues," she said. "So that (was) set for Thursday, and now that's slipping another month."

The PSC decision came a day after the commission offered to settle allegations that ETP improperly reported the discovery of American Indian artifacts during construction nearly a year ago. The company hasn't yet decided whether to accept the offer, under which it would make a $15,000 "contribution" to historic preservation efforts and wouldn't have to admit fault.

Commissioners Randy Christmann and Brian Kroshus, who voted in favor of delaying the tree and soil hearing, expressed hope that a delay might lead to a similar potential resolution. A formal public hearing would involve time-consuming legal procedures and could stretch over two days, Christmann said.

"I think it's not so much a matter of public or not, it's a matter of the informality of it," Christmann said of the belief that private talks among attorneys might be more fruitful than a hearing open to the public.

Separately, a North Carolina-based company is asking a state judge to dismiss a complaint alleging it illegally provided security services in North Dakota to ETP.

North Dakota's Private Investigative and Security Board in late June sued TigerSwan and its president, James Reese, saying the company had no license to operate in North Dakota during protests against the pipeline and continued operating after applying for one but being denied.

The company maintains it provided only management consulting services to ETP, and that the physical security work was handled by other companies hired by ETP and ETP's contractors.

The state board is seeking administrative fines potentially totaling thousands of dollars. Attorney Monte Rogneby declined comment on TigerSwan's request, citing the ongoing litigation.


Follow Blake Nicholson on Twitter at: http://twitter.com/NicholsonBlake



(Copyright 2017 by The Associated Press. All Rights Reserved.)


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