US Finalizes Easements For Dakota Access Oil Pipeline

The U.S. Army Corps of Engineers has issued a Record of Decision finalizing the easement for the Dakota Access Pipeline (DAPL) to cross under Lake Oahe on the Missouri River in North Dakota. The move ends a years-long environmental review and legal battle, securing the long-term operation of the critical crude oil conduit nearly a decade after it began flowing.

The decision follows the Corps’ release of the Final Environmental Impact Statement (FEIS) in December 2025 and the required 30-day public comment period. The agency’s preferred alternative is to grant the easement with additional safety conditions designed to enhance leak detection, monitoring, and emergency response capabilities around the Lake Oahe crossing.

Pipeline Route, Capacity, and Destinations
DAPL is a 1,172-mile underground pipeline that transports light sweet crude oil from the Bakken and Three Forks shale production regions in northwest North Dakota southeast through South Dakota and Iowa, terminating at the Patoka, Illinois oil terminal hub. From Patoka, the oil is distributed to refineries across the Midwest and onward to the Gulf Coast via connecting pipelines, including Energy Transfer’s ETCO system.

The pipeline currently operates at a nameplate capacity of approximately 750,000 barrels per day (bpd), up from its original design of around 570,000 bpd following pump station expansions. It moves roughly 40-50% of North Dakota’s Bakken crude production, providing a safer and more efficient alternative to rail or truck transport.

Background and Significance
Construction of DAPL was completed in 2017 and the pipeline has operated continuously since then, but the Lake Oahe crossing—located less than a mile upstream from the Standing Rock Sioux Reservation—has been the focal point of ongoing litigation. A 2020 federal court ruling vacated the original easement and ordered a full Environmental Impact Statement. Today’s Record of Decision resolves that uncertainty while imposing new protective measures.

The Corps emphasized that the pipeline crossing is a small portion (about 3%) of the overall project but required federal approval because it passes under federally managed land and waters.

Companies Involved and Investor Implications
Dakota Access, LLC operates the pipeline. Ownership is held through a joint venture: Energy Transfer LP (NYSE: ET) – controlling interest (~36-38%)
Phillips 66 (NYSE: PSX) – ~25%
MarEn Bakken Company LLC (a joint venture of Enbridge and Marathon Petroleum) – ~36-37% (Enbridge ~27.5% effective, Marathon Petroleum ~9% effective)

For investors, the final easement removes a major regulatory and legal overhang that has lingered for years. Energy Transfer, as the largest stakeholder and operator, stands to benefit most directly through stable, long-term cash flows from its midstream assets. The resolution de-risks a key revenue-generating pipeline, supports potential future capacity expansions (previously eyed up to 1.1 million bpd in some state approvals), and strengthens the company’s overall MLP dividend profile.

Partners Phillips 66, Enbridge (NYSE: ENB), and Marathon Petroleum (NYSE: MPC) also gain from reduced litigation risk and continued reliable takeaway capacity for Bakken crude, which can bolster refining margins and upstream producer economics. Market reaction is expected to be positive for these energy infrastructure names, as the decision confirms the viability of a major U.S. domestic oil artery amid growing Bakken production.