1 00:00:00,320 --> 00:00:03,200 Speaker 1: This is Bloomberg Law. I'm June Grasso. The U. S. 2 00:00:03,279 --> 00:00:06,439 Speaker 1: Army Corps of Engineers will be preparing a full environmental 3 00:00:06,480 --> 00:00:10,680 Speaker 1: impact study of the Dakota Access Pipelines disputed crossing. The 4 00:00:10,760 --> 00:00:13,480 Speaker 1: last big chunk of construction for the three point eight 5 00:00:13,480 --> 00:00:16,240 Speaker 1: billion dollar pipeline is under a lake that is the 6 00:00:16,280 --> 00:00:20,360 Speaker 1: war water source for the Standing Rock Sioux Tribe. Yesterday 7 00:00:20,360 --> 00:00:23,320 Speaker 1: in North Dakota, federal judge rule the Corps could proceed 8 00:00:23,360 --> 00:00:26,920 Speaker 1: with the study despite a request by energy transfer partners 9 00:00:26,960 --> 00:00:30,480 Speaker 1: to stop the study. My guests are Pat Parento, professor 10 00:00:30,480 --> 00:00:33,159 Speaker 1: at Vermont Law School, and Charles Warren, head of the 11 00:00:33,240 --> 00:00:37,560 Speaker 1: environmental practice at Kramer Levin, nef Talas and Frankel Chuck. 12 00:00:37,600 --> 00:00:40,280 Speaker 1: There has been a lot of litigation in this case. 13 00:00:40,720 --> 00:00:45,560 Speaker 1: What is the legal question in this last motion? Well, 14 00:00:45,600 --> 00:00:50,520 Speaker 1: I think the legal question here is whether the Army 15 00:00:50,560 --> 00:00:55,840 Speaker 1: can basically now require an environmental impact statement, you know, 16 00:00:55,880 --> 00:00:58,240 Speaker 1: after it had already been reviewed by the Corps of 17 00:00:58,280 --> 00:01:02,560 Speaker 1: Engineers and they indicate there were not adverse environmental impacts, 18 00:01:02,560 --> 00:01:07,720 Speaker 1: and then it was reversed essentially at the Assistant Secretary 19 00:01:07,720 --> 00:01:11,240 Speaker 1: of the Army level for Civil Works, and and they 20 00:01:11,280 --> 00:01:13,840 Speaker 1: asked for this environmental study, and I think that's going 21 00:01:13,880 --> 00:01:15,959 Speaker 1: to be that's going to be one of the issues 22 00:01:16,080 --> 00:01:20,280 Speaker 1: that they raise here, whether or not, you know, it's 23 00:01:20,319 --> 00:01:24,440 Speaker 1: necessary to do that, and the delays that entailed. Chuck 24 00:01:24,880 --> 00:01:29,120 Speaker 1: the pipeline was rerouted from Bismarck because of concerns about 25 00:01:29,160 --> 00:01:33,679 Speaker 1: potential impacts to its water supply. So wouldn't there be 26 00:01:33,760 --> 00:01:38,560 Speaker 1: concerns about this water supply as well? Yes, I agree, 27 00:01:38,600 --> 00:01:40,800 Speaker 1: I think there are concerns about the water supply, and 28 00:01:40,959 --> 00:01:42,760 Speaker 1: and I think thats pat was saying that there's always 29 00:01:42,760 --> 00:01:45,360 Speaker 1: the potential for these pipelines to leak in being that 30 00:01:45,440 --> 00:01:48,520 Speaker 1: close to a water supply where it could be contaminated. 31 00:01:48,560 --> 00:01:51,120 Speaker 1: That I think that is a serious issue. And there 32 00:01:51,160 --> 00:01:54,960 Speaker 1: have been demonstrations going on for quite some time about this. 33 00:01:55,760 --> 00:01:59,480 Speaker 1: As far as the Native Americans, Yeah, this has been 34 00:01:59,680 --> 00:02:05,000 Speaker 1: one of the biggest demonstrations that Native Americans have you know, 35 00:02:05,040 --> 00:02:07,600 Speaker 1: put on in many years, and people came from all 36 00:02:07,600 --> 00:02:10,800 Speaker 1: over the country to support them, and I think it 37 00:02:10,919 --> 00:02:14,640 Speaker 1: was all of that that really caused the Army to 38 00:02:14,720 --> 00:02:20,200 Speaker 1: take another look at this. Um Trump, who's transition team, 39 00:02:20,240 --> 00:02:24,800 Speaker 1: has said in memos that he supports the pipeline's completion. Uh, 40 00:02:25,120 --> 00:02:29,680 Speaker 1: could he seek to reverse the Army's decision last month 41 00:02:29,800 --> 00:02:35,280 Speaker 1: to continue to um to continue to do the study. Yes, 42 00:02:35,800 --> 00:02:38,600 Speaker 1: he could do that. It's I mean, it's it's not 43 00:02:39,000 --> 00:02:41,720 Speaker 1: It's not that easy. One safe now said all right, 44 00:02:42,360 --> 00:02:47,000 Speaker 1: we think that it's warranted that we do this study. 45 00:02:47,600 --> 00:02:49,680 Speaker 1: And I think that would bring a lawsuit if they 46 00:02:49,680 --> 00:02:53,880 Speaker 1: didn suddenly say no, it isn't. And uh so, but 47 00:02:54,520 --> 00:02:57,760 Speaker 1: that conceivably could happen because I think that the new 48 00:02:57,800 --> 00:03:00,079 Speaker 1: administration is going to going to want to proceed with 49 00:03:00,160 --> 00:03:02,799 Speaker 1: this pipeline and this is just sort of the last 50 00:03:03,160 --> 00:03:07,960 Speaker 1: link of it, and the issue will be, uh, it 51 00:03:08,000 --> 00:03:10,440 Speaker 1: could be delayed for a long time from their standpoint 52 00:03:10,480 --> 00:03:14,680 Speaker 1: if you go through with this environmental impact from the 53 00:03:14,680 --> 00:03:19,000 Speaker 1: Trump administration side, would it just take the Trump administration 54 00:03:19,120 --> 00:03:22,120 Speaker 1: telling the Army Corps of Engineers stopped the study or 55 00:03:22,160 --> 00:03:24,720 Speaker 1: would they have to go to court to stop it. No, 56 00:03:24,840 --> 00:03:26,720 Speaker 1: they could tell the Army Corps of Engineers. I mean 57 00:03:27,000 --> 00:03:31,160 Speaker 1: the Army was it really wasn't. The core was actually 58 00:03:31,160 --> 00:03:33,840 Speaker 1: the Army was the assistant secretary because the Corps had 59 00:03:33,880 --> 00:03:36,720 Speaker 1: originally looked at this and said, we don't think there's 60 00:03:36,720 --> 00:03:40,680 Speaker 1: a serious environmental impact here and but it went up 61 00:03:40,720 --> 00:03:42,880 Speaker 1: to the Assistant Secretary of the Army, and it is 62 00:03:42,880 --> 00:03:46,480 Speaker 1: the decision that ultimately rest with the Secretary of the Army, 63 00:03:46,640 --> 00:03:50,800 Speaker 1: and they could then say we've changed our mind. We're 64 00:03:51,360 --> 00:03:54,880 Speaker 1: going along with the corps original recommendation. So they could 65 00:03:54,920 --> 00:03:58,440 Speaker 1: just do that at an administrative level, then we wouldn't 66 00:03:58,440 --> 00:04:02,160 Speaker 1: have to go for it. Ultimately, Will the pipeline be 67 00:04:02,240 --> 00:04:05,880 Speaker 1: completed in your opinion? I think it will be. Yes. 68 00:04:06,040 --> 00:04:08,320 Speaker 1: I mean it may they may have to move. They 69 00:04:08,360 --> 00:04:12,280 Speaker 1: may have to move this last segment, but I think, uh, 70 00:04:12,400 --> 00:04:14,520 Speaker 1: there's places that they can move it. But but it's 71 00:04:14,800 --> 00:04:16,760 Speaker 1: they've built so much of it. I think it'd be 72 00:04:16,880 --> 00:04:21,880 Speaker 1: unlikely that it's not completed. And if the Trump administration 73 00:04:22,000 --> 00:04:26,279 Speaker 1: tries to move forward with it in this particular place, Um, 74 00:04:26,400 --> 00:04:29,920 Speaker 1: what who can sue? Is it the Indian tribes that 75 00:04:29,960 --> 00:04:33,040 Speaker 1: can sue? Are there other people that can sue? Yeah? 76 00:04:33,240 --> 00:04:35,320 Speaker 1: I think the Indian tribes, and then there are others 77 00:04:35,360 --> 00:04:39,520 Speaker 1: probably who have joined with them to the extent that 78 00:04:39,600 --> 00:04:42,440 Speaker 1: they have standing to sue. They probably could, but I 79 00:04:42,440 --> 00:04:44,320 Speaker 1: think there'll be a number of lawsuits to say, hey, 80 00:04:44,920 --> 00:04:48,320 Speaker 1: the judgment was made that we hadn't taken a complete 81 00:04:48,320 --> 00:04:50,480 Speaker 1: look at this and we need to do more. And 82 00:04:50,520 --> 00:04:53,960 Speaker 1: now you just can't turn around on a dime with 83 00:04:54,080 --> 00:04:58,480 Speaker 1: no basis, and you know, change your change your position. 84 00:04:59,400 --> 00:05:03,480 Speaker 1: North Dakota as U S. Senators Democrat Heidi height Camp 85 00:05:03,480 --> 00:05:06,360 Speaker 1: and Republican John Hoven said they think the federal government 86 00:05:06,400 --> 00:05:08,320 Speaker 1: is changing the rules in the middle of the process 87 00:05:08,320 --> 00:05:11,800 Speaker 1: and that the studies shouldn't be approved. So it seems like, 88 00:05:12,400 --> 00:05:16,839 Speaker 1: you know, both sides have representatives in in their in 89 00:05:16,920 --> 00:05:25,080 Speaker 1: their corner. And how long could this legal battle go on? Well, 90 00:05:25,760 --> 00:05:28,960 Speaker 1: I think he could go on for a while. And 91 00:05:29,480 --> 00:05:32,600 Speaker 1: I mean the court has basically said at one level 92 00:05:32,640 --> 00:05:37,120 Speaker 1: already that they think the the Army is justified in 93 00:05:37,200 --> 00:05:40,000 Speaker 1: doing this study. So you have one judge on the 94 00:05:40,000 --> 00:05:43,280 Speaker 1: record saying that that could be appealed certainly, and the 95 00:05:43,839 --> 00:05:46,880 Speaker 1: Palate Court could change its mind. But let's assume that 96 00:05:47,360 --> 00:05:50,200 Speaker 1: the Trump administration comes in and they decide to change 97 00:05:50,480 --> 00:05:52,640 Speaker 1: then I think that will be subject to suit, and 98 00:05:52,680 --> 00:05:56,160 Speaker 1: the issue will be whether a court will hold up 99 00:05:56,960 --> 00:06:00,800 Speaker 1: the completion of the pipeline while these suits are going forward. 100 00:06:00,839 --> 00:06:04,600 Speaker 1: That that will be the main the issue at that point, Chuck, 101 00:06:04,640 --> 00:06:08,680 Speaker 1: there are lots of suits around this pipeline, aren't there 102 00:06:08,680 --> 00:06:12,480 Speaker 1: from people who are claiming that they they weren't paid 103 00:06:12,560 --> 00:06:15,599 Speaker 1: the right amount for easements. And there's a lot of 104 00:06:15,640 --> 00:06:18,520 Speaker 1: court activity over this. Yeah, but that's the you know 105 00:06:18,560 --> 00:06:22,599 Speaker 1: that that's the general. Those kinds of condemnation lawsuits and 106 00:06:22,680 --> 00:06:26,159 Speaker 1: those can those don't really slow anything up. I mean 107 00:06:26,920 --> 00:06:30,760 Speaker 1: that happens all the time when government's UH sees UH 108 00:06:31,120 --> 00:06:35,479 Speaker 1: property and they have to pay fair compensation, and there's 109 00:06:35,520 --> 00:06:39,400 Speaker 1: always suits about what fair compensation. But that doesn't necessarily 110 00:06:39,400 --> 00:06:43,520 Speaker 1: hold up any projects. Is there um a lot of 111 00:06:43,560 --> 00:06:48,600 Speaker 1: a lot of political tension on this issue? Still? Yes, Yes, 112 00:06:48,680 --> 00:06:50,840 Speaker 1: I think you I think you have as you said, 113 00:06:50,839 --> 00:06:53,200 Speaker 1: I mean you have the United States senators from the state, 114 00:06:53,560 --> 00:06:58,560 Speaker 1: you have state officials, you have the company obviously, and 115 00:06:58,800 --> 00:07:03,600 Speaker 1: uh you know are at the last phase of this pipeline. 116 00:07:03,640 --> 00:07:06,080 Speaker 1: I mean, they've built many miles of this pipeline and 117 00:07:06,400 --> 00:07:08,599 Speaker 1: that's and that's the one side. And on the other 118 00:07:08,640 --> 00:07:11,040 Speaker 1: side there's the Indians and all the people that support 119 00:07:11,080 --> 00:07:13,720 Speaker 1: them and all the environmental groups and say, listen, you 120 00:07:13,760 --> 00:07:17,760 Speaker 1: can't put a water source in danger. By the possibilities 121 00:07:17,800 --> 00:07:20,360 Speaker 1: you could have a break here when there's easy alternatives, 122 00:07:21,080 --> 00:07:24,400 Speaker 1: what are the easy alternatives? Just another route. Yeah, just 123 00:07:24,560 --> 00:07:26,560 Speaker 1: for this leg, just to move this leg. I mean, 124 00:07:26,600 --> 00:07:31,600 Speaker 1: I don't think I'm actually surprised frankly that they haven't 125 00:07:31,600 --> 00:07:33,400 Speaker 1: come up with a solution like that. I would have 126 00:07:33,440 --> 00:07:35,920 Speaker 1: thought that the company, because it's not that hard to 127 00:07:35,920 --> 00:07:37,760 Speaker 1: move it. There are places not that close by that 128 00:07:37,840 --> 00:07:40,280 Speaker 1: don't impact the water source, and I think they could 129 00:07:40,280 --> 00:07:43,560 Speaker 1: have moved it, but they felt I think that they 130 00:07:43,560 --> 00:07:45,320 Speaker 1: were so far along they want to just push it 131 00:07:45,400 --> 00:07:50,600 Speaker 1: through and work. No, not much pushing it through. And 132 00:07:50,640 --> 00:07:53,960 Speaker 1: it's it's certainly you know, the visuals and um, the 133 00:07:54,080 --> 00:07:57,720 Speaker 1: audio from this is really something when you see all 134 00:07:57,760 --> 00:08:00,320 Speaker 1: the protests that have been happening and continue to happen. 135 00:08:00,800 --> 00:08:03,960 Speaker 1: Coming up, we're going to be talking about another environmental issue. 136 00:08:04,000 --> 00:08:06,720 Speaker 1: States argue to a federal appeals court for more say 137 00:08:06,840 --> 00:08:10,280 Speaker 1: over the release of endangered species in their borders as 138 00:08:10,320 --> 00:08:16,040 Speaker 1: Republicans target the landmark Endangered Species Act for rollbacks. We're 139 00:08:16,120 --> 00:08:18,640 Speaker 1: talking to Chuck Warren, who is the head of the 140 00:08:18,760 --> 00:08:23,240 Speaker 1: environmental practice at Kramer Levin. I'm June Grosso. This is 141 00:08:23,280 --> 00:08:23,840 Speaker 1: Bloomberg