North Dakota, Federal Government Close to Settling $28M Dakota Access Pipeline Protest Lawsuit
BISMARCK — A significant legal battle over the Dakota Access Pipeline (DAPL) protests is approaching resolution as North Dakota and the U.S. Department of Justice near a settlement that would nullify a nearly $28 million court judgment.
The judgment originated from a lawsuit filed in 2019, where North Dakota claimed the federal government allowed protesters to camp unlawfully on federal land, escalating demonstrations in 2016 and 2017. The state argued it had to spend millions to manage policing and cleanup efforts. A federal district judge ruled in favor of North Dakota in April 2025, ordering a payout of $28 million—after an earlier $10 million payment from the Justice Department—but that ruling is now at risk of being vacated to facilitate a settlement.
Settlement Would End Nearly Seven-Year Legal Fight
At a hearing, Department of Justice attorney Jonathan Guynn stated the settlement would allow the parties to avoid a prolonged appeals process in the 8th Circuit Court of Appeals, effectively ending the dispute nearly seven years after the protests occurred. “We’re hoping we really don’t need to fight any further,” Guynn said.
North Dakota Attorney General Drew Wrigley confirmed the state will receive a “satisfactory” payment but declined to disclose the exact amount.
As part of the deal, the Justice Department is requesting Judge Daniel Traynor to vacate his original rulings — including a comprehensive 120-page decision — arguing that leaving them intact poses problematic “downstream consequences” for future cases. The state acknowledges the rulings’ legal value but believes settling now saves taxpayer resources and avoids the risk of an appellate reversal.
Legal and Political Stakes Highlighted During Four-Week Trial
The case went to trial in early 2026 in Bismarck. Testimonies came from former governors, Native American activists, federal officials, and law enforcement, emphasizing the protests’ impact and the federal government’s role.
The Dakota Access Pipeline, which transports crude oil from northwest North Dakota to Illinois, stirred controversy because it crosses the Missouri River near the Standing Rock Sioux Reservation. The tribe’s protests highlighted threats to water supply and sovereignty.
The lawsuit initially sought $38 million in damages. Judge Traynor ordered the executive branch to pay $28 million after factoring in the prior $10 million already compensated.
What Happens Next?
The 8th Circuit Court of Appeals has paused its review since the state and federal government began settlement talks. For final approval, the case must return to Judge Traynor, who will decide whether to vacate the previous orders.
If Traynor declines, the Justice Department may reject the settlement and pursue the appeal, potentially prolonging the litigation.
The settlement is expected to be made public once finalized, a move that could bring closure to a costly and contentious chapter in North Dakota’s recent history as well as set a precedent for governmental liability in handling large-scale protests on federal land.
National Implications
This case underscores ongoing tensions between state governments, federal agencies, and Indigenous groups across the U.S. involving energy infrastructure and environmental justice. The outcome may influence how future federal land protest costs are addressed nationally, including states like Delaware that grapple with permitting and policing challenges linked to energy projects.
For Delaware and broader U.S. audiences, this settlement highlights the growing legal costs and political fallout from energy infrastructure disputes and the complex interplay of government accountability.
The Delaware Herald will continue monitoring developments as these critical negotiations unfold and share updates on the impact for communities and policymakers nationwide.
