Shares rise of oil producers tied to Dakota Access as pipeline to run during review

FILE PHOTO: A natural gas flare on an oil well pad burns as the sun sets outside Watford City, North Dakota January 21, 2016. REUTERS/Andrew Cullen/File Photo

(Reuters) -Shares of U.S. energy companies tied to the Dakota Access Pipeline rose on Friday after the U.S. Army Corps of Engineers (ACE) said it would allow the crude pipeline to run while it conducts an environmental review.

That move leaves a decision on whether to shut the pipeline with U.S. District Judge James Boasberg in the District of Columbia. On Friday he gave Dakota Access operators 10 days to present a case to keep the line flowing.

Shares of North Dakota oil producers were trading higher. Oasis Petroleum was up 4.9% to $69.05 and Continental Resources had gained 2.7% to trade at $25.65. Enerplus Corp, which this week said it would acquire some of Hess Corp.’s North Dakota assets, was up 4% to C$6.85.

Energy Transfer, the pipeline’s operator, also climbed more than 3.2% to $8.14, while Phillips 66 Partners, a 25% stakeholder, was up nearly 7.3% at $32.6, its highest since last August when an appeals court allowed the line to keep running.

A federal judge last year ruled the U.S. Army Corps of Engineers failed to produce an adequate Environmental Impact Statement for a segment of the line and ordered it shut and emptied.

On Friday, an attorney for the ACE said it will likely have a decision on its latest review by March of 2022.

Reporting by Liz Hampton; editing by Grant McCool

Source: Reuters

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