Dakota Access Pipeline Gets Okay for Permit, Selects Contractors

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According to news sources, the South Dakota commission gave Energy Transfer Partners’ the green light to start construction on the Dakota Access Pipeline. South Dakota is the first state to permit construction on the project.

Dakota Access Pipeline LLC also announced that union contractors Michels Pipeline Construction, a Division of Michels Corp. and Precision Pipeline LLC have been awarded construction contracts for multiple segments along the 1,134-mile Dakota Access Pipeline, which will provide needed infrastructure to transport domestically produced light sweet crude oil from the Bakken and Three Forks production areas in North Dakota to Patoka, IL, where shippers will be able to access multiple markets including Midwest, East Coast and Gulf Coast regions. Michels Pipeline and Precision will each construct pipeline segments in North Dakota, South Dakota and Iowa. Ultimately, Dakota Access will sign construction contracts with up to five union contractors.

As part of the agreement, Brownsville, WI-based Michels Pipeline and Eau Claire, WI-based Precision will use 100 percent union labor, with approximately 50 percent of the workers sourced from local halls in each state the pipeline crosses. In anticipation for the project and 2016 demand, it has been estimated that Michels Pipeline and Precision have made commitments exceeding $200 million to Caterpillar, John Deere, and Vermeer for heavy construction and related equipment, with positive manufacturing impacts to Iowa, Illinois, and the surrounding region. Caterpillar, John Deere, and Vermeer have individually filed letters supporting the project with the respective state utility board or commissions.

Michels Pipeline, which has a field office in Cedar Rapids, IA, will construct segments in Iowa, South Dakota and North Dakota totaling 380 miles. Precision will construct segments in Iowa and Illinois totaling 476 miles. Collectively, Michels Pipeline and Precision will employ up to 4,000 people per state. The construction companies yet to be named will construct segments in North Dakota.