Contractors tapped for Midwest oil pipeline

CEDAR RAPIDS - Two Wisconsin companies, including Michels Pipeline Construction, which has a field office in Cedar Rapids, have been selected to build portions of the proposed Dakota Access Pipeline.

The yet-to-be-approved $3.78 billion, 1,134-mile Dakota Access Pipeline would transport domestically produced light sweet crude oil from the Bakken and Three Forks production areas in North Dakota to Patoka, Ill, where it could be shipped to the Gulf Coast and other destinations.

Brownsville, Wis.-based Michels Pipeline will construct portions of pipeline in Iowa, South Dakota and North Dakota totaling 380 miles, according to a news release from Dallas-based Dakota Access Pipeline LLC. Eau Claire, Wis.-based Precision Pipeline will build pipeline segments in Iowa and Illinois totaling 476 miles.

'Michels has a strong tradition of corporate social responsibility,” said Robert Osborn, senior vice president, in a news release.

'A big part of that commitment is safety, quality workmanship and environmental stewardship. Another characteristic of our commitment is to sourcing locally whenever we can on a project.”

Michels Pipeline and Precision expect to collectively employ up to 4,000 people per state. As part of the pipeline's agreement with the contractors, the companies would use 100 percent union labor with 50 percent coming from local union halls.

Dakota Access Pipeline expects to receive permit approvals by the end of this year. The Iowa Utilities Board is considering the project, which has encountered opposition from several quarters, including the Iowa Citizens for Community Improvement.

Iowa lawmakers on both sides of the political aisle have urged the utilities board to commission an independent study of the proposed pipeline. They point to pipeline accidents in Montana, Louisiana, Arkansas, Michigan, California, Missouri, Texas and Ohio.

Dakota Access Pipeline LLC said Michels and Precision have made commitments exceeding $200 million to Caterpillar, Deere & Co., and Vermeer for heavy construction and related equipment. All three companies have filed letters of support for the pipeline with regulators in the states that must approve the project.