Lawsuits expected to follow Bakken ruling

DES MOINES — An Iowa landowner group and the developer of the proposed Bakken interstate crude oil pipeline are at odds over what authority county officials should have during construction if the Iowa Utilities Board grants a permit.

The Northwest Iowa Landowner Association is seeking to clarify roles and enforcement provisions for county boards of supervisors and county inspectors.

Developer Dakota Access is resisting, saying it would give county inspectors 'unqualified authority to stop the work at any time,' which could be problematic in an instance, for example, where winter conditions necessitated backfilling a trench.

'Dakota Access said this would be unworkable and would exceed the authority specified in the Iowa Code, which only authorizes the county inspector to temporarily suspend work on the project until the inspector is able to consult with the supervisory personnel of the pipeline company,' General Counsel David Lynch told board members.

The presentation came Friday as the three-member appointed utilities board resumed its deliberations, which focused on terms and conditions in the case for a $3.8 billion pipeline. The line would cross 18 Iowa counties from northwest to southeast.

The board again delayed ruling on the permit and eminent domain request, but gave its first clear indication of when a ruling might come: March 9 or 10.

'When we come out of the closed session, the board will make statements and either on March 9 or March 10 it is our intent to have an order that will be presented,' Chairwoman Geri Huser said.

Lynch and Huser disagreed with Dakota Access' interpretation on local authority, but board member Nick Wagner sided with Dakota Access.

'This is what I would see as a significant change to the past procedures and rules of the board in that you are changing the authority of the county inspector,' he said.

Regardless of how the board rules, lawsuits are likely to ensure the board doesn't have the final say.

'I think there will be legal challenges coming from a number of directions. I don't think it's a done deal,' said pipeline opponent Ed Fallon, a former state representative who served with board members Huser and Libby Jacobs when they were members of the Iowa House.

Fallon, of Des Moines, who attended Friday's meeting, predicts regulators will vote 2-1 next month to approve the permit and the issue likely is headed for court.

Several landowners already have sued, arguing the utilities board lacks authority to grant eminent domain permission in this situation. A judge declined to rule on the claim, saying due process hadn't yet played out.

Dakota Access, a division of Texas-based Energy Transfer Partners, has a lot riding on the Iowa ruling as well.

Three other states — Illinois, South Dakota and North Dakota — have given a green light to the 1,168-mile underground pipeline. The company has already indicated objections to the Iowa board's scope of authority and how laws apply in the case, and it has stockpiled supplies and signed on construction contractors.

Dakota Access didn't return a message Friday seeking comment.