Federal DAPL Protest Judgment to Be Vacated; State Gets $36M for Oil Recovery

A federal judge has indicated he will vacate a nearly $28 million judgment awarded to North Dakota for costs related to Dakota Access Pipeline protests, as the state and federal government near a settlement agreement. According to the North Dakota Monitor, U.S. District Court Judge Daniel Traynor signaled his intent during a hearing on Friday, May 8, 2026. Attorneys for both parties stated North Dakota is still expected to receive a payment from the federal government, though the final settlement amount has not been disclosed.

The lawsuit, originally filed in 2019, argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation. This, the state contended, forced North Dakota to spend millions on law enforcement and cleanup. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million. According to court testimony reported by the North Dakota Monitor, the Department of Justice is seeking to have Traynor's rulings vacated as part of the settlement to prevent the legal findings from influencing future cases.

Separately, North Dakota is receiving a significant federal investment for its oil industry. According to a report, the state is receiving $36 million from the U.S. Department of Energy for enhanced oil recovery (EOR) projects. Senator John Hoeven stated the investment will mean more oil production in the state.

The potential settlement in the long-running DAPL protest case would resolve a major point of contention between the state and federal governments over who should bear the financial burden of the historic protests. While the original $28 million judgment represented a full reimbursement sought by the state, the final settlement figure could impact state coffers that were used to cover the massive public safety response.

For Bakken operators, the $36 million grant for enhanced oil recovery represents a direct federal investment in the longevity and efficiency of the play. Enhanced oil recovery techniques, such as carbon dioxide injection, are critical for squeezing more crude from mature Bakken wells and increasing the state's ultimate recoverable reserves. This funding could support pilot projects and broader implementation of EOR, directly boosting production and operational economics.

The two developments highlight North Dakota's ongoing dual engagement with the federal government: seeking compensation for perceived past liabilities while also securing funds for future energy development. The final DAPL protest settlement amount will determine the net financial outcome for the state from the protest period.