Federal DAPL Settlement Advances, North Dakota Secures $36M for Oil Recovery

A federal judge has signaled he will vacate a nearly $28 million judgment against the U.S. government related to Dakota Access Pipeline protest costs, clearing the path for a settlement. According to the North Dakota Monitor, U.S. District Court Judge Daniel Traynor indicated his intent during a hearing on Friday, May 8, 2026.

The lawsuit, originally filed by North Dakota in 2019, argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation. The state contended this led to millions in law enforcement and cleanup expenses. Judge Traynor had ruled in the state's favor in April 2025, ordering the federal government to pay $28 million.

Attorneys for both parties stated during the hearing that North Dakota is still expected to receive a payment from the federal government, though the final settlement amount has not been disclosed. 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 has received 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). Senator John Hoeven stated the investment will mean more oil production in the state.

The advancement of the DAPL protest cost settlement resolves a long-standing financial claim by the state related to pipeline security and infrastructure. For Bakken operators, the closure of this litigation removes a lingering point of federal-state tension associated with a key piece of midstream infrastructure. The Dakota Access Pipeline remains a critical conduit for moving Bakken crude to market.

The new $36 million in federal funding for enhanced oil recovery projects directly supports the state's oil production sector. EOR techniques, such as carbon dioxide injection, can increase the amount of crude extracted from existing wells, extending the productive life of Bakken fields. This investment aids operators in boosting ultimate recovery rates and maintaining production levels.

Together, these developments represent a net positive financial inflow for North Dakota, combining the resolution of a major claim with new capital for production technology. The state's energy industry benefits from both the resolution of past regulatory disputes and forward-looking federal support for core extraction activities.