Judge to Vacate $28M DAPL Protest Judgment as Settlement Finalized

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

The move allows the state and federal government to conclude a lawsuit filed by North Dakota in 2019. The state argued that the federal government allowed protesters to camp on federal land near the Standing Rock Sioux Reservation in 2016 and 2017, leading to millions spent on law enforcement and cleanup.

Judge Traynor had ruled in favor of North Dakota in April 2025, ordering the federal government to pay $28 million. Attorneys for both parties stated during Friday's hearing that North Dakota is still expected to receive a payment, though the final settlement amount has not been disclosed, according to the North Dakota Monitor.

The Department of Justice is seeking to have Traynor's rulings vacated as part of the settlement. Court testimony indicated this is to prevent the legal findings from influencing future cases, the North Dakota Monitor reported.

The resolution brings a long-running financial dispute toward closure. The state's original lawsuit sought reimbursement for extraordinary public safety expenditures during the prolonged protests, which directly targeted the pipeline crucial for transporting Bakken crude oil to market.

For Bakken operators and the state's oil industry, the pipeline's operation has been a cornerstone of market access since its 2017 startup. The legal settlement, once finalized, removes a lingering point of contention between the state and federal authorities related to the project's construction phase.

The outcome ensures North Dakota taxpayers will see some reimbursement for costs borne during the protests, though the final sum remains undisclosed. The state's pursuit of the case underscored the significant financial impact the demonstrations had on state resources.

With the judgment being vacated, the specific legal precedent set by Judge Traynor's 2025 order will be erased. However, the financial settlement represents an acknowledgment of the state's claims regarding the federal government's role during the protest period.

The Dakota Access Pipeline continues to operate, moving hundreds of thousands of barrels of oil daily from the Bakken formation to a hub in Illinois. This settlement chapter does not affect the pipeline's current operations or ongoing legal challenges related to its federal permits.