ND Wins $36M Federal EOR Grant, DAPL Protest Settlement Advances
A federal judge signaled he will vacate a $28M judgment against the U.S. as a settlement is finalized, while the state receives new funding for oil recovery.
North Dakota is set to receive a multimillion-dollar federal payment to settle a lawsuit over Dakota Access Pipeline protest costs, while simultaneously securing a $36 million grant for enhanced oil recovery projects in the state, according to reports from this week.
According to Bing News, U.S. District Court Judge Daniel Traynor signaled on Friday, May 8, 2026, that he will vacate a nearly $28 million judgment against the federal government. The judgment was awarded to North Dakota in April 2025 after the state argued the federal government allowed protesters to camp on federal land during the 2016-2017 demonstrations near the Standing Rock Sioux Reservation, leading to millions spent on law enforcement and cleanup. Attorneys for both parties stated during a hearing that North Dakota is still expected to receive a payment from the federal government as part of a settlement, though the final amount has not been disclosed. The Department of Justice sought to have Traynor's rulings vacated to avoid the legal findings influencing future cases.
Separately, North Dakota is receiving $36 million from the Department of Energy for enhanced oil recovery (EOR), Bing News reported. Senator John Hoeven stated that this new multi-million dollar investment will mean more oil production in the state.
For Bakken operators and the state's oil industry, the two developments represent significant financial inflows. The settlement, even at a reduced amount, would recoup some of the costs borne by North Dakota during the DAPL protests, which impacted pipeline operations and regional security. The $36 million EOR grant is a direct investment in technology to increase production from existing wells, potentially boosting ultimate recovery from the Bakken formation.
The legal settlement advances a case that has been pending since North Dakota filed the lawsuit in 2019. The resolution removes lingering litigation and provides closure on a contentious period that involved the state's primary oil transportation artery.
The federal EOR funding aligns with state and industry goals to extend the life and productivity of the Bakken play. Enhanced oil recovery techniques, such as carbon capture and storage used for injection, can help operators recover more oil from mature fields.
Source
Bing News (Federal judge signals he will vacate $28M DAPL protest judgment as settlement nears, published 2026-05-11; North Dakota receives $36 million in federal money for enhanced oil recovery, published 2026-05-11)
