North Dakota Secures $28M Federal Settlement for Dakota Access Protest Costs

North Dakota will receive $28 million from the federal government to compensate for costs incurred during the Dakota Access Pipeline protests, according to a settlement announced Thursday. The settlement concludes a lawsuit filed in 2019 and prevents further litigation over the nearly seven-year-old case, North Dakota Attorney General Drew Wrigley said.

The amount matches a 2025 judgment awarded to the state by U.S. District Court Judge Dan Traynor. The lawsuit centered on demonstrations against the construction of the crude oil pipeline, known as DAPL, which took place in rural south-central North Dakota in 2016 and 2017. The state alleged the federal government unlawfully allowed demonstrators to camp on federal land, causing the protests to grow in size and intensity.

As part of the agreement, the U.S. Department of Justice issued a statement holding the Obama administration responsible for harms North Dakota suffered. The DOJ stated that, in hindsight, "the federal government could have done more to reduce the impacts to the people of North Dakota from the Dakota Access Pipeline protests," according to the statement provided by the North Dakota Monitor. The agency also noted some protesters engaged in unlawful and violent acts.

The DOJ maintained that federal officials, managing U.S. Army Corps land, allowed the encampment for safety reasons to avoid further escalation. "The United States recognizes that this difficult choice had painful consequences for North Dakota and many of its residents," the statement read. Attorney General Wrigley said North Dakota sought the formal, public acknowledgement of wrongdoing. “An important chapter in our state’s history has been rendered indisputable and closed,” he said at a Capitol press conference.

The federal government had initially appealed Judge Traynor's 2025 ruling to the 8th Circuit Court but agreed to dismiss that appeal as part of this settlement. Wrigley emphasized the settlement stops both parties from spending more public money on litigation.

For Bakken operators and the state's energy industry, the settlement provides a definitive financial resolution to a prolonged period of disruption tied to a critical piece of infrastructure. The Dakota Access Pipeline is a major conduit for Bakken crude oil, and the protests significantly impacted state and local resources during the pipeline's construction phase. The $28 million payment reimburses state costs related to those events.