North Dakota and Federal Government Near $28 Million Settlement Over Pipeline Protest Costs
The long-running legal battle between North Dakota and the federal government over expenses tied to the Dakota Access Pipeline protests is on the brink of resolution with a tentative settlement that would pay the state millions of dollars.
During a recent federal court hearing, attorneys representing both sides announced progress toward a deal that would end the nearly seven-year-old lawsuit. The case arises from protests that took place primarily in 2016 and 2017 during construction of the pipeline through rural south-central North Dakota.
Federal Judge Ready to Void $28 Million Judgment to Seal Settlement
U.S. District Judge Daniel Traynor signaled he may nullify a previous ruling ordering the federal government to pay nearly $28 million to the state. The move would allow legal obstacles standing in the way of a settlement to be removed, ending years of appeals and litigation.
The judgment came after North Dakota claimed the federal government unlawfully allowed demonstrators to camp on federal lands, which led to expanded protests and millions of dollars in costs for policing and cleanup. The Department of Justice denies these allegations.
Attorney General Drew Wrigley called the upcoming payment “satisfactory” but declined to disclose the specific amount during Friday’s hearing. Meanwhile, the DOJ’s Jonathan Guynn said vacating the ruling is necessary to prevent its legal conclusions from affecting future cases and to avoid a lengthy appeals fight.
Why This Settlement Matters Now
The lawsuit began in 2019 and reached trial in early 2026 in Bismarck, featuring testimony from former governors Doug Burgum and Jack Dalrymple, Native activists, federal officials, and law enforcement officers. This settlement would officially close a chapter on one of the most significant legal disputes stemming from environmental and indigenous resistance to the pipeline.
North Dakota initially sought $38 million in damages. Though the court reduced the award to $28 million due to an earlier $10 million payment from the DOJ, the exact final settlement figure remains confidential.
Both parties agreed that having Judge Traynor’s rulings vacated would have little impact on the public since the rulings remain accessible for citation but would no longer carry legal weight. The state supports this trade-off, citing the benefits of saving public resources and avoiding the risk of reversal by higher courts.
Next Steps and What to Watch For
Before the settlement can be finalized, the 8th Circuit Court of Appeals must return the case to Judge Traynor so he can formally vacate the orders. This procedural step is critical to wrapping up the nearly decade-long dispute smoothly.
North Dakota and federal officials indicated they hope to avoid any further litigation and put the issue behind them, but if Judge Traynor refuses to vacate his judgment, the Department of Justice warned it may resume its appeal.
Broader Implications for Kentucky and U.S. Audiences
This settlement highlights a growing trend in how states and the federal government are addressing costly conflicts linked to infrastructure projects and protests. Kentucky readers may find relevance in this case as it underscores ongoing nationwide tensions around energy development, indigenous rights, environmental concerns, and fiscal accountability.
Moreover, the decision exemplifies the complex interplay between state governments and federal agencies over land management and public safety during large-scale public demonstrations—issues that remain front and center across America.
Jonathan Guynn, DOJ attorney: “The downstream consequences of keeping these on the books is troublesome for the United States and could influence future lawsuits.”
Stay tuned to Kentucky Insider for updates as the settlement moves toward final approval and the financial impact on North Dakota is fully disclosed.
