North Dakota and the U.S. Department of Justice are on the verge of finalizing a groundbreaking settlement valued at nearly $28 million to resolve a years-long lawsuit over costs tied to protests against the Dakota Access Pipeline (DAPL).
The financial agreement aims to put to rest a legal battle stemming from 2016-2017 demonstrations near the pipeline’s construction site in rural south-central North Dakota. Protesters sparked extensive costs for the state related to policing and cleanup after camping on federal land, which North Dakota argues was unlawfully allowed by the federal government, causing the protests’ escalation.
During a recent hearing, Attorney General Drew Wrigley confirmed the settlement amount is “satisfactory,” though the precise figure remains undisclosed. DOJ attorney Jonathan Guynn stressed the deal’s importance to avoid expensive and time-consuming appeals, calling it a step forward to “put the nearly seven-year-old lawsuit to rest.”
Legal settlement to wipe nearly $28M judgment, avoid appeals
The case began in 2019 after North Dakota filed suit under the Federal Tort Claims Act, seeking $38 million in damages. In April 2025, U.S. District Court Judge Daniel Traynor ruled in favor of the state, ordering approximately $28 million in payments, accounting for a prior $10 million DOJ compensation.
The Department of Justice, however, appealed Traynor’s ruling to the 8th Circuit Court of Appeals, but negotiations resumed, putting the appeal on hold. The current settlement proposal includes nullifying Traynor’s nearly 120-page ruling and three other court orders against the federal government.
The DOJ insists on vacating these judgments to prevent the legal conclusions from influencing future lawsuits, with Guynn warning that if Judge Traynor refuses to void the rulings, the government will likely reject the settlement and resume its appeal.
Meanwhile, attorneys for North Dakota acknowledge the trade-off, accepting the loss of precedential rulings in exchange for saving taxpayer money and avoiding uncertain appeal outcomes. Wrigley promises all settlement details will be made public once finalized.
Why this settlement matters now
The lawsuit touches on a sensitive chapter in U.S. infrastructure and indigenous relations. The Dakota Access Pipeline, which transports crude oil from northwest North Dakota to Illinois, crosses the Missouri River near the Standing Rock Sioux Reservation. The tribe’s protests focused on potential threats to water supply and tribal sovereignty.
During the lengthy trial held in early 2024 in Bismarck, testimonies came from former governors Doug Burgum and Jack Dalrymple, Native activists, federal officials, and law enforcement, underscoring the case’s high stakes and complex impact.
Settling this case not only saves millions in taxpayer funds but also signals a rare resolution to a contentious legal conflict between a state government and the federal executive branch.
Next steps and wider impact
Once settlement approval moves forward, Judge Traynor must formally vacate the orders, after which payment shifts to North Dakota. The Department of Justice underlines the settlement’s benefit to avoid lengthy appeals that could drag on for years.
For North Dakota residents and businesses, this deal offers clarity and relief, freeing resources previously tied to litigation costs. Activists and legal analysts will be watching closely how this outcome might influence future government accountability cases tied to protest management and environmental infrastructure projects.
As negotiations wrap up, North Dakota and federal officials stress cooperation to put this chapter behind and focus on future challenges facing the state’s energy and indigenous communities.
