(Reuters) – Exxon Mobil Corps XTO Energy shale unit filed a breach of contract against Energy Transfer LP due to disputed payments for the Dakota Access Pipeline, according to a Texas State application. the pipeline operator beat XTO with shortfall fees and revoked other credits after the oil producer moved some oil to other points of sale in August last year. Exxon took the action after a U.S. court ordered the Dakota Access Pipeline (DAPL) to close, it said.
Energy Transfer and Exxon both declined to comment.
In July 2020, a US district court suddenly ordered that the raw pipeline with a capacity of about 570,000 barrels per day be closed and gave energy transfer 30 days to empty the line, urging Exxon to climb to find other ways to move its oil. DAPL is the main artery for the transportation of crude oil from North Dakota's Bakken oil field.
Exxon deleted options that decreased "per hour" when other DAPL dispatchers searched for outlets, and to avoid violating a potential court decision, it told the court.
At about that time, a hurricane on the Gulf Coast in the United States forced Exxon's oil refinery Beaumont offline, prompting it to declare force majeure on pipe volumes for four days. Energy Transfer rejected Exxon's force majeure claim.
The refinery is a major consumer of Exxon's DAPL oil.
Shortly after the closure of DAPL, an appeals court reversed the decision and allowed the pipeline to continue operations temporarily. By then, Exxon had moved 40% of its promised DAPL volumes to other suppliers, according to the lawsuit.
A federal court hearing is set for Friday if the pipeline can continue to operate without a decisive permit while the U.S. Army Corps of Engineers conducts an environmental review of the line. Catalog