Crisis at Dakota Access Pipeline Project

            

Details


Case Code : CLBE025
Period : 2016-2017
Publication date :2017
Teaching Note :Not Available
Subject :Business Ethics
Case Length : 04 Pages
Countries :The US
Industry :Infrastructure
Organization :Energy Transfer Partners

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

On September 16, 2016, a US federal appeals court ordered a temporary halt to the construction of the Dakota Access Pipeline (DAPL), a $3.8 billion underground crude oil pipeline project owned by Dallas-based petro-pipeline company, Energy Transfer Partners (ETP). The court order followed a petition filed by the Standing Rock Sioux Tribe and its allies, which had been battling against the pipeline construction on the ground and in the courts, citing environmental concerns and possible destruction of tribal lands and cultural heritage. The issue spiralled into a major crisis for Kelcy Warren, CEO of ETP. Though ETP disputed the claims of the protestors, it was left facing a major challenge in completing the project within the time schedule.

Issues:

Understand the concerns of victims who oppose the project.
Analyze the issues and challenges for the company in construction of the pipeline.
Discuss and debate whether there should be nationwide reform on consideration of the indigenous tribe’s views on construction of infrastructure projects.
Identify the risks faced by the company going forward and explore ways in which the company can take this forward.

Introduction

On September 16, 2016, a US federal appeals court ordered a temporary halt to the construction of the Dakota Access Pipeline (DAPL), a $3.8 billion underground crude oil pipeline project owned by Dallas-based petro-pipeline company, Energy Transfer Partners (ETP). The court order followed a petition filed by the Standing Rock Sioux Tribe and its allies, which had been battling against the pipeline construction on the ground and in the courts, citing environmental concerns and possible destruction of tribal lands and cultural heritage. The issue spiralled into a major crisis for Kelcy Warren (Warren), CEO of ETP. Though ETP disputed the claims of the protestors, it was left facing a major challenge in completing the project within the time schedule.

Key words:
Business ethics, crisis management, project management, Community, environmental risks, social risks, stakeholder tension, stakeholder engagement, stakeholder dialog"

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