Exxon sues Energy Transfer LLC for breach of contract

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XTO Energy, a subsidiary of Exxon Mobil, sued Energy Transfer LLC in a Texas state court for breach of contract involving disputed fines related to the Dakota Access Pipeline, DAPL.

The lawsuit claims that Energy Transfer pipeline operators charged XTO unnecessary fines and revoked production volume credits when a series of events outside of XTO’s control forced them to divert oil meant for the pipeline in August.

Recall that in July 2020, a district court judge shut the pipeline down for environmental review amidst months of protests from the Standing Rock Sioux Tribe concerning the pipeline’s damage to their water source.

Exxon is requesting $1 million in damages and the restoration of revoked credits, plus attorney’s fees.

They are also requesting reimbursement for fines they complied with.

A federal court hearing has been scheduled for Friday to determine whether the pipeline can continue to operate without a permit while the environmental review is completed.

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