Viewpoint: Success of Dakota Access Pipeline leads to rise in North Dakota’s Legacy Fund

With the Strait of Hormuz blocked, the United States has good reason to take stock of how well it has invested in domestic oil and gas production. North Dakota set the early pace, pioneering the unconventional drilling and completion techniques that now power the industry, and managing its economic and regulatory environment responsibly along the way.

In the past, the Dakota Access Pipeline faced unbelievable opposition. It has been 10 years since protests erupted against it, leading to more than 100 arrests and, more recently, a $345 million ruling against Greenpeace. At the height of the controversy, DAPL became a national flashpoint. In 2021, I authored an opinion column supporting DAPL, pointing out that the Army Corps of Engineers extensively reviewed the project. It was subject to more than 1,000 permits and approvals. The Corps determined that the risk of incident was “not just low, but remote and speculative.”

Since that time and despite all the opposition, DAPL has been an undeniable success. A decade later, the results speak for themselves. It has supported oil production in the United States and now safely transports more than 50% of the crude oil from the Bakken to U.S. refineries. In doing so, it has helped reduce reliance on less efficient transportation methods like rail and strengthened the broader U.S. energy supply chain. It has and continues to strengthen the tax base that feeds North Dakota’s Legacy Fund, which was designed to turn petroleum wealth into long-term public savings.

The Legacy Fund functions as North Dakota’s long-term savings account, with earnings helping to fund priorities like property tax relief, local infrastructure projects and highways. It was created to use oil and gas tax revenues to support long-term economic stability in North Dakota. To date, there has been over $2.5 billion in distributions as it boosts local businesses and projects, especially in those towns and cities that do not have oil revenues. The Legacy Fund now tops $14.25 billion, with revenues drawn from a 30% share of taxes on petroleum production and extraction.

About 10 years ago, the fund was roughly $3.8 billion. Since DAPL came online, this critical fund has grown by more than $10 billion. The remarkable growth underscores the scale of DAPL’s contribution, which represents a significant share of the Legacy Fund’s inflows. Beyond the Legacy Fund, the industry’s broader contribution can be seen in the Common Schools Trust Fund, which has grown from $200 million 20 years ago to $8.7 billion through lease sales and mineral royalties on state-owned property.

State officials estimate that shutting DAPL would reduce revenues by about $1.2 billion in the first year and roughly $116 million thereafter. A shutdown of DAPL would also result in an estimated $102 million in losses to the Legacy Fund. It would cause an immediate loss of 600 to 750 full-time jobs, along with 2,000-3,000 permanent North Dakota jobs. These numbers represent livelihoods and the economic stability for thousands of families across the state.

As a former mayor, I applaud the fund’s support of local infrastructure projects. Many towns face critical infrastructure needs, with few paths to fund them. The Legacy Fund can fill these gaps for many North Dakota. I have seen first-hand how investments in roads, water systems, and public facilities can shape a community’s future — and how difficult those investments can be without reliable funding.

DAPL has helped sustain critical oil production, tax revenues, and economic stability for North Dakota. The Legacy Fund’s growth is now a multibillion-dollar asset benefiting every citizen of North Dakota. Ten years after the protests, the debate should be grounded in results. The pipeline has operated safely, delivered measurable benefits, and strengthened both state and national interests. It remains a key piece of infrastructure for both North Dakota and the broader U.S. energy economy. As the United States works to build energy dominance in an uncertain world, North Dakota offers a playbook worth following.

Patrice Douglass is an attorney and former chairman of the Oklahoma Corporation Commission. She currently serves as a strategic advisor to Grow America’s Infrastructure Now (GAIN).