Dakota Access Pipeline, LLC has awarded Michels Pipeline Construction, a Division of Michels Corporation, and Precision Pipeline, LLC construction contracts for multiple segments along the 1,134-mile Dakota Access Pipeline.
Once completed, the project will transport light sweet crude oil from the Bakken and Three Forks production areas in North Dakota to Patoka, IL where shippers will be able to access multiple markets, including Midwest, East Coast and Gulf Coast regions.
Michels and Precision will each construct pipeline segments in North Dakota, South Dakota and Iowa. Ultimately, Dakota Access will sign construction contracts with up to five union contractors.
As part of the agreement, Brownsville, WI-based Michels Pipeline and Eau Claire, WI-based Precision will use 100% union labor, with half of the workers sourced from local halls in each state the pipeline crosses. In anticipation for the project and 2016 demand, Michels and Precision have made commitments exceeding $200 million to Caterpillar, John Deere and Vermeer for heavy construction and related equipment.
Michels, which has a field office in Cedar Rapids, IA, will construct segments in Iowa, South Dakota and North Dakota, totaling 380 miles. Precision will construct segments in Iowa and Illinois, totaling 476 miles. Collectively, Michels and Precision will employ up to 4,000 people per state. The construction companies yet to be named will construct segments in North Dakota.
Dakota Access expects permit approvals by late 2015 with a projected start of construction in early 2016. The pipeline is expected to be in service by late 2016.