US Army Civil Works Assistant Secretary Jo-Ellen Darcy said that the decision was earlier delayed to allow for discussions with the Standing Rock Sioux Tribe which lies 0.5 miles south of the proposed pipeline crossing.
The Tribal officials raised concerns that pipeline rupture or spill could affect its water supply and treaty rights.
Considering these issues, Darcy said that the easement rejection would allow the developers explore alternate routes for the pipeline crossing.
Commenting on the Army's decision, US Interior Secretary Sally Jewell said: "The Army's announcement underscores that tribal rights reserved in treaties and federal law, as well as Nation-to-Nation consultation with tribal leaders, are essential components of the analysis to be undertaken in the environmental impact statement going forward."
The Energy Transfer Partners-owned 1,172 mile pipeline is designed to transport approximately 470,000 barrels of oil per day, with a capacity as high as 570,000 barrels.
The construction of pipeline is nearly complete except for a crossing of Lake Oahe, an Army Corps of Engineers project on the Missouri River.
Energy Transfer Partners and its project partner Sunoco Logistics Partners said in a joint statement: “This is nothing new from this administration, since over the last four months, the administration has demonstrated by its action and inaction that it intended to delay a decision in this matter until President Obama is out of office.”
The pipeline will connect the Bakken and Three Forks oil production areas in North Dakota to an existing crude oil terminal near Pakota, Illinois.
Image: Construction work of the Dakota Access Pipeline is almost complete in the US. Photo: courtesy of Carl Wycoff from Nevada, USA/Wikipedia.