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A permit to convert a 197-mile long oil gathering line into a transmission pipeline gained approval from the North Dakota Public Service Commission.

The $55 million Hiland Crude, LLC project is conditional on the company securing waivers from five residences located within 500 feet of the pipeline. Under North Dakota law, transmissions within 500 feet of residences must not occur unless the company gains a waiver from the residence’s owner.

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The pipeline will have a maximum capacity of 65,000 barrels per day and will link crude oil gathering systems to larger pipelines and rail networks to transport oil out of state to market.

Gathering pipelines transport oil or gas from wells to transmission pipelines or processing facilities.

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In September, the state received over $200,000 in federal funds to maintain the safety of pipelines and protect North Dakota from potential pipeline incidents.

Sen. Heidi Heitkamp, D-ND, said the state will receive the funds from the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA).

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