Fredrikson os October 24, 2016 HAND DELIVERED Carolyn A. Kvislen, Paralegal Office of the Attorney General Natural Resources Division 500 N, 9th Street Bismarck, ND 58501 RE: Dakota Access, LLC — Acquisition of ranch land in Morton County Dear Ms. Kvislen 1am writing in response to your September 27, 2016 letter to Dakota Access, LLC (DAPL"), As you know, DAPL has recently acquired several properties in Morton County that ‘may have been used for farming or rnching purposes prior to DAPL's acquisition. Section 10 06.1-07 of the North Dakota Contury Code provides that a corporation not engaged in the business of farming or ranching may own or lease land used for farming or ranching purposes “when the lend is necessary for ... commercial development; the siting of buildings, plants, facilites, industrial parks, or similar business or industrial purposes. .; or for uses supportive of or ancillary to nonadjacent agricultural land. ...” The North Dekota Attorney General has interpreted “necessary” to mean “needed 10 achieve its business or industrial purpose” ss determined on a case-by-case basis. Attomey General Opinion No. 2001-L:38. This requirement was efetted to prevent corporations from engaging in farming or ranching operations. Id; see also State w. Liberty Nat. Bante and Trust Co., 427 N.W.2d 307, 313 (*When the law was originally adopted, “North Dakota was a the bottom of the great depression’ and the “Act was aimed in large measure at life insurance companies and out-[of}-state corporate lenders Which had foreclosed on thousands of acres of North Dakota agricultural land.” (quoting McElroy, North Dakota's Anti-Corporate Farming Act, 36 N.DLRey. 96 (1960)). The requirement that ownership of the land is “necessary” should not be expanded or strictly applied to-act as a zoning oF land use restriction. Id. Here, the property acquired is ranch land in Morton County located approximately 35 tiles south of Mandan. The property was recently encumbered by an easement acquired by DAPL for the construction of the Dakota Access Pipeline, Since mid-August of 2016, large numbers of individuals who oppose the construction of the Dakota Access Pipeline haveCarolyn A. Kvislen October 24, 2016 Page 2 trespassed on the property and threated the safety DAPL employees, contractors and subcontractors, In an effort to enhance the safety of its workers, DAPL acquired the property to beter manage ingress and egress to the tight of way. After construction of the pipeline is ‘complete, DAPL will transfer ownership ofthe property or use the property for some other use in ‘compliance with Chapter 10-06.11 of the North Dakota Century Code Should you have any quest LAWRENCE LBise