The District Court for the District of Columbia ruled on Wednesday that the controversial Dakota Access Pipeline (DAPL) does not have to be shut and drained. The appeals court verdict overruled an earlier lower court order.

U.S. regulatory officials may still need to issue another environmental assessment for DAPL before deciding if the 570,000-barrel-per-day oil pipeline can keep operating, the U.S. Court of Appeals for the District of Columbia said, according to Reuters.

In July, the U.S. District Court for the District of Columbia ruled the U.S. Army Corps of Engineers violated federal environmental law when it granted an easement to Energy Transfer LP to construct and operate a portion of the pipeline beneath South Dakota's Lake Oahe, a crucial drinking-water source for the Standing Rock Sioux tribe.

Dakota pipeline protestors
Four shell casings are shown after gunfire was heard during a protest against the Dakota Access pipeline near the Standing Rock Indian Reservation in Mandan, North Dakota, U.S. November 12, 2016. Reuters

That judge said DAPL, controlled by Energy Transfer, would have to shut by Aug. 5. The appeals court decision allows the pipeline to remain running. The appeal will continue but a separate panel of judges will preside over it, lawyers said.

"We will need to run the course with this litigation," Energy Transfer's chief legal counsel Tom Mason said on a company earnings call. "We believe our legal positions are strong, and we are confident that the pipeline will continue to operate."

Dakota pipeline protestors
A protester holds up a mirror during a protest against the Dakota Access pipeline near the Standing Rock Indian Reservation near Cannon Ball, North Dakota November 6, 2016. Reuters

The district court must make additional findings before the pipeline can be shut, said Earthjustice attorney Jan Hasselman, who represents the Standing Rock Sioux.

"The bottom line is that the fight continues. We're right on the law and we're not giving up until this pipeline is shut down," Hasselman said.

Energy Transfer shares (ET.N) ended up 3.5% to $7.15.

(With Reuters Inputs)