A Canadian Business vs. Michigan

 

Michigan environmentalists have mounted a lengthy campaign to remove a gas and oil pipeline that lays at the bottom of Lakes Michigan and Huron at sites near Michigan shores. Those environmentalists claim that only removal of the line can ensure the safety of the Great Lakes waterways by preventing another *oil spill. A rupture of this pipeline would be close to home; the waters in and around the Straits of Mackinaw are at risk if this pipeline ruptures anywhere near the tip of the mitt.

The current and ongoing public outcry centers on a single pipeline known as **Line 5. Environmentalists see this pipeline that carries toxic oil products as a major risk and one whose objective is to make its owners increased profits by carrying oil from Canada across Michigan waterways to their refinery on the eastern shore of Lake Huron in Ontario. Both the refinery and the oil pipeline are owned and operated by Enbridge, a Canadian pipeline and energy company. The incentive for shutting down Line 5 arises from concerns that Enbridge has a spotty record for both oil spills and for failing to observe the sovereignty of the Bad River Chippewa Indians who claim the company has illegally trespassed on their land.

The risk for oil leaks at Mackinaw is increased by freighter traffic that uses the waterway for transporting materials needed for US businesses (think iron ore, grain and myriad other materials). Several instances of freighters getting their anchors entangled with the pipeline have been reported. The other concern is that the pipeline is old, well past the 50-year longevity date that engineers used as the original design criteria. Other complaints are that Enbridge has not followed appropriate maintenance practices on the aging pipeline that would ensure its continued integrity.

Enbridge has been responsible for several oil spills, including a spill on their line 3, which was the largest inland oil spill in the US.  Another Enbridge spill occurred near Kalamazoo, Michigan sending oil into a waterway that connected to the Kalamazoo River. This spill seemed to be a rallying point for environmental action.

 Opposition to Enbridge projects has resulted in several popular uprisings, most notably the Dakota Access Pipeline protests, and the Stop line 3 protests, in addition to Michigan’s Stop Line 5 protests. The Michigan action has resulted in several legal steps that included a Michigan lawsuit, supported by Michigan’s Governor. Michigan Gov. Gretchen Whitmer used her authority in 2020 when she revoked Enbridge's easement, and Enbridge now operates their pipeline illegally, according to several environmental action groups. The question that seems to arise is “How can a foreign business fail to follow the dictates of a state whose citizens are customers for their products?” Enbridge has responded to these legal challenges by claiming that their operations transcend individual state authorities and that Canada and the US have established an international treaty that governs agreements of this nature. Court actions are currently in process to adjudicate these issues, but immediate resolution is not expected and Enbridge continues to use Line 5 despite the ongoing risks.

The situation is a bit complicated. Here are a few more facts that need be considered.

The risk of a catastrophic oil leak in the Great Lakes via a pipeline failure is small, but discrete. The pipeline has been operating for 69 years without a major failure near Mackinaw, although several small leaks have been found and fixed. It is certain that other leaks will occur in the future, but no one can predict when or how large such leaks might be. The only certain way to remove all chances of a major failure is to remove the pipeline altogether. (see reference note below about some previous leaks)

Pro-business groups would argue that the chance of a major leak is so small that the risk is worth the benefits achieved by efficiencies gained. Certainly, the use of a pipeline to transport oil is only one of many ways that oil can be moved from one region to another. Studies of Enbridge operations reveals that truck transport of oil would increase their costs by less than one half penny per gallon of gasoline produced – a small price to pay since the benefits of pipeline transport helps the owners of Enbridge, but the risks of pipeline failures results in damages to the lakes and thousands of citizens in Michigan and other states. The environmentalists say that the risks are the poisoning of 20 percent of the world's freshwater that is held in the Great Lakes, that the $7 billion a year business of the fishing industry would be irretrievably harmed and that 75,000 individuals could lose their livelihoods should Line 5 rupture in the Straits of Mackinac. The basic argument seems to pit oil company profits versus the health and well-being of our Great Lakes and the citizens who live near the lake.

Enbridge Inc. is a multinational pipeline and energy company headquartered in Calgary, Alberta, Canada. Enbridge owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids. Enbridge's pipeline system is the longest in North America and the largest oil export pipeline network in the world. Its crude oil system consists of 28,661 kilometres (17,809 miles) of pipelines. The size and technical reach of Enbridge assures that it is, and will continue to be a major player in the world’s creation and distribution of energy. To their credit, Enbridge has built several renewable energy projects in North America and Europe including wind, solar, hydroelectric, and geothermal projects and has proposed a net zero greenhouse gas emission target for 2050.

Considering the size of Enbridge operations and the number of pipelines they operate; the Line 5 issue must be only a tiny part of their large oil transport business and manufacture of energy liquids. Their highest-ranking managers must have more important issues to deal with than a single issue with a single pipeline. Yet these same managers must have approved the extraordinary steps their company has undertaken to challenge Michigan’s elected officials (including the Governor) and to undertake expensive legal action aimed at continuing their past practices. Additionally, the company has undertaken an aggressive public relations campaign aimed at those of us who live in Michigan. Presumably, this campaign is aimed at convincing Michigan citizens that they should undertake political action to convince Michigan's Governor to refrain from action against them.

Enbridge has generated an avalanche of Facebook ads supporting Line 5. Many of their ads have been confusing, biased, and outright falsehoods concerning energy supplies and potential shortages. The ads imply that Michiganders will suffer shortages of essential propane for heating if Line 5 is closed and that other energy shortages will occur, ultimately leading to price increases for gasoline. One of the most egregious of the ads claimed that Michigan businesses will suffer if Line 5 is closed leading to job losses and other business reverses for Michigan citizens.

The ads are so over the top that their message of potential energy shortfalls is lost. Quite frankly, it seems to me the ads must do more damage than any benefit the Enbridge managers imagine by convincing readers to add their voices in support of a business who wants to increase their profits despite health and financial risks to their customers. Surely a company of their stature can do better. I suspect that many Michigan citizens must see the blatant exaggerations in their advertising claims that give rise to negative thoughts concerning the company and their unbridled attempts to increase profits no matter the cost to Michigan citizens. What do you think?

 

*The Kalamazoo River oil spill occurred in July 2010 when a pipeline operated by Enbridge (Line 6B) burst and flowed into Talmadge Creek, a tributary of the Kalamazoo River. A 6-foot (1.8 m) break in the pipeline resulted in one of the largest inland oil spills in U.S. history (the largest was the 1991 spill near Grand Rapids, Minnesota. Enbridge was found deficient in their handling of the spill by failing to implement a prompt response. Interestingly, Enbridge has more miles of pipeline in the US than in Canada.

 

**Line 5 is a 1,038 km (645 mile) crude oil pipeline running from the Superior terminal in Wisconsin to Sarnia, Ontario. On average, this pipeline moves 540,000 barrels of natural gas liquids and light crude oil per day. A spill in the fish sensitive area of the Straits area would be catastrophic for fisheries in the area.