Tag: oil spill

Bypassing, and Now Restoring, the Rule of Law on Line 5

After last year’s election, newly chosen leaders and the old guard with a few weeks left in Lansing rushed in opposite directions. The Snyder administration and legislators intensified their unprecedented, legally questionable attacks on water, the environment, and public health during a lame-duck feeding frenzy.

The new guard, Governor Gretchen Whitmer and Attorney General Dana Nessel, meanwhile formed transition teams and appointed cabinet members, new department heads, and staff to reestablish Michigan’s constitutional mandate that the state shall protect the paramount public concern in the Great Lakes, groundwater, and public health from pollution and harm arising out of water crises like statewide PFAS surface and well water contamination, Detroit drinking water shutoffs, lead and Legionnaire’s Disease in Flint water, and the Enbridge Line 5 oil pipelines in the Straits of Mackinac.

The combination of these crises manifests a far deeper crisis in state government—a breach of trust in the oath of office of state officials to uphold the constitution and rule of law. State leaders under the Snyder Administration and many elected officials deliberately ignored the constitutional and legal mandates and instead chose to serve special private interests.

FLOW’s Commitment: Protecting Public Waters from Pollution and Private Control

Here at FLOW, we are increasing our efforts and projects to protect the paramount public trust concern in water, the environment, and public health through our Campaign for Fresh Water launched last fall. One of these projects is to bring an end to the high risk of extreme damage to the Great Lakes, tribal fishing, drinking water, property, businesses, citizens, and Michigan’s economy from the continued operation of the decaying, 66-year-old Line 5 oil pipelines in the Straits of Mackinac.

FLOW has redoubled our efforts in concert with a large public outcry and movement to decommission or end Line 5, collaborating with Oil & Water Don’t Mix and many local and statewide environmental groups, like National Wildlife Federation and Groundwork Center, individuals, families, businesses, communities, elected officials, and the leadership and legal challenges brought by Michigan’s Indian tribes with treaty rights in the Straits, Straits of Mackinac Alliance, and the City of Mackinac Island.

The former Snyder Administration and state environmental and natural resource agencies, former Attorney General Schuette, and a core of pro-Enbridge legislators in a flurry of agreements, laws, and actions, suspended the state Constitution and rule of law to convey and appropriate public trust lands and waters for Enbridge to build a private oil tunnel for a new Line 5 in the Straits of Mackinac for another 99 years. Worse, these state officials and leaders purported to guarantee Enbridge to keep operating and using Great Lakes bottomlands for its dangerous existing Line 5 for another 10 years—without the required authorization and occupancy or use agreements required by the 1955 Great Lakes Submerged Lands Act (GLSLA) and public trust law that apply to the soils and waters of the Great Lakes.

This is the year of reckoning for Enbridge’s Line 5. It is time to unpack and nullify the unilateral deals made with Enbridge by the Snyder administration and confirmed by the legislature without following the constitution and rule of law.

This is the year of reckoning for Enbridge’s Line 5. It is time to unpack and nullify the unilateral deals made with Enbridge by the Snyder administration and confirmed by the legislature without following the constitution and rule of law. The administration and legislature signed off on a covert deal that would let Enbridge Energy continue pumping 540,000 barrels of oil a day (bbl/day; 1 barrel equals 42 U.S. gallons) through the dual lines laid in 1953 in the Straits and Great Lakes with a catastrophic worse-case damage scenario in the tens of billions of dollars. Unaccountably, the administration and legislature did so despite Great Lakes law in Michigan that prohibits the transfer or occupancy of the state-owned waters and the soils beneath them for private purposes.

Reward for Failure: After Enbridge’s 2010 Kalamazoo Pipeline Disaster, Michigan Officials Doubled Enbridge’s Oil Pumping across Michigan, and then Locked in an Oil Tunnel Deal for 99 Years

How is it that the State ended up rewarding Enbridge for a spill from Line 6B of a million gallons of crude oil and billions of dollars of damage to the Kalamazoo River system? While the State worked with Enbridge to address the damage from its unprecedented 2010 spill, it granted Enbridge a gigantic windfall by incrementally approving, from 2012 to the present, the doubling of Enbridge’s pipeline capacity and oil transport through the Great Lakes. In effect, while Canadians continued to block pipeline projects to transport crude oil to the country’s coasts, and citizens in the U.S. derailed the Keystone XL in the West, the Snyder Administration and former Attorney General Schuette orchestrated a “Great Lakes XL” that is even larger.

And then in 2018, Snyder, in his term’s waning months, and the lame-duck legislature gave away and endangered the Great Lakes to Enbridge, by locking in a 99-year sweetheart deal for Enbridge to build an oil tunnel to convey Line 5 under the Straits and granting Enbridge the cover to keep operating the existing failing Line 5 that threatens tens of billions in damages. On top of this deal, the Administration totally failed to even consider climate change impacts and risks and the rapid shift toward the new renewable energy economy that will leave the state with a billion-dollar dinosaur.

Here’s how the calculated actions of Snyder, Schuette, and their cohorts bypassed legal requirements in seven sweeping steps, along with some advice from FLOW to Michigan’s new leadership at the start of their journey to reestablish the rule of law and rollback the mess:

  1. Bit by Bit, Doubling the Oil Flow on Line 6b after Enbridge’s Kalamazoo River Disaster

First, from approximately 2011 to 2014, the Michigan Public Service Commission (MPSC) approved a series of Enbridge applications to replace short segments, rather than a single application to replace the whole portion, that had the effect of doubling the design capacity of most of Line 6b pipeline from 400,000 to 800,000 barrels (bbl)/day. Allowing the MPSC to review shorter pipeline segments avoided the alternative analysis on the entire Line 6b from Indiana to Sarnia, Canada. 

MPSC rules and decisions, and Michigan’s environmental laws, require a review of likely impacts and alternatives to the entire length of the pipeline. Had this rule been followed, the MPSC would have been required to look at all of the Enbridge lines in Michigan, and determine the overall needs of the public necessity and needs of the company, short and long term, and the alternative or best route or location that would best meet that need with the least impact and risk to water, environment, and communities. That would have included a review of the need for Line 5, including the risks to the Straits of Mackinac and Great Lakes. It also would have required a consideration of the future need for crude oil through Enbridge’s system in Michigan in light of falling crude oil demands caused by the rapid and imminent shift to renewable energy to reduce the effects of climate change.

  1. Increasing Line 5’s Oil Flow in the Straits by 80 Percent

Second, during the same time frame, the MPSC approved the location and installation of new and changed pump stations and anti-friction fluid injection facilities for Line 5, including the Straits segment, so Enbridge could implement its final increment to result in the increase the oil transport capacity of Line 5 from 300,000 to 540,0000 bbl/day.  Again, the MPSC did not evaluate the need, impacts, risks, or alternatives to this overall 80-percent increase in flow volume of crude oil.  Once more, the State allowed Enbridge to avoid the law that required a full evaluation of the purpose.  Had the rule of law been followed in the doubled Line 6B and expanded flow volume in Line 5, the State through proper notice, public input, and evidence would have been required to look at overall impacts, risks, and alternatives and need for the Enbridge system, and Line 5 could have been decommissioned in an orderly manner in exchange for the doubling of Line 6B.

  1. Saddling, Elevating, and Damaging Line 5 in the Straits

Third, although not disclosed by Enbridge until 2016, Enbridge installed saddle supports screwed into the lakebed to support a failing design of Line 5 in the Straits. The original design specified in the 1953 easement and built in the Straits called for the heavy steel dual lines in the Straits segment to be laid on the bottom on the lakebed. If wave action and currents scoured more than 75 feet of soils beneath a segment of the pipes, the company was required to stabilize the line by closing the existence of the spans.

While not disclosed until 15 years later, when filling or grout bags failed, Enbridge in 2001 started installing saddle supports screwed into the lakebed to elevate the heavy dual pipes above the lakebed. Initially, there were 16 supports, more and more were added, and between 2016 and 2018, the Michigan Department of Environmental Quality (DEQ) permitted Enbridge to install more than 70 saddle supports, bringing the total to 200 supports, which has resulted in a suspension of three miles of an aged line above the lakebed.

The DEQ shrouded Enbridge’s failing Line 5 risks and redesign by characterizing the supports as a “repair” and “maintenance.”  This not only covered up the redesign but confined the legally required impact and alternative analysis to a 50-foot radius of lakebed around each support.  As a result, the DEQ ignored and allowed Enbridge to escape the comprehensive review of potential impacts and alternatives to the failing condition of the outdated line required by the Great Lakes Submerged Lands Act.

In addition, Enbridge’s installation of the saddles has damaged Line 5’s anti-corrosion protective coating, a fact that the company hid from Michigan officials for three years during its negotiations to install additional anchor supports.

  1. Signing Side Deals for Another 99 Years of Line 5 in the Straits

Fourth, Governor Snyder, DEQ and the Department of Natural Resources (DNR) signed two agreements with Enbridge between October and the end of December 2018 that purported to transfer state public trust bottomlands and soils of the Straits so Enbridge can build a tunnel for a new 99-year pipeline. The tunnel and new line will take 10 years or more to construct. Until the new line is operating, Enbridge is authorized to continue operating the failing design of the existing aged line.

Under the GLSLA, easements, leases, uses, or improvements on, in, under the state-owned public trust soils of the Great Lakes are prohibited unless authorized within two narrow exceptions: (1) it is for a public purpose, related to navigation, boating, fishing, swimming, or drinking water; and (2) it will not threaten an impairment of the public trust in the waters, soils, or these public trust uses.

Under the GLSLA, easements, leases, uses, or improvements on, in, under the state-owned public trust soils of the Great Lakes are prohibited unless authorized within two narrow exceptions: (1) it is for a public purpose, related to navigation, boating, fishing, swimming, or drinking water; and (2) it will not threaten an impairment of the public trust in the waters, soils, or these public trust uses.  The two agreements that commit leasing, easements, or use of waters and soils beneath the Straits do not require Enbridge to obtain authorization or findings under the GLSLA. In other words, the Governor and his agencies agreed to transfer state public trust lands for the tunnel and the private 99-year new line, and at the same time allow the continued use of public bottomlands for the existing line, without obtaining the authorization required by law.

  1. Ramming through a New Law to Transfer State Public Lands to Canada’s Enbridge without Proper Authorization

Fifth, when the Legislature ram-rodded the passage of Public Act 359 and Governor Snyder signed it into law in late December, they created a corridor authority to sign the tunnel agreement, easements, leases and other commitments for Canadian-based Enbridge to take over the public’s state-owned waters and soils and build the tunnel and its new pipeline. On its face, Act 359 transfers or commits to the authority these state public trust bottomlands without requiring authorization of the conveyance under the GLSLA. Under U.S. Supreme Court and Michigan Supreme Court decisions, any disposition, occupancy, or use must obtain authorization based on findings of no private purpose and no impairment of waters, soils, fishing, navigation or other public rights.  Otherwise, it is prohibited.

  1. Bypassing State Law and Alternatives to Risking the Great Lakes

Sixth, the easement for a public utility, after approval by the MPSC, such as the tunnel or the 99-year lease, or the continued operation of the existing Line 5 in the Straits, must be obtained from the state DNR in addition to the authorization under the Great Lakes Submerged Lands Act. Because the easements involve public trust bottomlands, they cannot be granted unless authorized by the GLSLA or unless based on the standards of the common law of public trust, which requires the comprehensive review of potential impacts and alternatives to the total or substantial change of the outdated dual lines in the soils and open waters of the Great Lakes.  

  1. Appropriating Public Property for Enbridge’s Private Purpose

Seventh, the Michigan Constitution, Art IV, Sec. 30, prohibits the appropriation of public property of the State for private or local purposes. An appropriation occurs where the disposition or transfer of state property, like the public trust waters and soils of the Great Lakes, is granted without findings or full and fair compensation—that is, where the transfer is for free, little consideration, or less than the full public trust value of these waters and soils.

In short, our former Governor, DEQ and DNR Directors, the MPSC, and former Attorney General suspended wholesale the rule of law for the benefit of Enbridge’s massive increase in the volume of crude oil through our Great Lakes State for private gain.

Restoring the Rule of Law and the Paramount Place of the Water and the Great Lakes in Michigan’s Future Prosperity

The first order of business for our new leaders—Governor Whitmer and Attorney General Nessel—is to restore the rule of law on Line 5 in Michigan, and they are off to a good start.  The high risks and more than $6 billion catastrophe from a release of crude oil in the Great Lakes and an estimated additional $45 billion in damage to shipping, steel production, and jobs are unacceptable by any sane measure.  

The public deserves better, the law and state Constitution demand it, and we applaud and urge on the governor and attorney general’s steps to bring Line 5 to a prompt and orderly decommissioning and closure.

Governor Whitmer should direct her new directors of the DEQ and DNR and Attorney General Nessel should direct her lead attorneys on Line 5 and the Great Lakes to conduct a thorough and careful review and reevaluation of the Snyder Administration’s and former Attorney General Schuette’s failure to follow the public trust, GLSLA, and Michigan Constitution in the handling of the entire Enbridge Line 5 controversy.

Buoyed by the work of so many organizations, tribes, communities, individuals and families, and the majority of citizens who elected them, the Governor and Attorney General Nessel and their administrations have a mandate and opportunity to restore water, environment, and public health as paramount in Michigan. The public deserves better, the law and state Constitution demand it, and we applaud and urge on the governor and attorney general’s steps to bring Line 5 to a prompt and orderly decommissioning and closure. 

Jim Olson, President and Founder

Enbridge has alternatives within its pipeline system to meet all of its and Michigan’s needs without using the Straits and the Great Lakes.  There are several good solutions to assure continued delivery of propane to rural areas in the Upper Peninsula. It may even save Enbridge and its shareholders from shouldering a future stranded asset, as the need for Alberta crude oil, including through Line 5, will plummet in the next decade with the rise of the new renewable energy economy backed by public demand.


Legal Fact from Legal Fictions


A Preface

When I sat down to finish this post this morning on the news about Michigan’s agreement with Enbridge to consider replacing an aging, dangerous Line 5 crude oil pipeline through the Great Lakes basin, I realized that what I should really be writing about is yesterday’s dire warning by the U.N.’s Intergovernmental Panel on Climate Change (www.ipcc.ch/) that if citizens, countries, communities, and businesses don’t act to reduce carbon dioxide levels by 45 percent before 2030, the world will tilt over the brink of massive destruction. We’ve been warned that the earth’s temperature must not increase more than 2 degrees C by 2050. Now scientists urge countries and citizens to mount an unprecedented historical shift in human actions to reduce that limit to 1.5 degrees C by 2030. If we do not engage in this historical shift, we but more so our children and grandchildren, will suffer untold loss. The narrative is clear: Future survival and prosperity are now dependent on enlightened water and energy policies; they are inseparable.

The IPCC report concludes that, “There is no documented historic precedent” for the scale of social and technical change that must occur for the world to survive. How ironic that our Governor and state agencies, with the advice of our Attorney General, signed a second agreement with Enbridge Energy last week to assure continued use of an aged, dangerous Line 5 in the Straits, and to propose a possible replacement tunnel in 7 to 10 years that would transport light and heavy tar sands crude for the next 99 years. Michigan should not be thinking about building a tunnel for Enbridge in the next decade, we should be taking immediate action to slash fossil fuel consumption by 45 percent.

The Michigan-Enbridge “Second Agreement”

Climate change aside, Michigan faces a serious risk of disaster from the aged, and failing original design of Line 5 in the Straits. To make sure we immediately address this risk, there are some critical realities beneath the rhetoric about the agreement that must be understood and avoided. If these realities are not avoided, Michigan citizens, communities, and businesses will face two disasters—(1) the intensity of catastrophic extreme weather from climate change and (2) an oil spill from Line 5 that would wreak massive irreparable damage and loss to Lake Huron and Lake Michigan, our drinking water, ecosystem, and economy.

  1. This is not about meeting Michigan’s needs. Our leaders signed an agreement with recitals of fact claiming that “the continued operation of Line 5… serves important public needs by providing substantial volumes of propane to meet the needs of… citizens… and transporting essential hydrocarbon products, including oil to Michigan and regional refineries.” In fact, a number of modest adjustments would deliver propane via truck, train, or 4-inch-diameter pipeline to meet the needs of our rural residents. In fact, the existing pipeline network across southern Michigan and from Pennsylvania, Ohio, and the southern U.S. will meet the crude oil needs of Michigan and regional refineries. There are sensible, less costly alternatives within this existing pipeline network that render the need for Line 5 or a tunnel under the Straits imprudent and unnecessary. A number of independent studies, including FLOW’s, and the London Economics International (LEI) have come to this same conclusion: decommissioning Line 5 is not only economically feasible but is the best alternative because it would protect Michigan’s waters and natural resources, and it would have no noticeable impact on Michigan’s economy.
  2. Enbridge’s pledge to operate consistent with its easement cannot be trusted. The agreement contains a recital that Enbridge “continues to operate and maintain such pipelines [dual 20-inch lines in the Straits] consistent with the terms of the [1953] Easement as part of Line 5.” In fact, the state and other organizations and reports have proven that Enbridge has violated its obligations in the Easement to prevent scouring of lakebed beneath the pipeline designed to lay on the bottom of the Straits, to exercise prudence in order to prevent harm to public and private property, and to provide financial assurances, among others. Unfortunately, it appears our State leaders would rather weaken the State’s ability to enforce the 1953 Easement.
  3. Near-term safety measures don’t address Line 5’s failing design. The agreement contains a recital that “near-term measures to enhance the safety of Line 5, and the longer-term measure—the replacement of Dual Pipelines—can essentially eliminate the risk of adverse impacts that may result from a potential release from Line 5 in the Straits.” However, those “near-term” measures will not address the failing design of the 65-year-old oil pipelines in the Straits. The State has allowed Enbridge to install 150 anchors, with a request for 48 more, to elevate the dual lines above the lakebed as a “repair” or “maintenance” because the original, “as built” design failed to account for the scouring of lakebed under the lines. The installation of anchors elevating the lines above the lake bed constitutes a totally new or changed design of these dual lines. Worrisome currents and natural forces have pulled some of the anchors from the lakebed. Worse, the design has never been evaluated or authorized by state agencies, as required by the Great Lakes Submerged Lands Act (GLSLA) and Michigan Environmental Protection Act (MEPA). So an unauthorized, aged line will continue to operate while a longer-term tunnel will be proposed and discussed and built, if at all, in 7 to 10 years. Quite a deal for Enbridge. The company gets to run a pipeline with a failing design full-tilt in exchange for a promise to talk about the idea of a tunnel, if at all, sometime in the future. In effect, by allowing Line 5 to continue in the Straits, the agreement mostly ignores the high-risk of an oil spill causing an estimated $2 to $6 billion in damages to more than 400 miles of shoreline across upper Lake Huron and Lake Michigan.
  4. The State cannot truthfully say the agreement protects public trust resources. The State agreed to a recital that “the terms of the Second Agreement will both protect the ecological and natural resources held in public trust…” Agreements to locate or allow occupancy of pipelines or other structures on, under, or through the bottomlands of the Great Lakes require authorization under the GLSLA. Until the Michigan Department of Environmental Quality determines that the location or occupancy of a tunnel will not promote primarily a private purpose or not impair the public trust in Lake Huron and Lake Michigan, the agreement cannot even be implemented. Why not just require Enbridge to decide for itself what it wants to do, and demand the company apply for the required determinations under the rule of law of the GLSLA? Unfortunately, State officials signed an agreement that circumvents this rule of law and deprives the public of notice, participation, and their legal right that the State enforce our laws to protect the public trust and welfare of our communities and citizens. If the law would be followed, the Second Agreement would not have ignored the independent studies; instead, the agreement appears to favor the self-serving studies commissioned by Enbridge.
  5. The agreement commits the state to a new Line 5 segment under the St. Clair River without any environmental review. Paragraph B of the Agreement authorizes Enbridge to replace the segment of Line 5 under the St. Clair River with a new horizontal directional drilled (HDD) pipeline. In fact, the State agreed to allow Enbridge to make a substantial investment in this segment, tacitly confirming the continued existence of Line 5 for decades to come. How can our State officials commit to a new tunnel under the St. Clair River without considering and determining the risk sand alternatives to the entire length of Line 5, including the Straits? The law prohibits breaking up projects into little pieces to avoid full review of the risks, dangers, potential damages, and alternatives that would eliminate those risks. However, our State leaders allowed Enbridge to skirt the legal requirements that it must prove no more than minimal potential harm and no alternative to Line 5 (even though studies demonstrate that other alternatives exist and Line 5 is not necessary).
  6. The State and Enbridge mistakenly claim the agreement provides for a “replacement” of the dual pipelines with an alternative Straits Tunnel in 7 to 10 years. In fact, there is no agreement or obligation for Enbridge to do anything: In paragraph I.F, state officials and Enbridge only agreed “to promptly pursue further agreements…” for “a replacement for the Dual Pipelines” in the Straits segment of Line 5. This means that Enbridge can decide not to agree to a replacement and continue operating the existing high-risk dual lines in the Straits indefinitely. It also means the State has ignored the legal requirement that Enbridge must first prove there are no alternatives to Line 5 in the Straits and Great Lakes under the GLSLA.
    • Paragraph I.G. of the agreement proposes a “Straits Tunnel” that is a corridor for a new Line 5 under the Straits for at least another 99 years. It is only a “proposal” and Enbridge and the State only agreed to “initiate discussions… to negotiate a public-private partnership agreement with the Mackinac Bridge Authority for locating the Straits Tunnel under the Straits of Mackinac. This means, Enbridge does not have to reach an agreement for a Straits Tunnel at all, but can continue operating the existing dual lines in the Straits indefinitely. It also means that a future “public-private partnership” (PPP) agreement will be negotiated with Enbridge and the Mackinac Bridge Authority. What exactly is a PPP?
    • There is no definition of what is meant by a “public-private partnership” agreement among the State, the Authority, and Enbridge. But PPPs are a flashing red warning light. PPPs substitute and favor private corporations with obligations to generate profits for shareholders for government or other publicly owned systems that by law are obligated to deliver services to the general public at cost. PPPs often involve property transfers, long term leases, and other agreements turning over public control of public lands and facilities to private interests. PPPs can be required to indemnify the government and public from liability for damages, but these agreements are often underfunded and do not supplant the liability of the state or a public body like the Mackinac Bridge Authority.
    • The Mackinac Bridge Authority was created by the legislature in 1952 for the sole purpose of constructing the Mackinac Bridge for the people of Michigan and the public to enjoy vehicular travel between the two peninsulas. The bridge was, and is, a public project for the traveling and motoring public. The bridge authority law does not authorize construction of a new tunnel for a privately owned pipeline company or privately owned electric utility, simply because a state utility board gives them a certificate of public convenience. These companies have an obligation to generate profits and dividends for their stockholders. The Bridge Authority has an obligation to preserve the fiscal and physical integrity of the Mackinac Bridge for the general public.
  7. There is no requirement to shut down Line 5. In paragraph H.I there is a provision for the deactivation of the existing Line 5 in the Straits. However, it is not required unless Enbridge agrees to a tunnel, constructs one, and opens it for operation. Until that happens, there is no requirement for shutting down Line 5 in the Straits; the high risk of the aged, failing design will continue indefinitely into the future.
  8. Enbridge’s financial assurance is at best vague and inadequate, at worst a sham. In paragraph I.J., Enbridge is supposed to provide a combination of assets and general liability insurance policies to cover a worst-case scenario risk assessment that estimates $1.878 billion in damages. In fact, another independent damage report puts the number at $6 billion, so the state accepted assurances at the low end of the range of estimated damages. Further, the estimated coverage is not adjusted for inflation over the next 10 years, and general liability policies often contain pollution exclusions that do not cover clean-up costs, restoration costs, and associated natural resource damages.
  9. It appears the state has surrendered the water resources and pocketbook of the State and its taxpayers to Enbridge on flimsy financial assurance provisions. In paragraph I.J, the state also agreed that “Enbridge’s compliance with the requirements under this Paragraph I.J. satisfies its financial assurance obligations specified under Paragraph J of the [1953] Easement.” In short, the State has waived its leverage to enforce the financial assurance obligation in the current Easement.

Jim Olson, President and Legal Advisor

So, here we are in a world facing a “historically unprecedented” challenge to rapidly reduce greenhouse gases, and Michigan has signed a mostly non-binding agreement for the possibility of a tunnel in 2028, the same time-frame that the state and country must slash its fossil fuel consumption by 45 percent. From an eagle’s eye view, Michigan energy policy is to foster the expansion, of production and consumption of crude oil and increase in greenhouse gases at a time when the world is on the brink. From a fiscal point of view, the agreement commits the State to an investment in a tunnel and continued high risk of catastrophic damages or loss from the existing Line 5, at a time when most likely the world and national markets for fossil fuels will decrease, likely to the point that the pipe dream for a tunnel will never happen, or if it does, the State and its taxpayers will end up with an obsolete and unaffordable relic. One way or another, citizens will suffer harm, and taxpayers will suffer loss under an Agreement that favors Enbridge, not Michigan.


Finally, An Honest Conversation About Line 5’s Real Risks to Our Waters and Our Way of Life

Over three years ago, on July 15, 2015, the State of Michigan’s Petroleum Pipeline Task Force released its recommendations for the state to conduct an independent risk analysis and independent alternatives analysis on the Line 5 pipelines located in the open waters of the Great Lakes. The Governor’s Advisory Board, created by executive order, promised the public these two separate reports by the summer of 2017.

But just before the risk report’s release in June 2017, the state scrapped the report due to a conflict of interest involving Enbridge and the independent contractor who has simultaneously worked on Enbridge’s Line 6B pipeline. Now, three years after the initial study recommendation, we finally have the risk report estimating Enbridge’s liability at $1.8 billion for a worst-case-scenario (WCS) oil pipeline spill in the heart of the Great Lakes.  

FLOW’s 2018 commissioned economic impact report (released in May 2018) — conducted by a nationally respected ecological economist and based on conservative assumptions — estimates $697.5 million in costs for natural resource damages and restoration and more than $5.6 billion in total economic impacts, including:

  • $4.8 billion in economic impacts to the tourism economy;
  • $61 million in economic impacts to commercial fishing;
  • $233 million in economic impacts to municipal water systems;
  • over $485 million in economic impacts to coastal property values.

Our FLOW team attended and testified at the state’s presentation this past Monday, on August 13, 2018, held at Boyne Highlands, and it was the first honest conversation between the state and citizens in a public forum about the real risk Line 5 poses to our waters and our way of life.

A team led by Dr. Guy Meadows of Michigan Technological University presented this independent risk analysis on its 58,000-barrel WCS disaster that would potentially affect 441 miles of Lakes Michigan and Huron shoreline in Wisconsin, Michigan, and Ontario. The Risk Analysis examined impacts to public health, drinking water, cultural resources, tourism, property values, natural resources, and economy. The report’s final section analyzed perceived risk and the social license to operate based on public opinion. To do this, the report reviewed the 45,000 comments submitted in December 2017 on Dynamic Risk’s Alternative Report, and found an overwhelming 80 percent of commentators opposed to Line 5. The reasons articulated by the opposition were grounded in sound science and law, according to Dr. Meadow’s team.

Although the dollar figures are different due to methodologies and assumptions, what the FLOW-commissioned MSU economic impact report and the state’s report demonstrate is this: Line 5 poses an unacceptable risk to the Great Lakes and the State of Michigan. Period.

The risk and potential harm unfairly burdens the citizens, businesses, and tribes of Michigan, and the freshwaters of the Great Lakes. A spill from Enbridge’s Line 5 could contaminate nearby municipal drinking water intakes, devastate some of the commercial, recreational, and tribal fisheries of the Great Lakes, kill aquatic and terrestrial wildlife, impair critical ecosystem services, diminish coastal property values, and tarnish the image of the state of Michigan and perceptions of its high levels of ecological integrity. Even bigger impacts would damage Michigan’s critical tourism industry.

The state’s risk analysis is yet another compelling reason for the state to take swift action to shut down Line 5.


Failed Leadership and Line 5


Our State’s leadership in the handling of Enbridge’s Line 5 in the Straits of Mackinac has gone from bad to worse. In light of disclosures by Enbridge of a failed pipeline design and the refusal on the part of our State leaders to take action to prevent devastating harm to the Great Lakes, it is time for leaders to either step up or step aside and let the voters or courts decide.

Enbridge has revealed previously withheld documentation showing bending of pipelines from extreme currents, delaminating protective cover, and numerous sections of bared steel open to corrosion. What Enbridge doesn’t understand is this: The State is trustee for citizens who are legally recognized beneficiaries of the public trust in the Great Lakes. The State trustee has a duty to prevent unacceptable harm or risks to the Great Lakes and the boating, fishing, swimming, and drinking water that depend on them. The decision does not belong to Enbridge but to our State’s leaders as trustees of these public paramount waters. Risk is a function of magnitude of harm; the higher the harm, the greater the risk. So it doesn’t matter what Enbridge executives think or say, or what their studies say after consultants have admitted conflicts of interest and withheld critical information on the failed condition of the lines.

Our State’s leaders must put an end to this now. Statements by Governor Snyder, DEQ Director Grether, and Attorney General Schuette about “serious concern” or “disappointment” do not go far enough. The proper response to the serious risk of unthinkable harm to the Straits and Great Lakes is not mere feeling; it is leadership and action. Governor Snyder’s recent agreement has belied even his disappointment. He expressly short circuited the his own advisory board and a citizen process established by his own Executive Order. The agreement expressly narrows a comprehensive alternative study to find a way to avoid crude oil pipelines in the Great Lakes, by expressly agreeing to a replacement of Line 5 in the Straits of Mackinac and the St. Clair River. So much for disappointment, he’s handing Enbridge a large Christmas present.

The Governor and DEQ should have required Enbridge to prove that there is no alternative to crossing under the Great Lakes for pipeline transport to Canada. It is unlikely Enbridge could prove that a non-Great Lakes pipeline alternative does not exist, given the fact that Enbridge recently doubled its design capacity in Line 6b across southern Michigan to Sarnia from 400,000 to 800,000 barrels. To win approval from the Public Service Commission to double its capacity across southern Michigan after the Kalamazoo disaster, Enbridge repeatedly testified if approved the doubled capacity would fulfill the company’s current and future needs, as well as those of Canada and the smaller needs of Michigan.

Our leaders must suspend the transport of crude oil through Line 5, and order Enbridge to start over by revoking the easement the state granted in 1953 and making the company comply with the laws and public trust that protect the Great Lakes. A bank trustee would have been replaced a year ago for such inaction as our state’s. If our leaders, the sworn trustees of our Great Lakes, don’t take action, they, too, should be replaced. Hopefully, it won’t come to that. If it does, then our third branch of government—the courts—should step in as they would in a receivership where management has failed.

It will not have to come to this if our leaders put a stake in the ground and suspend transport of oil. It will finally after three years of “cat and mouse” place the burden where it belongs: on Enbridge. Enbridge must be forced under rule of law to prove no catastrophic harm or acceptable risk and that it has no alternative to a pipeline in the Great Lakes. The truth is Line 5 under the Straits violates “reasonably prudent person” standard in the Easement, a common sense covenant that the company agreed to when it was granted the 1953 easement. It is no longer prudent to risk the Great Lakes with a crude oil spill of tar balls, dead fish, and oily wildlife and beaches.

The message and course of action for our Great Lakes State leaders is clear: Step up or step aside. If not, the courts or voters will do it for you.


Enbridge’s Neglect of 64-Year-Old “Line 5” Pipelines in Mackinac Straits Requires State to Apply Law, Stop Oil, Reject Permit

Liz Kirkwood, Executive Director                                                  Cell: 570-872-4956
FLOW (For Love of Water)                                                          Email: liz@flowforwater.org

Jim Olson, Founder & President                                                   Cell: 231-499-8831
FLOW (For Love of Water)                                                          Email: olson@envlaw.com


ST. IGNACE – The state of Michigan must immediately apply the law, stop Line 5’s oil flow, and reject a Canadian company’s application to extract more life out of its decaying steel pipelines built in 1953, according to FLOW, a Traverse City-based Great Lakes water law and policy center in public comments made today. The comments came at a public hearing in St. Ignace on Enbridge’s bid for state approval to shore up parts of Line 5 that are bent or deformed due to the company’s neglect and support other areas potentially prone to erosion.

“Enbridge characterizes the application as seeking authorization for routine maintenance,” said Liz Kirkwood, FLOW’s Executive Director and environmental attorney. “The reality is that Enbridge is scurrying to rectify its dangerous neglect of maintenance over decades, including multiple violations of a legal agreement to properly anchor its dual pipelines against the swift currents in the Straits.” 

A recent report by Dr. Ed Timm, a FLOW adviser and former Dow Chemical engineer, shows Line 5 is bent and deformed where Enbridge wants to anchor it. The report presents new evidence of structural damage to the western pipe where Enbridge seeks to install five of the 22 anchors into Lake Michigan’s public bottomlands, stemming from a company pattern of violating a 1953 easement granted by the state allowing Enbridge to occupy the Mackinac Straits.

The state’s easement agreement allowing Line 5 to occupy the Mackinac Straits limits unsupported spans to no more than 75 feet, but a 2003 survey identified 16 unsupported spans greater than 140 feet; the longest at 224 feet on the east leg and 286 feet on the west leg. Other Enbridge inspection report revealed nearly 250 instances between 2005 and 2016 of unsupported spans on the pipelines exceeded a 75-foot legal limit in violation of Michigan’s easement agreement with Enbridge. This track record does not provide confidence that the company will fulfill its obligations in the future.

By attempting to cloak the results of its neglect and avoiding an assessment of Line 5’s impacts and alternatives, Enbridge is perpetuating the imminent threat to the Great Lakes and the protected public uses that include fishing, commerce, navigation, recreation, and drinking, according to a legal analysis by FLOW.

In fact, the company’s poor performance as well as the massive work proposed provides a compelling legal basis for the state to consider feasible and prudent alternatives to continued operation of the dual Line 5 pipelines.

“The state of Michigan must consider under rule of law whether there are viable options to the piecemeal patch-up of these aging steel oil pipelines threatening the Great Lakes,” said Jim Olson, FLOW’s founder and president and a renowned water rights attorney. “Enbridge has expanded Line 5 and the new Line 78 from Indiana across lower Michigan to Sarnia under the rubric of ‘maintenance.’ Our cities, villages, and citizens have ended up with Enbridge’s version of the Keystone XL right here in the Great Lakes, and it happened without the public notice, hearings, and independent impact and alternative analyses required by law.”

Line 5 transports nearly 23 million gallons of oil and natural gas liquids each day through the Mackinac Straits, 80 percent more volume than its past design capacity after several of its so-called “maintenance” upgrades.

Of particular concern is Enbridge’s continued failure to predict and prevent the cumulative impacts on Line 5 of lakebed erosion caused by Straits currents that frequently reverse and can exceed 10 times the flow over Niagara Falls.

Contrary to assertions by Enbridge, the state taking action to stop Line 5’s oil flow in the Mackinac Straits to prevent a catastrophic oil spill would not disrupt Michigan’s or the Midwest’s crude oil and propane supply, according to a set of expert reports FLOW released in December 2015. Available capacity and flexibility to meet energy demand in the Great Lakes region already exists in the North American pipeline system run not only by Enbridge, but also by competitors supplying the same refineries in Detroit, Toledo, and Sarnia, Ontario.

“The fact is, Line 5 is not essential,” said Rick Kane, a Michigan-based hazardous materials risk management specialist advising FLOW. “The regional pipeline system can supply crude oil to Michigan and surrounding refineries while eliminating the risk that Line 5 poses to the Great Lakes,” Kane said. “Feasible and prudent alternatives exist to support domestic needs, as well as exports.  However, pipeline company owners will not move to implement any alternatives as long as Line 5 operates and the public continues to carry the risk.”


Action Alert: Enbridge Trying to Squeeze More Life Out of “Line 5” in the Mackinac Straits

Take Action Now!

Urgent Threat: Enbridge is courting an oil spill disaster again in Michigan, and this time the Great Lakes are at risk. The public has until June 29, 2017, to oppose the Canadian energy transport giant’s request for state permission to squeeze more life out of a cracked, dented, and deformed pair of pipelines that push 23 million gallons of oil a day across the bottom of the Mackinac Straits, where Lake Michigan and Lake Huron meet. The request to continue the piecemeal patch up of the 64-year-old “Line 5” pipelines threatens the drinking water source for more than 40 million people, the economic engine for the Great Lakes region, and a way of life for millions of North Americans.

Terrible Track Record: Recall that Enbridge in 2010 caused the largest inland oil spill in U.S. history when its southern Michigan pipeline ruptured and dumped more than one million gallons of heavy tar sands oil into the Kalamazoo River watershed. That failure sickened 150 people, and permanently drove 150 families from their homes, taking four years and over $1.2 billion to clean up to the extent possible. Enbridge’s Line 5 has a similar dark history, with at least 29 spills totaling more than one million gallons of oil spread along its path in Michigan and Wisconsin since 1953.

Damage Done: Now Enbridge has applied to the State of Michigan for a permit to install more underwater anchor supports on its antiquated Line 5 pipelines in the Mackinac Straits, which the University of Michigan calls the “worst possible place” for a Great Lakes oil spill. The 22 anchor supports are another belated attempt to keep Line 5 from shifting, bending, and grinding on the bottom in the powerful underwater currents at the Straits, but the damage is already done. These supports are merely the latest in a series of stopgap measures that ignore decades of metal fatigue and stress on the pipeline, which is now well past its 50-year life expectancy and should be permanently shut down as soon as possible.

Follow the Facts

Public records reveal that…

  • From the 1970s through the 1990s, Enbridge installed grout bags to prop up Line 5, attempting to meet the state’s requirement under the 1953 easement to support the steel pipeline at least every 75 feet along the publicly owned bottom of the Great Lakes.
  • In 2001, Enbridge declared an emergency on Line 5 in the Straits to stabilize stretches or spans of the pipeline that had become dangerously unsupported for over 130 feet because of “washouts” of the lake bottom and grout bags caused by swift currents that, records show, were underestimated when the pipeline was designed. 
  • Recently it was revealed that Enbridge was out of compliance likely for decades with the legally required safety margin, allowing 16 spans of Line 5 to go unsupported for lengths greater than 140 feet, with the longest being 224 feet on the east pipeline and 286 feet on the west pipeline – nearly four times the legal limit.
  • With no reliable model to predict lakebed washouts due to the highly dynamic nature of currents in the Mackinac Straits, Enbridge cannot meet its legal duty under the state easement to prudently operate this pipeline.
  • Enbridge incorrectly categorizes its proposed patchwork response to Line 5’s major structural defects as “routine maintenance” when the company has, in fact, been systematically expanding the capacity of Line 5 and Line 6b in southern Michigan to carry Canadian oil heading mostly back to Canadian refineries and to overseas markets.

This strategy has previously enabled the company to avoid State of Michigan review of the safety and necessity of the pipeline itself, and dodge the legally required consideration of alternative routes and methods that do not threaten the Great Lakes.

Take Action Now

The public has until June 29, 2017, to submit comments to the Michigan Department of Environmental Quality opposing Enbridge’s bid to keep Line 5 on life support and seeking to prevent a Great Lakes oil spill disaster.

  • Submit comments at http://www.oilandwaterdontmix.org/anchor_structure_public_comment
  • Draw upon information in this Action Alert, and from www.OilandWaterDontMix.org, to offer objections that are specific and factual.
  • Be sure to demand a public hearing and call for the Michigan DEQ’s full review of the environmental impact of the Enbridge request and feasible and prudent alternatives to Line 5, as required by law.
  • Written comments will be made part of the record and should reference application number 2RD-DFDK-Y35G.

 

Thank you! 

Enbridge Downplaying the Potential Size of Catastrophic “Line 5” Straits Oil Spill

 

In the last two years, Enbridge has cut nearly in half its estimate of the likely size of an oil spill from a pair of aging pipelines that move nearly 23 million gallons of oil a day through the Mackinac Straits, while independent studies suggest the risk is much greater and growing. Read the full findings by engineer and FLOW technical expert Gary Street.