Army Corps Approves Environmental Permits for Enbridge Line 5 Tunnel Project

Dow Jones08-13

The Army Corps of Engineers on Wednesday approved Enbridge's plan to build a tunnel under the Straits of Mackinac to house a replacement section of the Line 5 pipeline.

In its announcement, the corps said the plan "was not contrary to the public interest" and would not "abrogate or impermissibly impair tribal treaty rights."

The approval clears a significant hurdle for the pipeline project, though it continues to face opposition from environmental groups and elected officials in Michigan. Last month, the state's Supreme Court overturned an approval by state regulators, a decision that will require a new round of stricter state environmental reviews for the project.

In a statement Wednesday, Enbridge said the Army Corps' approval was based on "the highest standard of environmental review required for major critical energy and other infrastructure projects."

"The approval of this key federal permit for the Great Lakes Tunnel Project is a significant step forward and reflects the U.S. Army Corps of Engineers' more than six years of rigorous, comprehensive review," the company said. "The Corps' review was thorough, transparent, and grounded in extensive environmental analysis."

Earthjustice, an environmental group involved in legal efforts to block the tunnel project, said the Army Corps "short-circuited its review of the tunnel's impacts" to comply with President Trump's executive orders seeking to fast-track energy projects.

The corps had announced last year it was expediting its review of the Line 5 tunnel to comply with the orders.

"The U.S. Army Corps just rubber-stamped a Canadian oil project that desecrates a Tribal sacred space and threatens to pollute the Great Lakes," David Gover, an attorney with the Native American Rights Fund, said in a statement issued by the environmental group.

Earthjustice also faulted Michigan Gov. Gretchen Whitmer, a Democrat, for not doing more to block the project.

"In contrast to her public messages, Governor Whitmer has not stood up to Enbridge -- in fact quite the opposite," said group attorney Debbie Chizewer. Whitmer's office did respond to a request for comment Wednesday.

The 645-mile pipeline carries 540,000-b/d of light crude and mixed NGLs from Superior, Wis., to Sarnia, Ontario. Line 5 supplies about 28% of the refining feedstock for Marathon Petroleum Corp. Detroit refinery, Enbridge has said. It also supplies refineries in Toledo, Ohio, operated by PBF Energy Inc. and Cenovus Energy Inc. In Canada, Suncor Energy's 85,000 b/d refinery in Sarnia as well as fractionation facilities in the city also rely on Line 5.

In addition, the pipeline supplies about 55% of Michigan's total propane needs and 65% of the propane used in the Upper Peninsula and Northern Michigan.

Enbridge has proposed building a four-mile tunnel under the strait as part of a plan to replace an aging section of pipeline. That section is currently exposed on the bottom of the waterway, which connects Lake Michigan and Lake Huron.

The Michigan Public Service Commission review, which was ordered redone by the Michigan Supreme Court, found the tunnel would be a significant improvement over the existing pipeline configuration, reducing the risk of anchor strikes while also containing any potential spill within the tunnel.

The review found there was a public need to replace the existing section of pipeline and that, without the pipeline, "suppliers would need to use higher-risk and costlier alternative fuel supply sources and transportation for Michigan customers, including those who use propane for home heating."

Despite the commission's finding, state Attorney General Dana Nessel -- who campaigned on a pledge to shut the pipeline -- is continuing to pursue legal efforts to force Line 5 to close.

 
 

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