Tuesday, January 22, 2019
Michigan’s new Democratic governor, Gretchen Whitmer, has requested a legal opinion from the state’s attorney general on the constitutional- ity of Enbridge Line 5 legislation passed during the 2018 lame duck session. That legislation, PA 359, promoted by outgoing Republican Gov. Rick Snyder, created the Mackinac Straits Corridor Authority and sealed an agreement with Enbridge Inc. (Calgary) to decommission the existing Line 5 pipeline and replace it with a line encased in a bedrock-reinforced utility tunnel beneath the Straits of Mackinac.
The 10-year project’s cost is estimated at between $350 million and $500 million. Enbridge agreed to pay for the tunnel’s design, construction, operation, and maintenance for up to 99 years, with the new Mackinac Straits Corridor Authority owning the tunnel, leasing space to Enbridge, and providing oversight. Both Whitmer and Michigan Attorney General Dana Nessel, who also took office in January, have been fierce critics of the tunnel plan, with Whitmer pledging during her gubernatorial campaign to shut down Line 5 owing to what she alleged were environmental risks. The pipeline has operated for more than 65 years without incident.
“Resolving any legal uncertainty regarding PA 359, the Mackinac Straits Corridor Authority, and action taken by the authority is necessary to assure that we can take all action necessary to protect the Great Lakes, protect our drinking water, and protect Michigan jobs,” Whitmer said. “I pledged to take action on the Line 5 pipeline on day one as governor, and I am holding true to that campaign promise.”
“There are serious and significant concerns regarding PA 359, which the previous governor and legislature initiated and passed without the care and caution one would expect for an issue that will have a monumental impact on our state,” Nessel said in a statement. “Gov. Whitmer has rightly—and immediately—raised important questions about the legality and statutory underpinnings of this act and my office is prepared to tackle her request for an opinion immediately. I encourage any interested or concerned party to forward a brief or legal memo on the issues raised by the opinion requested.” She added that, “Those who stand to benefit from this act should take heed that this request raises serious legal concerns. In no way should any entity rely on this act to move forward unless and until these matters have been resolved.”
Enbridge Line 5, commissioned in 1953, supplies 65% of propane demand in Michigan’s Upper Peninsula and 55% of the state’s propane needs. It also carries light crude oil and light synthetic oil. Decommissioning would result in the loss of an estimated 15,000 bbld of propane supply to the region. “As feared and expected, Gov. Whitmer and Attorney General Nessel are already at work on reviewing Line 5,” said Derek Dalling, executive director of the Michigan Propane Gas Association. “A day after taking office, Gov. Whitmer has formally requested AG Nessel to review the legality of PA 359 that established the new corridor for Line 5. While she did not give a specific timeline for issuing the opinion, AG Nessel said it is a top priority for her office.”
While Line 5’s continued operation, in any form, has attracted intense opposition from environ- mental groups, supporters of the tunnel plan include Heidi Grether, director of the Michigan Department of Environmental Quality. “This solution offers the greatest possible safeguards to Michigan’s waters while maintaining critical connections to ensure Upper Peninsula residents have the resources they need. This historic agreement will result in eliminating nearly every risk of an oil leak in the straits.”
(SOURCE: The Weekly Propane Newsletter, January 21, 2019)
The 10-year project’s cost is estimated at between $350 million and $500 million. Enbridge agreed to pay for the tunnel’s design, construction, operation, and maintenance for up to 99 years, with the new Mackinac Straits Corridor Authority owning the tunnel, leasing space to Enbridge, and providing oversight. Both Whitmer and Michigan Attorney General Dana Nessel, who also took office in January, have been fierce critics of the tunnel plan, with Whitmer pledging during her gubernatorial campaign to shut down Line 5 owing to what she alleged were environmental risks. The pipeline has operated for more than 65 years without incident.
“Resolving any legal uncertainty regarding PA 359, the Mackinac Straits Corridor Authority, and action taken by the authority is necessary to assure that we can take all action necessary to protect the Great Lakes, protect our drinking water, and protect Michigan jobs,” Whitmer said. “I pledged to take action on the Line 5 pipeline on day one as governor, and I am holding true to that campaign promise.”
“There are serious and significant concerns regarding PA 359, which the previous governor and legislature initiated and passed without the care and caution one would expect for an issue that will have a monumental impact on our state,” Nessel said in a statement. “Gov. Whitmer has rightly—and immediately—raised important questions about the legality and statutory underpinnings of this act and my office is prepared to tackle her request for an opinion immediately. I encourage any interested or concerned party to forward a brief or legal memo on the issues raised by the opinion requested.” She added that, “Those who stand to benefit from this act should take heed that this request raises serious legal concerns. In no way should any entity rely on this act to move forward unless and until these matters have been resolved.”
Enbridge Line 5, commissioned in 1953, supplies 65% of propane demand in Michigan’s Upper Peninsula and 55% of the state’s propane needs. It also carries light crude oil and light synthetic oil. Decommissioning would result in the loss of an estimated 15,000 bbld of propane supply to the region. “As feared and expected, Gov. Whitmer and Attorney General Nessel are already at work on reviewing Line 5,” said Derek Dalling, executive director of the Michigan Propane Gas Association. “A day after taking office, Gov. Whitmer has formally requested AG Nessel to review the legality of PA 359 that established the new corridor for Line 5. While she did not give a specific timeline for issuing the opinion, AG Nessel said it is a top priority for her office.”
While Line 5’s continued operation, in any form, has attracted intense opposition from environ- mental groups, supporters of the tunnel plan include Heidi Grether, director of the Michigan Department of Environmental Quality. “This solution offers the greatest possible safeguards to Michigan’s waters while maintaining critical connections to ensure Upper Peninsula residents have the resources they need. This historic agreement will result in eliminating nearly every risk of an oil leak in the straits.”
(SOURCE: The Weekly Propane Newsletter, January 21, 2019)
