Page 5 - NorthAmOil Week 48 2021

NorthAmOil COMMENTARY NorthAmOil

Michigan Governor
Gretchen Whitmer
is seeking to have
Enbridge’s Line 5
pipeline shut down.

Enbridge said in a statement that it would most viable path” towards the permanent shut-
re-engage with all stakeholders – including down of Line 5.
shippers and non-shippers on the Mainline – to This comes after Whitmer’s efforts suffered a
help negotiate a new commercial framework for blow earlier in November when a US District
the system. Any new agreement will need to be Court judge sided with Enbridge and allowed
approved by the CER. the case to remain in federal court.
The Mainline continues to operate under Also in November, the Canadian govern-
an interim tolling agreement for now, with ment, which recently waded into the fight,
Enbridge planning to file a new application with said planning for bilateral treaty talks between
the regulator once it decides, in consultation Ottawa and Washington over the dispute was
with stakeholders, what model would be best. well underway. If formal negotiations between
The company said the negotiations may carry the two sides fail, the next stage of the dispute
on into 2022, with a CER decision then being resolution process would be binding interna-
issued in 2023 following a new review. tional arbitration.
Thus far, the administration of US President Enbridge
Line 5 battle Joe Biden has not taken a position on the dis-
Meanwhile, a separate battle continues for pute. It appears to be awaiting the findings of continues to
Enbridge over its Line 5 pipeline, which carries an environmental assessment that the US Army pursue state and
540,000 bpd of crude and natural gas liquids Corps of Engineers is conducting on Enbridge’s
(NGLs) from Western to Eastern Canada via the tunnel proposal for the Straits of Mackinac. federal permits
Great Lakes region of the US. Indeed, Enbridge continues to pursue state and
Whitmer is seeking to have the pipeline shut federal permits for the tunnel project, treating it for the tunnel
down, citing concerns over an underwater sec- as a separate issue from Whitmer’s attempts to
tion that runs through the Straits of Mackinac. shut down Line 5 altogether. project, treating
Enbridge has proposed housing that section of The Biden administration did say in early it as a separate
pipeline in a new tunnel, but Whitmer is push- November that it would discuss the future of
ing for a complete shutdown. Line 5 with the Canadian government. No fur- issue.
This week, Whitmer withdrew her federal ther details on the plans for these discussions
court case over the pipeline’s future, and will have emerged thus far.
instead concentrate on a lawsuit filed in state In the meantime, Enbridge has welcomed
court in 2019. Whitmer’s team hopes that drop- Whitmer’s move to abandon the federal court
ping the federal lawsuit will enable the 2019 case on Line 5, saying in a statement that it
state case to move forward, even as the Enbridge would continue to press for affirmation of fed-
lawsuit remains in federal court. In a statement, eral jurisdiction over the pipeline.
Michigan Attorney General Dana Nessel said The dispute appears set to continue for
that the state case remained the “quickest and some time.™

Week 48 02•December•2021 www. NEWSBASE .com P5