Page 5 - NorthAmOil Week 11 2021

NorthAmOil COMMENTARY NorthAmOil

office. Keystone XL had become a lightning rod but has warned that courts could take years to
for opposition, also resulting in a back-and- resolve the dispute.
forth between former US Presidents Barack “We believe there will be reviews at multi-
Obama and Donald Trump, with one denying ple levels at the US federal courts, and that this
a permit for the pipeline while the other subse- review will take many, many years,” Yu said. “I
quently approved it. Biden served as Vice-Pres- think it’s essential that we try to come up with
ident under Obama, and his subsequent move a mediated, negotiated diplomatic solution
to revoke the cross-border permit for the that takes us out of the hands of the courts and
under-construction – but stalled by litigation – provides a reasonable outcome for everyone
Keystone XL came as no surprise. involved,” he added.
The situation is different for existing pipe- In any case, Enbridge does not believe a US
lines, which have already been operating for court would grant Whitmer’s request for an Enbridge does
some years, but they face new uncertainty too, injunction to shut down Line 5. This comes
with the Dakota Access oil pipeline also facing as a federal judge in Grand Rapids, Michigan, not believe a
the risk of shutdown following a court order for is currently weighing whether or not the case US court would
a new regulatory review after the original one belongs in a state court. A hearing is scheduled
was deemed to be insufficient. And opponents for May 12. grant Whitmer’s
of pipelines and fossil fuels more broadly are While Enbridge awaits the decision, however,
now calling on Biden to take a tougher stance on it is seeking support from the government of request for an
existing pipelines, though he has given no indi- Canada and other players.
cation as yet that he would be prepared to do so. “We request the government of Canada use injunction to shut
every pathway to assert that Line 5 is an impor- down Line 5.
What next? tant binational pipeline protected by the treaty,
In the case of Line 5, Enbridge is proposing whose shutdown would have grave impacts for
to replace the underwater section that runs both the United States and Canada,” Yu said.
through the Straits of Mackinac, housing it in a While Enbridge appears confident that the
tunnel in an effort to enhance its safety. Indeed, pipeline will not be shut down, the fight over
Michigan regulators have approved the $500mn Line 5 illustrates the highly uncertain environ-
tunnel project, saying that the issue was a sep- ment that pipeline companies now operate in.
arate one from whether the existing pipeline Proposed pipelines being scrapped is nothing
could continue operating. new, but if any existing pipeline is forced to
The company is fighting against Whitmer’s shut down, it could set a worrying precedent for
decision to revoke the easement in federal court, other pipeline projects across the US.™

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