Tag: Enbridge Line 5

Analysis of Alternatives to 64-Year-Old “Line 5” Pipelines Riddled with Bad Assumptions, Miscalculations





 

TRAVERSE CITY – A draft report for the State by Dynamic Risk Inc. of alternatives to Enbridge’s risky twin oil pipelines crossing the lakebed at the Straits of Mackinac is so deeply flawed, according to FLOW, a Traverse City-based Great Lakes water law and policy center, that the State cannot credibly rely on its findings to decide Line 5’s future.

“The report is unreliable and should not be used,” said Liz Kirkwood, Executive Director of FLOW. “Instead, the State should protect the Great Lakes from the potential of a catastrophic oil spill and exercise its legal authority to revoke Enbridge’s permission to use the waters and lakebed that belong to the people of Michigan.”

Prepared by Dynamic Risk Assessment Systems of Calgary – a firm with business ties to Enbridge – the study is rife with biased assumptions and technical errors that skew its findings, said FLOW representatives at a public meeting on the campus of Northwestern Michigan College.

“The process of developing these now-discredited reports has cost Michigan well over a year that should have been spent crafting a thoughtful decommissioning process that protects the Great Lakes, prioritizes citizens, businesses, and tribes, and ultimately addresses Michigan’s energy needs,” said Kirkwood, “Enbridge has been granted an extension through distraction.”

Among the draft report’s flaws:

• It completely ignores the most suitable alternative to Line 5, which is existing infrastructure. The state asked consultant Dynamic Risk to analyze it. Failure to do so taints the analysis.

• The draft report assumes that the state must guarantee that Enbridge deliver 23 million gallons of oil that is now being transported daily through Line 5, rather than protecting the energy needs of its citizens. This bias results in the tunnel option appearing as a favored report alternative.

• The draft report assumes the best-case scenario for a spill, not the worst. The consultant uses assumptions of risk that are woefully inadequate and are not credible. It estimates that an average 20 miles of shoreline would be impacted by a spill. This is just 3% of the 720-mile area the University of Michigan found vulnerable to a spill in its 2016 study.

• It significantly understates the likelihood of pipeline failure at an already-alarming 1 in 60 chance by ignoring 50 years of neglect, unsupported spans, powerful currents, and gravity. Applying DOT engineering standards and adding up the failure probability on a yearly basis gives the 2017 failure probability at 46.4% and the 2053 failure probability at 72.5%, or odds of about 3-1. These figures are far different from the Alternatives Analysis estimate of 1.6% by 2053.

• It relies on flawed economic impact modeling that unreasonably concludes that a spill in the open waters of the Great Lakes would only cost $100-200 million in damages.

• It estimates an impact to propane supply much greater than what FLOW’s independent experts have determined would be necessary to provide the Upper Peninsula’s Rapid River facility with an alternative supply. The flawed alternatives report finds that up to 35 railcars per week or 15 truckloads per day would be necessary to replace the Line 5 supply of natural gas liquids, while FLOW’s expert studies have found it would take only one railcar or 3-4 truckloads per day. Line 5 supplies only 35-50 percent of the Upper Peninsula’s propane.

“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.”
Last month, the state cancelled a contract for an analysis of the financial risks associated with the Mackinac pipeline when it was disclosed an employee of contractor Det Norske Veritas worked on another project for Enbridge, creating a conflict of interest.

“The risk is far too high for State leaders to use this flawed report as an excuse for more delay, especially when there are obvious alternatives for Enbridge, Michigan, and Canada without Line 5 in the Straits,” said Jim Olson, FLOW’s founder and president and a renowned water rights attorney. “Good leadership calls for interim measures now, based on the clear authority and duties imposed on the State to protect the Straits and Great Lakes. This means prohibiting the transport of crude through Line 5, pending further proceedings and final decisions.”

After the revelation last month that Enbridge for years routinely violated a legal agreement to properly anchor its dual pipelines against the swift currents in the Mackinac Straits, FLOW argued the state of Michigan now must apply the law, stop Line 5’s oil flow, and hold public hearings as it considers the Canadian company’s application to squeeze more life out of its decaying steel infrastructure built in 1953.

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Line 5 Straits New Anchor Structures

 Public Statement

Michigan Department of Environmental Quality

Line 5 Straits New Anchor Structures

Jim Olson

President and Legal Advisor, FLOW (For Love of Water)

July 25, 2017


Director Grether, Division and Unit Chief Fisher, and the Gaylord Office Unit Supervisor Haas, and Great Lakes Submerged Land Specialist Graft:

This statement addresses a primary legal requirement for Enbridge concerning its proposal to locate, occupy, and engage in construction activity for twenty-two (22) new anchor supports on the public trust bottomlands and waters of Lake Michigan. The application as filed requests an activities permit pursuant to the Great Lakes Submerged Lands Act and Rules (“GLSA”) for placement of these twenty-two anchors as “other materials.”  As will be seen, these anchors and the pipeline are new and involve far more than placing spoils or other materials as an activities permit. In fact, these anchor supports and line, in combination with the dual lines in the Straits, have never been authorized under the GLSA and public trust law.

FLOW submitted public comments into the record on this application on June 29, 2017, and will submit supplemental public comments and technical reports on or before August 4, 2017, the end of the extended public comment period.  For purposes of the public hearing I offer the following specific comment on the legal framework for the proceedings under the GLSA for these twenty-two support anchors and the dual pipelines in the Straits of Mackinac.

First, the history of these new anchor supports, including the proposed twenty-two supports for the dual pipelines is directly related to the failure in design and construction of the original pipelines as authorized by the terms of the 1953 Easement and the substantial increase in crude oil flow rate from 300,000 bpd approved by the Public Service Commission in 1953 and the very new increase to 540,000 bpd as part of Enbridge’s project to expand its Lakeside System. A more detailed description of these anchors and why they are new and need approval to operate these dual lines are contained in FLOW’s June 29 public comment as supplemented by the comments to be filed on or before August 4, including the additional supplemental that will be submitted by technical experts Ed Timm and Gary Street.

Second, these anchor supports are new because they fall outside and were not authorized as part of the pipelines by the 1953 Easement. These anchors are new because they are proposed to prevent further bending in the compromised and deformed lines because of powerful currents and other forces in the Straits. As noted, they are also new because these supports together with other new facilities and equipment along Line 5 are part of the Enbridge expansion of its entire Lakehead System, including the doubling of Line 6b (now Line 78) to Stockbridge in southern Michigan.

In lay person terms, what does this mean?  It means that the dual pipelines with these new anchor supports and increased flow volume have not been authorized by agreements to permit the occupancy of these anchor supports on the bottomlands and n the waters of the Great Lakes as required by the GLSLA and its Rules. It means that the pending application for the proposed new twenty-two new supports does not comply with the requirements under the GLSLA and its Rules for a proper agreement or authorization for occupying bottomlands and waters in the Straits.

New structures to prop up a previously authorized line based on the existing define and new and increased volumes as part of a major single expansion project require new authorization. It is as simple as that.  Before the Department can act on Enbridge’s application for the construction activity permit for the anchor supports, Enbridge must first apply for and the State must authorize an occupancy conveyance or agreement in accordance with Sections 32502, 32503, and 32505 and other parts of the GLSLA and its Rules.

What to do, then?  The most straightforward way to proceed is for the MDEQ to notify Enbridge that it must comply with the requirements for authorization to occupy as I have described above, and to cease or halt the use of the lines in the Straits unless and until these lines with these new anchor supports have been applied for and determined to satisfy the standards and requirements of the GLSLA and its Rules. Recent evidence from Enbridge records and grueling evaluation by Dr. Ed Timm demonstrate that the integrity of the pipelines, as noted above has been precariously compromised, and as a result, according to Dr. Timm, there is in 2017 a probability of a failure in one of the lines as high as forty-six percent (46%).

The only prudent and correct thing for the State to do to prevent impairment or injury to the public trust and public and private riparian rights, public health, and safety, is to halt the flow of oil and put the onus on Enbridge to apply for proper conveyance authorization for these new structures in conjunction with these pipelines—they are inextricably related. Enbridge can decide to apply for these new supports in conjunction with the condition of the pipelines and the eighty percent (80%) increase in flow of crude oil.  The State DEQ can now once and for all finally consider and determine as trustee of the public trust protected by the GLSLA, whether Enbridge has shown there is no likely high risk of serious impairment to the public trust interests of Michigan and its citizens.

To date, not one agency has considered the environmental impact or existence of other alternatives related to the increase in flow of crude oil, the new supports and the condition of these lines.  The State can now evaluate in an orderly legal process whether the dual lines in the Straits can be or should be authorized. If Enbridge does not apply in order to comply and demonstrate a right to authorization and approval, then that is its own choice, and the State has the power, duty, and right to halt the transport of crude oil or demand decommissioning of the dual lines because they do not comply with state law and regulations enacted under its title and police power to protect its public trust lands and waters.

Thank you.


 

A Disappointing Distraction: FLOW’s Statement on the Line 5 Alternatives Study

On June 29, the State of Michigan released for public comment a consultant’s study on alternatives to Line 5, the risky 64-year-old dual oil pipelines that cross the lakebed of the Straits of Mackinac.  The state is now holding public meetings on the study.

The study is a major disappointment and contributes little of value to the discussion on the fate of the oil pipelines operating in the Great Lakes since 1953. 

FLOW’s position is unchanged:  the State of Michigan must terminate the easement allowing Enbridge to use Lake Michigan’s lakebed for the pipelines.  The state has the authority and the responsibility to do so to prevent a catastrophic oil spill.  In light of Enbridge’s consistent record of disregard for maintenance of Line 5, the state must do so.

* FLOW rejects the alternatives study as fatally tainted by the authors’ blatant conflict of interest. The consulting firm’s vice president has an extensive history of working alongside of, and in support of, Enbridge.  The state’s process is now revealed for what it always has been – a distraction from its responsibility to protect the Great Lakes by shutting down Line 5 now.

* Substantively, the alternatives study can’t be taken seriously because it:

  1. Completely ignores the most suitable alternative to Line 5, which is existing infrastructure. The state asked consultant Dynamic Risk to analyze it. Failure to do so skews the analysis. Since the state and consultant won’t do their jobs and analyze the existing infrastructure, FLOW will continue to analyze it by updating our 2015 independent expert report on that alternative in the near future.
  2. Assumes the best-case scenario for a spill. The consultant uses assumptions of risk that are woefully inadequate and are not credible. It estimates that:
  • Only 20 miles of shoreline would be impacted by a spill. This is just 3% of the 720-mile area the University of Michigan found vulnerable to a spill in its 2016 study.
  • An oil spill would cost $100 million to $200 million, when Enbridge’s cleanup costs for its Line 6B pipeline oil spill into the Kalamazoo River watershed in 2010 cost more than $1.2 billion.
  1. Inflates the impact of shutting down Line 5 to the U.P.’s propane supply. The report estimates an impact to propane supply much greater than what FLOW’s independent experts have determined would be necessary to provide the Upper Peninsula’s Rapid River facility with an alternative supply. The flawed report finds that up to 35 railcars per week or 15 truckloads per day would be necessary to replace the Line 5 supply of natural gas liquids, while FLOW’s expert studies have found it would take only one railcar or 3 – 4 truckloads per day.

FLOW is a leader in the Oil & Water Don’t Mix campaign uniting citizens, businesses, groups, governments, tribes, and faith communities in support of shutting down Line 5 to avoid a catastrophic Great Lakes oil spill.

Please submit your comments on the State of Michigan’s Line 5 alternatives study by August 4 by visiting the Oil & Water Don’t Mix website here: www.OilandWaterDontMix.org.

 

 

 

 

 

 

Enbridge’s Neglect of 64-Year-Old “Line 5” Pipelines Risks Mackinac Straits, Requires State to Stop Oil and Hold Hearings


 


 


 

FOR IMMEDIATE RELEASE TO MEDIA: June 29, 2017

Contacts:

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 

 

TRAVERSE CITY –

After the revelation earlier this month that Enbridge for years routinely violated a legal agreement to properly anchor its dual pipelines against the swift currents in the Mackinac Straits, the state of Michigan now must apply the law, stop Line 5’s oil flow, and hold public hearings as it considers the Canadian company’s application to squeeze more life out of its decaying steel infrastructure built in 1953, according to FLOW, a Traverse City-based Great Lakes water law and policy center, in formal comments released today.

While the state’s 1953 easement agreement granting Enbridge conditional occupancy of state bottomlands in the Mackinac Straits allows Enbridge up to 90 days to cure any violations, a 2016 report commissioned by Enbridge shows that the company for years knowingly ignored the erosion problem, which  appears to be unfixable and worsening with time.

“Enbridge’s willful neglect to properly support Line 5 in the Mackinac Straits is a game changer,” said Liz Kirkwood, FLOW’s Executive Director and environmental attorney. “This neglect is a flagrant violation of the company’s privilege to use the bottomlands and waters of the Great Lakes.”

“Leaving the pipeline exposed without support in the currents and forces of the Straits causes metal fatigue and heightens the risk of a spill. There needs to be an investigation of whether a pipeline should be there at all, before considering structural changes to a pipeline that has been compromised by the company’s own actions,” Kirkwood said.

Enbridge’s June 9 “maintenance” application to install up to 22 more pipeline anchors into Lake Michigan’s public bottomlands fails to address a company pattern of violating the easement and avoiding an assessment of Line 5’s impacts and alternatives, while 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.

The Michigan Department of Environmental Quality (MDEQ) is receiving public comment through today on Enbridge’s application, which also is being reviewed by the U.S. Army Corps of Engineers.

“This application is not about anchor supports. It’s about whether Enbridge can expand Line 5 and the new Line 78 from Indiana across lower Michigan to Sarnia,” said Jim Olson, FLOW’s founder and president and a renowned water rights attorney.  “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.”

The application, like many others filed by Enbridge in the last few years, disguises the company’s piecemeal actions that continue to significantly expand oil transport through and around the Great Lakes. 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.

The Michigan Pipeline Safety Advisory Board is conducting a parallel review of Line 5 in the Straits, with a draft report on alternatives released today and a risk report that has been stymied by a conflict of interest, but that process is neither under the rule of law nor complies with the Great Lakes Submerged Lands Act (GLSLA) or other state and federal law.

“The advisory board’s review is not legally binding and does not replace the DEQ’s independent obligation to determine whether Line 5 should continue.” Kirkwood said.

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.

“Enbridge’s piecemeal approach to managing washouts and installing adequate support under the Straits crossing of Line 5 has resulted in the line frequently being out of compliance with easement support requirements since the 1970’s,” said Ed Timm, PhD, an engineer advising FLOW. “Washouts are inherently unpredictable and it is likely that damage to the pipe has already occurred because of unsupported spans that were not detected and repaired by Enbridge’s two-year inspection and repair schedule.”

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.”

For more information, visit FLOW’s website at www.FLOWforWater.org/Line-5/ and these links:

  • FLOW’s Public Comments on the Joint Application of Enbridge Energy to Occupy Great Lakes Bottomlands for Anchoring Supports to Transport Crude Oil in Line 5 Pipelines in the Straits of Mackinac and Lake Michigan [2RD-DFDK-Y35G], submitted June 29, 2017.
  • FLOW’s Public Comments on the Joint Application of Enbridge Energy to Occupy Great Lakes Bottomlands for Anchoring Supports to Transport Crude Oil in Line 5 Pipelines in The Straits of Mackinac and Lake Michigan [No. 2hb-Vgko-35je], submitted August 25, 2016.
  • Technical Note Regarding Enbridge Line 5 Non-Compliance with 1953 Easement Requirements, A Mechanistic Analysis of Straits Pipeline Washout Phenomena, by Edward E. Timm, PhD, PE, August 20, 2016.
  • Appendices of August 2016: A & B

 

Enbridge’s June 9, 2017, application and public notice can be viewed at:

  • MDEQ website at https://miwaters.deq.state.mi.us/. The public can view the application or submit comments by clicking on the Public Notice Search and entering “Enbridge” in the Applicant Name section or “2RD-DFDK-Y35G” in the Application Number section.

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PDF of Media Release:

Read FLOW's Comments here: