Tag: Shut Down Line 5

Mackinac Straits photo by Beth Price.

Story published May 24, 2021. UPDATED June 2, 2021 

Editor’s note: This article has been updated to reflect Enbridge’s 2020 Securities and Exchange Commission (SEC) filings

By FLOW staff

Gov. Gretchen Whitmer and the State of Michigan have taken legal action to shut down Line 5 in the Straits of Mackinac to prevent a catastrophic oil spill in the Great Lakes from the dangerous and decaying, 68-year-old pipeline. Meanwhile, Line 5-owner Enbridge and its enablers continue to engage in a Chicken Little “sky is falling” campaign, with the Canadian company claiming that, “shutting down Line 5 would cause shortages of crude oil for refineries in Michigan, Ohio, Pennsylvania and eastern Canada, as well as propane shortages in northern Michigan. Enbridge also alleges a Line 5 shutdown would boost shipments of oil by rail or trucks, without providing any evidence.

Enbridge’s misinformation campaign has been building for a few years, for example, conspiring with DTE and others in 2020 to oppose electrification, renewable energy, and climate change mitigation measures. 

In fact, none of Enbridge’s predictions of an energy shortage materialized when both legs of the dual Line 5 pipelines in the Straits were shut down for more than a week in June 2020 and one leg remained closed until about mid-September following damage that the U.S. Coast Guard said likely was caused by an Enbridge-contracted vessel. Research conducted by former Dow Chemical engineer Gary Street found that gasoline prices and supply were unaffected in Michigan and Canada after more than 50 days of a court-ordered Line 5 shutdown in the summer of 2020.

The research results are consistent with these studies forecasting little, if any, change in energy costs after Line 5 shuts down for good:

The shutdown of Line 5 won’t lead to fuel shortfalls because available capacity and flexibility to meet energy demand in the Great Lakes region already exists in the North American energy pipeline system operated by Enbridge and its competitors.

• Available capacity and flexibility to meet energy demand in the Great Lakes region already exists in the North American energy pipeline system operated by Enbridge and its competitors without threatening our public waters and Pure Michigan economy, according to FLOW’s experts.
• Shutting down Line 5 is unlikely to significantly impact gasoline prices (an increase of less than once cent per gallon is forecast), according to a 2018 study conducted by London Economics International, LLC, a Boston-based consultancy, and commissioned by the National Wildlife Federation.
• Shutting down Line 5 would add just five cents to the cost of a gallon of propane, which has hovered around $2 for the past year, according to a 2018 study conducted by London Economics International, LLC, a Boston-based consultancy, and commissioned by the National Wildlife Federation.
• The Upper Peninsula has viable options to Line 5 for its propane supply and economy, according to FLOW’s research.
• Oil & Water Don’t Mix has a great animated video showing how the Upper Peninsula does not need Line 5’s propane.

Another claim regarding the impact of a Line 5 shutdown emerged last year from management of the PBF refinery in Toledo, Ohio. Likely at Enbridge’s behest, PBF warned of a refinery shutdown and loss of a thousand jobs if the supply provided by Line 5 is no longer available. The Toledo refinery, PBF suggested, has no other source of petroleum.

This assertion immediately raised the question: What kind of refinery management would leave itself vulnerable by receiving crude from only one source? It also directly contradicts statements PBF says in its own investor filings, as well as reports from market analysts. They emphasize that PBF refinery has several sources of supply and can adjust them depending on market conditions.

“The [PBF] refinery only processes light/medium and sweet crude and gets most of its WTI crude through pipeline from Canada, the mid-Continent, the Bakken region and the U.S. Gulf Coast,” an analyst says. Another credits PBF with using “its complex crude processing capacity to source the lowest cost input.” PBF says in its 2020 filing with the Securities and Exchange Commission that crude is delivered to its facility through three primary pipelines, Enbridge from the north, Patoka from the west, and Mid-Valley from the south. Crude is also delivered to a nearby terminal by rail and from local sources by a truck-to-truck unloading facility in the refinery property.

Formerly the PBF refinery was supplied in part by the Capline pipeline. However, the energy market is shifting dramatically and the Capline pipeline is being reversed, demonstrating that the system is flexible and can adapt to changing markets without shutting down the refinery.

The fact is that multiple alternative pipelines, rail, and truck sources are and will be available to enable PBF to continue refining petroleum as it is today. No credible evidence points to job loss in Toledo from a Line 5 shutdown. And PBF itself said in a September 2017 news story challenging EPA regulations because of alleged job losses that the Toledo refinery employed 550, not 1,000, workers.

After Line 5 is shut down, the small percentage of its light crude coming to U.S. refineries could be supplied by other sources currently serving the region, including the Patoka and Mid-Valley pipelines, along with crude from Northern Michigan oil wells.

Fanning the fears of employees and communities with false and inflated claims is the latest in a series of tactics deployed by Enbridge and its enablers. Their goal is to pressure Michigan officials into letting the company continue to occupy the public bottomlands of the Straits of Mackinac with its antiquated Line 5 pipeline, and later, a proposed oil pipeline tunnel under the lakebed.

PBF also claims that a feared Toledo refinery shutdown, which research cited above dispels, would seriously impinge on the supply of jet fuel at Detroit Metropolitan Airport, driving up fares or reducing flights, or both. The claim is that 40% of the jet fuel used at the airport comes from refined Line 5 petroleum. But PBF and the Marathon Detroit refineries appear to supply only about 9% of the jet fuel used at the airport each day, and again alternative pipeline sources can more than make that up.

It is worth noting that prior to PBF’s claims made in 2019, the impacts of a Line 5 shutdown on Metro Airport jet fuel had never before been raised as an issue in the Line 5 debate. Now Canadian officials are singing the same tune to bring political pressure on the Whitmer administration, claiming that Line 5 “is the single largest supply for gasoline, ultimately, in southern Ontario; for aviation fuel out of the Detroit airport; for heating fuel in northern Michigan; for the refineries in northern Ohio that fuel much of the Midwest U.S. economy.”

For its part, Enbridge has a track record of misleading the public and governments about its performance, including failure for 3 years to report bare spots in the protective coating on Line 5 in the Straits, violating for several years the safety conditions of its easement agreement to occupy the public waters and bottomlands of the Straits, and running a dubious advertising campaign claiming to protect Michigan’s water. Enbridge’s and its allies’ recent claims are consistent with the company’s apparent philosophy of avoiding transparency and saying anything to keep Line 5 petroleum and profits flowing.

Key Facts, in a Nutshell

Jobs! Let’s talk jobs! 

If the Great Lakes region were a country, it would have a GDP of US$6 trillion making it the third largest economy in the world. In fact, a new report analysing the 83 coastal counties along the Great Lakes has found that the Great Lakes support more than 1.3 million jobs that generate $82 billion in wages annually. Continuing to operate the decaying Line 5 risks many jobs, while shutting down Line 5 will protect hundreds of thousands of jobs in Michigan’s tourism economy. According to a FLOW-commissioned report in May 2018 conducted by a Michigan State University ecological economist, direct spending by tourists supports approximately 221,420 jobs, and the total tourism economy in 2016, including direct, indirect, and induced impacts, supported 337,490 jobs—approximately 6.1% of total employment in Michigan.

Toledo PBF Refinery 

• Enbridge and fossil-fuel industry allies have a track record of false and unsubstantiated claims and a lack of transparency.
• The numbers are inflated:
  • Enbridge and refineries and some politicians are misleading the public. They falsely claim that the two Toledo refineries and one Detroit refinery, and by extension the jobs there, are fully and wholly dependent on Line 5. The refineries supposedly affected are: Marathon-Detroit; BP-Husky-Toledo — which carries no Line 5 feedstock because it’s a tar sands refinery that takes feedstock from Line 78 (formerly Line 6B), and PBF-Toledo. PBF states in its 2020 filing with the Securities and Exchange Commission that it “processes a slate of light, sweet crudes from Canada, the Mid-continent, the Bakken region and the U.S. Gulf Coast.”
  • The Patoka pipeline and the Mid-Valley pipeline supply PBF with oil and the refinery receives oil from rail and truck.
  • The refineries rely on multiple pipelines and suppliers, and they say so in writing.
  • Marathon refinery primarily uses dilbit, which Line 5 doesn’t currently carry.

Detroit Metropolitan Airport

• In a letter to Michigan Gov. Gretchen Whitmer, Ohio Gov. Mike DeWine claimed, “our refineries supply the majority of aviation fuels to Detroit Metro Airport” and asserted that the shutdown of Line 5 would lead to airline schedule disruptions.
• But 2020 jet fuel consumption at Detroit Metro will total 1,658,000 gallons per day, according to a 2010 estimate by the airport. Based on numbers published by PBF, BP Husky and Marathon Refineries, Line 5 appears to supply only about 10% of the jet fuel at Detroit Metro Airport, not 40% as claimed by Ohio Gov. DeWine. Both Marathon and PBF have other crude oil sources, and therefore other pipelines could provide feedstock to satisfy regional jet fuel needs. Alternatively, other nearby refineries in Illinois, Indiana, and Ohio could make up this shortfall.

Bottom line: Shutting down Line 5 will protect hundreds of thousands of jobs. A Line 5 shutdown would not significantly impact jobs at Toledo, Ohio, refineries. There is absolutely no evidence that a shutdown would impair operations at Detroit Metropolitan Airport.

Sources:

• Marathon 2020 total capacity:  140,000 bpd https://www.marathonpetroleum.com/Operations/Refining/Detroit-Refinery/
• Increase of Heavy Crude to 115,000 bpd https://www.myplainview.com/news/article/Marathon-refinery-seeks-support-for-second-8578737.php                           
• https://www.ogj.com/general-interest/companies/article/17286350/marathon-to-upgrade-expand-detroit-refinery
• BP Husky capacity and crude feed: https://www.hydrocarbons-technology.com/projects/bp-husky/
• PBF Capacity: 180,000 bpd https://investors.pbfenergy.com/~/media/Files/P/PBF-Energy-IR-V3/documents/annual-reports-and-proxy/pbf-energy-2020-annual-10k-report-1.pdf
• PBF Truck terminal at Toledo:  22,500 bpd; https://www.pbflogistics.com/~/media/Files/P/PBF-Logistics-IR-V2/reports-and-presentations/20190514-pbfx-may.pdf (Appendix)
• Jet Fuel Consumed per day at DTW: https://www.metroairport.com/sites/default/files/business_documents/masterplans_2009archive/04_-_demand_capacity_facility_requirements_2-16-10.pdf

Mackinac Bridge photo by Nancy May

By Liz Kirkwood and Nora Baty

Every hour, Enbridge’s Line 5 pipelines pump nearly a million gallons of oil through the heart of the Great Lakes at the Straits of Mackinac, which connect Lakes Michigan and Huron. This location with its powerful currents is “the worst possible place for an oil spill in the Great Lakes,” threatening over 700 miles of Lakes Michigan and Huron coastline, according to the University of Michigan. Governor Whitmer calls Line 5 “a ticking time bomb” that Enbridge has refused to defuse.

This morning along East Grand Traverse Bay, the drinking water source for Traverse City, Liz Kirkwood explains why Enbridge’s decision to ignore the law amounts to privatizing the Great Lakes and the Public Trust.

Sixty-eight years ago, Enbridge’s predecessor, Lakehead Pipeline Company, chose this vulnerable location as the shortest distance to transport Canadian oil back to Canada. In 1953, the public, political leaders, and pipeline operators had not yet experienced catastrophic oil spills like the Exxon Valdez in Alaska, BP Deepwater Horizon in the Gulf of Mexico, or Enbridge’s own Line 6B Kalamazoo River disaster in southern Michigan. 

Now, despite the well-documented and lasting economic and ecological harm of oil pipeline disasters across the globe, we are witnessing intense, orchestrated opposition from Canada’s Enbridge and its allies to shutting down a clear-and-present danger to Michigan’s waters and way of life. A Line 5 oil spill would be an unprecedented ecological and economic disaster in the Great Lakes, threatening 84% of North America’s surface fresh water and some 20 percent of the planet’s fresh surface water, devastating coastal communities, and causing billions of dollars of damages to the environment and local and regional economy.  

Enbridge has continually failed to adequately maintain the pipeline, committing repeated and ongoing legal violations that are both pervasive and well-documented. They include at least three known anchor strikes against the underwater pipelines, a vulnerable engineering structure never designed to withstand the powerful lakebed currents and erosion, a lack of adequate liability insurance to hold the state and its people harmless, 33 known Line 5 oil spills in Michigan and Wisconsin, and much more. Now, despite Governor Whitmer’s revocation and termination of the easement, Enbridge continues to operate Line 5 in violation of state law. 

Line 5’s original design intended the dual pipelines to lie upon the lakebed and was subject to a detailed and comprehensive engineering evaluation of 20 specific areas, including written determinations of fitness that were certified by consulting engineers. Now, after decades of patchwork repairs to shore up the decaying infrastructure, as much as 3 miles of pipelines are elevated above the lakebed floor and prone to physical hazards such as anchor strikes in the busy shipping channel of the Straits of Mackinac.

After extensive legal review of Enbridge’s incurable violations in public trust waters, the governor and the Department of Natural Resources took decisive legal action to defend the Great Lakes from a catastrophic oil spill under the state’s sovereign public trust law. Leaders in 16 states and the District of Columbia and four tribes have taken Michigan’s side in its fight to have a state court, not a federal judge, decide whether the state has the authority to shutter Enbridge’s Line 5 oil pipeline in the Straits of Mackinac.

In refusing to shut down Line 5 per the Governor’s order, Enbridge’s flagrant disregard for the law exposes a deep-rooted and reckless corporate culture of exceptionalism that includes the following: 

• Refusing to provide financial assurances for the consequences of a Line 5 spill.
• Refusing to hold the State of Michigan, its people, and the tribes of Michigan harmless, thus foisting risk of a Line 5 spill on the U.S. and the Great Lakes.
• Wielding political power to evade compliance with state rule of law. 
• Conspiring with DTE and others to oppose electrification, renewable energy, and climate change mitigation measures.
• Engaging in a targeted, sophisticated misinformation media strategy through Enbridge’s front group affiliate Consumer Energy Alliance.

Gov. Whitmer on Tuesday pledged in a letter to seize any profits that Enbridge makes from operating Line 5 after today’s midnight shutdown deadline, alleging it would constitute trespass and unjust enrichment. Also on Tuesday, several federally recognized tribes in Michigan took legal steps under tribal law to limit Enbridge and the threat from Line 5. Bay Mills Indian Community in the Upper Peninsula, as well as a five-tribe organization including Bay Mills that manages the fishery in the Straits of Mackinac, voted to banish Enbridge’s Line 5 from its territory. Banishment is a legal action that is considered a punishment of last resort in tribal law.

“This was the first, necessary step in banishing Enbridge from these waters,” said Bay Mills chairperson Whitney Gravelle, who said the move applies to the reservation and treaty-ceded waters. “We’re calling on the state and the United States to enforce this banishment.”

Michiganders have not forgotten Enbridge’s epic failure and legacy of the million-gallon, Line 6B oil spill disaster into the Kalamazoo River in 2010 that drove dozens of families permanently from their homes and cost an estimated $1.2 billion in cleanup costs, damages, and restoration. 

“The Enbridge Kalamazoo River spill of 2010 was a real thing — people remember it,” said David Holtz, spokesman for the Oil & Water Don’t Mix campaign. “They understand that oil still lies at the bottom of that river, and that a million gallons were spilled. They understand that could happen again times 10 in the Straits of Mackinac — no matter what Enbridge says in its million-dollar ad buys.”

After causing one of the largest inland oil spills in U.S. history, Enbridge rebuilt the Line 6B pipeline and gained approval to double its capacity. The economic and environmental costs of a Line 5 oil spill would be much worse to Michigan and the Great Lakes.

As part of “a sophisticated public affairs strategy,” Enbridge and its ally Consumer Energy Alliance—a national oil industry front group—continue to claim that shutting down Line 5 could lead to propane and oil shortages and increased prices harming Michigan consumers. However, the vast majority of the liquids shipped via Line 5 do not supply Michigan, and an independent analysis found that shutting down Line 5 was unlikely to significantly impact consumer prices at the pump (less than one cent per gallon) and that Michigan’s energy needs could be met without Line 5. Research conducted by former Dow Chemical engineer Gary Street found that in August 2020, after more than 50 days with at least one leg of Line 5 closed due to damage from an cable strike, gasoline prices and supply were unaffected in Michigan and Canada.

At the same time, the energy landscape is rapidly changing with the adoption of electric vehicles, accelerating commitments to cut greenhouse gas emissions, and the slowdown of oil and gas production. Enbridge has been on notice for several years that the State of Michigan was seriously considering the shut down of Line 5. 

But not everyone is waiting around. In fact, several oil companies seeking alternatives to Line 5 have contingency plans put in place. Suncor Energy purchased a stake in the Portland-Montreal pipeline to import oil from Maine to Montreal if Line 5 is shut down. Toronto’s Pearson Airport has stated that its fuel sources are “diversified and consequently not at risk.”

Line 5 also threatens our climate and water security in an increasingly hot and thirsty world. Each year, Line 5 pumps out more than 57 million metric tons of greenhouse gas emissions, which is equivalent to the combined operation of the nation’s three largest coal plants. Dismissing the climate emergency, Enbridge and its political allies in the U.S. and Canada promote energy security alone and insist that “the operation of Line 5 is non-negotiable.” 

This strident reaction from Canadian politicians stems in part from the fact that Canadians have rejected building any new pipelines in the last decade in their own country going east or west to the coasts for export. In this pipeline battle, the Anishinabek Nation says the Canadian government is putting the oil and gas industry ahead of the Great Lakes with its support for the Line 5 pipeline. The Great Lakes are international water bodies, and Canadians should be just as concerned for their protection as the United States.

The Great Lakes support over 1.3 million jobs that generate $82 billion in U.S. wages annually, with 350,000 of those jobs in Michigan alone. More than 48 million Americans and Canadians draw their drinking water from the Great Lakes. Line 5 represents an unacceptable risk to the jobs and economy of the Great Lakes region, drinking water, and tribal treaty and fishing rights. While Enbridge might refuse for now to stop Line 5’s oil flow or collaborate in the global energy transition, for the future prosperity of Michigan, the Great Lakes, and the planet, we all must transition away from Enbridge.

About the authors:

Liz Kirkwood is FLOW’s executive director. Nora Baty is a third-year law student at the University of Michigan Law School and currently serving as FLOW’s Milliken Law and Policy Intern.