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Energy

Enbridge punches back on Line 5 challenge: ‘Nothing but counter-factual speculation’

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This photo taken in October 2016 shows an aboveground section of Enbridge’s Line 5 at the Mackinaw City, Mich., pump station. The Bad River Band of the Lake Superior Chippewa wants a federal judge in Wisconsin to order the pipeline closed, fearing a rupture on its territory due to spring flooding. THE CANADIAN PRESS/AP-John Flesher

By James McCarten in Washington

Michigan joined the Line 5 legal fray unfolding just across state lines Wednesday as lawyers for Enbridge Inc. and an Indigenous band prepared to square off over whether the controversial cross-border pipeline should be shut down.

The stage is set for oral arguments Thursday in the Wisconsin capital of Madison as a federal judge contemplates whether to order the taps turned off and the pipeline’s contents purged to forestall a watershed-fouling rupture.

That hearing will now also include lawyers fighting a similar legal battle with Enbridge in Michigan, where Attorney General Dana Nessel has so far been thwarted in her three-year campaign to seal off Line 5 for good.

The Bad River Band of the Lake Superior Chippewa, through whose northern Wisconsin territory the line runs, has filed a motion arguing that spring flooding along the riverbanks has rendered the risk of a breach too great to ignore.

Nonsense, Enbridge argues back in an opposition brief that takes direct aim at the band’s claims of a looming environmental emergency, as well as the “drastic remedy” its lawyers are requesting.

“Despite having to prove both liability and grounds for an injunction, the band has done neither. The motion must therefore be denied,” the brief reads, describing their argument as “alarmist” and “counterfactual speculation.”

“No release of oil is ‘ready to take place,’ ‘happening soon,’ or ‘real and immediate.'”

The 50-page filing includes among its exhibits an email exchange between Enbridge and the band’s natural resources officials to support its argument that the band has been unwilling to allow the company to do any remedial work.

“This court should contrast the evidence before it of Enbridge’s persistent efforts and overtures to reach a solution … with the band’s refusal to meaningfully engage or act.”

Even if the risk was high, shutting down the pipeline would not be the appropriate remedy, Enbridge says, pointing to a court-ordered contingency plan that spells out the steps it would take if the threat were indeed urgent.

“Enbridge will pre-emptively purge and shut down the line well in advance of any potential rupture,” the brief says, adding that the area remains under constant 24-hour video surveillance.

“Any flooding and erosion has not, and would not, catch Enbridge by surprise.”

Heavy flooding that began in early April washed away significant portions of the riverbank where Line 5 intersects the Bad River, a meandering, 120-kilometre course that feeds Lake Superior and a complex network of ecologically delicate wetlands.

The band has been in court with Enbridge since 2019 in an effort to compel the pipeline’s owner and operator to reroute Line 5 around its traditional territory — something the company has already agreed to do.

But the flooding has turned a theoretical risk into a very real one, the band argues, and it wants the pipeline closed off immediately to prevent catastrophe.

Line 5 meets the river just past a location the court has come to know as the “meander,” where the riverbed snakes back and forth multiple times, separated from itself only by several metres of forest and the pipeline itself.

At four locations, the river was less than 4.6 metres from the pipeline — just 3.4 metres in one particular spot — and the erosion has only continued.

Michigan, led by Nessel, has been arguing since 2019 that it’s only a matter of time before Line 5 leaks into the Straits of Mackinac, the ecologically delicate waterway where it crosses the Great Lakes.

“The alarming erosion at the Bad River meander poses an imminent threat of irreparable harm to Lake Superior which far outweighs the risk of impacts associated with a shutdown of the Line 5 pipeline,” she argues in her brief.

“Without judicial intervention, it is likely that this irreparable harm will be inflicted not only on the band, but also on Michigan, its residents, and its natural resources.”

The economic arguments against shutting down the pipeline — which carries 540,000 barrels of oil and natural gas liquids daily across Wisconsin and Michigan to refineries in Sarnia, Ont. — are by now well-known.

Its proponents, including the federal government, say a shutdown would cause major economic disruption across Alberta, Saskatchewan and the U.S. Midwest, where Line 5 provides feedstock to refineries in Michigan, Ohio and Pennsylvania.

It also supplies key refineries in Ontario and Quebec, and is vital to the production of jet fuel for major airports on both sides of the Canada-U.S. border, including Detroit Metropolitan and Pearson International in Toronto.

“The implications (of a shutdown) are significant — not only to Pearson airport, not only to the Detroit airport, but to our mutual economies,” Transport Minister Omar Alghabra said Wednesday on Parliament Hill.

Talks about possible contingency plans have been taking place, he added, though he hinted at something Enbridge and pipeline experts have been saying for years: there are no real alternatives.

“There’s been ongoing discussion,” Alghabra said. “But I can tell you that our focus is making sure that Line 5 continues operations.”

That was the idea behind a lengthy statement issued Tuesday by the Canadian Embassy, which warned of severe economic consequences as well as potential ramifications for bilateral relations were the line to close.

“The energy security of both Canada and the United States would be directly impacted by a Line 5 closure,” the statement said. Some 33,000 U.S. jobs and US$20 billion in economic activity would be at stake, it added.

“At a time of heightened concern over energy security and supply, including during the energy transition, maintaining and protecting existing infrastructure should be a top priority.”

Talks have been ongoing for months under the terms of a 1977 pipelines treaty between the two countries that effectively prohibits either country from unilaterally closing off the flow of hydrocarbons.

Nonetheless, the embassy’s statement and the Enbridge brief tacitly acknowledge that the prospect of a shutdown order is very real.

In Enbridge’s case, the brief pre-emptively asks the judge to grant a stay of 30 days, should an injunction be ordered, to give lawyers time to mount an appeal.

And if “this specific, temporary flood situation” results in a shutdown, the embassy says, Canada expects the U.S. to comply with the treaty, “including the expeditious restoration of normal pipeline operations.”

This report by The Canadian Press was first published May 17, 2023.

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Energy

Poll: Majority says energy independence more important than fighting climate change

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From The Center Square

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A majority of Americans say it is more important for the U.S. to establish energy independence than to fight climate change, according to new polling.

The poll from Napolitan News Service of 1,000 registered voters shows that 57% of voters say making America energy independent is more important than fighting climate change, while 39% feel the opposite and 4% are unsure.

Those surveyed also were asked:  Which is more important, reducing greenhouse gas emissions to combat climate change, or keeping the price of cars low enough for families to afford them?

Half of voters (50%) said keeping the price of cars low was more important to them than reducing emissions, while 43% said emissions reductions were more important than the price of buying a car.

When asked, “Which is more important, reducing greenhouse gas emissions or reducing the cost and improving the reliability of electricity and gas for American families?”, 59% said reducing the cost and increasing the reliability was more important compared to 35% who said reducing emissions was more important.

The survey was conducted online by pollster Scott Rasmussen on March 18-19. Field work was conducted by RMG Research. The poll has a margin of error of +/- 3.1 percentage points

​Dan McCaleb is the executive editor of The Center Square. He welcomes your comments. Contact Dan at [email protected].

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Energy

Energy, climate, and economics — A smarter path for Canada

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By Resource Works senior fellow Jerome Gessaroli

Canada has set ambitious climate goals, aiming to cut its greenhouse-gas emissions by 40 to 45 per cent by 2030, and to hit net-zero emissions by 2050.

Now a senior fellow at Resource Works, Jerome Gessaroli, argues that Canada is over-focusing internally on reducing greenhouse-gas emissions, when we should “look at cooperating with developing countries to jointly reduce emissions.”

He continues: “And we do that in a way that helps ourselves. It helps meet our own goals. That’s through Article 6 of the Paris Accord, allowing countries to share emission reduction credits from jointly developed projects.”

Reduction on a global scale

Article 6, says Gessaroli, means this: “We can work towards meeting our own emission goals, and can help developing countries meet theirs. We can do it in a way that’s much more efficient. We get a lot more bang for our buck than if we are trying to just do it domestically on our own.”

The point is that, in the end, emissions are reduced on a global scale — as he stressed in a five-part series that he wrote for Resource Works last November.

And in a study for the Macdonald-Laurier Institute (where he is a senior fellow) he wrote: “The benefits could be large. Canada could reduce emissions by 50 per cent more if it carried out methane reduction projects both internationally and domestically, rather than solely in Canada.”

But is Ottawa interested?

Gessaroli says the federal government expressed interest in Article 6 in 2019 — but has not moved since then.

“They barely looked at it. Since this requires government-to-government coordination, it needs Ottawa’s initiative. But there doesn’t seem to be too much interest, too much appetite in that.”

All Ottawa has said so far is: “Going forward, Canada will explore these and other similar options to strengthen international co-operation and generate incentives for further emission reductions.”

Gessaroli on Resource Works

Gessaroli has been working with Resource Works since he first spoke with our Stewart Muir, following a letter that Muir wrote in The Vancouver Sun in 2022: ‘Gas has key role to play in meeting 1.5C climate targets.’

Gessaroli saw in Resource Works advocacy for responsible resource development “for the people, the citizens of BC, in an environmentally responsible manner and in a manner that’s efficient, driven by the private sector.”

And: “Resource Works supports responsible resource development, not uncritical expansion. We have these resources. We should develop them, but in a way that benefits society, respects nature, respects the local peoples, and so that wide elements of society can benefit from that resource development.”

Gessaroli on electric vehicles 

Gessaroli hit a shared interest with Resource Works in a 2024 paper for its Energy Futures Institute, critiquing BC’s plan to require that all new vehicles sold in the province must be electric zero-emission vehicles (ZEVs) by 2035.

For one thing, he wrote, BC would need to spend $1.8 billion to provide electric charging points for the vehicles. And billions more would be required to provide expanded power generation and transmission systems.

“The Government of BC should adjust or rescind its mandated targets for new minimum zero-emission vehicle sales.”

And on ZEV subsidies 

Stewart Muir and Barry Penner, chair of the Energy Futures Institute, wrote a guest column last October in Business in Vancouver. They cited Gessaroli’s paper above, and noted: “According to Gessaroli, meeting BC’s ZEV targets will require an additional 2,700 gigawatt hours of electricity by 2030, and 9,700 gigawatt hours by 2040—almost equal to the output of two Site C dams.”

Gessaroli has also looked at the subsidies BC offers (up to $4,000) to people who buy an electric vehicle.

“The subsidies do help. They do incentivize people to buy EVs. But it’s a very costly way to reduce carbon emissions, anywhere upwards of $600, $700, even $800 a tonne to eliminate one tonne of carbon.

“When you look at the social cost of carbon, the government uses a figure around $170 a tonne. That’s the damage done from every tonne of carbon emitted into the atmosphere. So we’re paying $800 to remove one tonne of carbon when that same tonne of carbon does damage of about $170. That doesn’t sound like a very cost-effective way of getting rid of carbon, does it?”

Gessaroli on Donald Trump’s policies

Gessaroli says tariffs on imports are not the only benefit that Donald Trump plans for U.S. industry that will hurt Canada.

“He also wants to reduce tax rates, 15% for US manufacturers, and allow full deductibility for equipment purchases. You reduce regulations and red tape on companies while lowering their tax rates. They’re already competitive to begin with. Well, they’re going to be even more competitive, more innovative.”

For Canada, he says: “Get rid of the government heavy hand of overtaxing and enforcing inefficient and ineffective regulations. Get rid of all of that. Encourage competition in the marketplace. And over time, we’d find Canadians can be quite innovative and quite competitive in our own right. And we can hold our own. We can be better off.

“And there’d be more tax revenues being generated by the government. With the tax revenue, you can build the roads, build the hospitals, improve the healthcare system, things like that.

“But without this type of vibrant economic type activity, you’re going to get the stagnation we’re seeing right now.”

About Jerome Gessaroli

Gessaroli leads the Sound Economic Policy Project at the B.C. Institute of Technology. He is the lead Canadian co-author of Financial Management: Theory and Practice, a widely used textbook. His writing has appeared in many Canadian newspapers.

Stewart Muir, CEO of Resource Works, highlights Gessaroli’s impact: “Jerome brings a level of economic and policy analysis that cuts through the noise. His research doesn’t just challenge assumptions—it provides a roadmap for smarter, more effective climate and energy policies.

“Canada needs more thinkers like him, who focus on pragmatic solutions that benefit both the environment and the economy.”

Gessaroli and Karen, his wife of 34 years, live in Vancouver and enjoy cruising to unwind. In his downtime, Gessaroli reads about market ethics and political economy — which he calls his idea of relaxation.

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