Business
Enbridge to pay Bad River band $5.1M in Line 5 profits, move pipeline by 2026: judge
This June 29, 2018 photo shows tanks at the Enbridge Energy terminal in Superior, Wisc. A U.S. judge in that state has ordered the Calgary-based energy giant to pay an Indigenous band US$5.1 million and to remove the Line 5 pipeline from the band’s property within three years. THE CANADIAN PRESS/AP-Jim Mone
By James McCarten in Washington
Calgary-based Enbridge Inc. must pay an Indigenous band in Wisconsin more than US$5 million in Line 5 profits and relocate the controversial cross-border pipeline within the next three years, a U.S. judge says.
A rupture on territory that belongs to the Bad River Band of the Lake Superior Chippewa would constitute a clear public nuisance under federal law, district court Judge William Conley said in a decision late Friday.
But while the order affirms that Enbridge has been trespassing on Bad River land since 2013, when certain permits for the 70-year-old pipeline were allowed to lapse, it stops short of causing “economic havoc” with an immediate shutdown.
“The use of trespass on a few parcels to drive the effective closure of all of Line 5 has always been about a tail wagging a much larger dog,” Conley writes in his opinion.
In other words, there are “much larger public policy issues” surrounding cross-border pipelines like Line 5 that the band’s arguments, while valid, lack the power to overcome, he said.
Those issues “involve not only the sovereign rights of the band, but the rights of multiple states and international relations between the United States and Canada.”
Enbridge has already agreed to reroute the line, an essential energy conduit for much of the U.S. Midwest as well as Ontario and Quebec. But Conley wants that project completed more quickly than currently planned.
“Considering all the evidence, the court cannot countenance an infinite delay or even justify what would amount to a five-year forced easement with little realistic prospect of a reroute proceeding even then,” he wrote.
“The court will give Enbridge an additional three years to complete a reroute. If Enbridge fails to do so, the three years will at least give the public and other affected market players time to adjust to a permanent closure of Line 5.”
Enbridge’s lawyers continue to dispute the finding that the company is trespassing on Indigenous territory and intend to appeal the decision, and may also request a stay pending its outcome, said spokesperson Juli Kellner.
“Enbridge’s position has long been that a 1992 contract between Enbridge and the band provides legal permission for the line to remain in its current location,” Kellner said.
“Timely government permit approvals” would be necessary to complete the reroute within three years, while relocating the pipe currently on Bad River territory would take about a year, she added.
Any shutdown before then “would jeopardize the delivery of reliable and affordable energy to U.S. and Canadian families and businesses, disrupt local and regional economies, and violate the Transit Pipeline Treaty.”
Talks between the two countries have been ongoing for months under the terms of that treaty, a 1977 agreement that effectively prohibits either side from unilaterally closing off the flow of hydrocarbons.
In prior court documents, Enbridge has accused the band of being focused on a single outcome: the permanent closure of the pipeline on their territory “while refusing much less extreme alternative measures.”
The band argues that several weeks of spring flooding along the Bad River has washed away so much of the riverbank and supporting terrain that a breach is “imminent” and a shutdown order more than justified.
Enbridge insists the dangers are being overstated — and even if they were real, the company’s court-ordered contingency plan, which spells out the steps it would take, would be a far more rational solution.
Conley’s order Friday included tweaks to that plan to establish a more “conservative” threshold for the conditions that would trigger it, such as lower water levels and flow rates on the river.
“The court is particularly concerned that Enbridge’s plan does not account for inevitable delays that could occur due to weather conditions, supply and equipment problems and human error.”
Enbridge has also been rebuffed repeatedly in its efforts to perform remedial work on the site, which would include using sandbags and trees to fortify the riverbanks —decisions the band has defended as its sovereign right.
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 argued, and time is now of the essence.
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.
But it was clear both from Friday’s order and an in-person hearing last month, when Conley openly questioned the band’s motives, that he faults the band for rejecting Enbridge’s proposed plans to mitigate the danger.
“The band has refused to approve any of Enbridge’s remediation and prevention proposals, much less proposed even one project of its own to prevent or at least slow further erosion at the meander,” he wrote.
The neighbouring state of Michigan, led by Attorney General Dana Nessel, has been waging its own war against Line 5, fearing a leak in the Straits of Mackinac, the ecologically delicate waterway where the pipeline crosses the Great Lakes.
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.
Line 5’s defenders, which include the federal government, say a shutdown would cause major economic disruption across the Prairies and the U.S. Midwest, where it provides feedstock to refineries in Michigan, Ohio and Pennsylvania.
It also supplies key refining facilities 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.
This report by The Canadian Press was first published June 17, 2023.
From LifeSiteNews
Among the banks that have withdrawn from the UN-backed Net-Zero Banking Alliance are TD Bank, the Bank of Montreal and CIBC.
In a stunning reversal, four of Canada’s top banks have withdrawn themselves from a United Nations “net zero” alliance that supports the eventual elimination of the nation’s oil and gas industry in the name of “climate change.”
Last Friday, Toronto-Dominion Bank (TD), Bank of Montreal (BMO), National Bank of Canada and the Canadian Imperial Bank of Commerce (CIBC) said they were all withdrawing from the Net-Zero Banking Alliance (NZBA), which calls for banks to come in line with the push for “Net Zero” emissions by 2050. The NZBA is a subgroup of the Glasgow Financial Alliance for Net Zero (GFANZ), which was founded and backed by the United Nations.
Interestingly, the GFANZ was formed in 2021, while Liberal Party leadership candidate Mark Carney was its co-chair. He resigned from his role in the alliance right before he announced he would run for Liberal leadership to replace Prime Minister Justin Trudeau last week.
The sudden decision from Canadian banks to ditch the alliance comes despite Trudeau’s government still being committed to so-called “net zero” policies and only a few days before pro-oil and gas U.S. President Donald Trump was sworn into office.
According to a statement from BMO, it is no longer a “member of the Net-Zero Banking Alliance (NZBA),” but it is still “committed” to the idea of an eventual “net zero” world.
“We are fully committed to our climate strategy and supporting our clients as their lead partner in the transition to a net-zero world. We have robust internal capabilities to implement relevant international standards, supporting our climate strategy and meeting our regulatory requirements,” it said.
In a statement regarding its exit from the NZBA, TD Bank said that it has the “resources, relationships and capabilities to continue to advance our strategy, deliver for our shareholders and advise our clients as they adapt their businesses and seize new opportunities.”
Large U.S. banks such as Morgan Stanley, JPMorgan Chase & Co, Wells Fargo and Bank of America have all withdrawn from the group as well.
Since taking office in 2015, the Trudeau government has continued to push a radical environmental agenda like the agendas being pushed by the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.” Part of this push includes the promotion of so called “Net Zero” energy by as early as 2035 nationwide.
From Resource Works
Where the money comes from isn’t hard to see – if you look at the facts
In British Columbia, the economy is sometimes discussed through the lens of a “new economy” focused on urbanization, high-tech innovation, and creative industries. However, this perspective frequently overlooks the foundational role that the province’s natural resource industries play in generating the income that fuels public services, infrastructure, and daily life.
The Economic Reality
British Columbia’s economy is highly urbanized, with 85% of the population living in urban areas as of the 2021 Census, concentrated primarily in the Lower Mainland and the Capital Regional District.
These metropolitan regions contribute significantly to economic activity, particularly in population-serving sectors like retail, healthcare, and education. However, much of the province’s income—what we call the “first dollar”—originates in the non-metropolitan resource regions.
Natural resources remain the backbone of British Columbia’s economy. Industries such as forestry, mining, energy, and agriculture generate export revenue that flows into the provincial economy, supporting urban and rural communities alike. These sectors are not only vital for direct employment but also underpin metropolitan economic activities through the export income they generate.
They also pay taxes, fees, royalties, and more to governments, thus supporting public services and programs.
Exports: The Tap Filling the Economic Bathtub
The analogy of a bathtub aptly describes the provincial economy:
- Exports are the water entering the tub, representing income from goods and services sold outside the province.
- Imports are the water draining out, as money leaves the province to purchase external goods and services.
- The population-serving sector circulates water within the tub, but it depends entirely on the level of water maintained by exports.
In British Columbia, international exports have historically played a critical role. In 2022, the province exported $56 billion worth of goods internationally, led by forestry products, energy, and minerals. While metropolitan areas may handle the logistics and administration of these exports, the resources themselves—and the wealth they generate—are predominantly extracted and processed in rural and resource-rich regions.
Metropolitan Contributions and Limitations
Although metropolitan regions like Vancouver and Victoria are often seen as economic powerhouses, they are not self-sustaining engines of growth. These cities rely heavily on income generated by resource exports, which enable the public services and infrastructure that support urban living. Without the wealth generated in resource regions, the urban economy would struggle to maintain its standard of living.
For instance, while tech and creative industries are growing in prominence, they remain a smaller fraction of the provincial economy compared to traditional resource industries. The resource sectors accounted for nearly 9% of provincial GDP in 2022, while the tech sector contributed approximately 7%.
Moreover, resource exports are critical for maintaining a positive trade balance, ensuring that the “economic bathtub” remains full.
A Call for Balanced Economic Policy
Policymakers and urban leaders must recognize the disproportionate contribution of British Columbia’s resource regions to the provincial economy. While urban areas drive innovation and service-based activities, these rely on the income generated by resource exports. Efforts to increase taxation or regulatory burdens on resource industries risk undermining the very foundation of provincial prosperity.
Furthermore, metropolitan regions should actively support resource-based industries through partnerships, infrastructure development, and advocacy. A balanced economic strategy—rooted in both urban and resource region contributions—is essential to ensure long-term sustainability and equitable growth across British Columbia.
At least B.C. Premier David Eby has begun to promise that “a new responsible, sustainable development of natural resources will be a core focus of our government,” and has told resource leaders that “Our government will work with you to eliminate unnecessary red tape and bureaucratic processes.” Those leaders await the results.
Conclusion
British Columbia’s prosperity is deeply interconnected, with urban centres and resource regions playing complementary roles. However, the evidence is clear: the resource sectors, particularly in the northern half of the province, remain the primary engines of economic growth. Acknowledging and supporting these industries is not only fair but also critical to sustaining the provincial economy and the public services that benefit all British Columbians.
Sources:
- Statistics Canada: Census 2021 Population and Dwelling Counts.
- BC Stats: Economic Accounts and Export Data (2022).
- Natural Resources Canada: Forestry, Mining, and Energy Sector Reports.
- Trade Data Online: Government of Canada Export and Import Statistics.
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