The U.S. Army Corps of Engineers has approved a controversial proposal by Canadian oil and gas giant Enbridge (NYSE:ENB), to reroute an aging oil pipeline around a Wisconsin tribal reservation, saying the project “complied with all applicable federal laws and regulations.”
Enbridge proposed the 41-mile reroute to remove the pipeline off land held by the Bad River Band after a court ordered in 2023 that the pipeline should be removed from the tribal land by June 2026. The judge also ordered Enbridge to pay the tribe over $5 million for trespassing. The ruling was based on the tribe’s arguments that the 70-year-old pipeline poses a significant environmental risk due to erosion, and that the company lacks a valid right-of-way for those sections of the pipeline.
Enbridge’s proposal to reroute the pipeline around the reservation has, however, been met with opposition from the Bad River Band and environmental groups who argue it does not meet water quality standards and could still cause environmental damage. President Donald Trump ordered the corps to fast-track the project in April, and the approval moves the $500 million-plus project closer to construction.
The Enbridge Line 5 is a 645-mile oil pipeline that transports crude oil and natural gas liquids from Superior, Wisconsin, to Sarnia, Ontario, passing through Michigan’s Upper and Lower Peninsulas. The pipeline has become a vital energy source for the Great Lakes region, but has faced significant legal, environmental, and political challenges, particularly regarding its 4-mile underwater segment across the Straits of Mackinac.
Concerns about a potentially catastrophic oil spill escalated in 2017 after Enbridge discovered damage to the pipeline coatings. The Enbridge Line 5 pipeline has been operational since 1953, with the underwater segment running along the bottom of the channel linking Lake Huron to Lake Michigan. However, the Wisconsin project is separate from Enbridge’s plan to build a protective tunnel to encase the underwater segment, with litigation still ongoing.
By Charles Kennedy for Oilprice.com
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