Wisconsin judge rules against Enbridge in dispute over Line 5 pipeline

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A Wisconsin judge has ruled against Enbridge Inc. in a decision that stopped short of ordering the shutdown of the Calgary-based company’s embattled Line 5 pipeline, in part over concerns such a decision would carry serious foreign-policy consequences for both Canada and the United States.

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District Court Judge William Conley sided with the Bad River Band of the Lake Superior Chippewa in his ruling, issued late Wednesday, ordering Enbridge to reroute the pipeline around the band’s territory within five years, an effort Enbridge has said is already underway. The judge also said the band is entitled to financial compensation.

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The decision comes just days after Ottawa invoked a 45-year-old energy treaty between the two countries in an effort to prevent U.S. courts from shutting down the pipeline, which carries crude oil and natural gas from Alberta to Ontario through the United States.

“The economic and energy disruption and damage to Canada and the U.S. from a Line 5 shutdown would be widespread and significant,” Foreign Affairs Minister Mélanie Joly said in a statement last week.

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Joly said shutting down the pipeline would impact energy prices, including propane used for heating homes and the price of gas at the pump. It’s estimated Line 5 provides half the oil and propane used in Ontario and the U.S Midwest.

“The Government of Canada is also worried about the domino effects the shutdown would have on the jobs of thousands of Canadians working not only in the oil industry but in interconnected areas of our economy. The shutdown could have a major impact on a number of communities on both sides of the border that depend on the wellbeing of businesses along the supply chain.”

Ottawa has twice now formally invoked the 1977 Transit Pipelines Treaty to trigger a dispute settlement process with Washington over Line 5. Last October, the government invoked the treaty following Michigan Governor Gretchen Whitmer’s attempts to shut the line down over concerns about a potential oil spill.

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Opponents of Enbridge’s Line 5 pipeline, which follows the southwestern shores of Lake Superior in Wisconsin before crossing into Michigan at the Straits of Mackinac, have argued that a large spill would have devastating environmental and health impacts on the Great Lakes.

Enbridge has said the twin lines that cross along the bottom of the straits are safe, though the company has sought permits to install a new pipe that would be housed in an underground tunnel — a configuration that would shield the pipeline from anchor strikes from passing ships.

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In a statement Thursday, Enbridge said it is pursuing a 66-kilometre reroute of Line 5 around the Bad River Reservation using a Wisconsin contractor and employing at least a 10-per-cent Indigenous workforce.

“Enbridge remains open to resolving issues amicably with the Bad River Band of the Lake Superior Tribe of Chippewa Indians as we also continue to focus on providing consumers and industry in the region with safe, reliable energy,” the company said.

“Enbridge appreciates the Government of Canada’s efforts to support keeping Line 5 operating by formally invoking the dispute settlement provision of the 1977 Transit Pipelines Treaty. The invocation underscores the importance of Line 5 and the role it plays in the energy security of both countries.”

With additional reporting from the Canadian Press

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