Eliminating the Line 5 Oil Pipeline's Unacceptable Risk To
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BEFORE THE MICHIGAN PIPELINE SAFETY ADVISORY BOARD, MICHIGAN ATTORNEY GENERAL WILLIAM SCHUETTE, AND MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY DIRECTOR DAN WYANT ELIMINATING THE LINE 5 OIL PIPELINES' UNACCEPTABLE RISK TO THE GREAT LAKES THROUGH A COMPREHENSIVE ALTERNATIVES ANALYSIS AND SYSTEMS APPROACH December 14, 2015 Submitted by: FLOW (For Love of Water) Great Lakes Water Law and Policy Non Profit 153 ½ East Front Street Traverse City, Michigan 49684 (231) 944-1568 www.flowforwater.org NEW STUDY ANSWERS “NO” TO THE QUESTION: DO WE NEED LINE 5 IN THE STRAITS? EXPERTS TAKE COMPREHENSIVE LOOK AT ENBRIDGE’S RISKY PIPELINES AND OUR ENERGY INFRASTRUCTURE EXECUTIVE SUMMARY December 14, 2015 Governor Rick Snyder’s Executive Order 2015-12 created and directed the Michigan Pipeline Safety Advisory Board (“Advisory Board”) to implement the recommendations of the Michigan Petroleum Pipeline Task Force Report (“Task Force”) on the future of oil transport through the Line 5 pipeline in the Straits of Mackinac and pipelines throughout the State of Michigan. The July 2015 Task Force Report concludes that Line 5 in the Straits presented the “most acute potential threat” of a catastrophic oil spill given the location if this 62-year old pipeline resting on Great Lakes bottomlands. The Task Force Report accordingly calls for an independent alternatives analysis, including as an alternative the decommissioning of Line 5 in the Straits for oil transport. Other reports, including FLOW’s (For Love of Water) September 2015 Expert Report, have substantiated that the transport of oil through Line 5 in the Straits constitutes an unacceptable high-level risk and imminent harm to our waters for drinking, recreation, commerce, navigation, tourism, and our Pure Michigan way of life. Immediate action therefore is necessary, including the orderly completion of the alternatives and risk analyses and interim actions to eliminate imminent harm. FLOW now submits this report titled, Eliminating the Line 5 Oil Pipelines’ Unacceptable Risk to the Great Lakes through a Comprehensive Alternatives Analysis and Systems Approach, to the Advisory Board to assist in implementing a comprehensive alternatives analysis to Line 5 in the Straits per the recommendations of the Task Force Report. This report and attached technical reports also are intended to help the public better understand the nature and scope of a proper alternatives analysis and to demonstrate that decommissioning of Line 5 in the Straits is a viable option given the existing capacity and supply-and-demand needs of the overall pipeline system around the Great Lakes. A preliminary review of the existing pipeline capacity and regional refinery demands affirms that Line 5 in the Straits is not vital energy infrastructure to Michigan’s economy and energy security. This report makes the following conclusions: 1. All alternative options must be considered. A comprehensive and full range of options is needed to comply with the Michigan Petroleum Pipeline Task Force recommendations and the Governor’s Executive Order establishing the Michigan Pipeline Safety Advisory Board. Alternatives explored must not be limited solely to options for transporting liquid petroleum currently carried by Line 5 in the Straits. A comprehensive alternatives analysis should review the transport of crude oil through the lens of the entire Great Lakes region’s system of oil pipelines, routes, capacity and ability to deliver liquid petroleum currently carried by Line 5 in the Straits. Without a comprehensive pipeline systems view, state and federal decision-makers are unable to identify and evaluate the best alternative to Enbridge’s Line 5 twin pipelines in the Straits of Mackinac. 2. Preliminary findings in the FLOW report show that Line 5 through the Straits of Mackinac is not vital energy infrastructure to Michigan’s economy. The overall pipeline system is flexible enough to meet existing demand if Line 5 through the Straits were decommissioned. Realistic alternatives to Line 5 in the Straits could be met without disrupting distribution of natural gas liquids, including propane, to Michigan’s Upper Peninsula. Alternatives to the Line 5 segment in the Straits would eliminate unacceptable harm to the Great Lakes and Michigan communities while still meeting our energy needs. 3. Decommissioning Line 5 in the Straits is the best option. FLOW’s report concludes that decommissioning Line 5 in the Straits is the best option because it would eliminate or avoid the unacceptable and imminent harm and high risk to the Straits and Great Lakes. Moreover, the dynamic pipeline system serving Michigan, the Great Lakes region, and elsewhere meets the purposes of the larger regional system of petroleum distribution and Enbridge could continue transporting substantial volumes of crude oil. 4. Segment-by-segment, Enbridge has effectively built its own version of the now rejected “Keystone XL Pipeline” through the center of the Great Lakes and across Michigan without public, state, and federal consideration and evaluation of the full range of existing alternatives. In Michigan, following its 2010 Kalamazoo oil spill disaster, Enbridge applied for “maintenance and integrity” measures for Line 6B before the Michigan Public Service Commission, when in fact, it built a brand new Line 6B that more than doubled its capacity to as much as 800,000 bpd. Had Enbridge disclosed its larger project intentions, a more properly scoped alternative analysis would have evaluated Line 5, Line 6B, other pipelines, needs of users, and the pipeline system as a whole, and the imminent and unacceptable harm to the Straits could and would have been addressed. 5. Immediate interim measures should be imposed on Enbridge, including the shutoff of oil though Line 5 in the Straits given the imminent harm and risk and the stated inability of Enbridge and the U.S. Coast Guard to clean up a catastrophic oil spill in the open waters of the Great Lakes. I. OVERVIEW FLOW (For Love of Water) submits this report titled, Eliminating the Line 5 Oil Pipelines' Unacceptable Risk to the Great Lakes through a Comprehensive Alternatives Analysis and Systems Approach, to assist the state officials and the Michigan Pipeline Safety Advisory Board (“Advisory Board”) in the implementation and completion of the alternatives analysis regarding crude oil transport in, through, and out of the Great Lakes Basin and Michigan, including Line 5 in the Straits of Mackinac.1 This report consists of two parts, followed by appendices: Part I The legal framework and principles for the alternatives analysis of the transport of crude oil in the pipeline system into, through, and out of the Great Lakes Basin. Part II The key findings of three technical reports (attached as appendices to this report) that show: (A) The dynamic nature of the evolving crude oil pipeline system in the Great Lakes region (Appendix A: R. Kane Report); (B) The capacity and flexibility within the crude oil pipeline system in Michigan and the Great Lakes region to achieve and provide adequate alternatives to Line 5 in the Straits of Mackinac to transport oil to users (Appendix B: G. Street Report); and (C) An example of an alternatives analysis within this crude oil pipeline system and a credible option for the “decommissioning of Line 5 in the Straits segment”2 that reasonably meet the basic overall purpose and objective of transporting crude oil to the various refineries within and beyond the Great Lakes region (Appendix C: R. Kane Report). This report then concludes with (1) a summary of the legal framework for the overall system, nature, scope and stands for a proper alternatives analysis, (2) the dynamic and evolving nature of the Great Lakes crude oil pipeline system and its capacities and opportunities, and (3) a demonstration of one alternative – decommissioning Line 5 in the Straits segment – as a model and viable option that would continue to support Michigan’s energy needs and eliminate the catastrophic risk of an oil spill in the Great Lakes. 1 This report is authored by James Olson, President, Liz Kirkwood, Executive Director, Kelly Thayer, Project Communications Consultant, FLOW (For Love of Water), which is based on three attached technical reports authored by members of FLOW’s scientific and legal policy advisors: Richard J. Kane, QEP, CHMM, CPP and Gary L. Street, P.E., formerly Director of Engineering, DOW Environmental (Eastern Operations). For a more complete description of the authors’ qualifications and experience, see paragraph 2., p. 7, FLOW Composite Summary of Expert Comments, Findings and Opinions on Enbridge Line 5, submitted to Michigan Petroleum Pipeline Task Force, April 30, 2015 (hereinafter “FLOW April 2015 Expert Report”). 2 “Decommissioning Line 5” as used in this report includes (a) retiring use of the Line 5 in the Straits segment, or others if deemed proper as part of the overall analysis, and/or (b) prohibiting the use of Line 5 in the Straits segment for the transport of crude oil. It follows that if option (a) is viable because of overall system and infrastructure capacity, options, adjustments or changes, then (b) is viable. 2 II. BACKGROUND The 1953 Easement The 1953 Easement between the State of Michigan and Enbridge to construct and operate a petroleum pipeline in the Straits of Mackinac (a segment of Line 5 consisting of two 20-inch 4.5 mile pipelines) is subject to the authority of Act 10 and the reserved rights and interests of the state as owner and trustee of the waters and bottomlands of the Great Lakes.3 The public trust imposed on the waters and bottomlands of the Great Lakes establishes a paramount and specially protected interest in citizens, as recognized beneficiaries, for preferred uses that cannot be subordinated to other private purposes and cannot be significantly impaired; public trust uses include navigation, commerce, drinking water, fishing, boating, swimming, and similar public uses and recreational activities.4 As such, these waters and bottomlands have a rare, unique status, dedicated to the public in perpetuity.5 In the 1953 Easement, Enbridge also recognized the paramount public trust interest of the State in these waters and bottomlands.