Two environmental groups have asked Minnesota regulators to take another look at Enbridge Inc.’s (TSE:ENB, Mkt cap 53.08B, P/E 40.04, Div/yield 0.53/3.71, EPS 1.43, Shares 934.23M) proposed oil pipeline in the northern part of the state.
MPR News reported on Monday that the Minnesota Center for Environmental Advocacy and Friends of the Headwaters had filed a motion with Minnesota’s Public Utilities Commission. The groups allege that Enbridge has made inconsistent claims about plans to replace Line 3, the company’s 1,031-mile pipeline that carries crude from Alberta across northern Minnesota.
The project, first announced in 2014, is described by as Enbridge as a replacement program in which all remaining segments of the nearly 50-year-old line are replaced with a new pipeline. As well as maintaining safety, the new line would allow Enbridge to boost capacity from 390,000 to 760,000 barrels per day.
Enbridge has said it will decommission the existing Line 3 pipeline.
But the environmental groups claimed on Monday that a recent proposed settlement between Enbridge and the U.S. Department of Justice over oil spills in Michigan and Illinois appears to allow the company to reuse the original Line 3, even after the new pipeline has been built.
“They’re telling the state one thing, that they’ll permanently deactivate the existing pipeline — leave it in the ground — and they’re telling the federal government an entirely different thing,” Kevin Lee, staff attorney with the Minnesota Center for Environmental Advocacy (MCEA), told MPR News.
MCEA and Friends of the Headwaters want the state to launch a new scoping period for the environmental impact statement for the Line 3 project. They said that this would allow the public to comment on “the true and accurate dimensions” of the project.
If regulators agree to this request it would further delay the approval process.
Enbridge Inc (TSE:ENB) is a Calgary-based energy transportation and distribution company. The Company operates in five segments: Liquids Pipelines; Gas Distribution; Gas Pipelines, Processing and Energy Services; Sponsored Investments, and Corporate. Liquids Pipelines segment owns and operates crude oil and other liquid hydrocarbons pipelines and terminals. Gas Distribution consists of the Company’s natural gas utility operations. Gas Pipelines, Processing and Energy Services segment consists of investments in natural gas pipelines, gathering and processing facilities and the Company’s energy services businesses, along with renewable energy and transmission facilities. Sponsored Investments includes the Company’s 33.7% economic interest in Enbridge Energy Partners, L.P. (EEP), and Enbridge’s interests in both the Eastern Access and Lakehead System Mainline expansion projects held through Enbridge Energy, Limited Partnership (EELP). The Corporate segment includes an investment in Noverco Inc. More from Reuters »
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