Canada invokes pipeline treaty with U.S. over Wisconsin Line 5 dispute

Canadian Overseas Minister Melanie Joly speaks throughout a trilateral assembly with U.S. and Mexican counterparts on the ninth Summit of the Americas in Los Angeles, California, U.S., June 10, 2022. REUTERS/Lucy Nicholson

OTTAWA, Aug 29 (Reuters) – Canada has invoked a 1977 pipeline treaty with the USA for the second time in lower than a 12 months, on this case to stop a shutdown of Enbridge Inc’s (ENB.TO) Line 5 pipeline in Wisconsin, Overseas Minister Melanie Joly mentioned on Monday.

The Dangerous River Band, a Native American tribe in northern Wisconsin, desires the 1953 pipeline shut down and faraway from its reservation due to the chance of a leak and expired easements, that are land use agreements between Enbridge and the tribe.

In Might, Enbridge filed a movement in a U.S. district courtroom saying federal legislation prohibits makes an attempt to cease the pipeline’s operations. The movement sought to dismiss a few of Dangerous River Band’s claims.

The corporate mentioned in an announcement on Monday that it “stays open to resolving this matter amicably” and was pursuing permits to re-route Line 5 across the Dangerous River Reservation. The Band River Band couldn’t instantly be reached for remark.

Joly mentioned Canada has raised “critical issues” {that a} doable shut down of the Line 5 pipeline will trigger a “widespread and important.” financial and vitality disruption.

“This is able to impression vitality costs, comparable to propane for heating houses and the value of fuel on the pump. At a time when world inflation is making it onerous on households to make ends meet, these are unacceptable outcomes,” Joly mentioned in an announcement.

The pipeline is a essential a part of Enbridge’s Mainline community, which delivers the majority of Canadian oil exports to the USA. Line 5 carries 540,000 barrels per day from Superior, Wisconsin, to Sarnia, Ontario.

Joly mentioned Canada was “fearful in regards to the domino results the shutdown would have” on jobs.

“The shutdown might have a significant impression on quite a lot of communities on either side of the border that rely on the wellbeing of companies alongside the provision chain,” she mentioned.

The 1977 pipeline treaty governs the free move of oil between Canada and the USA, and final 12 months Canada invoked it for the primary time ever to start out negotiations with U.S. to resolve a dispute with Michigan state, which desires to close down Line 5 on environmental grounds.

This month, a U.S. decide sided with Enbridge in ruling {that a} federal courtroom ought to hear a swimsuit by the state of Michigan looking for to pressure shutdown of the pipeline beneath the Straits of Mackinac within the Nice Lakes. learn extra

The U.S. Division of State didn’t instantly reply for a request for remark.

Reporting by Ismail Shakil in Ottawa and extra reporting by Simon Lewis in Washington, Enhancing by Rosalba O’Brien and David Gregorio

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