Connect with us

Economy

Indigenous band could have been more help, says judge in Wisconsin Line 5 dispute

Published

10 minute read

Fresh nuts, bolts and fittings are ready to be added to the east leg of the pipeline near St. Ignace as Enbridge prepares to test the east and west sides of the Line 5 pipeline under the Straits of Mackinac in Mackinaw City, Mich. on June 8, 2017. North America’s existential debate about the virtues and dangers of oil and gas pipelines faces a critical test today in Wisconsin. THE CANADIAN PRESS/AP, Detroit News, Dale G Young

By James McCarten in Washington

The Indigenous band in Wisconsin that’s trying to shut down the Line 5 pipeline got a chilly reception Thursday from a federal court judge who is dismayed they aren’t doing more to help Enbridge Inc. avoid an ecological disaster.

The Bad River Band of the Lake Superior Chippewa has asked district court Judge William Conley to order the pipeline shut down, fearing that heavy flooding last month could cause the line to spring a leak on their territory.

But from the outset of Thursday’s hearing, it was clear Conley — who ordered the two sides to work together last fall on finding a solution to their impasse — doesn’t believe the band is holding up its end of the bargain.

“The band has not helped itself by refusing to take any steps to prevent a catastrophic failure,” Conley said as the hearing got underway. “You haven’t even allowed simple steps that would have prevented some of this erosion.”

The day-long hearing ended without a decision on the band’s request for an injunction — and with the clear sense Conley is disinclined to grant one. “It’s an extraordinary request to make when the band is doing nothing,” he said.

But band lawyer Riyaz Kanji said he was pleased during an otherwise discouraging day that the judge gave indications he would establish a threshold for erosion damage that would trigger a shutdown.

“Unfortunately, from our point of view, he didn’t set that today — he’s not shutting it down,” Kanji said. “But we will remain hopeful that he will set a standard that will protect the river and its precious resources.”

Conley, who has already ruled that the band was entitled back in 2013 to revoke permission for the pipeline, was also unwilling to grant the injunction on the grounds that Enbridge no longer has the right to access the area.

“The harder thing to hear was that the judge appears unwilling … to issue an injunction because of Enbridge’s continuing trespass on the band’s lands,” Kanji said.

“It sounds like he’s thinking more in terms of financial penalties.”

In court documents, Enbridge has accused the band of being focused on a single outcome: the permanent closure of the pipeline on their territory “while refusing much less extreme alternative measures.”

The band argues that several weeks of flooding along the Bad River last month has washed away so much of the riverbank and supporting terrain that a breach is “imminent” and a shutdown order more than justified.

Enbridge insists the dangers are being overstated — and even if they were real, the company’s court-ordered contingency plan, which spells out the steps it would take, would be a far more rational solution.

“Enbridge will pre-emptively purge and shut down the line well in advance of any potential rupture,” the company says in its court brief, adding that the area remains under constant 24-hour video surveillance.

“Any flooding and erosion has not, and would not, catch Enbridge by surprise.”

But Enbridge has been rebuffed in its efforts to perform remedial work on the site, which would include using sandbacks and trees to fortify the riverbanks — a decision band chairman Mike Wiggins defended Thursday.

The band has the right under federal law to enforce its own water quality standards, which were “developed by careful evaluation of our relationships, as a people, with different parts of our hydrology in the Bad River watershed,” Wiggins told a news conference after the hearing.

“What was kind of put forward today was, ‘None of that stuff should matter. None of that stuff should exist. When Enbridge came knocking, you should have just let them do whatever they want,'” he said.

“We disagree.”

Heavy flooding that began in early April washed away significant portions of the riverbank where Line 5 intersects the Bad River, a meandering, 120-kilometre course that feeds Lake Superior and a complex network of ecologically delicate wetlands.

The band has been in court with Enbridge since 2019 in an effort to compel the pipeline’s owner and operator to reroute Line 5 around its traditional territory — something the company has already agreed to do.

But the flooding has turned a theoretical risk into a very real one, the band argues, and time is now of the essence. Lawyers for the band and its supporters were scheduled to hold a news conference after the hearing.

Line 5 meets the river just past a location the court has come to know as the “meander,” where the riverbed snakes back and forth multiple times, separated from itself only by several metres of forest and the pipeline itself.

At four locations, the river was less than 4.6 metres from the pipeline — just 3.4 metres in one particular spot — and the erosion has only continued.

The neighbouring state of Michigan, led by Attorney General Dana Nessel, has been waging its own war against Line 5, fearing a leak in the Straits of Mackinac, the ecologically delicate waterway where the pipeline crosses the Great Lakes.

“The alarming erosion at the Bad River meander poses an imminent threat of irreparable harm to Lake Superior which far outweighs the risk of impacts associated with a shutdown of the Line 5 pipeline,” Nessel argues in her brief.

“Without judicial intervention, it is likely that this irreparable harm will be inflicted not only on the band, but also on Michigan, its residents, and its natural resources.”

The economic arguments against shutting down the pipeline, which carries 540,000 barrels of oil and natural gas liquids daily across Wisconsin and Michigan to refineries in Sarnia, Ont., are by now well-known.

Line 5’s defenders, which include the federal government, say a shutdown would cause major economic disruption across the Prairies and the U.S. Midwest, where it provides feedstock to refineries in Michigan, Ohio and Pennsylvania.

It also supplies key refining facilities in Ontario and Quebec, and is vital to the production of jet fuel for major airports on both sides of the Canada-U.S. border, including Detroit Metropolitan and Pearson International in Toronto.

A lengthy statement issued Tuesday by the Canadian Embassy warned of severe economic consequences of shutting down the line, as well as the potential ramifications for bilateral relations.

“The energy security of both Canada and the United States would be directly impacted by a Line 5 closure,” the statement said. Some 33,000 U.S. jobs and US$20 billion in economic activity would be at stake, it added.

“At a time of heightened concern over energy security and supply, including during the energy transition, maintaining and protecting existing infrastructure should be a top priority.”

Talks have been ongoing for months under the terms of a 1977 pipelines treaty between the two countries that effectively prohibits either country from unilaterally closing off the flow of hydrocarbons.

This report by The Canadian Press was first published May 18, 2023.

— With files from The Associated Press

Storytelling is in our DNA. We provide credible, compelling multimedia storytelling and services in English and French to help captivate your digital, broadcast and print audiences. As Canada’s national news agency for 100 years, we give Canadians an unbiased news source, driven by truth, accuracy and timeliness.

Follow Author

Economy

Federal government’s GHG reduction plan will impose massive costs on Canadians

Published on

From the Fraser Institute

By Ross McKitrick

Many Canadians are unhappy about the carbon tax. Proponents argue it’s the cheapest way to reduce greenhouse gas (GHG) emissions, which is true, but the problem for the government is that even as the tax hits the upper limit of what people are willing to pay, emissions haven’t fallen nearly enough to meet the federal target of at least 40 per cent below 2005 levels by 2030. Indeed, since the temporary 2020 COVID-era drop, national GHG emissions have been rising, in part due to rapid population growth.

The carbon tax, however, is only part of the federal GHG plan. In a new study published by the Fraser Institute, I present a detailed discussion of the Trudeau government’s proposed Emission Reduction Plan (ERP), including its economic impacts and the likely GHG reduction effects. The bottom line is that the package as a whole is so harmful to the economy it’s unlikely to be implemented, and it still wouldn’t reach the GHG goal even if it were.

Simply put, the government has failed to provide a detailed economic assessment of its ERP, offering instead only a superficial and flawed rationale that overstates the benefits and waives away the costs. My study presents a comprehensive analysis of the proposed policy package and uses a peer-reviewed macroeconomic model to estimate its economic and environmental effects.

The Emissions Reduction Plan can be broken down into three components: the carbon tax, the Clean Fuels Regulation (CFR) and the regulatory measures. The latter category includes a long list including the electric vehicle mandate, carbon capture system tax credits, restrictions on fertilizer use in agriculture, methane reduction targets and an overall emissions cap in the oil and gas industry, new emission limits for the electricity sector, new building and motor vehicle energy efficiency mandates and many other such instruments. The regulatory measures tend to have high upfront costs and limited short-term effects so they carry relatively high marginal costs of emission reductions.

The cheapest part of the package is the carbon tax. I estimate it will get 2030 emissions down by about 18 per cent compared to where they otherwise would be, returning them approximately to 2020 levels. The CFR brings them down a further 6 per cent relative to their base case levels and the regulatory measures bring them down another 2.5 per cent, for a cumulative reduction of 26.5 per cent below the base case 2030 level, which is just under 60 per cent of the way to the government’s target.

However, the costs of the various components are not the same.

The carbon tax reduces emissions at an initial average cost of about $290 per tonne, falling to just under $230 per tonne by 2030. This is on par with the federal government’s estimate of the social costs of GHG emissions, which rise from about $250 to $290 per tonne over the present decade. While I argue that these social cost estimates are exaggerated, even if we take them at face value, they imply that while the carbon tax policy passes a cost-benefit test the rest of the ERP does not because the per-tonne abatement costs are much higher. The CFR roughly doubles the cost per tonne of GHG reductions; adding in the regulatory measures approximately triples them.

The economic impacts are easiest to understand by translating these costs into per-worker terms. I estimate that the annual cost per worker of the carbon-pricing system net of rebates, accounting for indirect effects such as higher consumer costs and lower real wages, works out to $1,302 as of 2030. Adding in the government’s Clean Fuels Regulations more than doubles that to $3,550 and adding in the other regulatory measures increases it further to $6,700.

The policy package also reduces total employment. The carbon tax results in an estimated 57,000 fewer jobs as of 2030, the Clean Fuels Regulation increases job losses to 94,000 and the regulatory measures increases losses to 164,000 jobs. Claims by the federal government that the ERP presents new opportunities for jobs and employment in Canada are unsupported by proper analysis.

The regional impacts vary. While the energy-producing provinces (especially Alberta, Saskatchewan and New Brunswick) fare poorly, Ontario ends up bearing the largest relative costs. Ontario is a large energy user, and the CFR and other regulatory measures have strongly negative impacts on Ontario’s manufacturing base and consumer wellbeing.

Canada’s stagnant income and output levels are matters of serious policy concern. The Trudeau government has signalled it wants to fix this, but its climate plan will make the situation worse. Unfortunately, rather than seeking a proper mandate for the ERP by giving the public an honest account of the costs, the government has instead offered vague and unsupported claims that the decarbonization agenda will benefit the economy. This is untrue. And as the real costs become more and more apparent, I think it unlikely Canadians will tolerate the plan’s continued implementation.

Continue Reading

Economy

Kamala Harris’ Energy Policy Catalog Is Full Of Whoppers

Published on

From the Daily Caller News Foundation

By DAVID BLACKMON

 

The catalog of Vice President Kamala Harris’s history on energy policy is as thin as the listing of her accomplishments as President Joe Biden’s “Border Czar,” which is to say it is bereft of anything of real substance.

But the queen of word salads and newly minted presumptive Democratic presidential nominee has publicly endorsed many of her party’s most radical and disastrous energy-related ideas while serving in various elected offices — both in her energy basket-case home state of California and in Washington, D.C.

What Harris’s statements add up to is a potential disaster for America’s future energy security.

“The vice president’s approach to energy has been sophomorically dilettantish, grasping not only at shiny things such as AOC’s Green New Deal but also at the straws Americans use to suck down the drinks they need when she starts talking like a Valley Girl,” Dan Kish, a senior research fellow at Institute for Energy Research, told me in an email this week. “To be honest, she’s no worse than many of her former Senate colleagues who have helped cheer on rising energy costs and the fleeing American jobs that accompany them. She doesn’t seem to understand the importance of reliable and affordable domestic energy, good skilled jobs or the national security implications of domestically produced energy, but maybe she will go back to school on the matter. No doubt on her electric school bus.”

During her first run for the Senate in 2016, Harris said she would love to expand her state’s economically ruinous cap-and-trade program to the national level. She also endorsed then-Gov. Jerry Brown’s harebrained scheme to ban plastic straws as a means of fighting climate change.

Tim Stewart, president of the U.S. Oil and Gas Association, told me proposals like that one would lead during a Harris presidency to the “Californication of the entire U.S. energy policy.” “Historically,” he added, “the transition of power from a president to a vice president is designed to signal continuity. This won’t be the case, because a Harris administration will be much worse.”

But how much worse could it be than the set of Biden policies that Harris has roundly endorsed over the last three and a half years? How much worse can it be than having laughed through a presidency that:

— Cancelled the $12 billion Keystone XL Pipeline on day one.

— Enacted what many estimate to be over $1 trillion in debt-funded, inflation-creating green energy subsidies.

— Refused to comply with laws requiring the holding of timely federal oil and gas lease sales.

— Instructed its agencies to slow-play permitting for all manner of oil and gas-related infrastructure.

— Tried to ban stoves and other gas appliances.

— Listed the Dunes Sagebrush Lizard as an endangered species despite its protection via a highly-successful conservation program.

— Invoked a “pause” on permitting of new LNG export infrastructure for the most specious reasons imaginable.

— Drained the Strategic Petroleum Reserve for purely political reasons.

As Biden’s successor for the nomination, Harris becomes the proud owner of all these policies, and more.

But Harris’ history shows it could indeed get worse. Much worse, in fact.

While mounting her own disastrous campaign for her party’s presidential nomination in 2020, Harris endorsed a complete ban on hydraulic fracturing, i.e., fracking. She later conformed that position to Biden’s own, slightly less insane view, but only after being picked as his running mate.

Consider also that while serving in the Senate in early 2019, Harris chose to sign up as a co-sponsor of the ultra-radical Green New Deal proposed by New York Rep. Alexandria Ocasio Cortez. It is not enough that the Biden regulators appeared to be using that nutty proposal and climate alarmism as the impetus to transform America’s entire economy and social structure: Harris favors enacting the whole thing.

As I have detailed here many times, every element of climate-alarm-based energy policies adopted by the Biden administration will inevitably lead the United State to become increasingly reliant on China for its energy needs, in the process decimating our country’s energy security. By her own words and actions, Harris has made it abundantly clear she wants to shift the process of getting there into a higher gear.

She is an energy disaster-in-waiting.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

Continue Reading

Trending

X