Enbridge Inc. on Monday tried to sweeten the case for its proposed new pipeline across northern Minnesota, as state regulators began final deliberations on the controversial $2.6 billion project.
Enbridge said it would put a corporate guarantee behind its new Line 3 in case the pipeline leaked and damaged the environment — something the state has been pressing for. The Calgary, Alberta-based company also said it would work to establish a decommissioning fund for all pipelines in the state and would buy energy credits on the open market to offset any greenhouse gas emissions from Line 3.
The Minnesota Public Utilities Commission (PUC) on Monday had proponents and opponents of the project outline their positions. Commissioners expect by June 28 to make a final decision on the proposal, which has been winding through the regulatory process for more than three years.
Enbridge said the new pipeline is a necessary safety upgrade over its current Line 3, which is aging and corroding. The current Line 3 can operate at only 51 percent capacity due to safety issues, and it's in continual need of repair. The new pipeline would restore full oil flow to 760,000 barrels per day.
"Line 3 has some unique integrity issues … and they are best addressed with this replacement, and that's just common sense, commissioners," Eric Swanson, an attorney for Enbridge, told the PUC.
Opponents, environmental and tribal groups said a new Line 3 would pose a new threat to pristine waters in Minnesota and help spur climate change.
"This is not just a replacement of an old pipeline. This is a long-term, 50-year commitment to fossil fuels," Scott Strand, an attorney for Minnesota environmental group Friends of the Headwaters, told the PUC.
Enbridge operates six lines in Minnesota — including Line 3 — that together transport around 2.5 million barrels of Canadian oil per day to Enbridge's terminal in Superior, Wis. Much of that oil moves to markets beyond Minnesota, though Enbridge supplies most of the crude used by Minnesota's two refineries.