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Calgary

Michigan looks at options to address spill risk of Enbridge's underwater pipeline

Michigan has released a report looking at how to deal with the spill risk of Enbridge's Line 5 pipeline that runs exposed underwater in a strait between Lake Huron and Lake Michigan.

Shutting down the pipeline would lead to disruptions for Calgary-based company

U.S. officials say Enbridge violated 24 regulations in connection with the 2010 spill that sent billions of litres of oil into the waters of southwestern Michigan. (Paul Sancya/Associated Press)

Michigan has released a report looking at how to deal with the spill risk of Enbridge's Line 5 pipeline that runs exposed underwater in a strait between Lake Huron and Lake Michigan.

The report Thursday by Dynamic Risk Assessment Systems found that building new pipelines around the Great Lakes would cost between $2 billion US and $4 billion US depending on the route. Barges and trucks were discounted as options because of the logistical constraints of trying to handle the 86 million litres of petroleum products per day currently shipped on the line.

An anchor catching the pipeline was identified as the most likely cause of a spill. The report said replacing the exposed 1953 pipeline with a $30-million US underwater trench or $150-million US tunnel for the more than six-kilometre crossing would either minimize or make negligible the risks to the line.

Shutting down the pipeline would lead to disruptions for Enbridge and the refineries it supplies, with the report estimating Michigan residents would pay $121 million a year more for gasoline and other refined products, while Enbridge would be on the hook for $212 million in abandonment charges.

The report estimates that the cost of a spill would run between $100 million US and $200 million US. Modelling showed a spill on average would affect about 32 kilometres of shoreline.

Enbridgesaid in a statement that it remains committed to protecting the Great Lakes, but needs time to review and assess the findings before making specific comments.