The Michigan DNR has requested that Enbridge Inc. pledges to cover all potential losses related to Line 5 dual pipelines in the Straits of Mackinac.
DNR Director Dan Eichinger sent a letter to Enbridge Inc., requesting that the corporation enter into a written agreement with the State of Michigan to provide financial assurances to cover all damages and losses caused to property or individuals due to operation of the Line 5 dual pipelines through the Straits of Mackinac.
A 2019 independent analysis conducted on behalf of the state identified the lack of financial liability as a weakness in current agreements between the state and the company.
DNR Public Information Officer Ed Golder said that previous agreements between the state and Enbridge were made with a subsidiary of the larger parent corporation. It was found that the subsidiary doesn’t have sufficient resources to cover the cost of a potential oil spill.
“Our concern is that those agreements are with a subsidiary of the larger parent corporation and we want to make certain that that larger parent corporation is financially liable for any potential catastrophic events that may occur in the Straits,” he said.
Eichinger said the need for the pipelines is imminent, but financial reassurance must be provided.
In a written statement, Enbridge said it pledges to take full responsibility for the clean-up of any incident in Michigan or anywhere along its pipeline system. The company said it has the ability to cover all costs in the “unlikely event of an incident in the Straits”.
Golder said they trust that Enbridge will reply in kind.