Some House Democrats Criticize Legal Fight Over Line 5

In a joint statement, state Reps. Brian Elder, D-Bay City; Tenisha Yancey, D-Harper Woods; Wendell Byrd, D-Detroit; John Chirkun, D-Roseville; Terry Sabo, D-Muskegon; and Sara Cambensy, D-Marquette,  said they were “deeply disappointed” by the AG's legal  action against Line 5, adding the legal battle “guarantees the status quo.”

Stop the Line 5 law suit and start the Tunnel.
A Joint statement by members of the Michigan Legislature

LANSING — Public Act 359 of 2018 passed the Michigan Legislature last December creating the
Mackinac Straits Corridor Authority to oversee the construction and management of a utility tunnel
to modernize the oil and gas pipeline through the Straits of Mackinac and house Enbridge Energy’s
Line 5. Attorney General Dana Nessel filed a lawsuit to terminate the operation of the existing
pipeline. In response, the undersigned members of the Michigan Legislature issued the following
statement:

We, the undersigned, are deeply disappointed in Attorney General Dana Nessel’s action in initiating
a lawsuit to end the operation of Line 5, with no alternative, after the issue had been resolved
through an appropriate compromise.

Public Act 359 of 2018, passed by the Michigan Legislature last December and signed into law,
tasked the newly founded Mackinac Straits Corridor Authority with overseeing construction and
management of a utility tunnel to modernize the passage of oil and gas. The concrete-walled tunnel
is to be placed approximately 100 feet below the lake bed, reducing the risk of a spill in
the Straits to zero. Enbridge would pay for the construction and operation of the
tunnel. This law solved a problem, through a reasonable compromise, created jobs and
actually shut down the existing Line 5.

The Attorney General’s lawsuit actually guarantees the status quo. This lawsuit will create a
lengthy, expensive legal battle that could take a decade or more to decide, all the while leaving
an aging pipeline lying on the bed of the Straits of Mackinac, until all possible appeals are
exhausted.

Line 5 continues to be a critical source of 540,000 barrels per day of propane and crude oil supply
for Michigan and surrounding areas that make up the regional supply network for the State,
producing transportation fuels and consumer goods, ranging from computers to clothing and
cellphones. Michiganders heat their homes from the products of this energy source.
Our natural resources and our economy are too important to await the outcome of protracted litigation. We need to start the Line 5 Tunnel now.

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AAPL Advanced WI/NRI Seminar August 27th

ADVANCED WORKING INTEREST and NET REVENUE INTEREST CALCULATION WORKSHOP

AUGUST 27, 2019 | MT. PLEASANT, MI
SPEAKER | DOUGLAS M. POTTER, CPL

Event Flyer with additional details

Learn more and register at www.landman.org/education.

The concepts presented in this workshop build upon the foundational material found in the Working Interest and Net Revenue Calculation Workshop. Any Land Professional choosing to participate in Complex Calculations For Land Professionals without being proficient in the foundational materials may not comprehend the concepts, procedures and “Tricks-of-the-Trade” presented in this workshop. This workshop teaches advanced skills for Working Interest [WI] and Net Revenue Interest [NRI] calculations. Instruction is limited to NRI and WI calculations which may be found in leases, assignments, operating agreements and associated documents.

Accredited for 6 continuing education credits.

 

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The Highland Eagle Takes Flight

The Highland Eagle, takes flight, or rather sets sail, to the Straits of Mackinac. This vessel is a specially designed ship brought in from Europe to conduct the drilling of sediment and rock samples at the deepest points of the Straits. It will begin this important drilling by the end of the month and is expected to be positioned in the Straits for several months as part of the $40 million pre-tunnel geotechnical work. 

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Interested in learning more about the Highland Eagle? Click here to see the technical specs

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Fossil Fuel Free is a Misguided Pipe Dream

In a recent opinion piece featured in the Detroit News, Jay Lehr, Ph.D., a senior policy analyst with the Ottawa, Canada-based International Climate Science Coalition (ICSC) details the many hidden benefits and advantages of oil and gas that few ever consider. From efficient transport to electrical production to the numerous petroleum derived products, oil and gas have transformed our lives. 

Speaking at the America First Energy Conference in Houston in November 2017, Roger H. Bezdek, of Management Information Services, Inc., summed up:

“What have fossil fuels done for us recently? They are the foundation of our current economy. They created (and sustained) the modern world. They permit the current high quality of life we all enjoy. Over the past two centuries life expectancy has more than doubled, populations increased eightfold, real incomes have increased worldwide more than eleven-fold.”

"If you think life was great in 1860 — a time without electricity, airline travel, widespread internal combustion engines, refrigeration, air conditioning, cell phones, Internet and computers — then, yes, stop using fossil fuels. But don’t impose your standards on the rest of us."

Click Here to Read the Full Article in The Detroit News

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Bay Area Desk & Derrick's 19th Annual Oilfield Classic

The BADDC will be hosting the 19th Annual Oilfield Golf Classic on Friday, August 16, 2019 at the Gaylord Golf Club. The cost to attend is $70/person or $280 for a foursome which includes lunch and door prizes. Hole sponsorships are available at $200 and  non-golfers may purchase lunch tickets for $15. To reserve your spot or sponsor a hole, send payment to Bay Area Desk & Derrick c/o Mosbacher Energy Company, PO Box 395, Grawn, MI 49637 or call Kathy Bickel, (231) 645-6476 or by email at mosbacherenergy@gmail.com.

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Senate Republicans urge Governor to lead on Line 5

In response to the lawsuit filed by the Attorney General, Three members of the Senate Republican Caucus sent a letter to Governor Whitmer urging her to reach a compromise to keep Line 5 open and operational while plans for a new tunnel continue.  

Senate Majority Leader Mike Shirkey, R-Clarklake, Senator Wayne Schmidt, R-Traverse City, and Senator Ed McBroom, R-Vulcan, issued the following joint statement:

“The Attorney General is slowing progress on a tunnel – not a penny of which will be paid for by taxpayers – that will ensure the continued safety of a vital energy conduit. If she has her way, Michiganders will pay significantly more for gas at the pump and for propane to heat their homes. And she will put at risk thousands of jobs that are directly related to the line, and thousands more that would be created by the tunnel project. Her actions today are ill-advised and dangerous.”

Click here to view the full letter

 

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Attorney General Dana Nessel Takes Legal Action on Line 5

Today, June 27th marked the deadline that Attorney General Dana Nessel gave the Governor to reach a deal with Enbridge on Line 5 before she took her own legal action. The sides were unable to come to an agreeable timeline for the project’s completion, as Gov. Whitmer held firm to seeing the pipeline out of the water in two years, a non-starter for Enbridge. The decommissioning of Line 5 without a replacement would severally impact Michigan’s homes and businesses.
As promised, today the AG took legal action. Attorney General Dana Nessel filed a motion to dismiss Enbridge’s lawsuit filed in the Court of Claims on June 6 that sought to enforce agreements with the previous administration to build the tunnel and continue the operation of the existing pipeline during construction. In addition, she filed  a lawsuit in Ingham County Circuit Court alleging that Enbridge’s continued operation of the Straits Pipelines under the easement granted by the State in 1953 violates the public trust doctrine, is a common law public nuisance, and violates the Michigan Environmental Protection Act because it is likely to cause pollution impairment and destruction of water and other natural resources. 

To coincide with the legal actions, Nessel released a video statement that can be found here. 

Click here for the full press release out of the AG's office 

We will keep you updated as this continues to develop. 

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Q&A: What happens if the state shuts down Line 5 

An editorial from Chad Livengood featured in Crain's Detroit Business News takes a closer look at the negative impacts a permanent shutdown of Line 5 could have on not only Michigan, but Canada and surrounding states as well. 

"A permanent shutdown of Enbridge Energy Co.'s Line 5 oil pipeline could have a major downstream impact on trade with Canada, energy supplies for multiple states and the price of jet fuel for airplanes at Detroit Metro Airport and residential propane in the Lower Peninsula."

Click Here to Read the Full Piece 

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Enbridge Moves Forward with Rock and Soil Sampling

Enbridge will continue with rock and soil sampling in the Straits this week as it moves its previously land based sampling operation onto the water. 6-inch-diameter holes will be drilled up to 150 feet into the lakebed to determine the best place for the tunnel.The geotechnical work is part of a $40 million investment into pre-construction work and will help to keep the tunnel construction on the proposed timeline.  Once the results of the geotechnical studies are in, tunnel design work can begin as early as 2020. 

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Governor Appoints UP Energy Task Force

This advisory body to the Governor, within the Department of the Environment, Great Lakes and Energy (EGLE) will be comprised of at least 13 members appointed by the Governor, all of whom must be Michigan residents and possess relevant expertise. The group is tasked with submitting a propane plan in part to the Governor by March 31, 2020 that will focus on alternative means to supply propane in the event of a Line 5 shutdown and submitting a final report by March 31, 2021.

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Michigan Petroleum Directory Now Available!