Latest news with #oilpipeline
Yahoo
3 days ago
- Business
- Yahoo
Analysis on Line 5 project identifies short and long term risks
GRAND RAPIDS, Mich. (WOOD) — Federal regulators have released a long-awaited study on the environmental impact of the Line 5 Project. On Friday, the U.S. Army Corps of Engineers Detroit District published its initial analysis for the project that would seek to build an underground tunnel for the aging Enbridge oil pipeline that runs along the Straits of Mackinac. The federal review took over a year longer to publish than expected. Enbridge Energy wants to build a tunnel to hold a portion of its 70-year-old oil pipeline that sits at the bottom of the straits connecting Lake Huron and Lake Michigan. The project was proposed in 2018 at $500 million but has been bogged down by legal challenges. The four-mile pipeline currently moves about 23 million gallons of oil and natural gas liquids daily between Superior, Wisconsin, and Sarnia, Ontario. According to the report, building the tunnel would reduce the risk of things like boat anchors rupturing the pipeline, which could cause a potentially disastrous oil spill. In the short term, the report says construction lights and cranes would significantly impact views and disrupt recreational areas like the dark sky park. In the long run, the a loss of vegetation along both sides of the straits and the loss of hundreds of trees along the shoreline that contain numerous species of bats. Included in the analysis is a pledge from Enbridge saying they're determined to comply with all safety standards and replant vegetation where possible and contain erosion. The report is just an initial assessment. A final analysis is expected by autumn, with a permitting decision to follow. The U.S. Army Corps of Engineers Detroit District is conducting a 30-day public comment period on the project that lasts from May 30 to June 30. Anyone is welcome to provide comments or concerns using these methods: The . Virtual public meetings: Wednesday, June 18, 2025, from 1 p.m. to 4 p.m. on or via audio: +1 646 558 8656 Wednesday, June 25, 2025, from 5 p.m. to 8 p.m. or via audio: +1 301 715 8592 Written comments (postmarked by June 30, 2025) mailed to: Line 5 Tunnel EIS 6501 Shady Grove Road, P.O. Box 10178 Gaithersburg, MD 20898 Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Independent
5 days ago
- Business
- The Independent
U.S. Army analysis finds Great Lakes pipeline tunnel would have sweeping environmental impacts
Building an underground tunnel for an aging Enbridge oil pipeline that stretches across a Great Lakes channel could destroy wetlands and harm bat habitats but would eliminate the chances of a boat anchor rupturing the line and causing a catastrophic spill, the U.S. Army Corps of Engineers said Friday in a long-awaited draft analysis of the proposed project's environmental impacts. The analysis moves the corps a step closer to approving the tunnel for Line 5 in the Straits of Mackinac. The tunnel was proposed in 2018 at a cost of $500 million but has been bogged down by legal challenges. The corps fast-tracked the project in April after President Donald Trump ordered federal agencies in January to identify energy projects for expedited emergency permitting. A final environmental assessment is expected by autumn, with a permitting decision to follow later this year. The agency initially planned to issue a permitting decision in early 2026. With that permit in hand, Enbridge would only need permission from the Michigan Department of Environment, Great Lakes and Energy before it could begin constructing the tunnel. That's far from a given, though. Environmentalists have been pressuring the state to deny the permit. Meanwhile, Michigan Attorney General Dana Nessel and Gov. Gretchen Whitmer are trying to win court rulings that would force Enbridge to remove the existing pipeline from the straits for good. Construction could have major short-term, long-term impacts The analysis notes that the tunnel would eliminate the risk of a boat anchor rupturing the pipeline and causing a spill in the straits, a key concern for environmentalists. But the construction would have sweeping effects on everything from recreation to wildlife. Many of the impacts, such as noise, vistas marred by 400-foot (121-meter) cranes, construction lights degrading star-gazing opportunities at Headlands International Dark Sky Park and vibrations that would disturb aquatic wildlife would end when the work is completed, the report found. Other impacts would last longer, including the loss of wetlands and vegetation on both sides of the strait that connects Lake Huron and Lake Michigan, and the loss of nearly 300 trees that the northern long-eared bat and tricolored bat use to roost. Grading and excavation also could disturb or destroy archaeological sites. The tunnel-boring machine could cause vibrations that could shift the area's geology. Soil in the construction area could become contaminated and nearly 200 truck trips daily during the six-year construction period would degrade area roads, the analysis found. Gas mixing with water seeping into the tunnel could result in an explosion, but the analysis notes that Enbridge plans to install fans to properly ventilate the tunnel during excavation. 'Our goal is to have the smallest possible environmental footprint,' Enbridge officials said in a statement. The Sierra Club issued a statement Friday saying the tunnel remains 'an existential threat.' 'Chances of an oil spill in the Great Lakes — our most valuable freshwater resource — skyrockets if this tunnel is built in the Straits,' the group said. 'We can't drink oil. We can't fish or swim in oil.' Tunnel would protect portion of Line 5 running through straits Enbridge has been using the Line 5 pipeline to transport crude oil and natural gas liquids between Superior, Wisconsin, and Sarnia, Ontario, since 1953. Roughly 4 miles (6 kilometers) of the pipeline runs along the bottom of the Straits of Mackinac. Concerns about the aging pipeline rupturing and causing a potentially disastrous spill in the straits have been building over the last decade. Those fears intensified in 2018 when an anchor damaged the line. Enbridge contends that the line remains structurally sound, but it struck a deal with then-Michigan Gov. Rick Snyder's administration in 2018 that calls for the company to replace the straits portion of the line with a new section that would be encased in a protective underground tunnel. Enbridge and environmentalists spar in court battles Environmentalists, Native American tribes and Democrats have been fighting in court for years to stop the tunnel and force Enbridge to remove the existing pipeline from the straits. They've had little success so far. A Michigan appellate court in February validated the state Public Service Commission's permits for the tunnel. Nessel sued in 2019 seeking to void the easement that allows Line 5 to run through the straits. That case is still pending. Whitmer revoked the easement in 2020, but Enbridge challenged that decision and a federal appellate court in April ruled that the case can proceed. Another legal fight over Line 5 in Wisconsin About 12 miles (19 kilometers) of Line 5 runs across the Bad River Band of Lake Superior Chippewa's reservation in northern Wisconsin. That tribe sued in 2019 to force Enbridge to remove the line from the reservation, arguing it's prone to spilling and that easements allowing it to operate on the reservation expired in 2013. Enbridge has proposed a 41-mile (66-kilometer) reroute around the reservation. The tribe has filed a lawsuit seeking to void state construction permits for the project and has joined several other groups in challenging the permits through the state's contested case process.
Globe and Mail
24-05-2025
- Business
- Globe and Mail
If You Like Energy Transfer's 7.4%-Yielding Payout, You Should Check Out This 9.1%-Yielding Dividend Stock
Energy Transfer (NYSE: ET) is a popular income-generating investment. It has garnered so much favor among income-seeking investors because it pays a lucrative 7.4%-yielding distribution that it has been steadily increasing each quarter. Investors who like Energy Transfer might want to check out fellow master limited partnership (MLP) Plains All American Pipeline (NASDAQ: PAA). The oil pipeline company has a higher-yielding payout (9.1%) that it has been growing faster than Energy Transfer's distribution. A well-oiled, cash-producing machine Plains All American Pipeline owns an extensive pipeline network that transports 8 million barrels of oil and natural gas liquids (NGLs) across the U.S. and Canada each day. It also operates other related infrastructure like terminals, NGL fractionation facilities, and storage assets, and has a leading marketing operation. These assets generate fairly stable cash flow, as long-term contracts support about 80% of its earnings (less than the 90% fee-based earnings level of Energy Transfer). The MLP generated enough cash to cover its lofty distribution by a comfy 1.7 times during the first quarter (lower than Energy Transfer's 2x coverage ratio in the period). It uses the cash it retains to invest in high-return capital projects and make bolt-on acquisitions. Plains All American Pipeline also has a rock-solid balance sheet. It ended the first quarter with a 3.3x leverage ratio, which was toward the low end of its 3.25x-3.75x target range. The MLP has a lower leverage level than Energy Transfer, which ended the first quarter with its leverage ratio near the low end of its 4.0x-4.5x target range. Energy Transfer is more comfortable with a higher leverage level due to its steadier earnings profile and more diversified business. One major factor differentiating Plains All American Pipeline from Energy Transfer is its ownership structure. Plains All American, like Energy Transfer, is an MLP that sends its investors a Schedule K-1 federal tax form each year. However, it also offers investors the option of owning shares of Plains GP Holdings (NASDAQ: PAGP), which sends a 1099 form. That entity is a better option for investors who don't want the complications of dealing with a Schedule K-1 each year. It's also better for those who want to hold shares in a retirement account like an IRA. Plains GP Holdings has a 25% interest in Plains All American Pipeline. It provides investors with a slightly lower yet still very lucrative dividend yield of 8.6%. More income, now and in the future Plains All American has a higher current yield and offers investors more income growth potential. The MLP has grown its payout at a 21% compound annual rate over the past four years. This year, it gave investors a $0.25-per-unit raise to $1.52 per unit (nearly 20%). It aims to grow its payout by around $0.15 per unit each year (roughly 10% annually from its current level) until it reaches a coverage ratio of 160% (coverage will be around 175% this year). That's much faster than the 3% to 5% distribution growth rate targeted by Energy Transfer. The oil pipeline company is investing its excess free cash flow to expand its operations. It currently expects to invest $300 million to $400 million annually on organic growth capital projects, like extensions and expansions of its existing assets. For example, the company placed the 30,000-barrel-per-day Fort Saskatchewan fractionation debottleneck project into service in the first quarter, enhancing its fee-based cash flow in Canada. The company's growth capital investments help supply it with additional income that it can use to grow its distribution in the future. Plains All American Pipeline will use any remaining excess free cash flow and its balance sheet flexibility to make bolt-on acquisitions as opportunities arise. For example, it bought the remaining 50% interest in Cheyenne Pipeline in the first quarter, enhancing its integration. It also acquired Black Knight Midstream's Permian Basin crude oil gathering business for $55 million. Deals like these also supply the company with incremental income that it can use to help grow the distribution. Higher income potential Energy Transfer is a great option for investors seeking to generate passive income because it pays a lucrative and steadily rising distribution, backed by a rock-solid financial profile. Plains All American Pipeline offers an even more enticing income stream. While it has a bit more variability in its cash flow, it has a very strong financial profile. That's enabling it to grow its distribution at a faster rate. It also offers an option for investors who want to earn a lucrative income stream without receiving a K-1 (Plains GP Holdings). These features make Plains an enticing option for those seeking a higher-octane income stream. Should you invest $1,000 in Plains All American Pipeline right now? Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
National Post
22-05-2025
- Politics
- National Post
André Pratte: Energy East is still a pipe dream. Quebec support won't last
Article content There are several reasons why Energy East was opposed by a majority of Quebecers. From the very start, environment activists fought the project and TC Energy was left alone in countering them. Few politicians — federal, provincial or municipal — were willing to defend it. Article content Furthermore, TC Energy made crucial mistakes in the early planning of the endeavour, mistakes that made Quebecers distrustful. Indeed, TC Energy did not sufficiently consider the fact that Quebecers are not familiar with the oil industry's infrastructure. Article content Although they consume their share of gas for transportation, they have been told for decades that most of Quebec's energy is clean, which has become a matter of national pride. Selling the construction of a giant oil pipeline in the province was always going to be a challenge. Article content Trump's election may have changed a lot of things, but I suspect that if one were to dig into Quebecers' minds deeper than a poll can, one would find a fair level of skepticism about the oil industry. It would not take much to have that view resurface. This would probably happen the moment a concrete proposal is put on the table, when people realize that the future pipeline would pass through their neighbourhoods. Article content I wish I could say that Quebecers are ready to accept a new Energy East-style project as a show of solidarity with western-Canadians. But this is simply not the case. Many Quebecers are convinced that fighting climate change requires ending the production of oil, especially from the oilsands. Article content They also fear the risk of leaks, a concern that arguments based on mathematical probabilities usually fail to overcome. It is true that Ottawa has jurisdiction over inter-provincial pipelines and therefore could choose to simply ignore Quebecers' objections. However, forcing a pipeline down peoples' throats is not a wise approach, and the political cost for Mark Carney's government would be extremely high. Article content Article content
National Post
20-05-2025
- Business
- National Post
Mark Carney has already started seriously harming the economy: Full Comment podcast
He won last month's election for the Liberals promising he had a plan to protect Canada's economy from the predations of the American president. But since returning to Ottawa, Prime Minister Mark Carney has sent alarming signals to business and scared off badly needed capital investment, as economist and professor Ian Lee tells Brian Lilley this week. The Liberal government's decision to delay the budget makes it seem like there actually is no plan, Lee says. Meanwhile, comments from Carney's cabinet that they're wavering on a new oil export pipeline suggest that this government will be just as unwelcoming to resource development as the last one. Now, it's looking like the man elected to reverse Canada's long-running decline might just make it worse. (Recorded May 16, 2025.)
