Canada Invokes 1977 Pipeline Treaty with U.S. in Line 5 Dispute – Reuters

By Nia Williams and Sebastien Malo

CALGARY, Alberta – Canada has invoked a treaty established in 1977 with the United States to initiate bilateral negotiations regarding Enbridge Inc’s Line 5 pipeline, intensifying an ongoing dispute concerning one of Canada’s key oil export routes.

Line 5 transports 540,000 barrels per day of crude and refined products from Superior, Wisconsin, to Sarnia, Ontario. However, Michigan state officials have mandated Enbridge to shut down the pipeline by May, citing concerns over potential leaks in a four-mile stretch that runs beneath the Straits of Mackinac in the Great Lakes.

In defiance of the order, Enbridge has continued operations, leading to a legal confrontation between the two parties. The Canadian government has been urging its U.S. counterparts to take action, and Monday’s development signifies an escalation in Ottawa’s attempts to protect the pipeline.

The invocation of the treaty will require the Biden administration to engage in the Line 5 dispute, according to Ian Lee, a business professor at Carleton University in Ottawa. “This escalates the issue to a nation-to-nation level, and we hope for a resolution,” he stated, adding that a shutdown would be politically damaging for the Canadian government.

The U.S. State Department has yet to respond to inquiries regarding Line 5, which represents the latest in a series of challenges involving Canadian export pipelines for the Biden administration. Earlier this year, the president rescinded a crucial permit for the Keystone XL pipeline, prompting disappointment from Canada. Recently, environmentalists criticized the administration for not halting Enbridge’s Line 3 replacement project, which increases oil sands crude flow to U.S. refineries.

1977 TREATY

In communication with the U.S. federal judge overseeing the case, Gordon Giffin, legal counsel for the Canadian government, indicated that Canada has formally invoked Article Six of the 1977 Transit Pipelines Treaty. This treaty has never been previously invoked.

Line 5 is bound by provisions of this agreement, which guarantees the uninterrupted transit of oil and liquids between the two nations, as stated by Canada’s Foreign Affairs Minister Marc Garneau. “Today, Canada is formally invoking the dispute settlement provision of the 1977 Agreement to ensure its full application,” Garneau remarked.

Article Six is intended to resolve disputes, and Giffin’s correspondence requested that the court pause any proceedings related to Michigan’s shut down order during this process. Environmental advocates have criticized this action as a delaying strategy.

Michigan Attorney General Dana Nessel rejected the letter, asserting that it lacks a legal foundation for suspending the case. “I am disappointed that the Government of Canada continues to align itself with Enbridge’s wishes to maintain oil transport through state-owned lands in the heart of the Great Lakes, putting our vital public resources at risk,” Nessel stated.

Earlier in the year, Enbridge and Michigan participated in court-ordered mediation; however, Enbridge spokeswoman Tracy Larsson noted that Michigan has expressed a lack of commitment to continued discussions. “We greatly appreciate the efforts of ‘Team Canada’ for their commitments and endeavors to keep Line 5 operational,” she commented.