Michigan wants Enbridge to pledge funds in case of oil spill

TRAVERSE CITY, Mich. (AP) — Michigan sought a pledge Friday from Enbridge Inc. to cover costs that would arise if oil were to leak from its dual pipelines that extend across a channel linking two of the Great Lakes.

Department of Natural Resources Director Dan Eichinger asked the Canadian pipeline company to carry $900 million of liability insurance and set aside about $1.88 billion in additional assets for use as needed in the event of a catastrophic spill.

The twin pipes run along the bottom of the 4-mile-long (6.4-kilometer-wide) Straits of Mackinac, which connects Lake Huron and Lake Michigan. They make up one segment of Enbridge's Line 5, which carries oil and liquids used in propane between Superior, Wisconsin, and Sarnia, Ontario.

Enbridge says the underwater section, laid in 1953, is in good condition and has never leaked. Environmental groups and Democratic officials including Gov. Gretchen Whitmer contend it is a hazard that should be shut down, which Attorney General Dana Nessel is seeking in a lawsuit pending in state court.

Enbridge negotiated a deal with former Republican Gov. Rick Snyder's administration in 2018 to decommission the twin pipes after replacing them with a new pipe that would be housed in a tunnel to be drilled beneath the straits. The company plans to begin construction next year and is seeking state and federal permits.

The agreement with Snyder included a pledge to hold the state financially harmless for any damages from a Line 5 spill. But the deal was signed by Enbridge Energy Company Inc., a subsidiary of Enbridge Inc., which is based in Calgary, Alberta. Enbridge Energy is the corporate successor of Lakehead Pipe Line Company, which received a state easement to place the pipes in the straits 67 years ago.

In his letter to the parent company, Eichenger said Enbridge Energy...