Michigan wants Enbridge to pledge funds in case of oil spill - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 17, 2020 Newswires
Share
Share
Post
Email

Michigan wants Enbridge to pledge funds in case of oil spill

Associated Press

TRAVERSE CITY, Mich. (AP) — Michigan sought a written 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, although the Canadian pipeline company said it had already made such a promise.

Department of Natural Resources Director Dan Eichinger asked Enbridge 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 doesn't have the resources to cover costs of a major spill. A state-commissioned report last year found that Enbridge Inc. is not legally bound to abide by financial pledges made by its subsidiary in 1953, he said.

The report noted that the chief executive of one Enbridge subsidiary had testified in 2018 at a Minnesota hearing on different pipeline that Enbridge, Inc. is “not contractually obligated to stand behind the indemnity agreements of a subsidiary.”

“As recent events have reminded us, we must get these pipelines that transport crude oil out of the Great Lakes as soon as possible,” Eichinger said in a statement. “In the meantime, Enbridge must provide full financial assurance to the people of Michigan that the company will meet its obligations in the event there is a spill or some other disastrous damage to the Great Lakes.”

A state judge ordered a temporary Line 5 shutdown last month after Enbridge reported damage to a steel anchor holding a section of one pipe in place. The judge later allowed oil to resume flowing through the other underwater pipe.

In a statement, Enbridge said it “pledges to take full responsibility for the cleanup of any incident in Michigan or anywhere along our pipeline system.”

Spokesman Ryan Duffy said one of the agreements signed with the Snyder administration included a provision that “the Enbridge entity or entities that own and operate Line 5, or the parent companies” of such entities, would “maintain in force financial assurance mechanisms that meet or exceed” $1.88 billion.

That figure came from an independent analyst’s estimate of costs from a worst-case spill in the straits. Enbridge said it disagreed with the report’s methods and conclusions but would keep that sum of money available to deal with a spill if needed.

“Since we already have an agreement with the State of Michigan to provide these assurances, if the State would like to sit down and discuss our financial assurances, we would be happy to do so,” the company said.

The Chippewa Ottawa Resource Authority, which represents Native American tribes with fishing rights in the straits area, backed the state's request for an airtight promise from Enbridge's parent company.

“The Straits is more than a waterway; said Bryan Newland, chairman of the Bay Mills Indian Community. “They are a place of ongoing significance to the way of life of for the Tribes since time immemorial.”

Older

Countryside Roofing, Siding & Windows, Inc. Provides Quality House Siding in Naperville and Arlington Hei

Newer

Surface Disinfectant Market Dynamics Analysis and Major Leading Player's Analysis 2030 – 3M, Procter and Gamble

Advisor News

  • A rising retirement challenge: The license to spend
  • Financial stress leaves less room for retirement saving
  • Giving while you’re living: 3 frequently asked questions about gifting
  • Helping clients prepare for one of their biggest retirement expenses
  • Important year-end financial conversations every advisor must have
More Advisor News

Annuity News

  • A rising retirement challenge: The license to spend
  • What lower interest rates mean to annuity payouts
  • AM Best downgrades A-Cap insurers amid financial and regulatory troubles
  • Lawsuit claims Delaware Life hid billions in insurer-linked investments
  • AM Best to Deliver Presentation at 2026 ACLI Annual Conference
More Annuity News

Health/Employee Benefits News

  • AAA: Time to evaluate Medicare coverage
  • Healthcare workers see rising insurance costs Healthcare workers face soaring health insurance costs
  • Franklin County Seeks Case Aide for Children and Youth Services
  • As immigrant Medicaid cuts take effect, some in WA can keep their coverage
  • WNY urology practice plans ‘fresh start’ outside Kaleida, with insurance questions ahead
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Study Results from Cornell University in the Area of Insurance Reported (Regulatory Competition In the Us Life Insurance Industry): Insurance
  • AM Best Comments on Issuer Credit Ratings of Pacific Life Insurance Company’s Commercial Paper Following Amendment to Program
  • AM Best Affirms Credit Ratings of Protective Life Corporation and Its Key Subsidiaries
  • ICICI Life Insurance names Sidharatha Mishra managing director, CEO
  • Lawsuit alleges companies collected $30 million in ‘illegal wager on human life’
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.