A federal appellate panel ruled Monday that Michigan Attorney General Dana Nessel’s lawsuit against Enbridge Inc., seeking to shut down part of a petroleum pipeline beneath the Straits of Mackinac, must be remanded to state court.
Enbridge, the operator of the Line 5 pipeline, had moved the case to federal court more than two years after the deadline for such a jurisdictional change. The three-judge panel from the 6th U.S. Circuit Court of Appeals determined that Enbridge’s delay was clear and ordered the case returned to its original venue in state court.
Nessel initiated the lawsuit in June 2019, aiming to void a 1953 easement that permits Enbridge to operate a 4.5-mile segment of Line 5 beneath the straits connecting Lake Michigan and Lake Huron. Concerns over potential ruptures and oil spills have escalated, particularly following revelations in 2017 of gaps in the pipeline’s protective coating, known to Enbridge since 2014. An incident involving a boat anchor in 2018 further heightened fears of environmental catastrophe.
While Nessel secured a restraining order from a state judge in June 2020, allowing Line 5’s temporary restart under safety compliance, Enbridge shifted the case to federal court in December 2021.
During oral arguments in March before the 6th Circuit panel in Cincinnati, Nessel’s legal team argued that the lawsuit centers on Michigan state law, invoking both the public trust doctrine and the Michigan Environmental Protection Act.
Enbridge countered that federal jurisdiction was appropriate due to the pipeline’s role in interstate and international petroleum trade, linking Wisconsin, Michigan, and Ontario.
The appellate judges—Richard Griffin, Amul Thapor, and John Nalbandian—did not delve into the case’s substantive merits but ruled strictly on the jurisdictional issue.
In response to the ruling, Nessel criticized Line 5 as “old, dangerous and worsening,” emphasizing her belief that the case never should have departed from state court.
Enbridge, while disappointed with the decision, reiterated its stance that Line 5 is subject to federal regulation under a 1977 crude oil treaty between the U.S. and Canada. The company anticipates that a pending federal lawsuit challenging Michigan’s attempts to close the pipeline will ultimately resolve the state-level dispute.
Separately, Enbridge faces legal challenges in Wisconsin regarding Line 5’s route across the Bad River Band of Lake Superior’s reservation, where a federal judge has mandated a shutdown within three years. Enbridge has proposed rerouting the pipeline and is appealing the shutdown order to the 7th U.S. Circuit Court of Appeals.
The outcome of these legal battles will significantly impact the future of Line 5, affecting both regional energy infrastructure and broader environmental concerns.