U.S. Supreme Court to Hear Enbridge's Bid to Move Michigan Pipeline Lawsuit

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U.S. Supreme Court to Hear Enbridge's Bid to Move Michigan Pipeline Lawsuit

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The United States Supreme Court building in Washington, D.C. (© Shutterstock/Wolfgang Schaller)
The United States Supreme Court building in Washington, D.C. (© Shutterstock/Wolfgang Schaller)

The U.S. Supreme Court on Monday agreed to hear Enbridge Inc.'s appeal to move a Michigan lawsuit, which seeks to halt the operation of its Line 5 pipeline under the Straits of Mackinac, from state to federal court.

The high court will consider Enbridge's argument that a lower court erred in rejecting its request to shift the case to federal jurisdiction, a venue generally considered more favourable to corporate defendants. 

The Canadian pipeline operator has been embroiled in a protracted legal battle with Michigan over the aging Line 5, which transports 540,000 barrels per day of crude and refined products from Wisconsin to Ontario. 

A critical four-mile section of the pipeline runs underwater through the Straits of Mackinac, connecting Lake Michigan and Lake Huron, raising significant environmental concerns about potential oil spills.

Michigan Attorney General Dana Nessel initially filed the lawsuit in state court in June 2019, alleging violations of state public nuisance and environmental laws. 

Enbridge sought to transfer the case to federal court in November 2021. However, the 6th U.S. Circuit Court of Appeals ruled last year that Enbridge's request came too late, exceeding a statutory deadline.

Enbridge's lawyers argued to the Supreme Court that the 6th Circuit's decision contributes to a split among federal appeals courts regarding exceptions to the 30-day limit for removing cases from state to federal court. They contend this creates "untenable uncertainty" for defendants.

The justices are expected to hear arguments in their next term, beginning in October.

Meanwhile, Enbridge is waiting for the U.S. Army Corps of Engineers to decide this fall on whether to grant a permit for its proposal to build a tunnel to house the Line 5 pipeline after public consultation. 

This project received an emergency designation in April under a January executive order from President Donald Trump, allowing for a fast-tracked review.