Enbridge Energy told regulators Monday that it wants to go ahead with a $2.3 billion project to replace a northern Minnesota crude oil pipeline that has ruptured repeatedly since its construction in the 1960s.
The Calgary, Alberta-based pipeline company, in a regulatory filing in Minnesota, asked for permission to begin contacting landowners along the 338-mile-long corridor, the start of a review process likely lasting more than a year. The pipeline, known as Line 3, carries Canadian crude oil from Alberta to Superior, crossing northern Minnesota on a path through or near the cities of Clearbrook, Bemidji, Grand Rapids and Cloquet. The line operates at reduced capacity because of long-standing concerns about its integrity.
The filing with the Minnesota Public Utilities Commission had been expected because regulators must approve the company’s plans for contacting people who live near the pipeline.
The proposed route is on the same path as Enbridge’s proposed Sandpiper pipeline to carry North Dakota oil. The route, which is under review by regulators, goes through Clearbrook, where two oil terminals are located, turns south toward Park Rapids, and then east to Superior, on a Z-shaped path that partly parallels another pipeline and an electric transmission line.
Enbridge has said it has easement deals with most landowners along the proposed route after offering bonuses for early signing. If Enbridge proves to regulators that the pipeline is needed, the company can use eminent domain to acquire any remaining easements.
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Like the Sandpiper project, the Line 3 project is expected to face opposition from environmental and climate groups.
State regulators have ordered studies of alternate routes for the Sandpiper line proposed by environmental agencies and interest groups who have expressed concern about the lakes, wetlands and rivers along Enbridge’s preferred, Z-shaped route past Park Rapids. On Thursday, at the request of Enbridge, the PUC will reconsider its August decision to analyze one alternative.
The new Line 3 will be a 36-inch diameter pipe, replacing a 34-inch pipe installed between 1962 and 1967, Enbridge said.
The old pipeline has suffered major ruptures, including the July 2002 release of about 6,000 barrels of crude oil in a marsh near Cohasset. Much of the oil stayed in place, and a controlled burn sent smoke a mile high.
An investigation by the National Transportation Safety Board traced the rupture to a pipe seam, the result of a “pre-existing fatigue crack” that possibly developed from improper handling during shipment in the 1960s.
Enbridge said it stepped up its monitoring and repair program after the accident. The company said further improvements to the existing line would require digging in 900 places over six years, so the company decided to replace it instead.
Small segments of Line 3 in Wisconsin and North Dakota and a large segment in Canada also will be replaced at a total cost of $7 billion, the company has said.
