Oil, gas, union workers say Line 5 shutdown would cost 1,200 immediate jobs, spike gas prices

(The Center Square) – A battle over the Line 5 pipeline is dividing Democrats and unions who say Gov. Gretchen Whitmer’s push to shut down the pipeline would immediately slash 1,200 union jobs.

Tomorrow is the state’s deadline for Enbridge to shut down Line 5, an issue tied up in courts.

Since 1953, the pipeline has transported up to 540,000 barrels per day of light crude oil, light synthetic crude, and natural gas liquids.

Michigan Oil and Gas Association President Jason Geer told the House Transportation Committee on Tuesday a Line 5 shutdown would “devastate” the industry.

Nearly 14,000 barrels of oil per day are moved on Line 5 from Lewiston to refineries, which is approximately 66% of Michigan’s total home state production, Geer said.

“There will likely be a propane shortage if we shut this down,” Geer said. “We’re not prepared as a state to replace the propane that would be lost from the pipeline.”

Switching transportation of crude oil to truck delivery to Toledo and Detroit would add 503,104 miles of large tanker trucks on Michigan roads, Geer said.

Geer argued railcar derailment or a truck crash is more likely than the pipeline leaking. He also warned shutting down Line 5 could disrupt 10 regional refineries.

The fuel delivered by Line 5 is used to make medicine, hand sanitizer, clothing, furniture, asphalt to fix roads, car and jet fuel, propane to heat homes, diesel for trucks, toothbrushes, clothing, makeup, iPhone circuity, running shoes, paint, and jet fuel.

“If you shut down Line 5, you’re not going to have the gasoline needed to keep Michigan moving economically,” Geer said.

A 2018 Pipeline and Hazardous Materials Safety Administration report stated pipelines are the safest mode of transporting oil compared to railcar and trucks. In 2013, the derailment of a train transporting oil in Quebec resulted in the death of 47 people.

Scott Hayes of the Toledo Refining Company said the pipeline supplies 42% of crude oil needed to make gas and other derivatives at his refinery for Southeast Michigan.

Based on 2019 data, Hayes said two Toledo refineries supplied 68% of jet fuel to Detroit Metro Airport.

“I don’t know of a coherent plan to replace that,” Hayes said.

In the last year, 10 refineries in the United States have closed, Hayes said. He added new refineries are instead being built in India and China, which have fewer environmental regulations than the United States.

China emits more C02 emissions than the next 10 largest countries combined, UM-Flint Economics Department Chair Chris Douglas told The Center Square.

Douglas said closing Line 5 and instead transporting liquid fuels via truck would cost $254 million annually, or $696,600 each day, as well as increase damage to roads, traffic congestion, accidents, and carbon dioxide emissions.

The Congressional Budget Office said an 80,000-pound semi-truck costs 20 cents of damage per mile to a rural road, a 2000’s estimate adjusted for 2021 inflation.

According to the Environmental Protection Agency, semi-trucks are a significant source of carbon dioxide emissions since burning a gallon of diesel fuel emits about 22 pounds of carbon dioxide.

President Joe Biden’s administration estimates the cost of a ton of carbon dioxide to be $51 per ton in environmental damage.

Michigan would absorb most of the costs if 2,152 trucks, the amount needed to replace Line 5 capacity, would travel from Superior, Wisc., to Sarnia, Canada. About 600 miles of the trip would travel on Michigan roads and burn 184 gallons round-trip.

The 68-year-old pipeline has been targeted for shutdown by environmentalists who fear a spill similar to the 2010 oil spill near the Kalamazoo River – the largest inland oil spill in U.S. history.

Lynsey Mukomel, press secretary for the Michigan Attorney General, told The Center Square they’re seeking a court order requiring Enbridge to shut down. Enbridge moved the case from state to federal court. The jurisdictional issue will not be decided until after May 12, Mukomel said.

“We are reviewing other remedies that may be available to the state if Enbridge continues to operate the pipelines after the deadline,” Mukomel wrote in an email.

Justin Donley, president of the United Steelworkers Local 912, told The Center Square that shutting down Line 5 would hurt their 350 members, 600 contractors, 500 other full-time workers, as well as raise fuel and petroleum derivative prices for the general public.

“So in reality, just about everyone relies on the products, directly or indirectly, that come through that pipeline,” Donley said. “I don’t think anybody today can go through a day in their life without touching a product that one way or another comes from a petroleum product.”

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