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October 12, 2021

Canada Invokes Treaty With United States In Fight Over Pipeline

For the first time since it was signed, the Canadian government has formally invoked the 1977 Transit Pipelines Treaty with the United States.

At issue is Enbridge Inc.’s Line 5, one of Canada’s major oil export pipelines, which has been disputed by Michigan and other border states. By invoking the treaty, Canada is hoping to force the Biden administration to get involved in ongoing negotiations regarding the project.

As Reuters explained, Canada had previously dealt primarily with the state of Michigan regarding the pipeline, but the state ordered Enbridge to shut down the project in May because of concerns that the pipeline could leak below the Great Lakes. Enbridge ignored Michigan’s demand and is now in a legal fight with the state government.

In a statement issued last Monday, Canadian Foreign Affairs Minister Marc Garneau said, “In response to Michigan’s efforts to shut down Line 5, Canada has raised its significance for Canadian economy and energy security to the highest levels of the U.S. federal government. We have also stressed the importance of fully respecting and implementing the international agreements that are in place between our two countries.”

Line 5 is supposed to ship 540,000 barrels per day of crude and refined products from Superior, Wis. to Sarnia, Ontario.

The Financial Post has more here.

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