Enbridge Energy seeks replacement crude oil pipeline across northern Minnesota

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ST. PAUL, Minnesota — Enbridge Energy has asked Minnesota regulators for approval to build a replacement pipeline across northern Minnesota.

The proposed 337-mile pipeline would cost more than $2 billion and would replace the 1960s-era Line 3 pipeline. The existing line carries crude oil from Canada to the Midwest but has a history of ruptures.

Enbridge, based in Calgary, Alberta, filed its application with the Minnesota Public Utilities Commission on Friday. The Minnesota segment is part of a $7.5 billion project by Enbridge to build a new 36-inch diameter line from Hardisty, Alberta, to Superior, Wisconsin, where Enbridge has a terminal and connections to pipelines serving the Midwest, Gulf Coast and eastern Canada.

Like Enbridge's other big Minnesota pipeline project — the proposed Sandpiper from North Dakota — the Line 3 replacement would pass through Clearbrook, Minnesota, site of two oil terminals, then turn southeast toward Park Rapids, and finally east to Superior.

Although the two lines are on the same route, Enbridge is required to get a separate route permit for Line 3, along with a certificate of need. Earlier this month, an administrative judge concluded that the Sandpiper project is needed.

The company wants to begin construction on the Line 3 replacement next year, and finish in 2017, the Star Tribune (http://strib.mn/1GvTUfr ) reported.

In filings with the PUC, Enbridge said that growth in western Canada's crude oil production over the next 15 years will quickly fill the new, expanded Line 3.

An analysis for Enbridge by consulting firm Muse Stancil said that Canada's National Energy Board projects a 2.1 million barrel-per-day increase in production from Alberta's oil sands by 2030. Enbridge's Line 3 replacement would carry 760,000 barrels per day.

"The forward outlook for western Canada is one of very large increases in crude oil supply," Muse Stancil said. "The project represents a small portion of the transportation capacity that will have to be utilized over the next decade."

Oil shipped by the expanded Line 3 will reduce restricted deliveries caused by pipeline bottlenecks that affect two refineries in the Twin Cities and others in the Midwest, Gulf Coast and eastern Canada, Enbridge said.

The existing Line 3 pipeline, which takes a different path past Bemidji, Grand Rapids and Cloquet, would be decommissioned. Enbridge said that line operates at partial capacity and has "a large number of integrity anomalies."

Accidents on the existing Line 3 have included a 1991 spill of 1.7 million gallons of crude oil at Grand Rapids, a 2002 rupture near Cohasset and an explosion and fire during a 2007 repair job near Clearbrook that killed two workers.

MN350, an environmental group focused on addressing climate change by reducing fossil fuels, plans to fight the project, said Andy Pearson, the group's Midwest Tar Sands coordinator.

"If Line 3 is a hazard, they need to be shutting it down," he told the Star Tribune. "We believe they shouldn't rebuild it."


Information from: Star Tribune, http://www.startribune.com

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