Enbridge estimates Line 5 gas leak in Wisconsin will cost $15M
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A report filed with federal regulators estimates an August gas leak on Enbridge's Line 5 oil and gas pipeline in northern Wisconsin will cost at least $15.1 million.
An accident report filed by Enbridge Energy Limited Partnership on Thursday to the federal Pipeline and Hazardous Materials Safety Administration shows emergency response makes up the bulk of costs, which are estimated at nearly $9.9 million.
The company estimated the cost of public and private property damage and repairs from the Aug. 25 incident would run about $5 million. Environmental remediation and lost product account for the remainder of estimated expenses.
Enbridge has said the leak occurred after a subcontractor's unoccupied flatbed truck rolled into an open excavation site for a Line 5 valve project in Iron County, striking and puncturing the pipeline.
"The affected pipeline section was immediately isolated, and Line 5 was shut down. No injuries occurred, and one nearby rural residence was evacuated as a precaution," wrote Stacy Soine, Enbridge's regulatory compliance advisor.
The company told regulators about 33,000 barrels, or more than 1.3 million gallons, of natural gas liquids were released during the incident. Most of that has not been recovered since propane and butane vaporized into the air upon release. The company recovered 165 barrels from the trench with a vacuum truck.
The report sheds no new light on how the truck rolled forward into the trench, saying the cause is still under investigation. But WPR obtained a corrective action order issued by the Pipeline and Hazardous Materials Safety Administration, or PHMSA, that states preliminary findings indicate "the tractor trailer was left temporarily unattended and placed in neutral transmission on a gradient slope prior to the failure."
Enbridge told PHMSA the company shut down the pipeline within three minutes of the leak. Line 5 resumed service on Sept. 13. The report states systems to monitor the pipeline were operating when the incident occurred. However, Soine wrote its leak detection system was not triggered due to the immediate shutdown of Line 5.
The company reported the incident to the National Response Center an hour later at 11:02 a.m. The Wisconsin Department of Natural Resources has said its spills hotline received notification at 11:15 a.m.
Enbridge said wildlife and water has not been affected.
"Community air monitoring is ongoing and has consistently shown safe air quality outside of the incident site. Monitoring wells continue to show no contamination, and soil and water monitoring remains ongoing," said Enbridge spokeperson Juli Kellner.
The company plans to test, remove and properly dispose of soil within the excavation area.
A PHMSA spokesperson said its investigation remains ongoing. Texas-based Stress Engineering Services will conduct a mechanical and metallurgical analysis of the failed section of pipe. The agency's accident investigation team will also inspect the truck involved in the incident. Inspectors are also in the region overseeing construction of the Line 5 reroute.
"PHMSA may pursue additional enforcement action if its investigation identifies any violations of federal pipeline safety regulations or if additional corrective actions are necessary," a PHMSA spokesperson said.
WPR previously reported that federal accident data shows the leak is the company's and state's largest oil and gas pipeline spill in Wisconsin in more than 50 years.
Environmental advocates and the Bad River Band of Lake Superior Chippewa have called on Gov. Tony Evers and the DNR to do more in response to the leak, including calls to issue a disaster declaration and revoke permits for Enbridge's Line 5 reroute. They pointed to Michigan Gov. Gretchen Whitmer's call for removal of Line 5 in the straits of Mackinac, as well as a new regulatory review of Michigan permits issued for Enbridge's tunnel project.
Neither the governor's office nor the DNR have responded to those calls.
Line 5 carries up to 23 million gallons of crude oil and natural gas liquids daily from Superior to Sarnia, Ontario, serves 10 refineries and propane facilities in the Midwest and Great Lakes region. The pipeline runs through the Upper Peninsula, including Dickinson and Iron counties, and under water in the Straits of Mackinac to reach Lower Michigan.
Enbridge built a temporary bypass to bring the pipeline back online amid objections from the Wisconsin DNR, which said the company lacked state approvals. The company contends construction was in line with existing permits and an application for changes to its stormwater permit. A DNR spokesperson has said the agency continues to review options in response to the unpermitted construction.
Last week, two company sites were damaged by fires -- one at an office building in Superior, the second damaging drilling equipment at a drill site for the Line 5 reroute in Ashland County. The Federal Bureau of Investigation is leading a probe into both fires.
Roughly two-thirds of the $1 billion Line 5 reroute has already been built. The project employs 700 workers. At least five drilling fluid spills have occurred on the project, including one that spilled up to 1,900 gallons in June.
In 2020, Enbridge proposed the reroute after the Bad River tribe sued the company in 2019 to shut down and remove the pipeline from tribal lands where pipeline easements had expired.
Three years ago, a federal judge found the company was trespassing and ordered Enbridge to pay roughly $5 million and shut down or reroute Line 5. The tribe and Enbridge appealed the decision. In August, a federal appeals panel ruled that Enbridge has been trespassing and must remove the pipeline from the Bad River reservation. However, it gave the company more time to complete the Line 5 reroute.