Evidence of meeting #4 for Economic Relationship between Canada and the United States in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was pipeline.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Vern Yu  Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.
Mark Agnew  Vice-President, Policy and International, Canadian Chamber of Commerce
Aaron Henry  Senior Director, Natural Resources and Sustainability, Canadian Chamber of Commerce
Maryscott Greenwood  Chief Executive Officer, Canadian American Business Council
Clerk of the Committee  Ms. Erica Pereira

3:10 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

That is correct.

3:10 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Would it be correct to say that a study was done showing that the dual-structure pipeline has a risk of failure of less than 0.05% per year—less than one in 2,000 times?

3:10 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

That is correct.

3:10 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Is it also correct that since the easement was granted, the U.S. Congress adopted a pipeline safety act, which is administered by PHMSA and should be responsible for safety standards for interstate and international pipelines such as this one?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

As such, to clarify, would it be Enbridge's position that the State of Michigan lacks authority to shut down this pipeline structure, as that would be a matter of exclusive federal authority?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

Absolutely.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

I believe, and I think you would agree, sir, that in addition to what has already been raised, there would be a significant constitutional question of jurisdiction under the commerce and foreign commerce clause of the U.S. constitution. Is that correct?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Is it correct that Enbridge has gone to the Federal Court and asked for a declaratory judgment to say that until the Great Lakes tunnel project is complete, Line 5 should be able to continue to run uninterrupted?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

That is correct, subject to the oversight of PHMSA.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Exactly.

What is the status right now of that case? Where is that case in terms of filings?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

The filing that the state made to the Michigan state court is on hold right now, pending review at the U.S. federal court. The U.S. federal court is in the process of making a determination on jurisdiction, on whether the arguments we have made should be heard in federal court or in state court. The first hearing on that is scheduled for May 12.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Is it correct to say that a joint mediator has been appointed? That is something I have heard.

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

The court instructed Enbridge and the state to seek mediation parallel to the court process.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Has that mediation process begun?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

We had our initial meeting with the mediator on the weekend.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Can I ask if it was positive? I can totally understand if you don't want to comment.

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

I believe it's too early to comment.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

Fair enough.

You mentioned in your answer to my colleague, Ms. Gladu, that you were hoping the federal government and the provinces would involve themselves by filing, I guess, amicus curiae briefs in the lawsuit, declaring that they supported Enbridge's position that this was a federal matter of jurisdiction in the U.S.

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

We believe that would be very helpful.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

I understand. That's good for the committee to know.

Could you also speak to this? We talked a bit about the Michigan executive. We know that the House of Representatives and Senate in the state of Michigan are controlled by the other party. Is there any possibility of an intervention by the Michigan legislature that you are aware of?

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

I'm not aware of any actions at this point.

3:15 p.m.

Liberal

Anthony Housefather Liberal Mount Royal, QC

I guess this would be another question. Enbridge has stated pretty confidently that it intends to continue operations past the May 12 deadline that the state has provided. How does Enbridge believe it will do so? Would it be the state that would need to secure an injunction to stop the pipeline from operating, or would it be Enbridge that would need to secure an injunction to stop the state's action to revoke the easement? I wasn't clear on that.

3:15 p.m.

Executive Vice-President and President, Liquids Pipelines, Enbridge Inc.

Vern Yu

The state would need to get an injunction from a court to stop our operations.