DOES DAKOTA ACCESS PIPELINE DECISION FORESHADOW ACTION IN MICHIGAN?

In light of successful lobbying relating to the Dakota Access Pipeline, activists may now focus on closing or rerouting the aging Line 5 pipeline connecting the Upper and Lower Peninsulas.

There has been a tremendous amount of news coverage and controversy surrounding the Dakota Access Pipeline.  Recently, the United States Corp of Army Engineers denied an easement for construction of the pipeline, requiring it to be rerouted.  

In Michigan, significant controversy exists around the Line 5 Pipeline that connects the Upper and Lower Peninsulas.  The fact that the operator of the pipeline had a major spill that polluted the Kalamazoo River resulting in a $177,000,000 settlement does not help. For example, this link explains problems with the pipeline from an activists’ perspective.  Enbridge has its own response.  

It is likely that the victory relating to Dakota will energize activists to focus their attentions on Line 5.  Nobody can reasonably contest the potential dire consequences if a spill occurs in the Great Lakes.  It would likely be more devastating than the BP disaster in Louisiana since the Gulf of Mexico is not the source of drinking water for millions of people.

Furthermore, as awareness about the dangers of pipelines grow, the impacts on real estate values for properties near pipelines will increase.  As the concerns become more mainstream, more potential market participants will avoid pipelines.

Meanwhile, pipeline acquisition activity moves forward at full blast in Michigan. 

If you have been contacted by a pipeline company, do not hesitate to contact me.