Rapid Reaction - Trump Administration Issues New Presidential Permits for Enbridge Pipelines

Enbridge Secures Eight Permit Renewals and One New Authorization for 24-Inch Bakken Pipeline Expansion

The Trump administration yesterday issued nine presidential permits authorizing oil and liquid material crossings along the U.S.-Canada border for Enbridge’s lines. Eight of these permits appear to serve as replacements or “refreshes” of existing authorizations. These updates are likely intended to strengthen legal language and modernize the regulatory standing of critical conduits. The refreshed permits cover Enbridge Mainline’s six existing lines in Pembina County, North Dakota, the primary gateway to the U.S. Additionally, the permits cover two of Enbridge’s Mainline export lines from St. Clair, Michigan back into Canada. The Southern Lights and Bakken lines also received refreshed permits covering their existing infrastructure.

While much of the administrative action reinforces existing operations, there is an issuance of a ninth permit for a “newly constructed 24-inch pipeline” tied to Enbridge’s Bakken Pipeline, which may act as a replacement to the current 12-inch border crossing line. This new authorization ties in with Enbridge’s Mainline Optimization 2 project (MLO2), which is planning to utilize Bakken Pipeline to shift light crude off Enbridge’s Mainline in Canada to the Dakota Access Pipeline. This larger 24-inch border crossing line is likely needed if MLO2 is to achieve its full 250,000 barrels per day (bpd) capacity.