Enbridge Energy Partners’ Alberta Clipper now in operation

CALGARY, Alta. - Calgary-based Enbridge Energy Partners' Alberta Clipper pipeline made its first shipment of oil to Enbridge's Superior, Wis., terminal, in October.

The Clipper, also called Line 67, made its first shipment on Oct. 1, Enbridge spokeswoman Jennifer Varey said.

The 36-inch Line 67 runs from Hardisty, Alta., to Superior, Wis. It carries heavy crude from Canada’s oil sands. It has an average annual capacity of 450,000 b/d.

50 members of Congress ask State's Clinton to delay Keystone XL approval

WASHINGTON - In a letter to Secretary of State Hillary Clinton, some 50 members of the U.S. House of Representatives said the agency "must determine whether the project is in the national interest" in terms of "clean energy and climate change priorities" before rubber-stamping it.
As of June 23, the letter had been signed by 50 members of the House, many of whom sit on the Energy and Commerce, Natural Resources and Transportation and Infrastructure committees. All are Democrats.
Tar sands mining emits three times more greenhouse gas pollution than traditional oil, the letter stated.
Rep. Steve Cohen (D-Tenn.), one of the lead signatories, further said the pipeline, which is slated to pass over the nation's largest underground aquifer, would leave "irreparable" environmental scars in its wake.
"This poses a direct threat to America’s heartland," Cohen told reporters. "It cuts through sensitive ecosystems, crosses rivers, invades ranches and farms and could scar this land forever."
On a conference call with reporters on June 23, Rep. Cohen asked jokingly whether "XL" stands for "extra long" or "extra-large."
"Right now we don't need to be doing extra long or extra large pipelines, particularly with what we've seen in the Gulf," said the Tennessee politician, referring to the ongoing BP oil spill off the Louisiana coast.
"As oil continues to pour into the Gulf, we should take a step back and reconsider the wisdom of trusting these oil companies out to make a profit and with no thoughts of anything but oil, oil, oil.
TransCanada, which is building the Keystone and Keystone XL pipelines to transport tar sands bitumen to U.S. refineries, has been pressing for presidential approval of the $12 billion Keystone XL Pipeline, which would export up to 900,000 b/d and double U.S. consumption of the controversial fuel source.
Two other pipelines have already been okayed by the State Department - Keystone , which will eventually carry crude to Cushing, Okla., and the Alberta Clipper, that runs from Canada to Superior, Wis.
If all three get built, tar sands would make up 15 percent of U.S. fuel supply, up from four percent today.
Turning tar sands into usable oil involves mining bitumen, a tar-like petroleum that's buried beneath the boreal forests in Alberta. Extraction requires substantial energy and water and creates sprawling tailing ponds that some analysts estimate are leaking three million gallons of contaminated waste into the ground each day, endangering wildlife and perhaps public health.

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FERC backs higher tariffs for Enbridge Alberta Clipper in dispute

CALGARY, Alta. - Pipeline tariffs are set to surge for Canada's oil producers after Enbridge Inc. won a key battle against oil sands companies that have criticized the company for building what they called an unnecessary pipeline to the United States.
The U.S. Federal Energy Regulatory Commission (FERC) ruled against Suncor Energy Inc., which wanted to avoid paying additional tolls for the new $3.7-billion line. Suncor argued that Enbridge should not have built the pipeline, and its argument was supported by a number of other producers.
FERC sided with Enbridge, which wants to raise the tolls on its network of crude pipelines on April 1 in order to pay back the costs of building and operating the line, which runs 1,607 kilometers from Hardisty, Alta., to Superior, Wis.
The ruling means Enbridge tolls will increase by 97 cents, a 33-per-cent hike, over 2009 levels, Enbridge said. About three-quarters of that increase is because of Clipper costs.
That's not enough to significantly impact oil producers' profits, since it's a small percentage of the price of crude. But had Enbridge lost against Suncor, "it would have been a negative for Enbridge earnings," said UBS Securities analyst Chad Friess.

Enbridge blasts Suncor, allies in Alberta Clipper rhubarb

CALGARY, Alta. - Enbridge Inc. fired back at the critics of its Alberta Clipper pipeline on Feb. 20, accusing them of "inequitable and inexcusable conduct."
Enbridge is mired in a legal battle with oilsands producers who, led by Suncor Energy Inc., have sought to prevent Enbridge from raising its tariffs to pay for the U.S. portion of its new Clipper line.
Suncor argues that the Alberta Clipper pipeline is unnecessary, and Enbridge was imprudent to build it.
Enbridge, however, says it was hustled into building the line by the Canadian Association of Petroleum Producers (CAPP), which negotiated on behalf of the Canadian oilsands industry.

Rhubarb over Clipper rates pits Suncor, Imperial against Enbridge

CALGARY, Alta. - Suncor Energy Inc. and Imperial Oil Ltd. are accusing Enbridge Inc. of overbuilding pipeline capacity into the U.S. at a time when it's not needed, and are looking to escape the increase in tariffs that will come once the Enbridge Alberta Clipper, a major new crude pipeline, enters service later in 2010.
In a bid to duck the possibility of billions in extra tolls that could result, Suncor and Imperial have filed nearly 500 pages of documents with the U.S. Federal Energy Regulatory Commission (FERC), laying out a plan to force Enbridge Inc. to give them a break on pipeline rates into the U.S.
Though the industry agreed to tariffs for the pipeline three years ago, the two companies argue that Enbridge did not heed their urging to reconsider before it began construction in 2008, and called the company “imprudent” for building the 1,600-kilometer Alberta Clipper after it became clear oil sands production would not grow as quickly as expected.
The $3.7-billion line is to take oil from Hardisty, Alta., to Superior, Wis. It's expected to enter service in the first half of 2010, perhaps as early as April.
Suncor is leading an effort asking the U.S. regulator to prevent Enbridge from raising its tolls to pay for the cost of building and operating the 520-kilometer U.S. portion of Clipper until Enbridge can prove that there is enough demand for it.
Not only are oil producers trying to back out from Alberta Clipper, but Enbridge itself has battled an effort by TransCanada Corp. to build another major pipeline, called Keystone XL, to export crude to the U.S. That dispute, too, arises from a key problem: there are simply too many pipelines and not enough oilsands crude.
By 2013, pipeline companies plan to have capacity for 1.65 million b/d of crude more than Canada's energy companies expect to export.

Enbridge Alberta Clipper permit sparks criticism in Canada and U.S.

FORT McMURRAY, Alta. - The U.S. presidential permit granted Aug. 20 for Enbridge's controversial Alberta Clipper pipeline has launched environmental protests on both sides of the border, with opponents vowing a legal challenge.
According to a coalition of environmental and Native American groups, the decision goes against U.S. President Barack Obama's promise to cut global warming pollution and America’s addition to oil while investing in clean energy.
The groups - Earthjustice and the Minnesota Center for Environmental Advocacy as well as the Canadian and American offices of the Sierra Club and the Indigenous Environmental Network - have vowed to challenge the decision in court.
In addition, the indigenous network based in Minnesota is looking into the validity of the permit, as it wasn't signed by Hillary Clinton, U.S. secretary of state, as required. Marty Cobenais of the network said it was signed by the deputy assistant director instead, and he wants to check its validity. Cobenais says the coalition, especially the Leech Lake Band, which stands to be the most affected by the pipeline, is in for a David and Goliath fight with a multibillion-dollar industry and the American government.
“This fight isn't even just about the pipeline. We're fighting this fight down here … because we're against the expansion of the (Alberta) tar sands also,” said Cobenais.
The $3.6-billion Alberta Clipper pipeline will carry oil sands product from Hardisty, Alta. It will extend 525 kilometers from the U.S.-Canadian border near Neche, N.D., across northern Minnesota to an Enbridge terminal in Superior, Wis. The project also includes associated pumping and terminal stations. Scheduled to be up and running in 2010, the pipeline will have an initial capacity of 450,000 b/d of heavy bituminous syncrude. A second 51-centimeter parallel pipeline, Southern Lights, will extend 307 kilometers from Superior to an Enbridge terminal in Clearbrook, Minn.

Enbridge to help Enbridge Energy Partners finance Alberta Clipper pipeline

CALGARY - The Alberta Clipper crude oil pipeline from Canada’s oil sands to Superior, Wis., will be funded primarily by Calgary-based Enbridge Inc. after the pipeline operator and natural gas distributor completed a restructuring deal for the project with its affiliate Enbridge Energy Partners.
The deal announced July 20 has Enbridge financing two-thirds of the $1.2 billion U.S. segment of the pipeline.
Enbridge is already funding the $2.4 billion Canadian portion of the pipeline now under construction.
Terrance McGill, president of Houston-based Enbridge Energy Partners, said the deal was necessary after equity markets "crashed and burned" last fall.
"Under normal circumstances we would prefer that EEP funds projects on its own in the public and private capital markets," McGill told a conference call on July 20. "However, over the last year or so it has become clear that EEP cannot fund the entire Alberta Clipper project effectively in a fashion that is beneficial to existing unitholders."
McGill said the deal with Enbridge reduces the partnership's need to raise equity so that it can now likely handle its commitment by selling non-strategic assets or a conventional placement of partnership units. He also said the agreement should "materially address the financing uncertainty" that has been a drag on unit prices.

Enbridge Energy environmental assessment available for comment

MADISON, Wis. – Environmental officials in Wisconsin have invited the public to comment on an Environmental Assessment (EA) prepared by the Department of Natural Resources (DNR) for the Enbridge Alberta Clipper petroleum pipeline system project.
Enbridge Energy Co. of Superior has applied to the Wisconsin DNR for waterway and wetland crossing permits and air quality permits for the proposed project. The company will also need a stormwater permit and an endangered resources review for the project.
The proposed project consists of constructing a new 36-inch diameter petroleum pipeline known as the Alberta Clipper, a new 20-inch diameter diluent return pipeline known as the Southern Lights, an associated pump station for the Southern Lights pipeline and five 250,000-barrel breakout tanks. The proposed pipelines would be constructed along a 13-mile route in Douglas County from the Wisconsin-Minnesota border to the Enbridge Superior Terminal in Superior.
It requires 17 water body crossings, including 10 tributaries to the Pokegama River, three un-named waterways, two tributaries to the Little Pokegama River, one crossing of the Pokegama River and one crossing of an unnamed tributary to the Nemadji River.
The proposed pipelines would temporarily impact approximately 75 acres of wetland.
The pump station and breakout tanks at the Superior Terminal would fill approximately 12 acres of wetland and temporarily impact approximately three acres of wetland.
The project as proposed is not anticipated to result in significant adverse environmental effects, according to DNR officials. DNR has made a preliminary determination that an environmental impact statement will not be required.

Willbros to build three pump stations for Enbridge in Canada

CALGARY, Alta. - Willbros Group Inc. said on 16 March that its upstream segment has been awarded new projects from Enbridge Pipelines Inc. with respect to the continuing build-out of crude oil transportation systems from the oil sands in Alberta, Canada.
Under the contract, Willbros Canada will construct three additional pump stations on the Alberta Clipper pipeline system: one in Hardisty, Alta., and two in Saskatchewan province.
The projects have already started and are expected to be completed in the third quarter of 2009, Willbros Group said.

Enbridge projects creation of 2,000 pipeline jobs this summer and next

SUPERIOR, Wis. - Two oil pipeline projects expected to get under way this summer in Illinois, Wisconsin and Minnesota will put about 2,000 construction workers on the job.
Although some regulatory approval is still needed, it is expected to come in time for the summer construction season.
The Enbridge Energy Pipeline projects are dubbed "Alberta Clipper" and "Southern Lights," but Plumbers and Steamfitters Business Agent Jeff Deveau calls them "a ray of sunshine.” Thirty percent of his Duluth-Superior union members are out of work.
"Locally here we've got 115 guys off right now and this job will help some of these guys from losing their homes, get health insurance again," he said.
Deveau says the recession is delaying or cancelling projects that otherwise would put his people to work.
Most of the 2,000 construction jobs will come in Wisconsin and Minnesota. Two of the three main contractors, Precision Pipeline of Eau Claire and Michel's Construction of Brownsville, are based in Wisconsin.