Enbridge Responds to Temporary Ruling on Line 5 Operations

Rhea-AI Summary

Enbridge faces a Temporary Restraining Order from a Michigan Circuit Court mandating the shutdown of Line 5 for 24 hours pending a hearing on June 30, 2020. The company's leadership expresses disappointment, asserting that Line 5 is safe. The Pipeline and Hazardous Materials Safety Administration has regulatory authority over the situation, with inspections indicating the west segment is operationally safe. However, an extended shutdown could lead to critical fuel shortages in Michigan and Ohio, increasing gasoline prices.

Positive

• Inspections confirm the west segment of Line 5 is safe for operations.
• PHMSA did not object to restarting the safe section of the pipeline.

Negative

• Temporary shutdown could disrupt fuel supplies in Michigan and Ohio.
• Increased gasoline prices for consumers may result from the order.

CALGARY, AB and LANSING, MI, June 25, 2020 /PRNewswire/ -Today a Michigan Circuit Court issued a Temporary Restraining Order requiring Enbridge (TSX: ENB) (NYSE: ENB) to shut down Line 5 through the Straits of Mackinac within 24 hours until a hearing on the State's request for preliminary injunction can be held Tuesday, June 30, 2020 and a ruling made on the preliminary injunction.  

Vern Yu, Executive Vice President and President of Liquids Pipelines said: "Enbridge is disappointed in the court's ruling as we believe that Line 5 is safe; however, the west leg of Line 5 has been shut down." 

The federal Pipeline and Hazardous Materials Safety Administration (PHMSA) has regulatory oversight of the pipeline's operations and fitness for service. Enbridge will be providing the court with the information it has requested relating to PHMSA's approach to assessing the current situation with Line 5, including restart planning for the west leg.

"Inspections have determined that the west segment of Line 5 crossing the Straits is safe for operations and which PHMSA did not object to restarting; we had shut down the east segment of the pipeline pending a review of a disturbance that was discovered on one of the screw anchors and an assessment of the east leg's fitness for service," Yu said.

Enbridge is committed to protecting the environment and the waters of the Great Lakes, while keeping energy flowing safely and reliably to the people who need it.

An extended shutdown of Line 5 would threaten fuel supplies in Michigan and Ohio resulting in critical gasoline supply shortages and gasoline price increases for consumers in Michigan and the surrounding region.

Forward Looking Information

Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. ("Enbridge" or the "Company") and its subsidiaries and affiliates, including management's assessment of Enbridge and its subsidiaries' future plans and operations. This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as ''anticipate'', ''expect'', ''project'', ''estimate'', ''forecast'', ''plan'', ''intend'', ''target'', ''believe'', "likely" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information or statements in this news release include statements with regards to the Line 5 dual pipelines and their shutdown, current and possible litigation with respect thereto and the effects thereof, regulatory and permitting actions and decisions, and the effects of any shutdown.

Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for crude oil, natural gas, NGL and renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company's services. Similarly, the COVID-19 pandemic, exchange rates, inflation and interest rates impact the economies and business environments in which the Company operates and may impact levels of demand for the Company's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements in this news release with regards to the Line 5 dual pipelines include the impact of government and regulatory actions, approvals and litigation on ongoing and future operations.

Enbridge's forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company's other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to Enbridge or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.

About Enbridge Inc.

Enbridge Inc. is a leading North American energy infrastructure company. We safely and reliably deliver the energy people need and want to fuel quality of life. Our core businesses include Liquids Pipelines, which transports approximately 25 percent of the crude oil produced in North America; Gas Transmission and Midstream, which transports approximately 20 percent of the natural gas consumed in the U.S.; Gas Distribution and Storage, which serves approximately 3.8 million retail customers in Ontario and Quebec; and Renewable Power Generation, which generates approximately 1,750 MW of net renewable power in North America and Europe. The Company's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Media
Toll Free: (888) 992-0997
Email: media@enbridge.com

Investment Community
Toll Free: (800) 481-2804
Email: investor.relations@enbridge.com

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SOURCE Enbridge Inc.

FAQ

What is the latest update on Line 5 operations for Enbridge (ENB)?

A Michigan court has issued a Temporary Restraining Order requiring Enbridge to shut down Line 5 for 24 hours pending a hearing.

What are the implications of the court ruling on Enbridge (ENB)?

The ruling might lead to critical fuel shortages and increased gasoline prices in Michigan and Ohio.

When is the hearing regarding Enbridge's Line 5 scheduled?

The hearing is scheduled for June 30, 2020.

What safety assessments have been made on Line 5 by Enbridge (ENB)?

Inspections indicate the west segment of Line 5 is safe for operations, with no objections from PHMSA.