US appeals court says Enbridge pipeline on Wisconsin tribal land must be moved

• The 7th Circuit Court extended the relocation timeline beyond the original three-year deadline (which expired last month), citing concerns about consumer harm and potential violations of a 1977 U.S.-Canadian transit pipeline treaty
• Damages must be recalculated to avoid 'double-counting' of Enbridge's profits and deferred reroute expenses, with the court finding the district judge abused discretion in the original $5.15 million award
• The Line 5 pipeline has operated under tribal land since 1953 carrying up to 540,000 barrels per day, with Enbridge's rights-of-way over certain parcels expiring in 2013 before the tribe sued in 2019

Summary: US Court Rules Enbridge Must Reroute Wisconsin Tribal Land Pipeline

The 7th U.S. Circuit Court of Appeals ruled that Enbridge is liable for trespass for operating its Line 5 pipeline under Bad River Band tribal land in northern Wisconsin, but granted the Canadian energy company additional time beyond the original three-year deadline to complete the reroute.

Key Facts:

• Line 5, built in 1953, carries up to 540,000 barrels of oil daily through the Great Lakes region from Canada
• Approximately 12 miles of pipeline runs under the Bad River Reservation
• Enbridge's rights-of-way over certain tribal parcels expired in 2013
• The Bad River Band sued in 2019 after failed negotiations

Financial Impact:

The appeals court ordered a recalculation of damages originally set at $5.15 million in restitution plus additional ongoing trespass fees. The court found the lower court engaged in "double-counting" by including both Enbridge's profits from the trespass and economic benefits from deferring reroute expenses.

Court Reasoning:

Judge Michael Scudder stated the original three-year deadline was "too aggressive," citing concerns that a shutdown could harm consumers, create international tensions with Canada, and violate a 1977 U.S.-Canadian treaty governing transit pipelines. However, he emphasized that Enbridge must remove the pipeline "as soon as possible," clarifying that the grace period "does not reflect our approval of the company's behavior."

Market Implications:

The ruling provides Enbridge operational continuity while requiring costly infrastructure relocation. The decision balances tribal land rights with energy infrastructure concerns and international treaty obligations, setting precedent for similar pipeline disputes.