Legalectric

Word is out, confirming scuttlebutt, that Enbridge will pull the plug on the Sandpiper pipeline.  It’s not official yet, nothing has happened beyond an announcement, but if Enbridge is saying it, IN WRITING, then that means it’s highly likely, eh?

Enbridge Energy Partners, L.P. and Enbridge Inc. Announce Agreement to Acquire Equity Interest in the Bakken Pipeline System Establishing New Path to the U.S. Gulf Coast

Here’s the important part:

Upon successful closing of the transaction, EEP and Marathon Petroleum plan to terminate their transportation services and joint venture agreements for the Sandpiper Pipeline Project. EEP continues to believe the Bakken region is a highly productive and attractive basin, which has significant crude oil supply growth potential that will require additional pipeline capacity in the future. The scope and timing of the Sandpiper Pipeline Project will be evaluated during the quarter to ensure that it is positioned to meet the growing need for pipeline capacity while offering customers competitive tolls and strong netbacks. Additionally, in conjunction with a termination of the Sandpiper joint venture agreements with Marathon Petroleum, EEP will retain 100 percent ownership in our legacy North Dakota system, which is one of the most competitive outlets available to producers in the State.

(what’s a “netback?”).

Reuters has it right with the “OVERBUILD” characterization:

Enbridge’s Sandpiper looks to be latest victim of pipeline overbuild

For this to be “official,” Enbridge will need to file a request to withdraw their application with the Public Utilities Commission, there will be a comment period, then the Commission will decide whether to approve the request to withdraw.

Suffice it to say, this will/would also mean that the transmission for the Sandpiper tank farm NW of Clearbrook is not necessary because the tank farm will not be built there (or in an alternate site)!  And that’s good news for my clients next to that tank farm.

As happened with Hollydale, because the Sandpiper part is before OAH, Enbridge has to request a Withdrawal, which will be certified to the Commission for its blessing.  Here’s the Hollydale request:

Xcel/GRE Hollydale Withdrawal Petition

And for Clearbrook-Clearbrook West 115 kV transmission for Sandpiper’s Clearbrook tank farm, it’s time for Minnkota to withdraw their application!

So I fired off this missive to the PUC:

PUC Correspondence_Enbridge Press Release

Iit’s time to make sure the PUC knows of this Enbridge plan and the impact of this pullout on the need for transmission support!