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$2.1 billion project to send Canada crude through Rock County, but some object

By Lynn Vollbrecht
Staff Writer

BRADFORD TOWNSHIP — Construction continues on 22 miles of pipeline running through eastern Rock County farmland, though the project may be hitting a few snags.

The Rock County portion of pipeline is part of the second stage of the 450-mile, $2.1 billion Southern Access Expansion, a project of the Houston-based Enbridge Energy Company Inc., which operates the longest crude oil and liquids pipeline system in Canada and North America. Stage 1 consisted of 321 miles of pipeline, running from Superior, Wis., to northeastern Rock County. The second stage will extend to Flanagan, Ill., in the central part of the state.

The project involves laying a 42-inch underground pipe for pumping crude oil south, and a parallel 20-inch pipe to pump hydrocarbons north.

“The initial capacity will be 400,000 barrels per day, and there’s 42 gallons in a barrel,” said Enbridge spokesman Dave Henderson.

The company already has three pipelines running south from Superior. The fourth pipeline was necessary, Henderson said, “to meet the growing demand.”

“We do need the additional pipeline,” he said.

Some area farmers are upset, however, that the project cuts large swaths through their fields. Enbridge offered to pay market value for the land, which Henderson said varies from parcel to parcel. The farmers still retain ownership of the land, and eventually will be able to farm over it once the pipe is buried at a depth of 5 feet.

“It’s based on market value of the land,” Henderson said of the compensation package. “Even though all we’re doing is purchasing easement rights, we pay the full market value.”

The easement is a 150-foot-wide swath cut through fields in Bradford Township, along the eastern edge of the county. Topsoil is preserved and will be replaced. Farmers are compensated for crops lost during the process.

Nevertheless, some farmers contend they’re not being compensated properly, and are challenging in court the eminent domain rights granted the company by the Wisconsin Public Service Commission. Eminent domain is the right of government to take private property — with compensation but without owner consent — for public use.

“(The project) is not exercising eminent domain for a public use; it’s a private use,” said Minnesota Attorney Jon Erik Kingstad, who represents some of the farmers. “Our position is (the) commission did not have the authority to issue any kind of approval.”

A hearing on the matter is scheduled for Oct. 7, but Enbridge is hoping a settlement can be reached before that.

“First of all, it’s Enbridge’s approach to do (eminent domain) only as a last resort,” said Denise Hamsher, director of public and regulatory affairs for the company. “The PSC grants that authority so that a landowner or a small group can’t stand in the way of a project that will serve the public.”

Kingstad disagrees, saying the pipeline project is for company profit, not the greater good.

“There’s been some negotiation, but right now the matter’s tied up in the Rock County Circuit Court,” he said.

Another issue tarnishing the project’s image involves alleged environmental damage. The Wisconsin Department of Natural Resources approved Enbridge’s proposal to cross 242 rivers and streams and 74 miles of wetlands, despite the objections of environmental groups.

But now, the DNR is questioning whether Enbridge violated the conditions of the permit during Stage 1 of the project. This spring, the DNR asked the state Department of Justice to look into possible violations.

“There has not been anything further than they referred us to the Wisconsin Department of Justice,” Hamsher said. “Enbridge continues to be in discussion with them.”

Not all farmers are opposed to the project; some say it’s an inconvenience, but maintain they were fairly compensated.

Steve Anderson, who owns land in Bradford Township through which the pipeline will run, said “I haven’t had a problem with it — they’ve been really good to me.”

Anderson does not farm, but the pipeline will run under 1,300 feet of land that he leases to farmers.

“There is crop damage, but they’re going to take care of that,” he said.

Enbridge maintains the project will serve a greater good in the long run.

“A lot of this has to do with replacing sources of crude oil that are in unstable parts of the world,” Henderson said. “China’s adding 1,000 cars to their roads a day. These countries are competing with the U.S. for fuel. (Crude oil from Canada is) a more secure, economical source.”

He added the crude flowing down the Southern Access Expansion pipelines will benefit Wisconsin consumers in the long run, because the oil is going to refineries that service the state.

As Anderson sees it, it’s just the way things go.

“It’s progress, you know? And it’s amazing that they’re going to run oil through that, all the way to Canada,” he said.

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