State officials announced this morning that a contractor preparing a risk-analysis of the Enbridge Line 5 pipeline in the Mackinac straits was fired after it was learned that a key analyst on the project previously worked for Enbridge.
The contract with Det Norske Veritas, Inc. (DNV GL) was terminated prior to a draft report being delivered to the state’s project team that is scrutinizing the dual pipeline for safety reasons.
Within the past month, the project team became aware that an employee who had worked on the risk analysis at DNV GL subsequently worked on another project for Enbridge Energy Co.while the risk analysis was being completed. This is a violation of conflict of interest rules contained in the contract.
“We took the initiative to terminate the contract based on our commitment to the complete integrity and transparency of this report. Ultimately the state will have to decide how to proceed with Line 5 and we can’t do that if there is any doubt regarding the nature of the information,” said C. Heidi Grether, director of the Michigan Department of Environmental Quality.
A second firm will continue work on an alternative analysis that was part of the plan from the beginning.
As questions about the safety and stability of the decades-old pipeline have emerged for the past three years, earlier this month news reports indicated that the supports under the submerged pipes were inadequate in dozens of locations. One 286-foot unsupported span was nearly four times the allowable length.
Enbridge continues its PR battle with state officials by offering evidence that backs its contention that the line – a major supply route for oil and natural gas – presents no danger of a spill.
Enbridge says a pressure test over the weekend of the line that runs under the west bay of the Straits of Mackinac showed no signs of leaks or breaks. According to the company, a test of the line east of the bridge that was run earlier this month showed the pipeline is well-maintained and does not pose a threat to the Great Lakes.
Here is the full press release issued by the Michigan Agency for Energy and the Department of Environmental Quality:
The State of Michigan today terminated a contract with Det Norske Veritas, Inc. (DNV GL), the firm preparing a risk analysis report on the Line 5 pipeline below the Straits of Mackinac. The contract was terminated prior to the draft report being delivered to the state’s project team.
Within the past month, the state’s project team became aware that an employee who had worked on the risk analysis at DNV GL subsequently worked on another project for Enbridge Energy Co., Inc., which owns the Line 5 pipeline, while the risk analysis was being completed. This is a violation of conflict of interest prohibitions contained in the contract.
“We took the initiative to terminate the contract based on our commitment to the complete integrity and transparency of this report. Ultimately the state will have to decide how to proceed with Line 5 and we can’t do that if there is any doubt regarding the nature of the information,” said C. Heidi Grether, director of the Michigan Department of Environmental Quality.
“The evaluations of Line 5 were supposed to be independent, not tainted by outside opinions or information, but that’s not what happened. Instead, our trust was violated and we now find ourselves without a key piece needed to fully evaluate the financial risks associated with the pipeline that runs through our Great Lakes, this is unacceptable,” said Michigan Attorney General Bill Schuette. “Terminating the contract is the only option we have to maintain the integrity of the risk analysis.”
DNV GL was hired by the state in 2016 following an extensive request for proposal process including review and selection by a team with diverse technical backgrounds. The contract requires that DNV GL employees working on the risk assessment maintain complete independence from any other project involving Enbridge during the term and length of the contract.
At the same time it hired DNV GL, the state also hired a separate firm, Dynamic Risk Assessment Systems, Inc., to prepare an alternative analysis report on the Line 5 pipeline.
“The State put strict rules in place that required both contractors to avoid any appearance of impropriety. We are disappointed that those requirements were not followed by DNV GL, as that rendered the work essentially unusable to us,” said Valerie Brader, executive director of the Michigan Agency for Energy. “That led to us making today’s decision to terminate the contract.”
Dynamic Risk Assessment System’s draft report is proceeding and will be delivered to the state project team by the end of this month. Their draft alternative analysis will be posted on the Michigan Petroleum Pipeline website, www.mipetroleumpipelines.com, for public review and comment by the end of the month.
“Public discussion of the alternatives analysis will help inform next steps regarding the risk analysis on Line 5,” said Keith Creagh, director of the Michigan Department of Natural Resources. “Fundamental to the state’s actions is a shared commitment to protecting our Great Lakes.”
Representatives from Dynamic Risk Assessment Systems will present their findings to the public on July 6, 2017, beginning at 5:00 p.m. at Holt High School, 5885 Holt Road. Later in July, the state will hold three public feedback sessions on the report: July 24 in the Lansing area and Traverse City; and July 25 in St. Ignace.
The State of Michigan commissioned the two independent contractors to complete risk and alternative analyses on the Line 5 pipeline following a recommendation in the 2015 Michigan Petroleum Pipeline Task Force Report.
