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Michigan Court Rejects Enbridge's Bid to Delay Line 5 Litigation

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Key Takeaways

  • A Michigan judge declined ENB's request to pause the state's Line 5 shutdown lawsuit.
  • The case has been pending since 2019 and will proceed despite a Supreme Court review.
  • ENB warns of litigation risks to the energy supply while pursuing a tunnel replacement project.

Enbridge Inc. (ENB - Free Report) has suffered another legal setback in its ongoing fight to keep Line 5 operating, after a Michigan judge refused to pause the state’s case seeking to shut down the controversial pipeline, per a report from The Detroit News.

Judge Rejects ENB’s Request for Delay

Ingham County Circuit Judge James Jamo denied Enbridge’s motion to stay the proceedings, ruling that it was in the public interest to keep the case moving. He underscored that the lawsuit, filed in 2019 by Michigan Attorney General Dana Nessel, has already been pending for six years.

Jamo stated that continuing with the case at this time would be more efficientand would avoid further delays, even though the U.S. Supreme Court is set to hear arguments this fall over whether the case belongs in the federal or state court.

ENB’s Line 5 Background

Line 5 carries about 540,000 barrels per day of crude oil and natural gas liquids through Michigan, including two underwater pipelines running beneath the Straits of Mackinac. Environmental groups and state officials have long argued that the line poses an unacceptable spill risk to the Great Lakes.

Nessel’s lawsuit claims Line 5 is a public nuisance and should be shut down. Enbridge has resisted, saying federal regulators — not Michigan — have ultimate jurisdiction. The company has also argued that the line is critical for energy security in the U.S. Midwest and Canada.

Enbridge sought to pause the state case after the Supreme Court agreed to review whether the company properly attempted to move the case to the federal court. The company argued that delaying litigation in Ingham County until that decision was made would be customary.

After the ruling, Enbridge reiterated its commitment to building a tunnel beneath the Straits of Mackinac to house a replacement pipeline segment. The company representatives, however, warned that pursuing shutdown litigation could carry serious implications for energy supply and international relations.

Next Steps for ENB and Michigan

Judge Jamo’s order means the state-level case against Line 5 will press ahead, even as the Supreme Court prepares to weigh in on the jurisdictional fight. Meanwhile, Enbridge continues its separate lawsuit against Gov. Gretchen Whitmer in federal court in western Michigan, which also focuses on the state’s authority to revoke Line 5’s easement.

With disputes playing out on multiple legal fronts, the fight over Line 5’s future remains one of the region’s highest-stakes battles, combining questions of energy supply, environmental safety, and state vs. federal power.

ENB’s Zacks Rank and Other Key Picks

ENB currently carries a Zacks Rank #2 (Buy).

Investors interested in the energy sector may look at a couple of other top-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Eni S.p.A. (E - Free Report) and Precision Drilling Corporation (PDS - Free Report) . While Antero Midstream and Eni carry a Zacks Rank #2 at present, Precision Drilling sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Eni’s strategic growth in upstream production, focused portfolio optimization, and expansion into renewables highlight its resilience amid changing macroeconomic conditions. Successful ramp-up of exploration projects reinforces its long-term potential and enhances its position in the global energy market.

E’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 3.83%.

Precision Drilling is an oilfield services company. The company provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.

PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.

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