FLOW’s Legal Analysis: Snyder-Enbridge Oil Tunnel Deal Risks the Mackinac Bridge’s Fiscal Integrity, Violates Environmental Laws
On its 61st birthday, the Mackinac Bridge faces its biggest threat to date
FOR IMMEDIATE RELEASE November 1, 2018
Contact: Liz Kirkwood, Executive Director Email: Liz@FLOWforWater.org
FLOW (For Love of Water) Office: (231) 944-1568, Cell: (570) 872-4956
TRAVERSE CITY, MI – The use of the legal powers of the Mackinac Bridge Authority (MBA) to facilitate an oil tunnel under the Straits of Mackinac, as proposed by outgoing Gov. Rick Snyder in a secretly negotiated deal with Enbridge Energy Partners, violates environmental provisions of Michigan’s Constitution and laws, threatens the fiscal integrity of the MBA and its Mackinac Bridge, and could subject the authority and taxpayers to billions of dollars of liability in the event of a tunnel accident, FLOW said today in a letter to members of the authority.
FLOW called on the MBA to reject the proposed public-private partnership, or any other agreement with Enbridge, for the proposed tunnel or other privately owned utilities. The MBA Board on November 8 in St. Ignace will, for the first time, hold a public meeting to learn about and discuss its proposed role in the Snyder-Enbridge agreement that’s been hashed out covertly by Gov. Snyder for at least a year. Snyder in recent months has stacked the MBA Board with a majority that shares his tunnel vision.
“In law and practice since the day the Mackinac Bridge opened on November 1, 1957, exactly 61 years ago today, the MBA and the bridge have been jealously protected as a completely independent and stand-alone entity,” said FLOW Founder and President Jim Olson, who is an environmental attorney. “The bridge was a singular, and wholly public, state project for its citizens and the general motoring public connecting the people of both peninsulas. A key provision of the Snyder-Enbridge deal would do just the opposite. It demands that the MBA agree to and participate in a ‘public-private partnership,’ which is vastly different from a state-sponsored project for a singular public purpose like transporting the citizens and general public.”
The Snyder-Enbridge deal provides that the MBA would own the proposed oil tunnel and lease it to Enbridge for 99 years. However, while a lease in theory could provide for indemnification of the MBA for any liabilities, damages, or losses, these are only contractual assurances and will not prevent the MBA from being held liable for any occurrences, including catastrophic damages and losses, as owner and overseer of the project and its operation for essentially a private function. In essence, the MBA’s protection through such contractual promises is a fantasy.
“The MBA should postpone any hasty decisions that dilute its single-purpose mission to protect and maintain the Mackinac Bridge and that burden this authority for the next century to take ownership responsibility for a risky private tunnel venture,” FLOW wrote.
FLOW Executive Director Liz Kirkwood observed, “Enbridge has other alternatives not threatening the Great Lakes that this foreign corporation can and should use its own financial resources and borrowing power to apply for the necessary lands, authorizations, and permits to implement those options.”
Michigan’s legislature enacted the Mackinac Bridge Authority in 1952 for the express and singular purpose of building, maintaining, and operating the Mackinac Bridge. The bridge was opened for traffic on November 1, 1957. To this public end, the MBA has operated for more than six decades as an independent authority designed to be free from outside influence and political pressure. Each of Michigan’s governors since that time has appointed members to the MBA who have fiercely defended its independence. The MBA’s singular mission is to maintain and govern this iconic infrastructure that spans and unites our Michigan peninsulas.
In 2004, the Michigan Department of Transportation sought to increase the control of over the MBA and its engineering, finances, and employees. In response, the state legislature voted the next year in unanimous, bipartisan fashion (107-0 in the house, 38-0 in the senate) to amend to the MBA law to prohibit state government interference. The 2005 amendment expressly directs that the MBA and its core tasks must be kept “independent” and free of interference by state agencies and officials.
“The principle of MBA independence, so critical to lawmakers for six decades, is too important to be cast aside by a lame-duck governor in the waning weeks of his administration,” Olson said.
The MBA’s stand-alone powers also do not satisfy the modern legal regime designed to protect the public interest and public trust resources. For example, the MBA Act exempts the actions of the authority to transfer public lands, bottomlands, and construct the bridge from “any approvals required from state boards or agencies.” However, using the MBA Act to authorize Great Lakes oil tunnel construction would be inconsistent with the mandates, policies, and standards of the Great Lakes Submerged Lands Act; Article 4, Sec. 52 of the state’s 1963 Constitution; the 1970 Michigan Environmental Protection Act; and the 2002 Michigan statute banning oil and gas drilling under the Great Lakes.
The waters of the Great Lakes and the lands beneath them are held in and protected by a public trust, Kirkwood explained. “The public trust doctrine means that the state holds these waters and soils beneath them in trust for the public for the protection of preferred or dedicated public trust uses of navigation, fishing, boating, swimming, bathing, drinking water, and other recreation, said Kirkwood, an environmental attorney. “As a general rule, there can be no disposition, transfer, conveyance, occupancy, or use of any kind of these public trust waters and the soils beneath them, unless there is a statute authorizing this and the action predominantly serves a public interest, not a private one.”
For more information:
- Read the letter here.
- FLOW website: FLOWforWater.org
- FLOW program on Line 5, including fact sheet and short film: http://flowforwater.org/line5/
- FLOW resource library: http://flowforwater.org/resource-library/
- FLOW Article — Legal Fact from Legal Fictions on Snyder-Enbridge Deal: http://flowforwater.org/legal-fact-legal-fictions/
- Oil & Water Don’t Mix Campaign, which FLOW co-leads: oilandwaterdontmix.org