Tagged: crude oil

The U.S. State Department has extended the public comment period on a proposal to nearly double the amount of crude oil that's shipped in a pipeline along Lake Superior.

Enbridge Energy’s Line 67, also known as the “Alberta Clipper” pipeline, runs from the tar sands region in Canada down to Wisconsin near Lake Superior. In the US, it's more than 300 miles long and three feet in diameter.

A pipeline that supplies much of Michigan's natural gas could be shut down ... and converted to carry crude oil. That's sparked a number of concerns from business and government.

Natural gas is plentiful and cheap right now.

That's why a Texas company filed a request with the Federal Energy Regulatory Commission -- or FERC --  in July to shut down 770 miles of transmission lines across several states. It would either abandon them ... or eventually use the pipes to carry crude oil.

And that could affect how much a lot of people in Michigan will pay to heat their homes and businesses.

The pipeline owned by Trunkline Gas Company crosses into Branch County from Indiana. That's where Consumers Energy connects to it ... and distributes the natural gas to 45 counties in the Lower Peninsula.

Dan Bishop is a Consumers Energy spokesman. He says Consumers depends on Trunkline for 60 percent of the gas it supplies to 1.7 million customers in Michigan.

The Marathon Oil refinery in southwest Detroit is in the process of expanding its facility to process heavier crude oil from Canada.

The expansion brings the company's new refining equipment closer to Detroit's Oakwood Heights neighborhood.

Marathon has been offering to buy homes in this neighborhood to create a buffer zone between the refinery and other residential areas.

Some homeowners in Oakwood Heights have signed on with the buyouts, others have stayed put.

The Detroit News' Jim Lynch reports Marathon has upped the amount it's willing to pay:

This month, Marathon officials said 86 percent of the owners have chosen to enroll in the buyout program — meaning they are willing to have their home appraised and see a monetary offer from the company.

Marathon is sweetening the pot, too, as it initially set a minimum appraisal price of $40,000 per home but already has bumped that figure up to $50,000.

The buyout plan is expected to head off lawsuits from those who live in this area. So far, the program has avoided legal entanglements, but it has generated plenty of hard feelings.

Oakwood Heights is an area surrounded by heavy industry. In addition to the refinery, there's the city's sewage treatment plant, a salt mine, a steel factory, and other industries.