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Enbridge 'must cease' Line 5 operations on Bad River land by June 2026: judge – SteinbachOnline.com

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The controversial Line 5 pipeline can keep moving fossil fuels through an Indigenous band’s territory in Wisconsin for now, but operations on that property “must cease” on June 16, 2026, a U.S. judge says. 

Calgary-based Enbridge Energy Inc., the pipeline’s owner, had asked Wisconsin district court Judge William Conley to clarify his order earlier this month giving the company just three years to relocate that section of the pipeline. 

Enbridge plans to build a 66-kilometre detour around the sovereign territory of the Bad River Band of the Lake Superior Chippewa to replace the contested 19-kilometre stretch that runs directly through it. 

And court documents filed on Friday suggest the energy transmission giant had been hoping for assurances that Line 5 would not be shut down entirely in the event that the detour isn’t completed in time.

The answer they got Monday was unequivocal. 

“Enbridge seeks confirmation that it can continue to operate Line 5 in the normal course of business for three years from the date of judgment on the parcels for which it lacks a valid right of way,” Conley wrote. 

“Enbridge’s understanding is generally accurate,” he continued, provided the parcels in question were part of the lawsuit and that the company abides by the order to share the profits with the band.

“However, as just noted, operation of Line 5 on those parcels must cease on June 16, 2026.” 

Enbridge says the reroute’s timing depends on approval decisions from the Wisconsin Department of Natural Resources and the U.S. Army Corps of Engineers, expected in 2025. Relocating the pipe is expected to take about a year. 

But the three-year window — which opened 10 days ago, Conley confirmed — may still be too narrow for the company’s comfort, judging from the arguments its lawyers made in its court filing Friday. 

“Enbridge respectfully maintains it has presented legal authority to delay any injunction until the reroute is operational, thereby avoiding any loss of service and resulting substantial harm to the public,” that document says. 

“The court has the authority not to issue, or to stay, any injunction order to coincide with the reroute becoming operational to ensure that the public interest remains protected from substantial adverse consequences.”

The Bad River band has been fighting Enbridge in court since 2019, saying the company lost permission to operate on the reservation in 2013. Conley agreed; Enbridge insists a 1992 agreement with the band allowed it to keep operating. 

But the judge has long been wary of an immediate shutdown, citing the risk of dire economic consequences, lingering fuel shortages in the Midwest, Ontario and Quebec and a lasting scar on Canada-U.S. relations.

So while he found that a rupture on Bad River territory would “unquestionably” meet the definition of a public nuisance under federal law, Conley gave Enbridge a three-year deadline and ordered it to share Line 5’s profits with the band, starting with a US$5.1-million back payment.

The order left both sides unsatisfied. 

Three years is too long to wait, given the risk of a spill in a key Lake Superior watershed, and the financial penalty too modest to prevent Indigenous sovereignty from being further violated in the future, the band’s lawyers say. 

Enbridge, meanwhile, will argue at appeal that the 1992 contract with the Bad River band constituted consent for Line 5 to operate on its territory through 2043, spokesman Michael Barnes said in a statement.  

“Enbridge plans to appeal the court’s decision, and is weighing all options, including requesting a stay of the judge’s decision while an appeal is heard,” Barnes said. 

And while Conley’s timeline is “arbitrary,” it is also “achievable, provided federal and state government permitting agencies follow reasonable and timely processes,” he added.

“We urge prompt government action so this project can be completed within the next three years.”

Talks between Canada and the U.S. have been going on for months under the terms of the Pipeline Transit Treaty, a 1977 agreement that effectively prohibits either side from unilaterally closing off the flow of hydrocarbons.

The dispute grew more urgent back in April, when heavy spring flooding washed away significant portions of the riverbank where Line 5 intersects the Bad River, a meandering, 120-kilometre course that feeds Lake Superior and a complex network of ecologically delicate wetlands. 

Environmental groups call the 70-year-old pipeline a “ticking time bomb” with a dubious safety record, despite Enbridge’s claims to the contrary. 

The neighbouring state of Michigan, led by Attorney General Dana Nessel, has also been waging war on Line 5, fearing a leak in the Straits of Mackinac, the waterway where the pipeline crosses the Great Lakes.

Line 5 carries 540,000 barrels of oil and natural gas liquids daily across Wisconsin and Michigan to refineries in Sarnia, Ont.

Its defenders, which include the federal government, say a shutdown would cause major economic disruption across the Prairies and the U.S. Midwest, where it provides feedstock to refineries in Michigan, Ohio and Pennsylvania.

It also supplies key refining facilities in Ontario and Quebec, and is vital to the production of jet fuel for major airports on both sides of the Canada-U.S. border, including Detroit Metropolitan and Pearson International in Toronto.

This report by The Canadian Press was first published June 26, 2023.

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

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