County board approves Enbridge Line 5 easement purchase

By RICHARD JENKINS

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Saxon HARBOR, Wis. - Iron County is getting a seven-figure payday after the Iron County Board of Supervisors approved an easement agreement with Enbridge Inc. for use of the land the company needs for a potential reroute of its Line 5 pipeline Tuesday.

The deal will have the company pay Iron County $1.5 million for the easement on the property, along with a $51,790 road-access fee, for a total of $1,551,790.

"That money would be paid up front to Iron County immediately and would be ours to keep whether or not the pipeline project was completed," Iron County Forestry Administrator Eric Peterson told the board as it met at Saxon Harbor. "In the event the pipeline is completed and put in service, Enbridge would pay Iron County an additional $100,000 per year for five years. That is the proposal that is in front of you guys tonight."

The agreement governs roughly 101 acres of land over 11 parcels, according to information presented to the board, and 39,100 lineal feet.

The pipeline - which carries light crude and natural gas liquids between Superior, Wisconsin, and Sarnia, Ontario - began operations in 1953, according to information presented at previous meetings.

The easement is necessary for a potential reroute of the company's pipeline through the towns of Saxon and Gurney in northern Iron County to bypass tribal land owned by the Bad River Band of Lake Superior Chippewa. The project isn't a done deal yet, according to company representatives as Tuesday's meeting.

"We're trying to get everything set up in case we do proceed with the project. But at this time, there's no guarantee the pipeline will ever be built," said Paul Halverson, a right-of-way agent with Enbridge. "Iron County will keep this money one way or the other because we need to secure the easements up front, in case we do build."

Iron County also received $505,900 last fall from Enbridge for an option agreement that allowed the company to purchase the option in Tuesday's deal.

Halverson said the figures in Tuesday's agreement value the land at a similar price to other agreements that have made as part of the reroute project.

"As time has passed and we're settling with other municipalities and other private property owners, (it) gives us a better feeling for what would be equitable and comparable reimbursement for Iron County," said Halverson. "So that is where the $1.5 million came from - that puts it right in the ballpark of fairness, in our opinion."

The county will also receive $200,000 for the timber in the right-of-way, Peterson told the board.

The land included in the easement agreement is on county forest land and state law prevents the land from being leased, according to Peterson, while public utility easements are allowed.

Halverson said the county will also benefit from improvements Enbridge will complete to some of the roads needed to access the project site.

Halverson said the necessary permits have all been submitted and are being reviewed. If the permitting process moves forward without delays - something he said was unlikely - the clearing of timber and early site work could start as early as February. He said his understanding of the plan is to start in Iron County and work west to tie into the existing pipeline.

In other action:

-The board tabled a resolution transferring the authority to handle certain court procedures from the district attorney's office to corporation counsel to allow for additional information and a potential alternative resolution.

-The board approved extending the loan for Human Services Department placement costs through December. Previously the loan's term was in September and by extending the term, the county can use all 12 months of interest on the county debt levy rather than just nine.