By Gene Champagne*
The misinformed refrain goes something like this: "We need Line 5 and this tunnel because many UP residents rely on propane for cooking and winter heat. If Line 5 is discontinued propane prices will skyrocket and many residents will not be able to pay for it. Without it UP residents will be in danger of losing their only source of winter heat. Many UP residents are elderly and live on fixed incomes."
Well, I am a senior citizen living on a fixed income. I live in Big Bay and have a camp in Grand Marais. I rely solely upon propane at both properties. Unlike our local and other UP "leaders," I actually did my homework rather than taking the easy way out by repeating a refrain that may not be true.
I contacted the propane suppliers for both residences to inquire about supplies and storage, both at their end and mine. Their responses were nearly identical. Both companies have responded to market conditions, especially since the polar vortex of 2014. They have added storage and have been contracting to receive their supplies from a differing number of sources including Kinross, Lansing, and various Wisconsin locales including Superior. They do receive some supplies from the Rapid River fractionator that is supplied by Line 5, but it is nothing they depend upon. I was assured by both company representatives that a disruption of propane from Line 5, whether by accident, policy/political decisions, or market disruptions would not affect my propane supply in a negative way. Prices could rise slightly, but nothing severe. My current propane bill reflects no dramatic change that I would notice.
These pricing facts confirm the estimation made by Plains Midstream representative Luc Mageau at the Upper Peninsula Energy Task Force meeting in Hancock on September 20, 2019, in Hancock. Plains Midstream is a Canadian company that owns the oil, along with the Rapid River fractionator and Kinross storage facility. Enbridge is the pipeline owner that transports the oil. At the task force meeting Mr. Mageau, in my opinion, did not seem to care who or how the oil was moved, as long as his company was paid for it.**
I mentioned this information to a friend from the Copper Country. She took it upon herself to ask the same questions of her propane supplier and received the same answers. She then called a second supplier to confirm consistency of fact and received the same answer.
Our propane suppliers in the UP have adapted to market conditions and made the necessary adjustments to ensure reliable service and delivery of propane to their customers. I find it insulting that our "leaders" disparage our small business UP propane suppliers by continuing this false narrative. Our propane suppliers understand the needs of their customers and the vagaries of the propane market and have responded in a responsible manner. Our "leaders" need to do their jobs, get the facts, and start representing the people of the UP again instead of a foreign company with a pot of money for glossy full page newspaper ads, speaking fees, and campaign contributions.
I also received additional information that came from one supplier I contacted. It was confirmed by the second supplier. The Rapid River facility was shut down for an inordinate amount of time this summer, much longer than the normal spring maintenance shutdown. When questioned on this bit of information I had come across, I was told by one supplier the product had been bought up by a different entity(ies) to ship to the eastern coast of Canada for export to overseas markets (mostly Asian). This is where Enbridge realizes its maximum profit, not from UP propane. The UP and Michigan is just a short cut to the maritime provinces of Canada. When those markets dry up, Enbridge could very possibly bail. Enbridge has also diversified into renewables in major way. They understand market economies. Perhaps our "leaders," many of whom profess belief in the free market system, could use a refresher course.
I began this letter sometime after the county commissioner’s comments. As I finish it, Governor Whitmer, along with Michigan Attorney General Nessel, have announced orders to shut down the portion of Line 5 that currently is active in the Straits of Mackinac. I can already hear the whining and screams of pending disaster being blamed on "radical environmental agendas from leftist socialists." This whining that emanates from the misinformed ignores capitalist market economies and the resourcefulness our small business owners here in the UP.
It is too bad that much of the posturing comes from our “leaders”. We need leaders who actually lead, not follow. Leaders should take us cautiously, yet bravely into the future of possibilities that comes with newer 21st century technology. Real leaders do not keep us mired in the past, especially when small businesses are moving on based upon market fluctuations. Blindly repeating the refrain of a foreign company, who could give a hoot about UP propane users, is a disservice to the citizens of the UP and the State of Michigan.
I have not named the companies that I spoke of in this article. At the time I spoke with them I did so as a customer. They answered my questions honestly as a part of their customer service policy. I did not anticipate at that time that this information would find itself going out to a public audience. There are probably some propane dealers in the UP who have not adjusted to possible market conditions and fluctuations. Hopefully, they can transition or be assisted in that transition. A capitalist market based economy will most always be the final decision maker regardless of political posturing. Regardless of repeated falsehoods and wishful thinking, the market will have its way.
I am sure that there are a few other "wrinkles" that will need to get worked with this transition in propane procurement. That is what leadership is about and what they should be doing, not repeating sound bites from those who stand to profit temporarily at the long term expense of UP residents.
I would suggest that propane users, anyone seriously interested in the future of the UP, along with our "leaders" do not take my word for it. Call your propane dealer. How hard is that?***
Inset photo: Gene Champagne. (Photo courtesy Gene Champagne)
Editor's Notes:
* Guest author Gene Champagne is a resident of Big Bay and Grand Marais, Michigan.
** The video recording of the UP Energy Task Force September 20, 2019, meeting is available on YouTube here via the UP Energy Task Force Web site. Luc Mageau of Plains Midstream speaks toward the beginning of the meeting, at about 15 minutes. Gene Champagne speaks during the public comment period toward the end of the meeting, at about 3 hours and 16 minutes in the video.
*** The UP Energy Task Force completed its study on propane supply April 17, 2020. See the "Upper Peninsula Energy Task Force Committee Recommendations Part I -- Propane Supply."
The US Army Corps of Engineers will hold a public hearing tomorrow, Dec. 7, on the proposed Line 5 tunnel. See: "US Army Corps of Engineers to hold online Public Hearing on Enbridge proposed Line 5 tunnel Dec. 7."
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