July 31, 2026.
A federal appeals court has ruled that Canadian energy company Enbridge must remove a section of its Line 5 pipeline from the Bad River Band of the Lake Superior Tribe of Chippewa Indians' reservation in northern Wisconsin, reaffirming that the company has been trespassing on tribal land since key easements expired more than a decade ago.
In a decision issued Thursday, the 7th U.S. Circuit Court of Appeals in Chicago upheld a lower court's finding that Enbridge is unlawfully operating approximately 12 miles of the pipeline across the Bad River Reservation. However, the court also determined that the original three-year deadline to relocate the pipeline was too short, directing the district court to establish a new schedule that ensures the pipeline is moved "as soon as possible" while taking broader public interests into account.
Circuit Judge Michael Scudder, writing for the three-judge panel, left little doubt about the court's position.
"Make no mistake: Enbridge must remove the pipeline from the reservation," Scudder wrote. "The grace period we direct the district court to afford Enbridge is the product of the broader public context in which the pipeline operates, and it does not reflect our approval of the company's behavior."
Easements Expired in 2013.
The dispute stems from rights-of-way that expired in 2013 on several parcels within the reservation. While some easements remain valid through 2043, others were never renewed. After years of unsuccessful negotiations, the Bad River Band filed suit against Enbridge in 2019, arguing the company had no legal authority to continue operating Line 5 across tribal lands.
Following a 2023 bench trial, U.S. District Judge William Conley ruled in favor of the tribe, ordering Enbridge to pay approximately $5.15 million in restitution, additional payments for its continuing trespass, and remove the pipeline within three years. That removal deadline expired in June 2026 but had been stayed while the appeal was pending.
Damages Will Be Recalculated.
Although the appeals court agreed that Enbridge is liable for trespass, it found that the district court improperly calculated damages by counting both the company's profits from the trespass and the financial benefit it received by delaying construction of a reroute.
The case has been sent back to the district court to determine a revised damages award. The appeals court instructed the judge to consider Enbridge's continuing trespass, any applicable interest, and the conduct of both parties during efforts to relocate the pipeline.
The court also rejected the tribe's nuisance claim, concluding that federal pipeline law preempts that cause of action.
Environmental Concerns Continue.
The Bad River Band has argued for years that the aging pipeline poses a serious environmental threat, particularly where erosion along the Bad River has moved dangerously close to the buried pipeline. Tribal officials have warned that flooding or riverbank collapse could expose the pipeline, increasing the risk of a spill into the Bad River watershed and ultimately Lake Superior.
Line 5, built in 1953, transports up to 540,000 barrels of crude oil and natural gas liquids per day from western Canada through Wisconsin and Michigan to refineries in the Great Lakes region and Ontario. The pipeline has long been the subject of legal and political disputes in both Wisconsin and Michigan over environmental risks, treaty rights, and energy security.
Public Interest Influenced the Timeline.
The appellate court acknowledged that immediately shutting down the pipeline could have significant consequences beyond the litigation, including disruptions to fuel supplies, impacts on consumers throughout the Midwest, international implications with Canada, and potential conflicts with the 1977 U.S.-Canada Transit Pipelines Treaty. Those broader concerns justified extending the timeline for relocation, the judges concluded, even as they reaffirmed that Enbridge cannot permanently remain on tribal land.
Construction has already begun on Enbridge's proposed 41-mile reroute around the Bad River Reservation, although that project continues to face separate legal and environmental challenges.
Neither Enbridge nor attorneys for the Bad River Band immediately provided extensive public comment following Thursday's ruling, though the tribe indicated it was reviewing the court's decision.
Bad River Band Press Release with Court Documents July 30.
Sources Reuters and AP .
