Canada says U.S. ties could be undermined if Michigan shuts pipeline

By Nia Williams and David Ljunggren

CALGARY, Alberta (Reuters) -A day before Michigan’s deadline to close down a key crude oil pipeline, Canada on Tuesday issued its strongest remarks so far about the move, warning that it could undermine relations with the United States, its closest ally and trading partner.

Canadian company Enbridge Inc is preparing for a legal battle with Michigan and courting protests from environmental groups, betting it can ignore the state’s Wednesday deadline to shut down Line 5, which runs under the Straits of Mackinac.

The Canadian government, intervening in the case to back Enbridge, said in a U.S. federal court filing that Michigan had no right to act unilaterally since a 1977 Canada-U.S. pipeline treaty guarantees the free flow of oil between the two nations.

“This case raises concerns regarding the efficacy of the historic framework upon which the U.S.-Canada relationship has been successfully managed for generations,” Ottawa said.

Michigan’s move “threatens to undermine important aspects of that cooperative international relationship”, it added.

The brief said Canada would suffer “massive and

potentially permanent disruption” from a shutdown. Line 5 brings 540,000 barrels-per-day of oil from western Canada to Ontario, Quebec, Michigan, Ohio and Indiana.

Canada has been lobbying Washington officials to keep the pipeline open in what is likely to be an election year in Canada. The White House has so far kept quiet.

“We don’t weigh in on that … it will be decided in court,” U.S. Secretary of Energy Jennifer Granholm told reporters on Tuesday when asked about the White House’s position on Line 5.

In November, Michigan Governor Gretchen Whitmer gave Enbridge six months to shut down the pipeline that runs four miles (6.4 km) along the bottom of Lake Michigan-Huron, citing fears it could rupture.

The order needs a confirmatory order from a judge to enforce it, and Enbridge and Michigan are disputing whether the issue should be heard in state or U.S. federal court.

The sides are in court-ordered mediation, with the next session scheduled for May 18.

“We will not stop operating the pipeline unless we are ordered by a court or our regulator, which we view as highly unlikely,” Enbridge spokeswoman Tracie Kenyon said in a statement this week.

Joe Comartin, Canada’s consul general in Detroit who is arguing on behalf of Ottawa, said litigation could drag on until at least 2024.

“I don’t see a court jumping the gun and ordering it closed … until the litigation and constitutional issues are resolved,” he said by phone.

Ontario estimates the city of Sarnia, across the border from Michigan, could lose 5,000 refinery and chemical plant jobs. Industry lobbyists say thousands of U.S. jobs are in danger.

Environmentalists and indigenous groups opposed to Line 5 say the potential job losses are exaggerated. They plan “Evict Enbridge” rallies in Mackinaw City, Michigan, on Wednesday and Thursday.

Michigan is reviewing what it could do if Enbridge ignores the order, said a spokeswoman for the Michigan Attorney General.

Canadian crude market forward prices suggest most traders do not expect a shutdown in coming months, but the uncertainty is concerning, said one Calgary-based market source.

(Reporting by David Ljunggren and Nia Williams; Editing by David Gregorio and Marguerita Choy)

Michigan, Washington state impose severe COVID-19 restrictions as U.S. infections soar

By David Shepardson and David Lawder

WASHINGTON (Reuters) – Michigan and Washington state on Sunday imposed sweeping new restrictions on gatherings, including halting indoor restaurant service, to slow the spread of the coronavirus as total U.S. infections crossed the 11 million mark, just over a week after hitting 10 million.

Michigan Governor Gretchen Whitmer ordered a ban on in-person high school and college classes as well as indoor dining service for three weeks starting on Wednesday as increasingly cold weather drives people indoors where the virus can spread more easily.

She banned public events at concert halls, casinos, movie theaters, skating rinks and other venues, while in-home gatherings will be limited to 10 people from no more than two households.

Whitmer, a Democrat, warned that without aggressive action, Michigan could soon suffer 1,000 COVID-19 deaths per week.

“We are in the worst moment of this pandemic to date,” she told a news conference. “The situation has never been more dire. We are at the precipice and we need to take some action.”

White House coronavirus adviser Scott Atlas reacted to the Michigan orders by urging state residents on Twitter to “rise up” against them. After this drew criticism from Michigan Attorney General Dana Nessel, Atlas said he “NEVER was talking at all about violence.”

Washington state Governor Jay Inslee, a Democrat, announced a one-month ban on indoor services at restaurants and gyms, and a reduction of in-store retail capacity to 25%.

Indoor gatherings would be prohibited outside of one’s household and outdoor gatherings would be limited to five people in Washington state under Inslee’s order.

The new restrictions come as daily new infections in recent days have more than doubled from single-day highs reported during the previous U.S. peak in mid-July. The number of COVID-19 patients in U.S. hospitals also has reached an all-time high.

‘DANGEROUS PERIOD’

Earlier on Sunday, U.S. President-elect Joe Biden’s top advisers called for urgent action to address COVID-19, warning that Republican President Donald Trump’s refusal to begin a transition of power could further jeopardize the battle against the rampaging virus. Biden’s advisers also said it would inhibit vaccine distribution planning and could jeopardize additional government financial aid before Biden, a Democrat, takes office in January.

“We are in a very dangerous period,” Dr. Michael Osterholm, a member of Biden’s COVID-19 Advisory Board and director of the University of Minnesota’s Center for Infectious Disease Research and Policy, told NBC News’ “Meet the Press.”

Unless action is taken now, “we’re going to see these numbers grow substantially,” Osterholm warned. “Our future’s in our hands.”

Basic public health measures such as face covering to curb the spread have become politicized under Trump, who has eschewed mask mandates even after contracting COVID-19 last month, while Biden has backed their widespread use.

Still, some Republican governors in recent days have been forced to act, with North Dakota joining 35 other states over the weekend in mandating masks and Iowa this week requiring them in certain circumstances.

Forty U.S. states have reported record increases in COVID-19 cases in November, while 20 saw a record rise in deaths and 26 reported record hospitalizations, according to a Reuters tally.

The latest 7-day average, shows the United States is reporting more than 144,000 daily cases and 1,120 daily deaths, the highest for any country in the world.

Ron Klain, Biden’s incoming White House chief of staff, on Sunday urged Congress to immediately pass COVID-19 relief legislation with new restrictions certain to take a toll.

“This could be a first example of bipartisan action post-election,” Klain told NBC. He said Biden has spoken to congressional Democratic leaders, but not to Senate Republican leader Mitch McConnell, who has refused to publicly acknowledge Biden as president-elect.

‘PASSING A BATON’

Klain said there had been no formal contact between Biden’s advisory panel and the White House Coronavirus Task Force, which requires transition authorization from the General Services Administration.

“It’s really important in the smooth handing over of the information,” top U.S. infectious disease expert and White House task force member Dr. Anthony Fauci told CNN’s “State of the Union” program. “It’s almost like passing a baton in a race, you don’t want to stop and give it to somebody, you just want to essentially keep going.”

Biden’s team this week planned to meet with Pfizer Inc., which last week released positive initial data on its experimental novel coronavirus vaccine, and other drugmakers, Klain said.

Former U.S. Surgeon General Dr. Vivek Murthy, head of Biden’s COVID team, told Fox News the coronavirus surge was “deeply alarming” but that a national lockdown was “a measure of last resort.”

“The better way to think about these safety restrictions is more a dial that we turn up and down depending on severity” in a given area, he said.

(Reporting by Susan Heavey and David Shepardson; additional reporting by Michelle Price, Nathan Layne, Sarah N. Lynch, Linda So and Anurag Maan; Writing by David Lawder; Editing by Bill Berkrot, Diane Craft, Robert Birsel)

Suspects in Michigan kidnap plot also weighed targeting Virginia governor: FBI

By Gabriella Borter

(Reuters) – Some suspects accused of trying to kidnap Michigan Governor Gretchen Whitmer also discussed whether they should shoot her in the head and contemplated abducting Virginia Governor Ralph Northam as well, an FBI agent testified on Tuesday.

Thirteen people including at least seven tied to an armed militia were arrested last week and accused of plotting to kidnap the Democratic governor Whitmer, who has come under criticism from Republican President Donald Trump and from right-wing extremists for her handling of the coronavirus pandemic.

FBI Special Agent Richard Trask was testifying at a hearing in the U.S. District Court for the Western District of Michigan to decide whether five of the suspects accused of federal kidnapping charges should be granted bail.

During a planning meeting in Dublin, Ohio, in June, some of the suspects also discussed targeting Northam, who like Whitmer is a Democrat who has enacted coronavirus restrictions that they opposed, the agent said.

“At this meeting they discussed possible targets, taking a sitting governor, specifically issues with the governor of Michigan and Virginia based on the lockdown orders,” Trask said, basing his testimony on evidence from confidential informants, including encrypted communications from the group.

The FBI gleaned from the group’s messages that one of the suspects had at one point suggested going to Whitmer’s house to “cap her,” possibly disguised as a pizza delivery man, Trask said.

One suspect floated the idea of grabbing a pizza delivery person and taking his shirt in order to carry out the plan, Trask said.

The defendants in Tuesday’s hearing are among six people facing federal kidnapping charges who could be sentenced to life in prison if convicted.

Seven suspects associated with the Wolverine Watchmen militia group face state charges in Michigan.

Their arrests last week, in the final stretches of the Nov. 3 presidential campaign, underscored the country’s political polarization as Trump seeks re-election against Democratic challenger Joe Biden.

Trask said the plotters were eager to carry out some action before the election, with one suggesting they put her on trial for treason.

Michigan is considered a state where voters could favor either Biden or Trump, potentially swinging a close national election.

Internal U.S. security memos in recent months have warned that violent domestic extremists could pose a threat to election-related targets, a concern exacerbated by the coronavirus pandemic, political tensions, civil unrest and foreign disinformation campaigns.

The plotting took place after Trump in April had tweeted “LIBERATE MICHIGAN!” and “LIBERATE VIRGINIA, and save your great 2nd Amendment. It is under siege!” in reference to gun rights under the U.S. Constitution.

(Reporting by Gabriella Borter; Writing by Daniel Trotta; Editing by Howard Goller)