Minnesota regulator orders revised environmental impact statement for Enbridge Line 3

(This Oct. 1 story corrects headline and paragraphs 1 and 3 to say the Minnesota Department of Commerce, not Enbridge, needs to submit revised EIS)

(Reuters) - The Minnesota Department of Commerce needs to submit a revised environmental impact statement that includes the potential impact of an oil spill into Lake Superior watershed for Enbridge Inc’s Line 3 pipeline replacement project, a Minnesota regulator said on Tuesday.

The order from the Minnesota Public Utilities Commission comes as the Canadian pipeline operator struggles with delays amid ongoing disputes with regulators. The Minnesota Department of Commerce has 60 days to submit its revised EIS.

The commission was ordered to revise Enbridge’s EIS for the project in June after a court determined the previous assessment was inadequate.

Line 3, part of Enbridge’s Mainline network that transports western Canadian oil to Midwest refineries, is expected to be in service by the second half of 2020 but many oil industry participants are concerned it will be delayed beyond that.

The project would double capacity to 760,000 barrels per day, providing much-needed relief from congestion on existing Canadian pipelines.

Enbridge was also recently ordered to stop its Mainline overhaul plan due to the “perception of abuse of Enbridge’s market power” by the Canadian Energy Regulator.

Reporting by Shariq Khan in Bengaluru and Nia Williams; Editing by Anil D’Silva