Enbridge issued a proposal to the Michigan Public Service Commission to replace more than 200 miles of Line 6B, part of the Lakehead oil pipeline system transporting so-called tar sands oil from Canada.
Joe Martucci, a spokesman for the energy company, told The Port Huron (Mich.) Times Herald replacing sections of the line, installed in the 1960s, would cut down on maintenance and increase pipeline capacity.
"The demand is there from customers and we're trying to be responsive," Martucci said. "This is a significant investment by Enbridge in the state of Michigan."
Enbridge last year replaced a section of Line 6B running under the St. Clair River. A dent was discovered on the pipeline in 2009.
Line 6B of the Canadian pipeline company's Lakehead oil pipeline ruptured July 2010 near Marshall, Mich., spilling heavy crude oil from Alberta tar sands into the Talmadge Creek and Kalamazoo River.
The U.S. Environmental Protection Agency estimated more than 27,000 barrels of so-called heavy oil had been recovered from the spill, though Enbridge disputes the figures.