Enbridge fined US$62 million for 2010 pipeline spills
2010 pipeline rupture sent three-million litres of crude oil into the Kalamazoo River and a tributary creek.
Oil & Gas
US Department of Justice
CALGARY — Enbridge Inc. says it has reached a US$62 million settlement with the US Department of Justice for two oil-pipeline spills in 2010.
Of that amount, US$61 million is for a pipeline rupture in Michigan that sent more than three-million litres of crude oil into the Kalamazoo River and a tributary creek, resulting in one of the costliest onshore oil spills in US history.
Enbridge has estimated cleanup costs of the spill to be about $1.2 billion, including more than $551 million on response personnel and equipment and $227 million on environmental consultants.
Another one million dollars in penalties is for a pipeline rupture two months later in Illinois that sent oil into tributaries of the Des Plaines River.
Enbridge says the settlement also includes a commitment for it to spend US$110 million to improve equipment, training and overall response abilities on its pipeline system.
Last year Enbridge reached a settlement with the State of Michigan that included $75 million on further river upgrades on top of the spill cleanup, and in 2014 the company reached a $6.8 million settlement with landowners on a class-action lawsuit.