US, Enbridge reach $177 mln settlement after 2010 oil spills

The settlement was announced by the United States Environmental Protection Agency and Department of Justice.

Enbridge has already agreed to a $75 million dollar settlement to restore and bring the river back, which is part of the $1.2 billion cleanup Enbridge is responsible for.

Canadian gas company Enbridge Inc. says it has reached a $62 million settlement with the U.S. Department of Justice for two pipeline spills in 2010.

The 2010 spills were cited in the campaign by environmental groups to block Enbridge rival TransCanada from building the Keystone XL pipeline to carry heavy crude from Canada’s oil sands region into the United States.

The July 2010 spill dumped 800,000 gallons of oil and affected 38 miles (61 km) of the Kalamazoo River.

Along with the financial assessments, the settlement includes a requirement for Enbridge to replace its aging Line 3, “as expeditiously as practicable, subject to the receipt of regulatory approvals”, according to an Enbridge factsheet on the settlement.

The source said criminal charges were not expected.

“Our concern is that Enbridge will try to hurry the line along, or use the settlement agreement to argue that the PUC is obligated to permit a replacement”, she said.

Enbridge hopes to have the lines in service by early 2019.

Enbridge Inc. has reached a US$177-million settlement with the USA government six years after two major pipeline ruptures fouled rivers in the Midwest and damaged the company’s reputation.

But the company’s preferred route for the pipelines crosses the headwaters of the Mississippi River and other sensitive lakes and streams.

Critics worry that a spill similar to what happened in MI, which polluted a 40-mile stretch of the Kalamazoo River, could cause significant damage to wild rice habitat and other high-quality waterways.

Enbridge Energy Partners said in a statement it accepts the penalties and safety measures it is required to take under the consent decree with the federal agencies.

“From the beginning, Enbridge and (Enbridge Energy Partners, the company’s American subsidiary) made a commitment to the people of MI that we would clean up and restore the Kalamazoo River and surrounding areas, and cover the costs”, said Enbridge CEO Al Monaco in a statement.