Monday, July 2, 2012

Reuters: Regulatory News: UPDATE 1-Enbridge faces $3.7 mln fine for 2010 US oil spill

Reuters: Regulatory News
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UPDATE 1-Enbridge faces $3.7 mln fine for 2010 US oil spill
Jul 2nd 2012, 22:00

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Mon Jul 2, 2012 6:00pm EDT

  * US agency says uncovered two dozen violations      * Pipeline spilled more than 20,000 barrels of oil      * Enbridge says it is reviewing the order          WASHINGTON, July 2 (Reuters) - The U.S. pipeline regulator  on Monday issued a $3.7 million civil penalty against Enbridge  Inc for a July 2010 crude oil spill, the largest fine  ever proposed by the agency.      The Transportation Department's Pipeline and Hazardous  Materials Safety Administration (PHMSA) said its probe uncovered  two dozen regulation violations related to the leak on  Enbridge's Line 6B near Marshall, Michigan.      "We will hold pipeline operators accountable if they do not  follow proper safety procedures to protect the environment and  local communities," U.S. Transportation Secretary Ray LaHood  said in a statement.        PHMSA's order against Enbridge accuses the company of  failing to adhere to regulations for maintaining pipeline  integrity.       The agency also said the company continued to attempt to  restart the pipeline even though it received multiple leak  alarms the night the pipeline ruptured, leading to the release  of more oil.         Enbridge's 30 inch line ultimately spilled more than 20,000  barrels of heavy crude and contaminated 38 miles of the  Kalamazoo River.      The accident shut down the pipeline for more than two months  and spawned a massive clean-up effort that the company has  estimated will cost over $700 million.      Enbridge said it is reviewing the PHMSA order.      "We will not comment specifically on the contents of the  (Notice of Probable Violation) until that analysis is complete,"  the company said in a statement.      Enbridge has 30 days to formally respond to the government  order.  

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