WASHINGTON, July 2 (Reuters) - The U.S. pipeline regulator on Monday
slapped a $3.7 million fine, the largest penalty ever imposed, on
Enbridge Inc for a July 2010 crude oil spill which contaminated
stretches of the Kalamzoo River in Michigan. 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 the town of Marshall, about
mid-way between Detroit and Lake Michigan. "We will hold pipeline
operators accountable if they do not follow proper safety procedures to
protect the environment and local communities," Transportation Secretary
Ray LaHood said in a statement. Enbridge has 30 days to respond to the
order. PHMSA's order against Enbridge accuses the company of failing to
adhere to regulations for maintaining pipeline integrity. The agency
also said the company attempted to bring the pipeline back into service
despite receiving multiple leak alarms the night it 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 (60
km) of the Kalamazoo River. The accident shut down the pipeline for more
than two months and spawned a massive clean-up that the company has
estimated will cost more than $700 million. Following the Enbridge spill
and other major pipeline accidents, the Transportation Department
enhanced its oversight last year. The department is collecting more data
on pipelines and in 2011 closed 102 enforcement cases, its highest
level for a single year. Last December, Congress passed a pipeline
safety bill that raised maxiumum fines and authorized an increase in the
number of pipeline inspectors. Enbridge said it was 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.
Original Article
Source: vancouver sun
Author: Reuters
Original Article
Source: vancouver sun
Author: Reuters
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