NTSB Reports on Enbridge Kalamazoo Rupture

Among the conclusions reached by the National Transportation Safety Board (NTSB) in its review of the Enbridge Pipelines rupture near the Kalamazoo River in Michigan in July, 2010 are:

• The Line 6B segment ruptured under normal operating pressure due to corrosion fatigue cracks that grew and coalesced from multiple stress corrosion cracks, which had initiated in areas of external corrosion beneath the disbonded polyethylene tape coating;
• Enbridge's delayed reporting of the "discovery of the condition" by more than 460 days indicates that Enbridge's interpretation of the current regulation delayed the repair of the pipeline;
• Enbridge's integrity management program was inadequate because it did not consider the following: a sufficient margin of safety, appropriate wall thickness, tool tolerances, use of a continuous reassessment approach to incorporate lessons learned, the effects of corrosion on crack depth sizing, and accelerated crack growth rates due to corrosion fatigue on corroded pipe with a failed coating;
• PII Pipeline Solutions' analysis of the 2005 in-line inspection data for the Line 6B segment that ruptured mischaracterized crack defects, which resulted in Enbridge not evaluating them as crack-field defects;
• The ineffective performance of control centre staff led them to misinterpret the rupture as a column separation, which led them to attempt two subsequent startups of the line;
• Although Enbridge had procedures that required a pipeline shutdown after 10 minutes of uncertain operational status, Enbridge control centre staff had developed a culture that accepted not adhering to the procedures;
• Had Enbridge operated an effective public awareness program, local emergency response agencies would have been better prepared to respond to early indications of the rupture and may have been able to locate the crude oil and notify Enbridge before control centre staff tried to start the line;
• Had Enbridge implemented effective oil containment measures for fast-flowing waters, the amount of oil that reached Talmadge Creek and the Kalamazoo River could have been reduced;
• Enbridge's failure to exercise effective oversight of pipeline integrity and control centre operations, implement an effective public awareness program, and implement an adequate postaccident response were organizational failures that resulted in the accidenct and increased its severity.

The NTSB also commented that, "contributing to the accident was the Pipeline and Hazardous Materials Safety Administration's (PHMSA) weak regulation for assessing and repairing crack indications, as well as PHMSA's ineffective oversight of pipeline integrity management programs, control center procedures, and public awareness."

Enbridge to abandon 75 miles of the oil pipeline that contaminated the Kalamazoo River

Noel Griese of the Energy Pipeline News is reporting that Enbridge Energy Partners plans to replace 75 miles of pipeline in Michigan and Indiana related to the July, 2010 spill into the Kalamazoo River.  The Michigan Public Service Commission will be holding public hearings into the proposal, beginning with a pre-hearing conference on September 21.  Read Griese's article at: Energy Pipeline News.

The original announcement was made on May 12 in Houston:

HOUSTON, TX, May 12, 2011 (MARKETWIRE via COMTEX) --

Enbridge Energy Partners, L.P. (NYSE: EEP) (the "Partnership") today announced additional capital investments to replace portions of its Line 6B pipeline system that spans from Griffith, Indiana, through Michigan to the international border at the St. Clair River. This program will include replacement of approximately 75 miles of the pipeline in various locations in Indiana and Michigan, at an estimated cost of $286 million. These costs will be recovered through the Facilities Surcharge Mechanism ("FSM") that is part of the system-wide rates of the Lakehead system.

Earlier this year, the Partnership completed the replacement of 14 segments, totaling 9,000 feet, of Line 6B in southeastern Michigan and installed a new segment of pipeline under the St. Clair River, which will be operational by late June. This latest investment includes the replacement of five miles of pipeline immediately downstream of two pump stations in Indiana and three pump stations in Michigan as well as replacement of 50 miles of pipeline downstream of the Stockbridge station and delivery terminal northwest of the Detroit metro area. Subject to regulatory approvals, the new segments of pipeline will be installed in 2012 and will be staged to be placed in-service in consultation with, and to minimize impact to, refiners and shippers served by Line 6B crude oil deliveries.

The $286 million expenditures are in addition to the $210 million integrity expenditures on Line 6B recently announced by the Partnership for the year 2011, of which $175 million will be recovered through the FSM.

In actual fact, Enbridge is proposing to construct a new pipeline alongside the existing pipeline in a new 25 foot wide right-of-way.  Enbridge will abandon the existing pipeline in place, saying that this will "minimize additional disturbance along the route".  Enbridge has provided responses on its website to "frequently asked questions" for affected landowners, including questions about construction, disturbance and compensation: Frequently Asked Questions.

Enbridge's latest update on the Norman Wells spill

Here is the latest from Enbridge on its spill of between 700 and 1,500 barrels of oil near Wrigley, NWT:

On May 9, Enbridge Inc. reported that it had confirmed at approximately 12:40 MT that day a crude oil leak from a pipeline on its Norman Wells System (Line 21) approximately 50 km south of the community of Wrigley, NWT. On May 20th Enbridge returned the Norman Wells line to service after completing the necessary repairs.

Enbridge is working to minimize helicopter traffic in the Willowlake River area. A 25-person camp is being established near the incident site to house crews while they continue cleanup and reclamation work. The camp is expected to be open this week. There has been an increase in truck traffic on the Mackenzie Highway between Fort Simpson and Wrigley due to the incident. We want to ensure the safety of our crews and the people in the community and ask that everyone use caution when travelling on the highway.

The oil remains contained and there are no impacts to moving water. Our original four barrel estimate was based on oil collected at the surface and did not take into account the subsurface impacts, which were believed to be not significantly different. The increase in subsurface oil was discovered during the ongoing environmental site assessment, which includes subsurface analysis and is standard practice for all releases. Based on current estimates provided by the third party experts on site, Enbridge anticipates the release volume could range from a minimum of 700 barrels to a maximum of 1,500 barrels. Based on its current analysis, Enbridge anticipates the probability that the maximum volume would be exceeded to be low.

Enbridge continues to regularly engage with First Nations, government officials and the public and we are committed to having open dialogue and transparent communications. The community information line remains operational and the phone number is 867-695-3158. People are encouraged to call if they have any questions regarding the incident.

The safety of people and the protection of the environment are our highest priorities and the Company is doing its best to ensure there is no impact to the land, wildlife and waterways. We are committed to regaining the community’s confidence in Enbridge as a reliable operator and safe transporter of energy.

[emphasis added]

Enbridge estimates 6,100 barrels of crude oil spilled near Chicago, Illinois

Enbridge Energy Partners, L.P., says it has completed the "drain up" of remaining oil in the pipeline segment on Line 6A in the United States that leaked crude oil earlier in the week.  Enbridge estimates that 6,100 barrels of oil escaped in the leak that has required the line to be shut down. 

The U.S. House Committee on Transportation and Infrastructure scheduled a hearing for today in Washington to look into the other recent Enbridge spill that sent an estimated 1 million gallons into the Kalamazoo River area.

Another Enbridge Oil Leak - Company given until Monday to stop flow of oil

Here's what Enbridge is saying on its website about its latest oil leak, this time in suburban Chicago:

Enbridge has confirmed that a leak occurred Sept. 9 from its 6A pipeline in Romeoville, Illinois. Line 6A was shut down within minutes of Enbridge being notified and the section of the pipeline where the leak occurred has been isolated.

No injuries have been reported. Oil was released onto a roadway and then into a retention pond. Enbridge personnel are on site and booms have been deployed as a precautionary measure.

We express our apologies to the businesses in Romeoville and surrounding areas for the disruption, and extend our appreciation to emergency responders and regulatory agencies for their professional, diligent and supportive actions.

The U.S. Environmental Protection Agency has given Enbridge until Monday to plug the leak.  Enbridge says the leak has been contained, but oil continues to drain out of the pipe.

Updates on the Enbridge oil spill in Michigan

Enbridge executives provided updates on clean-up activities in Michigan at a news conference yesterday:

Patrick Daniel, President & CEO, Enbridge Inc.

We continue to make very good progress on clean-up at the leak site and also along Talmadge Creek and we're now well underway with clean-up on the Kalamazoo River as well.

I was at the Ceresco Dam and also visited Heritage Park yesterday and the river is significantly improved at those locations from what it was a week, two weeks or three weeks ago.

The primary clean-up on the banks of Talmadge Creek is now over half complete and we continue to make very good progress in preparing the lower half of the creek shoreline to be scraped and cleaned as well.

We're also, of course, very pleased that our eight work plans have now been approved by EPA.

Personally I continue to work very closely with residents in the most directly impacted areas. These are people whose lives and routines have been temporarily disrupted by the spill and now by the workers and the equipment and the noise associated with the clean-up, but thankfully that is starting to lessen in many areas.

The number of visits to our Battle Creek and Marshall Community Centers continue to decline. Some are coming in of course to file claims which are being handled while others have come in simply for information with regard to the spill and I remind residents that the facility is available for both purposes.

Since the voluntary evacuation was lifted for all residents, many of the people who chose to evacuate are beginning to leave the area hotels now and return to their homes which is also very good news. We look forward to getting this community resettled in advance of school starting later this month and, as indicated earlier, relocating our emergency response facilities out of the school.

Steve Wuori, Executive Vice President, Liquids Pipelines, Enbridge Pipelines Inc.

I'll just talk about a couple of areas. One is the Talmadge Creek clean-up which is progressing very quickly and, as Pat said, is over half complete in terms of the excavation so far. We're moving that very quickly because we really want to reduce the heavy equipment traffic as we head toward the end of the month as much as we possibly can and that's why the activity is so intense. We are now west of I69 and working our way down toward the Kalamazoo River in terms of the final scraping of that area.

In terms of the river, in addition to the comments that Mark Durno from the EPA made earlier I'll just note that the river has been sectioned into quarter mile sections that have been individually assessed. There's a shoreline assessment process that is looking at the shoreline on both sides of the river and that's now been completed.

Up until this point most of the work has been removal of oiled vegetation along the shoreline and now we'll move to the second stage of the clean-up which is working on the soils themselves and the lower vegetation, grasses and so on. So, that's what's really happening along the river and there will be a continual intensity of workforce out there now working on those individual areas as we've identified them.

There was a question on the earlier call with regard to the work near Albion and I can confirm that that is one of the dig sites that we are working on in preparation for the test of the line. That's near the community of Albion. It's a very wet location so we had to drive sheet piling and we're de-watering that sheet piling area right now and preparing to examine the pipe. So, I think that addresses the question about what was happening in the Albion area.

Michigan Representative says Enbridge repeatedly restarted pipeline after rupture

Noel Griese of Energy Pipeline News has a report on statements made on August 4 by Representative Mark Schauer (Dem.) of Michigan about the recent Enbridge oil spill into the Kalamazoo River.  The National Transportation Safety Board thinks the rupture occurred around 6 p.m. on July 25, when the pipeline was shut down for maintenance.  Schauer says that Enbridge restarted the pipeline at 4:26 a.m. on July 26 and repeatedly turned it on and off for the next several hours because of spikes in readings, Schauer said. Each time the line was restarted, more oil would spew from the five-foot-long rupture or “smile” in the compromised pipeline. That would explain the exceptionally large volume spilled.

Read the article at: Energy Pipeline News.

Enbridge Michigan oil spill originated from five foot long tear in pipe

An Enbridge company representative has reported that the breach in the Enbridge pipeline that spilled crude oil into the Kalamazoo River was less than five feet (1.5 metres) long.  Crews have extracted a 50 foot section of pipe that includes the torn section and sent it off to Washington for analysis by the National Transportation Safety Board.  A replacement section is being welded into place, but it is not known when the pipeline will resume operation.  U.S. authorities must approval a restart plan and will likely require that the pipeline be operated at reduced pressures.  The U.S. EPA is investigating whether Enbridge was negligent in the period leading up to the spill on July 26th. 

Enbridge wants to avoid lawsuits - offers to buy homes in vicinity of oil spill

Phaedra Friend Troy of Penn Energy has reported on the Enbridge response to threats of legal action.  Patrick Daniel, Enbridge's CEO, says that no one has to sue in order to be "made whole".  Enbridge has actually offered to purchase all of the properties within 200 feet of the Kalamazoo River spill.  The price offered is the asking price for the homes before the spill or the pre-spill appraised value of homes that were not already offered for sale.

Read the article at: Penn Energy article - August 4, 2010.

National Transportation Safety Board - Enbridge Oil Spill Timeline

NTSB probe validates Enbridge's account of oil spill detnews.com The Detroit News

Click on the link above to read The Detroit News article about Enbridge's response to the oil spill in Michigan. The article includes a detailed timeline based on the preliminary results of the investigation of the spill by the US National Transportation Safety Board.

US Environmental Protection Agency dissatisfied with Enbridge clean-up plan

CBC News - World - Enbridge must file river cleanup plan

The US EPA has rejected a long-term clean-up plan filed by Enbridge in the aftermath of its massive oil spill in Michigan because of "deficiencies in content and technical details".  Read the CBC story by clicking on the link above.

I posted earlier this week about plans in Canada by the National Energy Board to provide an approval mechanism for contamination remediation by companies like Enbridge.  It's not hard to see the difference in approach being followed in the United States, at least in the wake of the BP disaster in the Gulf of Mexico.  South of the border, it's not the energy project approval body that will decide when the contamination has been cleaned up appropriately - it's the EPA.  In other words, it's not a body whose primary concern is the ongoing development of the energy sector.  Canada has Environment Canada and the provincial ministries of the environment.  Landowners should be asking why the NEB is choosing to step into this issue at this time.

Enbridge cited for problems in U.S.

CBC News - World - Enbridge cited for problems in U.S.

CBC News is reporting:

• Enbridge Inc. and its affiliates have been cited for 30 enforcement actions since 2002 by the Pipeline and Hazardous Materials Safety Administration;
• The PHMSA sent a warning letter to Enbridge in January about suspected violations in its corrosion monitoring program (corrosion in the pipeline appears to be the cause of the rupture and spill in Michigan);
• The US EPA estimates 3.8 million litres have spilled into the Kalamazoo River system, while Enbridge says it is 3.1 million litres;
• Enbridge spilled almost 71,900 litres of oil into the Nemadji River in Wisconsin in 2003;
• Enbridge spilled 200,000 gallons of oil in northern Wisconsin in 2007 (in two separate spills).

Click on the link above to read the article.

Enbridge's Michigan oil cleanup 'inadequate', says Governor

CBC News - Windsor - Michigan oil cleanup 'inadequate': governor

Click on the link above to read the CBC's latest story on the Enbridge oil spill in Michigan. Nearly 3.7 million litres of oil have spilled into the Kalamazoo River system.

CBC News - Photos of the Enbridge Oil Spill in Michigan

Read the CBC News story and view photographs of the oil spill at: CBC News - Windsor - Enbridge pipeline spills into Michigan river.

Enbridge Energy Partners Update on Michigan Leak Clean-Up

Enbridge Energy Partners Update on Michigan Leak Clean-Up


HOUSTON, TEXAS, Jul 27, 2010 (MARKETWIRE via COMTEX) --

Enbridge Energy Partners, L.P. (NYSE: EEP) (the "Partnership") today provided an update on the progress being made in the clean-up efforts undertaken in response to the leak that occurred on Line 6B near Marshall, Michigan the morning of July 26, 2010. Community health and safety, and environmental mitigation remain top priorities.

"Crews worked through the night on containment, including the use of booms, oil skimmers and vacuum trucks. Additional crews and equipment will be onsite early Tuesday to assist with oil containment. We had approximately 50 people working through the night and we expect over 100 workers on-site during the day," said Stephen J. Wuori, Executive Vice-President, Liquids Pipelines, Enbridge Inc.

Emergency response crews are stationed along Tallmadge Creek and the Kalamazoo River to contain the oil. Crews are reclaiming the oil using a variety of different methods, including oil collection skimmers, containment and absorbent booms. A temporary dike and flume arrangement has been secured near the point of origin of the leak stopping transport into the tributary creek.

The cleanup is being conducted in compliance with all government regulations and Enbridge's own stringent standards for safety and the environment, and is being coordinated under the direction of a unified command structure at the site. Plans for remediation and reclamation of the site will be developed with the input of affected stakeholders and environmental regulators, the state and federal authorities.

"We are currently focused on bringing all available resources to bear in our efforts to safely contain the leaked oil on the Kalamazoo River. We have brought in multiple crews of trained Enbridge personnel, and continue to draw on our contractors to further augment our resources. We are members of emergency response organizations, and will continue to work with experts from those organizations to address the current situation and longer-term clean up and remediation efforts," said Mr. Wuori.

Enbridge is monitoring water quality at many points along Tallmadge Creek and Kalamazoo River and is taking measures to protect fish and wildlife from coming into contact with the spilled oil. Fish and wildlife specialists are on site to help rehabilitate affected animals.

"We'd like to acknowledge the impact this has had on the people of Marshall and the surrounding community," continued Mr. Wuori. "We extend our apologies to the people who have been affected by this. Enbridge understands that the leak has disrupted people's lives and had a major impact on the people in this community, on the environment and on wildlife. We ask you for your patience and your input as we work to clean up this leak."

The full community and environmental impacts are still being assessed. Enbridge will continue to work with the U.S. Environmental Protection Agency and the Michigan Department of Environmental Quality to complete the environmental cleanup of the site, and is working with state and local emergency response agencies to address local impacts and concerns.

"Enbridge expresses its sincere appreciation to the community of Marshall and surrounding areas emergency responders for their professional, diligent and supportive actions," said Mr. Wuori.

At this point in time, the Partnership cannot provide an estimated time for restart of the Line 6B pipeline. Enbridge appreciates the cooperation of shippers on the Enbridge system in realigning deliveries. Enbridge will work closely with all connecting carriers and refiners to minimize any service impact resulting from the leak.

The cause of the leak remains under active investigation with complete results not expected for several weeks. The section of pipeline involved will be removed and transported to a third party facility for examination and testing. Enbridge continues to work closely with federal and state agencies in the investigation, including the Pipeline and Hazardous Materials Safety Administration (PHMSA), along with state and local public safety officials.

Line 6B is a 30-inch, 190,000 bpd line transporting light synthetics, heavy and medium crude oil from Griffith, Indiana to Sarnia, Ontario. It is part of the Partnership's Lakehead System.

SOURCE: Enbridge Energy Partners, L.P.


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Enbridge spills 19,500 barrels of crude oil into tributary of Kalamazoo River in Michigan

Enbridge Energy Partners Lakehead System Pipeline Leaks Crude Oil Near Marshall, Michigan

HOUSTON, TEXAS, Jul 26, 2010 (MARKETWIRE via COMTEX) --

Enbridge Energy Partners, L.P. (NYSE: EEP) (the "Partnership") reported today that a pipeline on its Lakehead System leaked at approximately 9:45 a.m. CDT near the company's Marshall, Mich., pump station. Initial estimates are that approximately 19,500 barrels of crude oil may have been released as a result. The pipeline was shut down and isolation valves were closed, stopping the source of the oil.

No one was injured. Oil was released into a creek; the affected creek is a tributary of the Kalamazoo River, and Enbridge confirms that oil has entered the river. Enbridge crews, complemented by contract resources, were immediately dispatched to the site and are deploying oil skimmers and absorbent booms on the creek and river to minimize environmental impacts.

"Enbridge is treating this situation as a top priority," said Terrance McGill, President of the Partnership. "We are bringing all available resources to bear -- ranging from emergency response and containment personnel to environment and water quality specialists.

"Safety is a top priority and the Partnership will do our utmost to minimize the impact on the environment, neighboring landowners and communities. Enbridge's environmental response team is working closely with local agencies and all emergency officials to complete the clean up as quickly as possible."

Enbridge has notified and is working with the appropriate regulators and emergency officials. The cause of the release has not been determined and is being investigated.

At this time, Enbridge does not have an estimated time for restart of the line.

Line 6B is a 30-inch, 190,000 bpd line transporting light synthetics, heavy and medium crude oil from Griffith, Indiana to Sarnia, Ontario. It is part of the Partnership's Lakehead System.

About Enbridge Energy Partners, L.P.

Enbridge Energy Partners, L.P. (www.enbridgepartners.com) owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the United States, including the Enbridge North Dakota System. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers and connected carriers in the United States account for approximately 12 per cent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 per cent of refinery demand in that region. EEP's natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast area, deliver approximately 2 billion cubic feet of natural gas daily.

Enbridge Energy Management, L.L.C. (NYSE: EEQ) (www.enbridgemanagement.com) manages the business and affairs of EEP and its sole asset is an approximate 14 per cent interest in EEP. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, is the general partner and holds an approximate 27 percent interest in EEP.

This news release includes forward-looking statements and projections, which are statements that do not relate strictly to historical or current facts. These statements frequently use the following words, variations thereon or comparable terminology: "anticipate," "expect," or "will." Forward-looking statements involve risks, uncertainties and assumptions and are not guarantees of performance. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond Enbridge Partners' ability to control or predict. Reference should also be made to Enbridge Partners' filings with the U.S. Securities and Exchange Commission; including its Annual Report on Form 10-K for the most recently completed fiscal year, for additional factors that may affect results. These filings are available to the public over the Internet at the SEC's web site (www.sec.gov) and via the Partnership's web site.

Contacts:

Enbridge Energy Partners, L.P.
Larry Springer
Media
(713) 821-2253 or Toll free: (877) 496-8142
usmedia@enbridge.com

Enbridge Energy Partners, L.P.
Douglas Montgomery
Investment Community
Toll-free: (866) EEP INFO or (866) 337-4636
eep@enbridge.com
http://www.enbridgeus.com/

SOURCE: Enbridge Energy Partners, L.P.

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