Rainbow over bins

Rainbow over bins
Planting 2010

Friday, July 30, 2010

Canada's National Energy Board creating a "Remediation Process Guide" to sign off on pipeline company contamination

The National Energy Board (NEB) says on its website that it has:
... developed a draft Remediation Process Guide (Guide) for industry to follow to ensure successful remediation of soil and groundwater contamination. The goal of this Guide is to provide a clear process for submitting remediation information. If remediation is determined to be successful then the NEB will provide a letter to that effect. The NEB will be hosting a technical meeting on 14 October 2010 in Calgary at a location to be determined to answer any questions and hear comments that interested parties may have. Parties wishing to provide written comments on the Guide are requested to do so by 1 December 2010. The Board will finalize the Guide shortly thereafter.
In the draft guide, the NEB says it makes every effort to ensure industry follows procedures to minimize releases, leaks and spills, but from time to time "accidents can occur".  In reality, the NEB operates on the basis of "goal-oriented regulation" whereby the Board sets goals and allows companies to decide how they will achieve those goals.  However, as we have seen with the BP disaster and the recent Enbridge spill in Michigan, "goal-oriented regulation" simply doesn't work when it comes to an all or nothing proposition like environmental contamination.  How many spills will it take before the regulator steps in and tells companies what they need to do to protect the environment?

The NEB also says that it is the "lead agency" for all contamination incidents related to its pipelines.  Landowners should be cautious to accept this approach.  NEB requirements regarding contamination (including both new spills and the discovery of historical contamination) may not match protections afforded to landowners under provincial environmental legislation.  Why should landowners have less protection from contamination just because the NEB is involved? 

The aspect of the proposed Remedation Process Guide that should be most concerning to landowners is the proposed "Remediation Closure Letter".  Essentially, the NEB will issue letters to companies who have contaminated the environment stating that remediation is complete and the NEB's file is closed.  The NEB says that its "expectation for reclamation is that the land is restored to a state comparable with the surrounding environment".  That is not necessarily the standard to which landowners are entitled to have their properties remediated under provincial laws and/or the common law.  Landowners should be demanding clean-up to the highest level possible under applicable law.  Also, what is to stop the NEB from issuing such a letter to a company before the company has adequately compensated the landowner for the damage caused?  What would that letter do to a landowner's negotiating position?

The NEB's proposal is troubling in that it perpetuates the problems associated with its policy of "goal-oriented regulation".  Companies are allowed to do what they want to avoid contaminating the environment, but when they do contaminate, they can rest assured that the NEB will sign off on their response.  In other words, the NEB's protection of the environment is limited to stepping in after contamination has occurred in order to validate the steps the company has taken to address the contamination.  There is still nothing in place to ensure that the contamination does not occur in the first place.  Is this an acknowledgement on the part of the NEB that there is nothing that can be done to prevent spills that will inevitably occur as pipeline infrastructure ages and corrodes? 

Click on this link to read the proposed guide: NEB Draft Contamination Remediation Guide.

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.

Thursday, July 29, 2010

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.

Wednesday, July 28, 2010

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.


mailto:usmedia@enbridge.com
mailto:eep@enbridge.com
http://www.enbridgeus.com/

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.

mailto:usmedia@enbridge.com
mailto:eep@enbridge.com
http://www.enbridgeus.com/

Tuesday, July 27, 2010

Defective seed potato ruling upheld by NB Court of Appeal

Atlantic Potato Distributors Ltd., a potato distributor located in New Brunswick, brought an action against Robert Meersseman and Leon Meersseman, farmers in Ontario, seeking payment for seed potatoes. The Meerssemans admitted receiving and planting the seed potatoes, but asserted that some of the seed potatoes were defective, and counterclaimed to recover the resulting losses.  A crop adjuster for Agricorp (Ontario's crop insurance program) inspected the Meerssemans' fields and reported that between 50 and 60 percent of the crop did not emerge.  Following an unsatisfactory harvest, the Meerssemans refused to pay Atlantic for the seed. 

Both parties were successful at trial (i.e. the Meerssemans owed Atlantic for the seed potatoes they had purchased, but Atlantic was liable to the Meerssemans for the losses they suffered as a result of planting those defective seed potatoes).  Atlantic appealed the finding of liability for breach of a warranty implied under s. 15 of the Sale of Goods Act, R.S.N.B. 1973, c. S-1, as well as the damages award to the Meerssemans.  The New Brunswick Court of Appeal dismissed the appeal on both grounds.

Read the decision at: Atlantic Potato Distributors Ltd. v. Meersseman.

Monday, July 26, 2010

Ontario Power Authority holding public consultation process about planned price drop for solar power

In its latest edition of News Online, the Ontario Power Authority (OPA) says that its plan to drop the price offered for solar power from 80.2 cents per kWh to 58.8 cents per kWh is consistent with providing an 11% return to developers over the 20 years of a Feed-in Tariff (FIT) contract.  For instance, the OPA writes:
Ground-mounted projects with tracking systems (panels that turn to follow the sun) have higher upfront capital costs but produce more energy (higher capacity factor) and therefore generate more revenue. At 58.8 cents/KWh, the higher revenue offsets the higher capital costs and results in a rate of return that is comparable to roof-top solar projects as well as other FIT projects.
Ground-mounted projects without tracking have lower capital costs but also generate less energy and therefore less revenue. In this case, the lower upfront cost offsets the lower revenue, still enabling a reasonable rate of return from the same 58.8 cent FIT rate. It is the costs of these projects in particular which have come down relative to rooftop installations since the program was introduced, enabling a reduction in the tariff rate.
A more in-depth article on returns on investment for solar projects is available from the OPA at: Details of proposed rate calculation.

The OPA is also conducting a 30-day consultation period on the new pricing scheme:
Note: There will be a 30-day comment period on the proposed new price category. Please send all comments and submissions to microFIT@powerauthority.on.ca. While all emails will be read, not all emails will receive individual responses.
Comments also can be mailed to the following address and must be postmarked no later than Tuesday, August 3, 2010.
Ontario Power Authority
120 Adelaide Street West, Suite 1600
Toronto, Ontario M5H 1T1
Attention: Ground-Mounted Solar PV