Canada's Enbridge restarts Line 14 oil pipeline

Tue Aug 7, 2012 10:48pm EDT

The Enbridge Tower is pictured on Jasper Avenue in Edmonton August 4, 2012. REUTERS/Dan Riedlhuber

The Enbridge Tower is pictured on Jasper Avenue in Edmonton August 4, 2012.

Credit: Reuters/Dan Riedlhuber

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(Reuters) - Enbridge Inc on Tuesday restarted an oil pipeline that ships Canadian crude to Chicago area refiners, 11 days after it spilled more than 1,000 barrels of crude onto a Wisconsin field.

The 318,000 barrel-per-day pipeline resumed operations after receiving approval on Monday from the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration, the Canadian company said in a statement.

The shutdown caused a brief spike in Chicago gasoline prices that eventually drove up prices on the Gulf Coast and U.S. Northeast as supplies were diverted to meet the shortfall.

PHMSA last week issued Enbridge a corrective action order, calling for measures to be taken before it would allow the resumption of flows along Line 14, which was halted after a leak was discovered on July 27.

"Enbridge will continue to coordinate its efforts with PHMSA as necessary," Enbridge said. "We will conduct site restoration in compliance with all government regulations and our own stringent safety and environmental standards."

(Reporting by NR Sethuraman in BANGALORE; Editing by Bob Burgdorfer, Matthew Robinson and Chris Lewis)

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