CALGARY, Alberta, March 20 Enbridge Energy
Partners LP said on Wednesday that the costs of
additional cleanup from a huge Michigan oil spill three years
ago may push the total bill past the limit of its insurance
coverage, hampering its financial results.
Enbridge Energy Partners, the U.S. unit of Calgary-based
Enbridge Inc, received an order from the U.S.
Environmental Protection Agency earlier this month requiring
more containment and recovery of oil from its Line 6B, which
ruptured in the summer of 2010.
It now estimates the total cleanup cost will rise by $175
million to $820 million. But it warned that "actual costs
incurred may differ from the foregoing estimate as we discuss
our work plan with the EPA and work with other regulatory
agencies to assure that our work plan complies with their
"Any such incremental costs will not be recovered under our
insurance policies as our expected costs for the incident will
exceed the limits of our insurance coverage," it said in filing
with the U.S. Securities and Exchange Commission.
The incident, near Marshall, Michigan, caused more than
20,000 barrels of heavy Canadian crude to gush into the
Kalamazoo River system, the largest onshore oil spill in U.S.
history. Line 6B carries 231,000 barrels a day to Sarnia,
Ontario, from Griffith, Indiana.
Enbridge Energy Partners said any costs that flow directly
to its own financial statements "will cause increased volatility
in the partnership's results of operations and cash flows."
The partnership operates the U.S. portion of Enbridge's oil
pipeline network, which moves more than 2 million barrels a day
to the U.S. Midwest, Midcontinent and southern Ontario from
The Houston-based partnership's shares closed up 52 cents at
$29.26 on the New York Stock Exchange on Wednesday, though it
released the cost estimate after the market closed. Enbridge Inc
owns about 18 percent of Enbridge Energy Partners.