A U.S. watchdog has blasted Northern Gateway pipeline proponent Enbridge Inc. (TSX:ENB) for “pervasive organizational failures” behind a 2010 pipeline rupture and spill in Michigan.
A U.S. National Transportation Safety Board (NTSB) investigation has found that the 2010 pipeline failure was the result of multiple small corrosion-fatigue cracks that over time grew and linked together, creating a “gaping breach” in the pipeline measuring more than two metres long.
According to the NTSB, the July 25, 2010, spill involved the rupture of a 30-inch diameter pipeline, which spilled crude oil into an ecologically sensitive area near the Kalamazoo River in Marshall, Michigan, for 17 hours until a local utility worker discovered the spill and reported it.
“This investigation identified a complete breakdown of safety at Enbridge,” NTSB chairman Deborah Hersman said in a statement, adding that company employees failed to recognize the pipeline had ruptured.
“Despite multiple alarms and loss of pressure in the pipeline, for more than 17 hours and through three shifts they failed to follow their own shutdown procedures.”
The investigation found that Enbridge failed to accurately assess the structural integrity of the pipeline, including correctly analyzing cracks that required repair. The NTSB characterized Enbridge’s control room operations, leak detection and environmental response as “deficient” and described the event as an “organizational accident.”
According to the NTSB, Enbridge and the U.S. Environmental Protection Agency estimate the cleanup costs to be more than US$800 million, making the rupture the single most expensive on-shore spill in U.S. history.
In a response to the NTSB findings, Enbridge attributed the spill to “a series of unfortunate events and circumstances [that] resulted in an outcome no one wanted.”
Stephen Wuori, Enbridge president, liquids pipelines, said, “Enbridge and [Enbridge Energy Partners, LP] conducted a detailed internal investigation of this incident in the months following the release and have made numerous enhancements to their processes, procedures and training as a result of the findings of the investigation, including in the control center.”
“Incident prevention, detection and response have also been enhanced,” he added. “We will carefully examine the findings in the NTSB report to determine whether any further adjustments are appropriate.”
Earlier this month, the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration proposed a record US$3.7 million civil penalty and 24 actions against Enbridge for the Michigan oil spill.
