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Calgary — The U.S. government has issued a harsh warning and a list of demands to Enbridge Inc. in the wake of a pipeline spill in rural Wisconsin, adding to the severe pressure on energy companies in their quest to rapidly expand North America’s pipeline network.
The U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) is questioning Enbridge’s “integrity management program” after an oil line leaked Friday on its Line 14 in rural Wisconsin.
It’s the second time in less than a month that U.S. regulators have lashed out at the Canadian company because of busted pipelines. In early July, the chair of the U.S. National Transportation Safety Board compared Enbridge with the “Keystone Kops” because of the way it handled a huge spill in Michigan’s waterways two years ago.
While the sharp words and fresh regulatory demands focus on Enbridge, the fallout will be felt across the industry. And growth in the oil sands could slow if major pipelines, such as Enbridge’s proposed Northern Gateway to Canada’s west coast and TransCanada Corp.’s Keystone XL to the U.S. Gulf Coast, are stymied as lawmakers question the industry’s ability to operate safely.
If stiff regulations follow, capital costs will rise.
Enbridge will not be allowed to restart Line 14, which spilled roughly 1,200 barrels of oil last week, until it meets a series of demands regarding safety procedures. The regulator is also forcing the company to file safety reports and perform certain tests, such as mechanical and metallurgical.
The PHMSA also wants Enbridge to examine and report on the “underlying causes and contributing factors to the failure, including preventative measures employed by Enbridge.”
The company must also evaluate and hand over its previous line-inspection results, as well as documents tied to its 2007 inspection.
When the line restarts, it will be under reduced pressure, and Enbridge will have to file reports on the operations.
For the rest of this article, please go to the Globe and Mail website: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/us-agency-lashes-out-at-enbridge-over-busted-pipelines/article4452065/