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Document says agency repeatedly told company at heart of Mich. oil spill of pipeline concerns

July, 31, 2010 - 08:54 pm Householder, John Flesher,Mike - (The Associated Press)
Eric Boyer, of Environmental Restoration makes his way down A Drive North covered in oil as oil clean up from a ruptured oil pipe continues in Marshall, Mich. on Saturday, July 31, 2010. Officials say they've located the pipeline break that caused hundreds of thousands of gallons of oil to spew into a major river in southern Michigan. (AP Photo/Detroit Free Press, Andre J. Jackson) DETROIT NEWS OUT; MAGS OUT; NO SALES; MANDATORY CREDIT
Eric Boyer, of Environmental Restoration makes his way down A Drive North covered in oil as oil clean up from a ruptured oil pipe continues in Marshall, Mich. on Saturday, July 31, 2010. Officials say they've located the pipeline break that caused hundreds of thousands of gallons of oil to spew into a major river in southern Michigan. (AP Photo/Detroit Free Press, Andre J. Jackson) DETROIT NEWS OUT; MAGS OUT; NO SALES; MANDATORY CREDIT

DETROIT - U.S. regulators earlier this year demanded improvements to the pipeline network that includes a segment that ruptured in southern Michigan, spilling hundreds of thousands of gallons of oil into the Kalamazoo River, according to a document released Saturday.

The Pipeline and Hazardous Materials Safety Administration, the U.S. Department of Transportation's regulatory arm, said it had summoned Enbridge Inc. executives in February to discuss problems with the 1,900-mile Lakehead system. Enbridge owns the pipeline that burst, sending oil into Talmadge Creek, which flows into the Kalamazoo River.

The pipeline safety agency informed Enbridge in January that it might have violated safety codes by improperly monitoring corrosion in the pipeline.

The Environmental Protection Agency estimates more than 1 million gallons of crude escaped, while the Canadian company puts the total at 820,000 gallons.

"Safety is our No. 1 priority," Bizunesh Scott, chief counsel for the federal agency, said in a written statement. "That's why we repeatedly pushed Enbridge to address the safety and performance of its entire Lakehead Pipeline system."

The agency has cited Enbridge or its affiliates for 30 enforcement actions since 2002.

Enbridge spokeswoman Gina Jordan said company officials have regular meetings with the agency to discuss operations and inspection results, including the one earlier this year.

"As the largest oil pipeline system in the world with close to 15,000 miles of liquids pipelines in the U.S. and Canada, Enbridge works closely with PHMSA and all our regulators to ensure we not only meet, but exceed safety requirements," Jordan said.

Meanwhile, company and government officials said Saturday they had located the pipeline fissure that caused the spill. Once removed, the section was expected to be taken to a National Transportation Safety Board lab for testing.

Also Saturday, U.S. Rep. Mark Schauer said the House Transportation and Infrastructure Committee had begun investigating the spill.

"Enbridge needs to answer some tough questions about how this happened," the Michigan Democrat said.

According to a timeline released Saturday by the Pipeline and Hazardous Materials Safety Administration, Enbridge last year discovered 250 imperfections with the line that eventually would rupture. The company immediately fixed 35 of them but is still working on the others.

During a March meeting, Enbridge gave the agency an updated plan for dealing with the problems. But the company requested permission this month to continue operating the pipe at lower pressure — which reduces the speed and volume of oil — for 2 1/2 years to allow more time for repairs.

After an April drilling rig explosion triggered the Gulf of Mexico spill, the federal agency ordered pipeline companies to review their spill response plans. Enbridge reported July 21 that it had conducted a "thorough review and update" and concluded it was "appropriate for responding to a worst case discharge," according to the agency's timeline.

The agency said it would review Enbridge's response to the Michigan spill "in light of these representations."

CEO Patrick D. Daniel and other executives have defended the company's safety record for the Lakehead network, which transports oil between Neche, N.D., and Marysville, Mich.

The Calgary, Alberta-based company shut down the pipeline Monday and had been looking for the break since. Crews had a difficult time reaching the damaged section because it's in a marshy, oil-covered area.

"It is highly unlikely there is any other break in the pipe" other than the one that was exposed, said Steve Wuori, an Enbridge executive vice-president.

Wuori said no oil was leaking from the pipe.

Enbridge has declared the spill contained and says it is focusing solely on cleanup. The company said Saturday it was increasing the size of its team and the equipment at the site and that it has recovered more than 1.2 million gallons of combined water and oil. The mixture contained about 210,000 gallons of crude, the company said.

Daniel also said the company had begun processing claims from people directly affected by the spill. The cause of the spill remains undetermined, he said.

"We will make good on any damage caused by the incident," he said at a news briefing.

___

Flesher reported from Traverse City, Mich.

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