Enbridge Inc has agreed to pay $1.86 million in penalties for an alleged failure in inspecting certain lines within its Lakehead pipeline system.
The settlement with the U.S. Justice Department and the Environmental Protection Agency, made public on Wednesday,resolves differences of opinion around the schedule under the consent decree for several internal inspections of pipelines – Line 2, 3, 4 and 5, Enbridge said.
In 2016, Enbridge agreed to pay $1.77 million in penalties and improve safety measures in a settlement with the U.S.government tied to one of the largest inland oil spills in U.S.history.
Under the 2016 settlement, Enbridge agreed to improve the maintenance and monitoring of its Lakehead system, and adopt measures to protect the communities and environment along the nearly 3,200-km pipeline.
“The inspection schedule for which EPA alleged non-compliance with the decree was in full compliance with internal pipeline inspection process and safety procedures, and inspection frequency schedules required by the Pipeline and Hazardous Materials Safety Administration,” Enbridge said in a statement on Thursday.
“To ensure focus on safe operation of the pipelines and to maintaining our commitments under the consent decree, we have agreed to pay a penalty to resolve the matter,” Enbridge said,adding that it has reached agreement on the inspection schedule going forward.
Enbridge also said these in-line inspections did not involve Line 5 in the Straits of Mackinac, where the pipeline operator recently found some damages to its pipeline.