Calgary based Enbridge (TSE:ENB) (NYSE:EEP) reached an agreement with the US state of Michigan to restore clean up, as best as possible, the site of a major oil spill nearly five years ago.
Under this agreement, Enbridge has is committed to creating or restoring 120 hectares of wetland soils in southwestern Michigan at a cost of some US$30 million. It will also spend 75 million for various projects related to fishing grounds access and the demolition of a dam.
Enbridge will also ensure that the site restoration is successful while reimbursing US$12 million to the state of Michigan for the cleanup and legal costs.
On 25 July 2010, an Enbridge pipeline broke, dumping more than 3 million liters of oil into the Kalamazoo River, for a distance of 64 km.
The Kalamazoo River, with a length of about 210 km, flows into Lake Michigan, in the western part of the state.
Enbridge was trading 1.53 lower at C$61.13 in Toronto this morning.
Last week, Enbridge, a pipeline operator, posted a net loss of C$383 million for its first quarter of 2015, which the company blamed on unfavorable exchange rates.
Adjusted earnings of C$468 million, or 56 cents per share, were below analysts’ expectations of 58 cents a share and lower compared to C$492 million, or 60 cents per share for the first quarter of last year.
Enbridge blamed the decrease in adjusted earnings for its natural gas distribution and liquid pipeline activities on a number of factors but the Company believes it is on track to post adjusted earnings of $ 2.05 and $ 2.35 per share for the full year.