Enbridge pays $3.7M; fed case closed

MARSHALL, Mich. (AP) - Federal regulators say the Canadian owner of a pipeline that ruptured in 2010 and dumped more than 800,000 gallons of oil into a southwestern Michigan river has paid a $3.7 million fine.

The U.S. Department of Transportation said Monday that the payment sent Aug. 10 closes its enforcement action against Calgary, Alberta-based Enbridge Inc.

The company owns a pipeline running from Griffith, Ind., to Sarnia, Ontario. The pipeline burst near Marshall, Mich., spewing oil into the Kalamazoo River system.

The federal agency says the penalty against Enbridge is the largest it has imposed. It cited Enbridge for 24 violations of hazardous liquid pipeline regulations, including failure to fix corrosion discovered as far back as 2004.

It also says Enbridge failed to detect the rupture for 17 hours.

The company estimated in late July 2012 that total cleanup costs will be around $785 million, including the federal penalty.