Costs of Mich. oil spill cleanup escalate

Sept. 27, 2011 at 12:59 PM
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KALAMAZOO, Mich., Sept. 27 (UPI) -- A Canadian company says its costs to clean up a 2010 oil spill into the Kalamazoo River in Michigan have surpassed the $650 million its insurance will cover.

Enbridge Energy, an Alberta, Canada, pipeline company,

submitted a report to the Security and Exchange Commission Monday that the entire cleanup is estimated to cost about $700 million, $50 million more than its pollution liability insurance policy will cover, the Kalamazoo Gazette reported.

Enbridge has been paying for all of the cleanup-related costs in the 800,000 gallon spill and is working with its insurance company to get reimbursed, company spokeswoman Terri Larson said.

It remains to be seen how much will be reimbursed, she said.

The cleanup estimate does not include any possible fines or penalties.

"Our estimated cost to clean up the spill also includes what we've paid in claims and what we are forecasting based on the best information available," Larson said.

Enbridge does not have an estimate of how much longer the cleanup will take, Larson said, but the company has said the cleanup would be a multiyear operation.

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