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Enbridge now estimates Michigan oil spill cleanup will cost $1.2 billion

15 December 2014

In November 2014, Canadian pipeline operator Enbridge Inc. said the total cleanup cost of the 2010 oil spill into the Kalamazoo River was now $1.21 billion. This is an increase of $85.9 million on the estimate it gave in December 2013.

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The $1.21 billion is split into three categories: $551.6 million for response personnel and equipment, $227 million for environmental consultants, and $429.4 million for professional, regulatory, and other costs.

The Enbridge pipeline ruptured near Marshall, Michigan, in July 2010 dumping 800,000 gallons of crude oil into the Kalamazoo. It was the largest inland oil spill in US history and the company is still cleaning up the mess.

Costs include a fine of at least $40 million from  the federal government for violations of the Clean Water Act, with a higher total a possibility. Other elements include $33 million for dredging activities near Ceresco and Morrow Lake.

Enbridge is currently working with the Michigan Department of Environmental Quality and the US Environmental Protection Agency to have Michigan take over responsibility from the EPA for overseeing Enbridge monitoring and remediation of submerged oil.

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