Pipeline Ruptures Put Dent In Enbridge Earnings

By Michelle Cyr-Whiting

Prince George, B.C. - Despite reporting earnings of $936-million dollars for 2010, that is a decrease for Calgary-based Enbridge Inc. from the $1.56-billion it earned the year before.

Speaking in a conference call to go over the financial figures at the end of this week, Company CFO, Richard Bird, outlined a one-time gain of $326-million dollars in 2009 from the sale of a pipeline, as well as larger market-to-market gains on its U.S. hedging program.  But Bird said 2010 results were further compounded by the $125-million dollars paid towards clean-up efforts following the pipeline ruptures in Michigan and Illinois.

"For many listening to the call today, 2010 will be remembered for the crude oil leak in July at Marshall, Michigan," said Enbridge President and CEO, Pat Daniel.  "This was the most significant environmental incident in our company's history."

Daniel said the company continues to work with communities along the Kalamazoo River on clean-up, taking advantage of the frozen ground to reach some of the marshy areas they couldn't in the summer.

Since the re-start of the line, "we have actively conducted in-line additional inspections and we have employed a team of 65 dig crews to aggressively excavate and remediate approximately 400 locations along that line."  Daniel said the company was encouraged by results of these investigations but admitted the work continues to impact the availability of the mainline system -- he thanked shippers for their understanding.

The Enbridge Inc. President focused most of his discussion on the highlights of the year.  He said the company brought into service two of the largest projects in its history -- the $3.7-billion dollar Alberta Clipper Project and the $2.3-billion dollar Southern Lights project -- and a total of $6.5-billion in projects for the year.

Looking ahead to 2011, Daniel said Enbridge will continue to advance the Northern Gateway Pipeline Project -- plans for a $5.5-billion dollar twin pipeline between Bruderheim, Alberta and Kitimat, B.C..

He said, "In January, the joint review panel tasked with review of the project requested additional information from Enbridge on the design and the risk assesment of the pipelines, due to the geo-technical aspects, and their geographic location, and that work is underway now."

"As well, over the past few weeks, we have met with aboriginal communites along the proposed right-of-way to share the details of our 10-percent equity offering."

The CEO said, "So far, it has been well received and we are hopeful that more communities will understand and appreciate the long term economic benefits of this project."

The first public meeting was held in Terrace just this past Tuesday, there is one set for Prince George on February 15th.

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