Los Angeles, CA: A tentative $4 million settlement has been reached in an environmental class action pending against Enbridge Energy Partners LP. The lawsuit was brought by residents and property owners who lived along the Kalamazoo River whose properties were devastated by an oil spill in 2010 that saw over 800,000 gallons or 20,000 barrels of crude oil pour into Kalamazoo River and Talmadge Creek.
According to the lawsuit, the 40-year-old Enbridge pipeline carrying heavy crude oil from Canada to Indiana ruptured and began to leak but because the alarms associated with the leak were not recognized as a line break, the leak was not addressed for 17 hours.
According to court documents, it is one of costliest onshore oil spills to occur in the US. Enbridge reportedly estimated that cleanup and repair costs total $1.6 billion.
The proposed settlement, filed on December 5, requires final court approval and will require Enbridge, Canadian company, to pay approximately $2.2 million to residents and property owners whose property was contaminated within 1,000 feet of the river. $250,000 will be divided by residents who lived further away, according to the deal.
Additional terms of the settlement include Enbridge paying $1.5 million to reimburse property owners for spill-related expenses, to be distributed by claims administrator Rust Consultants. Another $150,000 will be paid to local environmental conservation groups.
This proposed settlement follows closely on the heels of another Enbridge oil spill class action lawsuit, which was brought by real estate developer Fredonia Farms LLC. The details of this settlement were not made public.
