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Press Release

Oberstar, Schauer Decry Enbridge Tactics

Accuse company of pressing victims to waive legal rights

September 1, 2010

 

By Jim Berard 202-226-5064

The Committee on Transportation and Infrastructure has turned up evidence that pipeline company Enbridge, Inc. has pressured residents affected by the company’s oil spill near Marshall, Mich., to waive their rights to seek damages in exchange for minimal relief services such as air purifiers or motel reimbursements.

This has spurred T&I Chairman James L. Oberstar (Minn.) and Committee Member Rep. Mark H. Schauer (Mich.) to seek investigations on the federal and state level into the company’s practices. Late Tuesday, Oberstar and Schauer sent letters to the Department of Justice, the Department of Health and Human Services, and Enbridge itself in an effort to stem the action.

Schauer represents the Congressional District where the spill occurred.

The Committee investigation found that Enbridge has convinced, or is seeking to convince, residents, workers, and business owners in the areas impacted by the spill to sign a “Full and Final Settlement Release”. The release “discharges Enbridge, its employees, agents, partners, directors, and officers and affiliated companies and their agents, partners, directors, and officers, from and against all liability, claims, actions, causes of action, costs, and expenses, including without limitation claims for personal injuries, property damage, that [the signer] ever had, has, or may have against Enbridge, whether known or unknown related to the incident.”

Many residents told the Committee staff that they felt pressured to sign the Enbridge liability release in return for air purifiers that they were led to believe would protect them from the health effects of Benzene and other volatile hydrocarbons released in the air as a result of the spill, or reimbursement for hotel and other expenses as a result of the evacuation. Other residents were urged to sign the release upon submittal of their claim forms to Enbridge at the claims centers. Many residents have reported to the Committee that they had no idea what they were signing.

The Committee staff also found that Enbridge urged residents who have experienced health effects from the oil spill to sign authorization forms for the release of their medical records to the company.

“Enbridge’s efforts to take legal advantage of Michigan residents under the stress of the immediate aftermath of the worst oil spill in the region’s history are reprehensible,” Oberstar and Schauer wrote in their letter to the company. “We are outraged that Enbridge would convince or seek to convince residents, workers, and business owners to sign release forms, which attempt to release Enbridge of all liability from claims – in some cases in exchange for an air purifier. We are equally distressed that Enbridge would convince or seek to convince residents with health effects from the oil spill to release all medical records and provide Enbridge with authority to discuss signatories’ medical and psychological condition and treatment directly with residents’ doctors.”

The 30-inch Enbridge pipeline ruptured on July 25, spilling nearly one million gallons of petroleum and petrochemicals into the Talmadge Creek and the Kalamazoo River, which empties into Lake Michigan. The Environmental Protection Agency has called the event the worst oil spill ever to hit the Midwest.

The Committee will hold a hearing on the pipeline spill on Wednesday, September 15, at 10:00 a.m. in Room 2167 of the Rayburn House Office Building in Washington.

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More information about the hearing

Letter sent to Enbridge, Inc.

Letter to the Department of Health and Human Services

Letter to the Department of Justice