Pipeline Operating Risk
Pipeline leaks are an inherent risk of operations. Other operating risks include: the breakdown or failure of equipment, information systems or processes; the performance of equipment at levels below those originally intended (whether due to misuse, unexpected degradation, or design, construction or manufacturing defects); failure to maintain adequate supplies of spare parts; operator error; labour disputes; disputes with interconnected facilities and carriers; and catastrophic events such as natural disasters, fires, explosions, fractures, acts of terrorists and saboteurs, and other similar events, many of which are beyond Enbridge’s control. The occurrence or continuance of any of these risks could increase the cost of operating Enbridge’s pipelines or reduce revenues, thereby having an impact on earnings.
Enbridge has an extensive program to manage the integrity of our pipelines and facilities. The program includes ongoing measures to reduce the risk of excavation damage and prevent corrosion. It also includes maintenance, inspections, excavation and repair programs. Enbridge also maintains comprehensive insurance coverage for significant pipeline leaks and has a comprehensive security program designed to reduce security-related risks.