UPDATE 1-U.S. regulators probing BP crude shipments on Enbridge pipeline

Wed Feb 4, 2015 6:58pm EST
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(Adds details on Enbridge system, quote)

By Nia Williams

CALGARY, Alberta Feb 4 (Reuters) - A U.S. investigation into oil major BP Plc breaking anti-fraud and reporting rules on using oil pipelines is related to crude shipped on Enbridge Inc's Mainline system, Enbridge said on Wednesday.

Graham White, a spokesman for Canada's largest pipeline company, confirmed the investigation is related to crude volumes nominated by shippers on its system. He said the Commodity Futures Trading Commission (CFTC) had not indicated Enbridge was under investigation.

"We are prevented from publicly commenting on this matter as company information will be required for the investigations," White said. "Our downstream nominations process was reviewed by FERC in 2013 and approved as 'just and reasonable'."

The CFTC told BP last November it planned to recommend an enforcement action alleging violations of the Commodity Exchange Act in connection with Canadian pipeline nomination procedures and related trades, BP said in a quarterly earnings statement Tuesday.

The British oil giant said it submitted a detailed defence to U.S. regulators in mid-December.

"We have responded to the CFTC's allegations and challenged their jurisdiction over the alleged conduct," said a company spokesman.

Sarah Kiley, spokeswoman for Canada's National Energy Board, the country's energy and safety regulator, said at this point the NEB was not involved in the investigation.   Continued...