ENBRIDGE 2000 ANNU AL REPORT 49 14. Related Party Transactions 15. Commitments and Contingencies Enbridge Consumers Gas Lakehead Pipe Line Partners Lakehead Pipe Line Company (Lakehead), which holds the Company’s 15.3% equity interest in the Partnership, has  agreed to indemnify the Partnership from and against substantially all liabilities, including liabilities relating to  environmental matters, arising from operations prior to the transfer of its pipeline operations to the Partnership in 1991. This indemnification does not apply to amounts that the Partnership would be able to recover in its tariff rates (if not recovered through insurance), or to any liabilities relating to a change in laws after December 27, 1991. In addition, in  the event of default, Lakehead, as the General Partner, is subject to recourse with respect to a portion of the Partnership’s  long-term debt which amounted to U.S. $500.0 million at December 31, 2000. In April 1994, an action was commenced against Enbridge Consumers Gas in the Ontario Court of Justice (General Division) by a customer claiming that the OEB-approved late payment penalties charged to customers were contrary to Canadian federal law and seeking certification of the action as a class action. The claim sought $112 million in “restitutionary payments” and other relief and was brought on behalf of all people who were customers of Enbridge Consumers Gas and who had paid or been charged for the late payment penalties since April 1, 1981. The action has not been certified by the Court as a class proceeding although the Class Proceedings Committee established under the Ontario Class Proceedings  Act, 1992 decided that it would fund the action. In February 1995, the Ontario Court of Justice, General Division issued a judgement on the threshold issue in favour of Enbridge Consumers Gas dismissing the class action lawsuit. The Court concluded that the late payment charge is not interest payable on a credit transaction, but is an incentive to customers to pay their bills by a certain date. The Court held that Section 347 of the Criminal Code of Canada, which deals with interest on credit transactions, did not apply. An appeal by the plaintiff from this decision was dismissed by the Ontario Court of Appeal in September 1996. The plaintiff was granted leave to appeal to the Supreme Court of Canada from the decision of the Court of Appeal. The appeal was heard by the Supreme Court of Canada in March 1998 and the decision of the Court was issued in October 1998. The Court allowed the appeal, set aside the summary judgement dismissing the action and remitted the action back to the Ontario Court (General Division) for proceedings in accordance with the Ontario Class Proceedings Act, 1992. Further motions for summary judgement and related matters were argued during March 2000. In April 2000, the Court released its Reasons for Decision in which it dismissed the plaintiff’s claim. In May 2000, the plaintiff filed a Notice of Appeal with the Ontario Court of Appeal. The Appeal is expected to be heard in March 2001. Enbridge Consumers Gas believes that it has sound defences to the plaintiff’s claim and it intends to vigorously defend the action. The remediation of discontinued manufactured gas plant sites may result in future costs. The probable cost of remediation measures cannot be determined at this time due to uncertainty about the existence or extent of environmental risks, the complexity of laws and regulations particularly with respect to sites decommissioned years ago and no longer owned by Enbridge Consumers Gas, and the selection of alternative remediation approaches. Although there are no known regulatory precedents in Canada, there are precedents in the United States for recovery in rates of costs of a similar nature. Enbridge Consumers Gas expects that, if it is found that it must contribute to any remediation costs, it would be generally allowed to recover in rates those costs not recovered through insurance or by other means and believes that the ultimate outcome of these matters would not have a significant impact on its financial position. Lakehead Pipe Line Partners, which does not have any employees, uses the services of the Company for managing and operating the U.S. pipeline business. These services, which are charged at cost in accordance with service agreements, amounted to $46.7 million (1999 — $50.9 million; 1998 — $51.7 million). Accounts receivable include $2.3 million due  from the Partnership (1999 — $2.5 million).