* Ruptured Enbridge pipeline won't restart this week

* EPA reports no new contamination at Michigan site

By Steve James

NEW YORK, (Reuters) - Enbridge Inc's chief
executive said Sunday the company would not restart its
ruptured pipeline in Michigan this week as it continues to
clean up 800,000 gallons of oil spilled in and around the
Kalamazoo River.

Meanwhile, the U.S. Environmental Protection Agency said
there was "significant improvement" at the spill site after
almost a week and no signs of new contamination.

Officials also gave an update on the cleanup efforts,
saying 39,000 barrels -- about 1.6 million gallons --
containing oil and water have now been recovered.

The U.S. Department of Transportation ordered Calgary,
Alberta-based Enbridge last week to take a number of
precautionary steps before restarting the 286-mile (463-km)
pipeline, which carries as much as 190,000 barrels per day of
oil from northern Indiana to Sarnia, Ontario.

Chief Executive Pat Daniel told a news conference in
Michigan the company would give the EPA its updated draft of
the plan on Sunday.

Asked when the company might reopen the pipeline, he
stressed the decision was in the hands of federal regulators.

"We have no intention to start up this week," he said in
comments monitored in New York via teleconference.

Daniel said last week that making the pipeline ready to
resume operation can take only a matter of days. The pipeline
is operated by U.S. affiliate Enbridge Energy Partners

Asked by Reuters what the impact of the spill and cleanup
would have on Enbridge's quarterly earnings, he said the
company had not calculated that figure as it was focusing on
the cleanup and the affected community.

Enbridge may face substantial fines from the United States
for the spill. Under the Oil Pollution Act, fines of up to
$4,300 a barrel ($100 a gallon) could be levied if it's
determined the company was grossly negligent, or $1,100 per
barrel if was less irresponsible.

Daniel stressed the company's commitment to residents of a
region in which it has operated for 40 years. "You don't have
to sue Enbridge to be reimbursed," he said.

Residents of 14 homes have evacuated voluntarily and about
100 homes near the Kalamazoo River have been told not to drink
water from their taps.

Susan Hedman, EPA regional director, told reporters the
agency had already approved $5 million of federal funds to
cover clean-up costs "and we will seek recovery of every penny
from Enbridge."

She said incrementally she was seeking more funds. "Several
million would be appropriate," she said.

"I am happy to report significant improvement of the spill
site, at the creek and the river. Oil continues to be removed
and we have not seen any further contamination."

Mark Durno, director of emergency management for Michigan's
Calhoun County, gave the update on the cleanup process.

"It's a question of weeks to get the oil out of the river
and it will be months before all the oil is off the banks and
flood plain.

"It will take months before it's cleaned up."
(Reporting by Steve James; Editing by Steve Orlofsky)