Press Release

PUC Imposes Conditional Fine on Butler County Gas Company for Numerous Safety, Regulatory Violations

Published on 1/12/2006

Filed under: Gas

HARRISBURG – The Public Utility Commission today imposed a conditional fine on Herman Oil & Gas Co. of more than $240,000 for 24 safety violations and eight violations of regulatory procedures, although by bringing its operations into compliance, the company can avert much of the financial penalty.

“Ordering a significant financial penalty was the only way to protect the safety of customers and deter future violations by this company,” said Commission Chairman Wendell F. Holland. “By allowing the company to reduce the fine by bringing its operation into compliance the Commission is holding the company responsible while bringing it into compliance without putting it out of business.”

The company was fined $200,000 for 24 gas safety violations, rending unreasonable and unsafe service. The fine will be reduced by $8,333 for each of the violations that are corrected within 30 days. The Commission’s Gas Safety Division does have the authority to extend that deadline for good cause.

A $40,000 fine also was assessed for five violations dealing with its failure to comply with regulatory requirements such as filing assessment reports and annual reports. The fine will be reduced by $8,000 for each of the violations that are corrected within 30 days.

The company also has 20 days to pay a $2,500 civil penalty to the Public Utility Commission.  The company serves about 400 customers in Butler and Armstrong counties.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as stewards of competition.

For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. C-20042406

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