Press Release

PUC Approves $50,000 Settlement with Columbia Gas over Westmoreland County Natural Gas Explosion; Weighs $10,000 Settlement over Separate Incident in Fayette County

Published on 12/3/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission today finalized a settlement with Columbia Gas of Pennsylvania Inc. requiring a $50,000 contribution to the Dollar Energy Fund, and also issued a $10,000 settlement for comment.

The Commission voted 3-2 to approve the $50,000 settlement, which stemmed from an incident that occurred on Aug. 10, 2006, and was caused by a small leak in a gas pipe, resulting in an explosion and fire at a residence in Mount Pleasant Township, Westmoreland County.  The explosion and fire injured the occupant of the house, who suffered second degree burns.  As part of the settlement, Columbia does not admit to any violations surrounding the incident.

In reviewing the company’s actions in relation to the incident, the Commission’s Prosecutory Staff alleged that Columbia violated portions of the state Public Utility Code and federal regulations on pipeline safety including:

• Not having a record of reviews of corrosion indicators performed by a person qualified in pipeline corrosion indicators or corrosion methods;
• Not having record indicating the pipeline was re-evaluated for areas of active corrosion; and
• Company personnel not maintaining records that indicated the pipeline was re-evaluated for areas of active corrosion.

In a separate action, the Commission voted 5-0 to issue for comment a settlement with the company requiring Columbia Gas to pay a $10,000 civil penalty for violations of the state Public Utility Code and federal regulations on pipeline safety.   PUC Vice Chairman Tyrone J. Christy issued a statement. The settlement follows an investigation into an incident that happened on Aug. 24, 2007, in German Township, Fayette County, in which an excavation contractor struck a service line owned by Columbia Gas.  The PUC’s Prosecutory Staff found that the company did not provide for temporary marking of buried pipelines in the area prior to excavation activity and also did not keep maps and records of its distribution system of the incident site.

Interested parties have 20 days from the entry of the order to file comments with the Commission.

Columbia provides natural gas service to approximately 373,000 residential and 38,000 commercial customers in Adams, Allegheny, Armstrong, Beaver, Bedford, Butler, Centre, Clarion, Crawford, Elk, Fayette, Franklin, Fulton, Greene, Indiana, Jefferson, Lawrence, McKean, Mercer, Somerset, Venango, Warren, Washington, Westmoreland and York counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

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

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Docket Nos. C-20077249 and M-2009-1505396

Contact:

• Press Secretary
  717-787-5722