SoCalGas agrees to $1.8-billion settlement in 2015 gas leak
Nearly six years after the worst methane gas leak in U.S. history forced more than 8,000 families in Porter Ranch to flee their homes, Southern California Gas Co. has agreed to pay a settlement of up to $1.8 billion.
In an announcement Monday, the gas company and its parent, Sempra Energy, deny any wrongdoing. The settlement comes after years of lawsuits involving more than 35,000 victims.
The October 2015 leak lasted four months and caused the largest known release of methane in U.S. history. More than 100,000 metric tons of the gas, a pollutant more potent than carbon dioxide, spewed into the air.
The leak also released small amounts of benzene, a cancer-causing chemical, and other toxic pollutants.
About 8,000 families living nearby complained of symptoms, including headaches, nosebleeds and nausea, and fled their homes.
“Our goal has always been obtaining justice for the men, women and children who were failed by SoCalGas throughout every turn of this catastrophe,” according to a statement by Brian Panish, lead attorney for the leak’s victims. “This settlement, and the numerous discovery sanctions imposed by the court, hold Sempra and SoCalGas accountable for the Aliso Canyon blowout and their repeated misconduct throughout this litigation.”
In a statement, SoCalGas said the agreements were expected to resolve “substantially all material civil litigation” against the company, which would record an after-tax charge of about $1.1 billion this month.
Settlement costs wouldn’t be passed on to customers, the utility said.
The first settlement agreement requires getting about 97% participation out of the roughly 36,000 plaintiffs, and court approval of how settlement money will be distributed, among other conditions, the utility said.
“These agreements are an important milestone that will help the community and our company work toward putting this difficult chapter behind us,” said Scott Drury, CEO of SoCalGas.
“In the years since the leak, SoCalGas has worked alongside regulators, technical experts and our neighbors to enhance safety at all our underground storage facilities and our engagement with the community. As a result, our storage facilities operate by what regulators and experts have called some of the most rigorous safety standards in the country.”
This is a developing story and will be updated as more information becomes available.
