Utility to pay $53 million, plead guilty over Massachusetts gas explosions

By Nate Raymond

BOSTON (Reuters) – A utility operator blamed for catastrophic gas explosions in Massachusetts in 2018 will pay a $53 million fine and plead guilty to violating a federal pipeline safety law as part of a deal in which its parent NiSource Inc has agreed to sell the company and exit the state.

Federal prosecutors in Boston on Wednesday said Columbia Gas of Massachusetts will plead guilty to violating the Pipeline Safety Act to resolve a probe into to the disaster, which killed one person, injured 22 others and destroyed multiple buildings.

NiSource, as part of a deferred prosecution deal, also agreed to sell Columbia and exit Massachusetts, a condition U.S. Attorney Andrew Lelling said was meant to “vindicate” the outrage of residents of Lawrence, North Andover and Andover, where the blasts occurred.

“Clearly what happened here is this particular company couldn’t be bothered to maintain the safety of its customers,” Lelling said.

Merrillville, Indiana-based NiSource, which serves nearly four million natural gas and electric customers across seven states, said in a statement it took full responsibility for the “tragic events.”

Prosecutors said Columbia recklessly disregarded minimum federal safety standards, causing its gas pipelines to become over-pressurized, which led to the Sept. 13, 2018, explosions in the three communities northwest of Boston.

The blasts occurred while Columbia was replacing cast-iron pipes with plastic lines. They damaged about 131 homes and commercial buildings and prompted the evacuation of thousands of residents.

Prosecutors said Columbia failed to account for pressure detectors while workers replaced aging cast-iron pipes and failed to follow any plan to prevent the over-pressurization that resulted.

The allegations mirrored the findings of the National Transportation Safety Board, which in September said that “weak engineering management” did not adequately plan and oversee the project.

No individual employees will be charged, Lelling said, as the case was the result of not one person’s actions but a “complete organizational failure.”

The deal is separate from a $143 million settlement the company reached in July to resolve lawsuits brought by residents and businesses affected by the explosions and an $80 million accord it struck with the three communities.

Columbia also last year reached a settlement with the family of a teenager killed during the gas explosions.

Under the terms of Wednesday’s agreements, NiSource has agreed to forfeit to the government any profits from the sale of Columbia, whose operations will be subject to monitoring during a three-year probationary period.

NiSource shares were trading at $28.32 midday Wednesday, down 0.19%.

(Reporting by Nate Raymond in Boston; additional reporting by David Shepardson in Washington; Editing by Bernadette Baum)

Gas explosions drive thousands from homes in Boston suburbs

A police officer stands outside a home where a man died in a series of gas explosions in Lawrence, Massachusetts, U.S., September 14, 2018. REUTERS/Brian Snyder

By Ted Siefer

ANDOVER, Mass. (Reuters) – Some 8,000 people were prevented from returning home in Boston suburbs on Friday as investigators scrambled to find out the cause of dozens of gas explosions that killed at least one person and injured about 12 more.

The blasts on Thursday destroyed scores of homes and other buildings in Andover, North Andover and Lawrence, left more than 18,000 homes and businesses without power and forced thousands of people from their homes.

A fire engine is seen near a building emitting smoke after explosions in Lawrence, Massachusetts, United States in this September 13, 2018 still image from social media video footage by Boston Sparks. Boston Sparks/Social Media/via REUTERS

A fire engine is seen near a building emitting smoke after explosions in Lawrence, Massachusetts, United States in this September 13, 2018 still image from social media video footage by Boston Sparks. Boston Sparks/Social Media/via REUTERS

Investigators suspected “over-pressurization of a gas main” belonging to Columbia Gas of Massachusetts led to the series of explosions and fires, Andover Fire Chief Michael Mansfield said on Thursday.

Massachusetts State Police said around 70 fires, explosions or investigations of gas odor had been reported.

“This has been obviously an incredibly difficult day,” Massachusetts Governor Charlie Baker said in a news conference early on Friday.

Those driven from their homes “should expect that the restoration process will take several days or longer,” Andrew Maylor, the town manager of North Andover, said on Twitter.

National Transportation Safety Board Chairman Robert Sumwalt said it would likely take investigators some time to examine the pipeline’s design, maintenance, and upgrades.

“The truth of the matter is we really don’t have any factual information at this point to confirm,” Sumwalt said on Friday.

Columbia Gas, a unit of utility NiSource Inc, is investigating, NISource spokesman Ken Stammen said on Thursday. Before the explosions, Columbia Gas had said it would be upgrading gas lines in neighborhoods across the state, including the affected suburbs.

NiSource shares fell more than 9 percent on Friday morning.

A building burns after explosions in Lawrence, Massachusetts, United States in this September 13, 2018 photo from social media by Boston Sparks. Boston Sparks/Social Media/via REUTERS

A building burns after explosions in Lawrence, Massachusetts, United States in this September 13, 2018 photo from social media by Boston Sparks. Boston Sparks/Social Media/via REUTERS

SAFETY CHECKS

Firefighters raced for hours from one blaze to another and utility crews rushed to shut off gas and electricity to prevent further explosions on Thursday. Fire and utility crews were still going door to door on Friday to conduct safety checks and shut off gas meters, officials said.

Eighteen-year-old Leonel Rondon died when his car was crushed by a falling chimney, a spokeswoman for the Essex County District Attorney’s office said. Lawrence General Hospital said it had treated 13 people for injuries ranging from smoke inhalation to blast trauma.

Guilia Holland, a 35-year-old mechanic in a wheelchair, said she had just gotten off a bus returning home when she saw “a big flash of light” at the house where she had been renting a room for a month.

“Good thing I wasn’t home or I wouldn’t be talking about it,” she said outside an elementary school in Lawrence that the Red Cross had converted into a shelter for about 170 people.

South Lawrence Mayor Daniel Rivera urged residents to stay away from their homes.

“There could be still a gas leak in your home,” Rivera said. “You can’t see it and in some cases you won’t be able to smell it, and God forbid you go to sleep and don’t wake up.”

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration said it was sending a team to support the state’s emergency response efforts.

“At this time, the focus remains on ensuring the public safety,” Baker said. “Once that’s complete, we will work with federal government and others to investigate how this occurred and hold the appropriate parties accountable for their actions.”

(Additional reporting by Ross Kerber and Nate Raymond in Boston; Brendan O’Brien in Milwaukee and Makini Brice in Washington; editing by Larry King and Susan Thomas)

Explosion at Hawaii volcano spews ash as lava flows into sea

Gas and steam rise from a volcanic fissure in Leilani Estates during ongoing eruptions of the Kilauea Volcano in Hawaii, U.S., June 9, 2018. REUTERS/Terray Sylvester

HONOLULU, Hawaii (Reuters) – A small explosion at the summit of Hawaii’s erupting Kilauea Volcano on Sunday sent ash spewing into the air, creating a driving hazard for roads on parts of the Big Island, the U.S. Geological Survey said.

Lava fountains from a fissure in the volcano reached as high as 180 feet (55 meters) from Saturday night into Sunday, pushing flows of molten rock into the ocean, it said.

“Seismic activity at the crater continues with gas explosions and ash eruptions under 10,000 feet (3,050 meters). While the eruption is never predictable, conditions appear stable for the moment,” Richard Rapoza, a spokesman for Hawaii Emergency Management Agency, said in an email.

Journalists and National Guard soldiers watch as lava erupts in Leilani Estates during ongoing eruptions of the Kilauea Volcano in Hawaii, U.S., June 9, 2018. REUTERS/Terray Sylvester

Journalists and National Guard soldiers watch as lava erupts in Leilani Estates during ongoing eruptions of the Kilauea Volcano in Hawaii, U.S., June 9, 2018. REUTERS/Terray Sylvester

The eruption, which entered its 39th day on Sunday, stands as the most destructive in the United States since at least the violent 1980 eruption of Mount St. Helens in Washington state that reduced hundreds of square miles (km) to wasteland and killed nearly 60 people, according to geologist Scott Rowland, a volcanologist at the University of Hawaii at Manoa.

No one has died in this Hawaii eruption but some 600 homes have been swallowed by lava flows from Kilauea since May 3, Hawaii County Mayor Harry Kim said last week.

Vacationland, a private development believed to comprise about 160 homes, was completely erased, and at least 330 houses were devoured by lava at Kapoho Beach Lots, Kim said.

(Reporting by Jolyn Rosa in Honolulu and Suzannah Gonzales in Chicago; Writing by Jon Herskovitz in Austin, Texas; Editing by Frank McGurty and Sandra Maler)