On Sept. 9, 2010, a pipeline running through a residential neighborhood in San Bruno, Calif., ruptured, permitting natural gas to escape into the air. The gas ultimately ignited, resulting in an explosion and a fire that killed eight people and injured 58 others. The fire also ravaged the neighborhood, damaging 108 homes, 38 of which were completely destroyed.
Earlier this month, federal prosecutors indicted PG&E Corp., the pipeline operator allegedly responsible for the ruptured line. In a 12-count indictment, PG&E was charged with violations of the Natural Gas Pipeline Safety Act, which requires pipeline operators to maintain inspection records and develop a maintenance program to ensure the continued integrity of their pipelines. The indictment alleges that PG&E “knowingly and willfully” failed to address recordkeeping deficiencies and failed to investigate the seriousness of threats to its pipelines. Specifically, it is alleged that PG&E disregarded serious known threats to the pipeline at issue and knowingly relied on erroneous and incomplete information when evaluating it. PG&E faces a penalty of $500,000 per count, or $6 million.
