SoCalGas Settles Multi-Million Dollar Gas Leak Suit

Southern California Gas Co. (SoCalGas) has announced that the company entered into a settlement agreement with the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Office of the Attorney General, and the California Air Resources Board to resolve all of their outstanding claims against the company related to the 2015-2016 natural gas leak at its Aliso Canyon natural gas storage facility.

At least 109,000 metric tons of methane emissions were released during the leak at the Aliso Canyon natural gas storage facility.

Under the terms of the $119.5 million settlement agreement, SoCalGas will, among other things,

  • Reimburse city, county, and state governments for costs associated with their response to the leak;
  • Establish a program with CARB to mitigate the methane emissions from the leak; and
  • Fund local environmental benefit projects to be administered by the government parties.

Bret Lane, president and chief operating officer of SoCalGas, said in a statement, ” SoCalGas is delivering on our commitment to the governor and the people of California to fully mitigate the methane emissions from the leak at our Aliso Canyon facility”.

Lane added, “The settlement will also help California meet its ambitious climate goals by advancing projects that capture methane from dairy farms and waste and convert that energy into renewable natural gas for use in transportation. SoCalGas is pleased to have worked with the Attorney General’s Office, the Air Resources Board, the Los Angeles City Attorney, and the County of Los Angeles to resolve these matters for the people of California.”

SoCalGas also has agreed to continue its fence line methane monitoring program and hire an independent ombudsman to monitor and report on safety at the facility.