SW Gas to pay $2 million in fines and improve pipeline safety after explosion

CHANDLER, Ariz. — Southwest Gas has agreed to pay a $2 million fine and take safety improvements to resolve allegations of utility violations following two major gas leaks in 2021.

One of the leaks led to an explosion at Chandler Mall that left four people seriously injured. Another leak in Scottsdale led to the evacuation of nearby homes.

In both cases, the leaks were due to thermal degradation of Driscopipe 8000 gas pipelines that were not properly mapped to the Southwest Gas system.

It has been known for years that Driscopipe 8000 can become brittle and crack in hot desert conditions. The company website says premature degradationcan only happen if several conditions are present, including that there was gas in the pipe, but it was not flowing. The company’s examples included “dormant services” that were disconnected from a customer for years, or a “pipe” that never reached the customer.

After something like this 2014 explosionSouthwest Gas agreed to conduct more frequent leak patrols and expedite the removal of certain sections of the Driscopipe 8000 line. These safety measures were not met in the Chandler and Scottsdale leak areas in 2021 due to mapping issues discovered during a subsequent investigation.

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The new consent agreement between Southwest Gas and the Arizona Corporation Commission is dated Oct. 30 and is subject to final approval by the commissioners.

Southwest Gas agrees to pay $2 million to the Slate General Fund as a non-refundable civil penalty.

Additionally, the agreement includes enhanced security reviews and remedial measures, including:

• Expedited replacement or retirement of inactive Driscopipe 7000 and 8000 plugs and services. This must occur 6 months after discovery in Phoenix, Yuma and Bullhead City Counties or within 12 months in all other Arizona Slate locations.
• Southwest Gas will continue leak patrols 6 times per calendar year on Driscopipe lines 7000 and 8000. Some Driscopipe 8100 lines are also included due to concerns that lines may have mislabeled 8000 pipes in the early years of the transition.
• Any Grade 1 or 2 leaks on 7000 or 8000 pipelines and all damage must be reported by SW Gas to the State of Arizona Pipeline Safety Division no later than one hour after visual confirmation.

In the agreement, Southwest Gas does not admit or deny any safety violations. The utility previously settled the lawsuit. victims of the Chandler Mall bombing.