Columbia Gas Has Paid Out $94.8 Million In Disaster Claims

ANDOVER, MA -- Columbia Gas of Massachusetts said it has paid out $94.8 million to residents and businesses in Andover, North Andover and Lawrence who filed claims following the Sept. 13 gas explosions in the Merrimack Valley. The utility said it has closed 20,049, or 96 percent, of the 24,878 claims that were filed. The figures were released after members of the state's Congressional delegation accused Columbia Gas of overseeing an ineffective claims process and shortchanging some residents and business owners who made claims.

"A claim is only closed and listed as inactive if the customer closes it or indicates they have no further issues pending," Scott Ferson, a spokesperson for Columbia Gas, told the Boston Herald earlier this week. The utility also said people can reopen claims if they incur new expenses.

In a letter to the presidents of Columbia Gas and its parent, NiSource Inc., U.S. Sens. Elizabeth Warren and Ed Markey, and U.S. Reps. Seth Moulton and Lori Trahan cited news reports that some claimants had not been compensated months after opening their claim, while others received payments far short of the amount needed to cover their damages.

"It has been six months since the explosions caused thousands of families to evacuate their homes for days or weeks, damaged or destroyed dozens of homes, left many businesses with considerable financial losses, and tragically took a young man’s life," the letter said. "But there are new reports that the financial compensation Columbia Gas is providing for affected businesses ‘doesn’t come close to covering their losses,’ and that some ‘haven’t been paid at all, despite filing their claims months ago."

The allegations in the letter stemmed from media coverage of recent community meetings. "We do not agree that our claims to date ‘do not come close to covering losses," Ferson said.

A National Transportation Safety Board report placed blame for the Sept. 13 gas explosions that killed one and damaged or destroyed 131 buildings in the Merrimack Valley on the Columbia Gas. The report showed that Columbia Gas signed off on a work order that allowed for pressure to increase in transmission lines, which set off a series of explosions and forced the evacuation of thousands from the three communities.

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).