Columbia Gas To Pay $53 Million, Leave Massachusetts

ANDOVER, MA — Columbia Gas is pleading guilty to federal charges related to the deadly Sept. 2018 Merrimack Valley gas explosions, officials announced Wednesday.

The company is pleading guilty to violating the Pipeline Safety Act, following an investigation by the FBI and the Department of Transportation. The company is scheduled to plea guilty March 9 in Boston federal court.

Columbia Gas's parent company NiSource will pay a $53 million fine, sell Columbia Gas of Massachusetts and cease operations in the state. Any profits from the sale will be paid to the U.S. government, and until the sale is complete, an independent monitor will observe the company's activities and report to the federal government on a monthly basis.

NiSource will be bound by a deferred prosecution agreement to implement the National Transportation Safety Board's recommendations in the wake of the accident at their other subsidiaries around the country.

The Sept. 13, 2018 accident ultimately killed one, injured 22, and damaged 131 structures in Andover, Lawrence and North Andover, as well as leaving many residents unable to return to their homes for months. The National Transportation Safety Board's final report on the accident, released in October, found that "weak engineering management" by Columbia Gas was responsible for the deadly explosions. The company also faces investigations at the state level.

At a press conference announcing details on the charges and plea deal, U.S. Attorney Andrew Lelling explained that the $53 million fine is double the profits of the pipeline replacement project that Columbia Gas pursued from 2015 to 2018. It is by far the largest criminal fine imposed under the pipeline safety act.

Lelling and other officials criticized the company harshly.

"Columbia Gas relied on informal communication lines to ensure no lines were cut," U.S. Attorney Andrew Lelling said. "This is like relying on informal communications to run a nuclear reactor or land an airplane."

FBI Boston Division Special Agent in Charge Joseph Bonavolonta said the company showed itself to not know what gas lines there were, and could not provide a complete list of customers in the immediate wake of the accident.

"Today's settlement is a sobering reminder that if you decide to put profits over public safety, you will pay the price," Bonavolonta said.

Asked about prosecuting individuals, Lelling said the Columbia Gas case was one of "complete organizational failure" where no one individual's actions rose to the level of a federal crime.

In a press release detailing the charges against the company, prosecutors noted the company knew three years before the explosions that there was a risk of such a catastrophic event.

"The charges filed against CMA allege that the company recklessly disregarded a known safety risk related to regulator control lines – sections of pipe connected to regulator stations that helped monitor and control downstream gas pressure. By at least 2015, according to an internal company notice, CMA knew that the failure to properly account for control lines in construction projects could lead a “catastrophic event,” including fires and explosions."

"Throughout the project, CMA disregarded the known safety risks related to control lines, and instead focused on the timely completion of construction projects to maximize earnings," the release continues.

A spokesman for Columbia Gas released the following statement:

“We take full responsibility for the tragic events of September 13, 2018 that so impacted our customers throughout the Merrimack Valley. Today’s resolution with the U.S. Attorney’s Office is an important part of addressing the impact. Our focus remains on enhancing safety, regaining the trust of our customers and ensuring that quality service is delivered.”

In a separate statement statement, NiSource said, “Today’s agreement with the U.S. Attorney’s Office is an important step in addressing the tragic events of September 13, 2018 and our ongoing focus on enhancing safety and delivering quality service to our customers. We are committed to doing what is in the best interests of both the public we serve and our dedicated employees, and we will fulfill the terms of our agreement today consistent with that commitment.”

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.