Cascade Natural Gas Corporation and the Washington state Utilities and Transportation Commission (UTC) have reached a settlement agreement related to multiple pipeline safety violations.
These violations, identified during a commission investigation, resulted in the release of liquefied natural gas (LNG) and a fire that caused injuries and one death.
UTC approved an order adopting the settlement agreement on Jan. 29.
Cascade is based in Kennewick and provides natural gas service to over 222,000 customers in 67 communities across Washington state.
As part of the settlement, UTC imposed a $2 million penalty against Cascade, suspending $250,000 of the amount on the condition that the company complete additional compliance actions outlined in the settlement.
Cascade may not recover the penalty costs from customers, according to UTC.
Cascade must pay the unsuspended amount of $1,750,000 within 30 days from the order’s effective date.
The settlement terms also require Cascade to:
• Contract with a third party to conduct an audit of their safety management program and correct any deficiencies identified
• Allow staff and the commission to provide input throughout the audit process
• Create a new company policy to oversee and manage contractors
• Notify the commission if LNG is used in future operations
In support of the settlement, the company states it understands the seriousness of the incident and has taken steps to improve contractor oversight and safety protocols, according to a UTC news release.
“Through the work of its pipeline safety division, including the investigation and resolution of the complaint in this incident, the commission is committed to ensuring pipeline operators maintain the highest safety standards in Washington state,” UTC said in a news release.
Established by the Legislature in 1955, the UTC Pipeline Safety Program regulates the safety practices of 41 pipeline operators and conducts safety inspections on more than 47,000 miles of natural gas and hazardous-liquid pipelines in Washington.
The UTC also regulates the rates and services of investor-owned electric utilities, telecommunications companies, natural gas, and water companies in the state.
