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Natural gas line rupture near school results in $395,000 PSC fine Commission cites multiple violations of pipeline safety standards in 2014 incident. Fine is largest ever assessed by the PSC in a natural gas safety case. Click on headline for complete story By Andrew Melnykovych Frankfort, KY (16 Mar 2018) - The Kentucky Public Service Commission (PSC) has fined Louisville Gas and Electric Co. (LG&E) $395,000 for a series of violations that led to the September 2014 rupture of a high-pressure natural gas pipeline in Goshen, Oldham County. The penalty is the largest ever assessed by the PSC in a natural gas safety case. The fact that the accident occurred in close proximity to homes, a school, and businesses - what is known as a "high consequence area" - was a factor in determining the amount of the penalties.
Specifically, the principal factors leading to the failure were:
LG&E witnesses also testified that the company had taken several corrective measures since the accident to prevent reoccurrences. The company no longer uses mechanical couplings on natural gas transmission lines, has removed seven of ten such couplings, and will remove the last three by next month. According to LG&E, there are about 1,350 mechanical couplings on high-pressure distribution lines. It will install no more such couplings on high-pressure lines, and will remove existing ones as the opportunity presents itself, LG&E said. Use of mechanical couplings in other circumstances will be limited and closely monitored, the company said. LG&E also stated that it has strengthened inspection of welding work in its pipeline system. The failure of the pipe cost LG&E more than $1.3 million, including $262,000 in property damage and $950,000 for repairs and service restoration, the company said. In determining the penalty, the PSC found that the maximum amount LG&E could be fined is $1.5 million. The penalties are set by federal natural gas safety regulations, which are enforced in Kentucky by the PSC for any entity operating a gas distribution system. The PSC found that LG&E committed six violations, with the most serious the three associated with the improper installation of the coupling on the 12-inch pipeline. The PSC also found violations stemming from problems with the second coupling, which was on an 8-inch pipeline; from the failure to inspect the welds on the 12-inch pipeline; and from operating the 12-inch pipeline at higher pressures than permitted with the faulty coupling in place. Each of the three most serious violations merit a penalty of $100,000, with the other three violations earning penalties of $30,000, $50,000, and $15,000, respectively. The PSC also ordered LG&E to report on its progress in implementing its plan to address safety issues with mechanical couplings, including the progress made in removing and replacing them in its system. The reports are due annually through 2022. Today's order, a video of the hearing, and other records in the case are available on the PSC website, psc.ky.gov. The case number is 2017-00119. The PSC is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,500 gas, water, sewer, electric and telecommunication utilities operating in Kentucky. News from the Kentucky Public Service Commission This story was posted on 2018-03-17 04:39:33
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Have comments or corrections for this story? Use our contact form and let us know. More articles from topic Kentucky:
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