Update 2019-09-17: Decision deferred for questions.

AGL has whittled GA-PSC staff’s recommended fine of $2,305,000.00 down to $250,000, on the theory that prevention is the goal, not punishment. This item is on GA-PSC’s agenda for 9AM tomorrow morning, September 16 17, 2019. There will be live stream of audio.

AGL President Bryan Batson (in green shirt) at 5701 Quarterman Road, Lowndes County, Georgia

$110,000 of the settlement is to go to fire departments for gas detectors, plus $70,000 on water and sewer damage prevention educational programs, and $70,000 to the Georgia Pipeline Emergency Responder Initiative (GPERI). At least that $250,000 is 25 times the usual fine. And despite the usual disclaimers of no admission of fault, etc., there is this:

The stipulation states that AGL cannot recover any of the $250,000.00 through rates or by ratepayers. Additionally, if AGLC receives any tax benefits as a result of utilizing the money, all benefits must be passed on to ratepayers.

When Tom Krause, Public Information Office, GA-PSC, sent me these documents about noon today, he added:

As I said, the PSC is continuing investigations into the contractor and the City of Homerville regarding this incident.

Plus there are quite likely private lawsuits still pending.

GA-PSC composed “a list of the 85 fire departments within AGLC’s certificated territory that could receive the gas detectors.”

Fire Department List Homerville AGL
PDF

Curiously, while Hahira is on that list, Lowndes County is not, even though the Lowndes County Fire Department has been called more than once to the origin of the very same pipeline involved in the Homerville Coffee Corner explosion.

AGL President Bryan Batson is quite aware of leaks at that site, which is on my property, since he has been there more than once, and his company has rebuilt the pipeline station there.

Tom Krause speculated that maybe Lowndes County already has gas detectors. If so, I never saw them use them on that site. I have left messages at the Lowndes County Fire Department, and with Michelle Thebert and Jack Branch of GA-PSC about this.

All these documents are on the WWALS website.

Settlement Agreement

BEFORE THE GEORGIA PUBLIC SERVICE COMMISSION

STATE OF GEORGIA

IN RE: ATLANTA GAS LIGHT COMPANY

) ) ) )

DOCKET NO.  42166

SETTLEMENT AGREEMENT

The Georgia Public Service Commission (“Commission”) and Atlanta Gas Light Company (“AGL,” “Company” or “Respondent”) hereby agree to presentation of the following proposed disposition of the above-styled matter:

Whereas, AGL and the Commission desire to resolve the issues raised in these proceedings in the manner set forth herein;

Whereas, AGL enters into this Settlement Agreement without admitting any of the facts or findings contained in said Incident Report and Notice of Probable Violations, without admitting any impropriety and without admitting any violation of any applicable rules, regulations or laws and, in particular, without admitting liability for any of the probable violations set forth herein;

Whereas, this Settlement Agreement shall not constitute an admission against interest in this or any other proceeding, and if this Settlement Agreement is not approved, it shall not prejudice the ability of AGL or Staff to present evidence or the ability of the Commission to adjudicate these matters. The Commission through adoption of this Settlement Agreement shall in no way be construed as condoning AGL’s or its contractor’s alleged conduct, if such allegations were true. Nothing in this Settlement Agreement may be construed in this or any other proceeding as an admission by or an allocation of fault against AGL.

Whereas, the Commission agrees that settlement consistent with the agreements made in this Settlement Agreement promotes administrative efficiency and is preferable to proceeding to a hearing on disputed issues;

It is hereby agreed as follows:

FINDINGS AND CONCLUSIONS

1.

This Settlement Agreement is being offered under: 49 U.S.C.S. § 60122; 49 C.F.R. § 192.605(a); 49 C.F.R. § 192.614(a); 49 C.F.R. § 192.615(a); 49 C.F.R. § 192.617; 49 C.F.R. § 199.105(c)(2); 49 C.F.R. § 199.225(a)(1); O.C.G.A. §§ 46-2-20, 46-2-21(b)(5), 46-2-30, 46-2-91, 46-4-31, 46-4-34, and 46-4-35.; and Georgia Public Service Commission Rules 515-9-1-.06, 515-9-3; and 515-9-6-.01; all regarding the safe installation and operation of gas distribution systems within the State of Georgia.

2.

In accordance with the aforementioned legal citations in Paragraph 1 above, the Facilities Protection Unit Staff of the Commission has the authority to inspect the facilities of Georgia’s natural gas providers pursuant to the laws cited herein and to seek the imposition of penalties for probable violations.

3.

The Company is a natural gas operator in the State of Georgia with gas transmission and distribution systems in and around the State; all of which are subject to the Commission’s jurisdiction.

4.

As a natural gas transmission and distribution system operator, Respondent is subject to the requirements of 49 U.S.C.S. § 60122, 49 C.F.R. Parts 191, 192, and 199.

5.

On Aug 17, 2018, AGL notified the Commission of a natural gas explosion that occurred inside a commercial business at 23 E. Dame Avenue (the Coffee Corner) in Homerville, GA. There were three people inside the business at the time of the explosion who were transported to a hospital in Gainesville, Florida with burns and other injuries.

6.

On or about March 27, 2019, in accordance with Commission Rule 515-9-3-.08, AGL was notified in writing of Notice of Probable Violations (“NOPV”) incorporated within the context of Staff’s Incident Report, DL19-004 (filed in this Docket No. 42166 on March 29, 2019), which alleged actions/inactions on part of Respondent in connection with the August 17, 2018 incident.

AGREEMENTS

By signing below, AGL agrees that all matters alleged in the NOPV outlined in Staff’s written Investigation Report DL19-004 should be settled as follows:

1.

This Settlement Agreement, if approved by the Commission, will constitute a final resolution of this proceeding and any other proceeding that could have been brought against AGL in connection with the August 17, 2018 incident.

2.

AGL will spend $110,000 on gas detector equipment to be provided to smaller fire departments in the state of Georgia within the AGL service territory within one year of a Commission order adopting this Settlement Agreement.

3.

AGL will spend $70,000 on educational programs to promote damage prevention with water and sewer organizations in Georgia within a three-year period following a Commission order adopting this Settlement Agreement. AGL agrees to work with the Pipeline Safety Staff in this effort.

4.

AGL will make a voluntary contribution of $70,000 to the Georgia Pipeline Emergency Responder Initiative (GPERI) within forty-five (45) days of a Commission order adopting this Settlement Agreement that will be paid in certified funds and will be made payable as determined by the Commission.

5.

All costs incurred related to compliance with this Settlement Agreement will be timely booked in accordance with the Uniform System of Accounts prescribed for Natural Gas Companies subject to the Provisions of the Natural Gas Act. AGL acknowledges that the expenditures set forth in ¶¶ 2, 3, and 4 herein are not recoverable through regulated rates.

6.

If complications arise as to compliance with and/or implementation of this Settlement Agreement, AGL and Commission Staff agree to work in good faith to resolve any such complications.

7.

The Parties agree that this Settlement Agreement is a just and reasonable disposition of any fine or penalty that the Commission could have assessed against AGL in connection with the incident on August 17, 2018 in Homerville, Georgia, including without limitation the NOPVs.

8.

This Settlement Agreement shall not become effective until and unless it is approved by the Commission, at which time the Parties anticipate that the Commission will enter an Order adopting and incorporating the terms and conditions of this Settlement Agreement.

9.

The undersigned authorized representative of AGL acknowledges by his signature below that he has read this Settlement Agreement and understands its contents. The undersigned further acknowledges his Settlement Authority on behalf of AGL and agrees on behalf of AGL to the resolution of this proceeding as provided for herein.

This __ day of September 2019.

Agreed to:

__________________________________________

Bryan Batson, President, Atlanta Gas Light Company

On Behalf of Respondent

__________________________________________

Michelle Thebert, Director, Office of Pipeline Safety/Facilities Protection

Georgia Public Service Commission

Thebert letter

From: Michelle Thebert
Sent: Wednesday, September 11, 2019 12:07 PM
To: Lauren McDonald; Tim Echols; Chuck Eaton; Jason Shaw; Tricia Pridemore
Cc: Tom Bond; Jack Branch; Will Culbreath
Subject: Homerville- Consent Agreement

Good Morning Commissioners-

 

Thank you for your consideration of the stipulation between Staff and AGL on the August 2018 Homerville incident.  I wanted to provide some additional details which will help you understand the reasoning for the requested allocation of the $250,000.00.  The proposal divides the money amongst providing crucial equipment to fire departments, creating/conducting educational programs and information directed towards water and sewer operators, and providing needed funds to the GPERI program.  The stipulation states that AGL cannot recover any of the $250,000.00 through rates or by ratepayers.  Additionally, if AGLC receives any tax benefits as a result of utilizing the money, all benefits must be passed on to ratepayers.

 

Regarding the proposal to allocate money for gas detectors for smaller fire departments, I have attached a list of the 85 fire departments within AGLC’s certificated territory that could receive the gas detectors.  The plan is that once AGL finalizes which detector and calibration kit makes best sense for each department, AGL will know how many units to order from the manufacturer.  If there are more departments than money, AGL will go through the list and identify the departments that have the greatest need/make the most sense to receive the units.  This includes training and calibration for the equipment. As you recall, the Homerville Fire Department did not have a gas detector, and therefore did not have knowledge of the level of natural gas in the Coffee Corner restaurant.  Had the Homerville Fire Department had equipment to use to detect the amount of gas in the restaurant, he would have had better information to make a determination on the best course of action. 

 

On the issue of damage prevention education directed specifically towards water and sewer utilities, the two state level water/sewer organizations that we plan to work with are the Georgia Rural Water Association and the Georgia Association of Water Professionals.  The plan is to work with these groups, along with joint attendance at annual county commissioner meetings, etc., to educate the groups on the importance of damage prevention activities for gas and sewer lines.  As you recall, the sewer lines in Homerville were not marked and subsequently damaged, and the released gas traveled through the sewer lines into the Coffee Corner. 

 

Water and sewer lines are often unmarked by the operators even with a request through 811.  It can be difficult to reach this audience though normal 811 education activities.  This joint project with AGL will allow us to reach out directly to the water and sewer communities to address failures to make, remind them of the legal requirements for marking their facilities, and stress the importance of awareness of all direct and indirect excavation activities. 

 

Please let me know if you have any questions or concerns.  I am in Maine this week at a NAPSR meeting, but I am able to check email/VM periodically.  If you need an answer quicker than I can respond, Tom and Jack Branch are familiar with the terms of the stipulation, as well.

 

Thank you for your consideration of adopting this stipulation. 

 

Thanks,

Michelle

 

Michelle L. Thebert

Director, Facilities Protection Unit

Georgia Public Service Commission

244 Washington Street NW

Atlanta, Georgia 30334

List of Fire Departments

 -jsq, John S. Quarterman, Suwannee RIVERKEEPER®

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