Southwest Gas agrees to pay a $2 million fine for two East Valley incidents

PHOENIX (AZFamily) – Southwest Gas will have to pay a $2 million fine and potentially install thousands of miles of new pipes for failing to take proper steps to prevent two pipe incidents in the East Valley in 2021, one of which resulted in an explosion.

The Arizona Corporation Commission, the state’s oversight panel, unanimously approved the penalty agreement between Southwest Gas and the commission’s Office of Pipeline Safety on Wednesday.

Investigators said Southwest Gas purchased specific types of pipes, known as Driscopipe polyethylene (PE) M7000 and M8000, that deteriorated in areas of high heat, leading to dangerous leaks.

A gas line at a Chandler printing plant exploded in August 2021 (left) and a gas leak in September... — A gas line at a Chandler printing plant exploded in August 2021 (left) and a gas leak in September 2021 caused a Scottsdale neighborhood to be evacuated (right).(Arizona’s family)

The company also has not properly mapped where these faulty pipes are located and has not increased leak patrols in those areas.

On August 26, 2021, just before 9:30 AM, a gas leak caused an explosion at a printing plant in a strip mall near Rural and Ray Roads.

Four people were seriously injured.

On September 9, 2021, about a dozen homes in northeast Scottsdale were evacuated due to an underground gas leak. No injuries have been reported.

Southwest Gas has nearly 10,000 miles of Driscopipe polyethylene pipelines in Arizona. About 10,000 kilometers of that are in ‘high heat areas’, which are prone to faster than normal deterioration.

The company must also notify the Office of Pipeline Safety of any discovered leaks.

Southwest Gas said it will increase leak patrols across its network six times a year.

The Arizona Corporation Commission also approved an amendment stating that the settlement does not mean Southwest Gas can increase customer rates.

“This matter has been before the Commission long enough and the approval of this settlement is a major step toward maintaining public safety and holding the utility accountable,” said Commissioner Kevin Thompson. “I do not believe that customers should bear full responsibility for manufacturer mistakes and their defective products, and I wish the utility had pursued this path more aggressively when they had the chance.”

Southwest Gas provided Arizona’s family with the following statement.

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