CHANDLER, AZ — Southwest Gas has agreed to pay a $2 million fine and make safety improvements to settle alleged violations of utility regulations after two major gas leaks in 2021.

One of the leaks caused an explosion at a Chandler shopping center which seriously injured four men. The other leak, in Scottsdale, led to the evacuation of neighboring homes.

In both cases, the leaks were due to thermal degradation of the Driscopipe 8000 gas lines, which were not properly mapped in the Southwest Gas system.

For years, Driscopipe 8000 was known for its potential to become brittle and crack in hot desert environments. The company’s website stated premature degradationcan only occur when several conditions were involved, including that the pipe contained gas, but it was not flowing. The company’s examples include “inactive services” that have been disconnected from a customer for years or a “stub” that has never been extended to a customer.

After a similar 2014 explosionSouthwest Gas had agreed to conduct more frequent leak patrols and expedite the removal of certain sections of the Driscopipe 8000 pipes. These safety precautions were not implemented in the Chandler and Scottsdale leak areas in 2021 due to of mapping issues discovered during a subsequent investigation.

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The new consent agreement between Southwest Gas and the Arizona Corporation Commission is dated Oct. 30 and is subject to final approval by the commissioners.

Southwest Gas agrees to pay $2 million to the Slate General Fund as a civil penalty, which will not be recoverable in rates.

Additionally, the agreement includes enhanced safety inspections and corrective measures, including:

• Accelerated replacement or abandonment of inactive Driscopipe 7000 and 8000 stubs and services. This must occur 6 months after discovery in the Phoenix, Yuma, and Bullhead City districts or within 12 months in all other Slate of Arizona locations.
• Southwest Gas will continue leak patrols at a rate of 6 times per calendar year for the Driscopipe 7000 and 8000 lines. Some Driscopipe 8100 lines are also included due to concerns that the lines may be mislabeled as 8000 lines during the first few years of the change.
• Any Level 1 or 2 leaks on Line 7000 or 8000 and all damages must be reported by SW Gas employees to the Arizona Office of Pipeline Safety no later than one hour after visual confirmation.

In the Consent, Southwest Gas does not admit or deny any security violations. The utility has already settled a lawsuit by the victims of the Chandler shopping center explosion.