(CN) — Thousands affected by the 2015 Aliso Canyon storage facility natural gas leak will be compensated in a settlement of up to $1.8 billion with the utility company.
Southern California Gas Company and its parent company, Sempra, announced Monday that they reached a settlement with approximately 35,000 individual plaintiffs affected by the blowout. Over the course of nearly four months, approximately 100,000 tons of methane and other substances were released into the atmosphere from the affected storage site near the San Fernando Valley.
Hundreds of lawsuits were subsequently filed on behalf of tens of thousands of plaintiffs, with some making their way to the California Supreme Court. Plaintiffs were forced of their homes by the foul odor and symptoms like headaches, nose bleeds and nausea.
Subsequent reports from state regulators and authorities found the utility inadequately monitored its natural gas wells after leaks dating back to 1970.
"These agreements are an important milestone that will help the community and our company work toward putting this difficult chapter behind us," said Scott Drury, CEO of Southern California Gas Company. "In the years since the leak, SoCalGas has worked alongside regulators, technical experts and our neighbors to enhance safety at all our underground storage facilities and our engagement with the community."
Despite the company’s claims of increased safety measures and improved practices, some are skeptical that anything less than the Aliso Canyon storage facility’s complete closure will be sufficient for the health of the community.
“Money alone will never atone for the horrors the blowout unleashed on thousands of Los Angeles families. Nor will it erase the legacy of SoCalGas’ negligence,” said Alexandra Nagy, California director of Food & Water Watch, in a statement responding to the announcement. “Nothing other than the immediate closure of Aliso Canyon will protect the safety of nearby communities or honor their experiences.”
In 2019, California Governor Gavin Newsom directed the California Public Utilities Commission to investigate expediting the closure of the Aliso Canyon site. However, some activists and political figures have voiced concerns that withdrawals from the storage facility have not drawn down enough.
In July, the Los Angeles County Board of Supervisors unanimously voted to send a letter to the California Public Utilities Commission calling on it to halt Southern California Gas Company's expansion of the facility's storage capacity.
“The health and environmental impacts from the 2015 blowout are still not fully understood,” Supervisor Kathryn Barger said in the motion. “The findings of the root cause analysis cast doubt on the site operator’s ability to operate the facility safely.”
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