Columbia Gas Fined $53M, Must Be Sold For MA Explosions

ANDOVER, MA — Columbia Gas was sentenced Tuesday for violating the federal Pipeline Safety Act in relation to the September 2018 Merrimack Valley gas explosions, prosecutors announced.

The company will pay a $53 million fine and sell its Massachusetts business in accordance with a plea deal announced in February.

The $53 million criminal fine represents twice the profits the company earned from a pipeline infrastructure program from 2015 to 2018. The company will be monitored for compliance with regulations until it is sold.

The explosions on Sept. 13, 2018, killed one, injured 22, and damaged 131 structures in Andover, Lawrence and North Andover. Many people wre unable to return to their homes for months. The National Transportation Safety Board's final report on the accident, released in October, found that "weak engineering management" by Columbia Gas caused the deadly explosions. The company also faces investigations at the state level.

The company pleaded guilty in March as part of the deal.

The plea deal includes a deferred prosecution agreement for Columbia Gas of Massachusetts parent company NiSource. According to the deal, NiSource will give up all profits from the sale and implement safety recommendations from the National Transportation Safety Board at their other subsidiaries around the country.

Shortly after the plea deal was announced, NiSource said it planned to sell Columbia Gas of Massachusetts to Eversource for $1.1 billion.

“We expect utility companies operating in our communities to do so safely and responsibly,” U.S. Attorney Andrew Lelling said in a statement. “Instead Columbia Gas acted with reckless disregard for safety by cutting corners and relying on lax protocols. The result was catastrophic – stealing one life, harming dozens and impacting the home and livelihoods of hundreds more.

"Today’s sentence serves as little comfort to the victims, but is another step towards terminating Columbia Gas’s business in Massachusetts.”

Most of the $53 million fine will go to the Justice Department’s Crime Victims Fund, prosecutors said.

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.