LOS ANGELES — Nearly six years after the worst methane gas leak in U.S. history forced more than 8,000 families in Porter Ranch to flee their homes, Southern California Gas Co. has agreed to pay a settlement of up to $1.8 billion.
In an announcement Monday, the gas company and its parent, Sempra Energy, deny any wrongdoing. The settlement comes after years of lawsuits involving more than 35,000 victims.
The October 2015 leak lasted four months and caused the largest known release of methane in U.S. history. More than 100,000 metric tons of the gas, a pollutant more potent than carbon dioxide, spewed into the air.
The leak also released small amounts of benzene, a cancer-causing chemical, and other toxic pollutants.
About 8,000 families living nearby complained of symptoms, including headaches, nosebleeds and nausea, and fled their homes.
At a media briefing on the steps of the downtown Los Angeles federal courthouse, attorneys representing the plaintiffs said the settlement reflected just compensation for their injuries.
“There was no plan when the well blew up on what to do,” said attorney Brian Panish. “Because of those failures, these people suffered. We’re thankful we can do our best to offer fair and just compensation.”
Panish said that affected residents gave depositions by Zoom during the pandemic and that some still living in the area believe that the storage field, which is active, should be shut down.
But he said that the settlement shows that the gas company has taken some responsibility.
“It sends a loud message about what had happened — people were justified in their complaints,” he said.
Raymond Boucher, another attorney representing the plaintiffs, said two independent arbitrators will analyze the cases of more than 35,000 clients to determine the effect the blowout had on them and reasonably distribute the settlement money.
“It’s very difficult to talk about what an average would be,” he said. “They will receive just compensation.”
But for at least one plaintiff, the settlement does little to address the lingering health and economic damages caused by the historic leak.
Once the money is divided among thousands of plaintiffs, “if you do the math, we’re left with a small amount,” said Matt Pakucko, president of the group Save Porter Ranch.
“For what they put us through, to claim no wrongdoing and try and buy us out, it’s a joke,” said Pakucko, who runs a music production business out of his house near the Aliso Canyon facility.
News of the settlement brought back painful memories of the months-long disaster, including a time when weeks into the leak, odors got so bad that an air quality inspector was dispatched to his home.
“It was like standing behind a 747 with the engines going,” Pakucko said. “It burned our throats, burned our skin. We couldn’t breathe and we passed out on the couch in pain.”
He said members of his family have suffered heart palpitations, cancer and other ongoing health problems they believe are related to emissions from the facility.
And they keep smelling and reporting leaks.
The facility was allowed to resume storing methane in 2017 — a move that’s drawn the ire and suspicion of many.
“How do you put a price on human suffering and the health devastation, and the loss of business and the loss of property value?” Pakucko said. “The ongoing health issues that so many people still have?”
In a statement, SoCalGas said the agreements were expected to resolve “substantially all material civil litigation” against the company, which would record an after-tax charge of about $1.1 billion this month.
Settlement costs wouldn’t be passed on to customers, the utility said.
The first settlement agreement requires getting about 97% participation out of the roughly 36,000 plaintiffs, and court approval of how settlement money will be distributed, among other conditions, the utility said.
“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 SoCalGas.
“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. As a result, our storage facilities operate by what regulators and experts have called some of the most rigorous safety standards in the country.”
L.A. County Supervisor Kathryn Barger, whose 5th District includes Porter Ranch residents who were displaced, said she was grateful to hear the utility company was working to make amends with residents for the leak’s “significant impacts.”
“I look forward to learning more about the settlement agreement and am hopeful that it will help provide additional resources and support for the community,” she said.
Alexandra Nagy, California director for the environmental group Food & Water Watch, said the settlement faces “a lot of healthy skepticism” in the community over whether the amount will cover the costs, including medical bills, lost business and decreased home values.
In the Porter Ranch neighborhood closest to the gas storage facility, residents have continued to suffer nosebleeds, headaches and other health problems, Nagy said.
“People just don’t trust SoCalGas and feel like this relationship will never be repaired, no matter the [settlement] number, and ultimately want to see this place shut down immediately,” she said. “People are very alarmed still about what’s going on at that facility daily, and those harms and fears will continue as long as the facility remains open.”
Times staff writer Jaclyn Cosgrove contributed to this report.
