It’s been over a year since the blast and investigators continue to dig up some awful facts that led to the disaster.
A Chronicle investigation discovered that Pacific Gas and Electric Co. had relied on leak surveys to determine that its gas transmission pipelines were safe even as it was handing out bonuses to supervisors whose crews found fewer leaks and kept repair costs down. This had gone on for a long time. PG&E did not discard the leak-related incentive program until two years before the September 2010 blast in San Bruno that killed eight people and destroyed 38 homes. Even then, it only did so after three company whistle-blowers complained to PG&E’s top officials and board of directors that the utility was encouraging supervisors to overlook possible safety threats.
The complaints led to an internal company audit in April 2008 that concluded that the policy of providing incentives for finding fewer leaks encouraged crews to produce inaccurate surveys, naturally. The policy was only one of several factors keeping PG&E from being able to “effectively identify leaks and to reduce risks to employees and customer safety,” the audit said. PG&E was prompted by the audit’s findings to conduct a rush inspection of its entire gas distribution and transmission system starting in October 2008. These surveys found many more leaks than crews had found in checks performed since 2004.
By February 2009, however, state regulators were still not satisfied, as the pace of the inspection effort and noted that almost all of the newly discovered leaks were serious. The resulting findings indicated that almost every leak survey PG&E had conducted since 2004 was “not effective” and that the public would have to endure a “reduced level of safety” until the makeup inspections were done, said Sunil Shori, an engineer with the California Public Utilities Commission. Shori “strongly” urged PG&E to accelerate their effort, but the work had not been completed before the San Bruno blast.
After the disaster, PG&E performed emergency leak surveys of its entire urban gas-transmission system. In one month, the company reported finding 38 high-priority gas leaks, four of which were so serious the company had to report them to federal officials. This is compared with only six leaks found for the entire previous year.
“This is a big, big deal,” said Richard Kuprewicz, an independent pipeline safety expert in Redmond, Wash., who reviewed the 2008 audit conclusions about bonuses and leaks for The Chronicle. “They’ve got a major, major problem here.”
Of course they do.
Kuprewicz said the bonus system was “training and rewarding people to do the wrong thing” and characteristic of “a seriously broken process.”
“This explains many of the systemic problems in this operation that contributed to the tragedy” in San Bruno, he said.
It sure as hell does.
PG&E spokesman David Eisenhauer said the leaks-per-mile standard is used nationwide “to help utilities have an apples-to-apples comparison. It was one of many measures used to compare divisions within PG&E. However, it was never, and still is not, intended to be used as an incentive for people to find fewer leaks.”
PG&E began providing leak-related incentives for managers before a 2002 federal law took effect that required inspections for many gas pipelines, workers have stated. The federal rules instructed operators to use leak histories on urban pipelines when selecting an inspection method. Leaks can be caused by several things, including failures in longitudinal seam welds – the problem that caused the San Bruno explosion. If a transmission line has a history of a certain kind of longitudinal weld failure, federal rules require that the operator test it either by filling a pipe with high-pressure water or running an automated device through it.
PG&E has buried themselves further in that they rarely used those methods before the San Bruno blast, saying that pressure testing was inconvenient and expensive, and arguing that automated devices could not navigate many of its lines.
State regulators have concluded that these systemic violations of California law and federal safety regulations could result in significant fines for the company. Yet another a report from the California Public Utilities Commission has concluded what has become obvious; PG&E failed to follow accepted industry practice when installing the pipeline, failed to comply with federal pipeline integrity management requirements, kept inadequate records, and poorly collected and reported data.
The latest report opens an agency penalty consideration case on the disaster that will include public hearings and may conclude with “monetary fines and other remedies,” the commission said in a statement.
“We are now, essentially, giving PG&E its day in court,” commission President Michael Peevey said in the statement. “If we determine PG&E has violated the law, we are prepared to impose very significant fines.”
Last month, the CPUC approved a $38 million fine against PG&E for a 2008 natural gas explosion in Rancho Cordova near Sacramento that resulted in one fatality. That incident was minor compaired to The San Bruno explosion that leveled an entire neighborhood, killing eight people and injuring dozens.
PG&E President Chris Johns said in a statement Thursday that the company was taking the CPUC findings seriously and cooperating with the investigation.
“It is clear that PG&E’s past gas operations were not what they should have been,” Johns said. “We have admitted these shortcomings, and we are committed to raising the level of pipeline safety to new, higher standards.”
It’s a little too late, buddy.
National Transportation Safety Board investigators stated last year that the company had several chances to avert the disaster, but failed to do so. NTSB Chairwoman Deborah Hersman said her agency’s investigation showed “troubling revelations about a company that exploited weaknesses in a lax system of oversight and government agencies that placed a blind trust in operators to the detriment of public safety.”
At this point we can only hope that justice is served and this corporate giant that put profits over safety is made fully liable for their immense oversights, and that this whole mess serves as an expensive example to others.












