Pennsylvania fines Energy Transfer $1 mln for 2018 natgas pipe blast

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Construction work continues on Sunoco's Mariner East II natural gas pipeline near Morgantown in Chester County, Pennsylvania, August 1, 2017. REUTERS/Charles Mostoller

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July 16 (Reuters) - The Pennsylvania Public Utility Commission (PUC) approved a $1 million settlement with a unit of Energy Transfer LP (ET.N) for a pipeline explosion and fire at its Revolution natural gas pipeline in Western Pennsylvania in 2018.

A portion of the 24-inch (61-centimeter) Revolution pipe failed after heavy rains caused a landslide in Center Township in Beaver County on Sept. 10, 2018. The fire destroyed a nearby home, damaged electric transmission lines and burned several acres of surrounding woodland, the PUC said in a release on Thursday.

The 40.5-mile (65-kilometer) pipeline was just being brought into service at the time of the incident, according to local media.

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Energy Transfer said the Revolution pipe returned to service on March 1. The company did not comment on the settlement.

In addition to the fine, the settlement required Energy Transfer to conduct additional inspections and add pipeline start-up procedures, including 24-hour monitoring and having employees onsite at each valve station during start-up.

The PUC said interested parties can file comments on the proposed settlement within 20 days.

Pipelines owned by Dallas-based Energy Transfer have had multiple problems in recent years in Pennsylvania. The state has stopped work several times and fined the company millions of dollars for spills and other problems related to construction on an expansion of its Mariner East pipe, which moves natural gas liquids from Western Pennsylvania to Eastern Pennsylvania.

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Reporting by Scott DiSavino Editing by Marguerita Choy and David Gregorio

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