Summary
This 8-K filing from Sempra Energy (SRE) on May 20, 2019, announces the publication of a main report by Blade Energy Partners regarding the root cause analysis of the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon facility in October 2015. The report concludes that the leak was caused by external microbial corrosion of the production casing, exacerbated by groundwater, leading to a casing rupture. While Blade Energy Partners did not identify any instances of non-compliance with regulations by SoCalGas at the time of the leak, the report suggests that additional preventative measures, not mandated by regulations then, could have aided in early corrosion identification and potentially prevented or mitigated the incident. The report also estimates that approximately 6.6 billion cubic feet (BCF) of natural gas were leaked. Importantly, the main report does not currently have an adverse impact on SoCalGas's assessment of insurance recovery related to the incident. The filing also includes a standard "Information Regarding Forward-Looking Statements" section, outlining various risks and uncertainties that could materially affect Sempra's future results.
Key Highlights
- 1Blade Energy Partners' main report on the Aliso Canyon gas leak (SS-25) has been published.
- 2The report identifies external microbial corrosion due to groundwater as the direct and root cause of the leak.
- 3SoCalGas was found to be in compliance with gas storage regulations in place at the time of the leak.
- 4The report suggests non-mandated measures could have aided in early corrosion detection and leak prevention/mitigation.
- 5An estimated 6.6 billion cubic feet (BCF) of natural gas leaked during the incident.
- 6The report does not currently adversely impact SoCalGas's insurance recovery assessment.
- 7Newer well integrity practices and DOGGR regulations implemented post-leak address identified root causes.