Aliso Canyon Leak Prompts Comprehensive Legislation on Gas Storage Facilities

Pressure continued to build on SoCal Gas this week to idle its leaking Aliso Canyon natural gas storage facility until all of its wells can be inspected for integrity and all leaks repaired.

On Jan. 12, state legislators held a press conference at the gates of the gas storage field near the Los Angeles community of Porter Ranch to announce legislation to shut the facility down until it can be thoroughly vetted and insure the utility’s shareholders pay for any damages caused by the massive methane leak discovered Oct. 23.

Some 2,300 households have been temporarily relocated at SoCal Gas expense due to the sickening smell of mercaptans added to the methane as odorants. Two schools also have been closed and their students and staff relocated.

“The urgency of this situation cannot be overstated,” said Sen. Kevin De León (D-Los Angeles). De León, who is president of the state Senate, noted that not only is the health of nearby residents a top concern, but also that the massive methane leak “undermines our efforts at the state level” to cut greenhouse gas emissions.

Sen. Fran Pavley (D-Agoura Hills) outlined a series of bills she planned to introduce in response to the methane leak. They would: Halt new injections into the Aliso Canyon storage facility—which is an old oil field— until state agencies and independent experts inspect all the wells and determine they are safe to operate; Require the costs of addressing the leak, including greenhouse gas mitigation, relocation, and emergency response costs, are covered by SoCal Gas shareholders, not ratepayers; Strengthen state standards for all natural gas storage facilities, including inspecting all of them within one year and then annually thereafter; Launch independent health studies of residents affected by the leak; and Require facility operators to meet greenhouse gas standards. Pavley and De León pledged the Legislature would work on the measures in its upcoming session.

“We need to assure that the industry as a whole is held to the highest standards possible,” said De León. He noted that right now gas storage facilities have “aging infrastructure” and that the state has “a patchwork of regulations” that looks to be inadequate to prevent leaks.

The state has 14 underground gas storage facilities where the fuel is stored mostly in old oil and gas fields that have porous geological formations.

In a statement on the legislation, SoCal Gas said it “appreciates the legislators' interest in the topic and looks forward to participating in the public discussion. As we have since this incident began, SoCalGas stands willing and ready to cooperate with the Governor's office, all state and local officials, and regulatory agencies.”

Before new laws are enacted, however, a binding abatement order for the leaking SoCal Gas Aliso Canyon natural gas storage facility could be imposed Jan.16 after the South Coast Air Quality Management District’s Hearing Board completes a hearing on the matter.

The board opened the hearing on the abatement order proposed by the agency on Jan 9, but after a whole day of testimony and legal arguments could not complete hearing its deliberation. It will meet again Jan. 16.

The order—which SoCal Gas stated Jan. 14 that it is not contesting—would require the utility to try to capture the methane leaking from a blown out well in the gas storage field and burn it off.

Among other things, it also would require: Inspecting and maintaining all wells; Monitoring all emissions from the well and reservoir; Retaining an independent third party to conduct a health study; and Mitigation of greenhouse gas impacts of the leak by funding projects that restore value to the community. Meanwhile, SoCal Gas is drilling a relief well it expects to complete in late February or March that will intercept the 8,000 foot deep leaking well. After it’s completed the utility plans to seal the bottom of the leaking well with concrete. —William J. Kelly