RICHMOND, Va. - Virginia Natural Gas has agreed to pay as much as $1.8 million in penalties to settle state regulators' allegations of multiple pipeline safety violations.
In two settlements with the State Corporation Commission covering more than 40 violations, the company didn't admit or deny the allegations. It agreed to make various changes in its practices and spend $15 million for pipeline-replacement projects.
Under the settlement, VNG cannot recoup the cost of the penalties, repairs or operational changes from rate-payers. The company, based in Norfolk, provides natural gas service to about 271,000 customers in Hampton Roads.
The violations cite failures of the company's workers to follow proper procedures while installing, repairing or conducting maintenance on or around its pipelines. Inspectors for the commission's Division of Utility and Railroad Safety found improper welding methods, the installation of a defective service line and a VNG contractor smoking while working in an excavation near the gas system, according to one settlement. It also cited the company's failure to keep required records or manuals.
One settlement focused on VNG's lack of necessary measures to ensure that underwater pipelines are protected against corrosion. The company completed construction last year of an underwater link between its Peninsula and South Hampton Roads systems. In August, according to the settlements, sections of that pipeline floated from their proper position and had to be fixed.
The instances occurred across VNG's system between 2006 and 2009, said Ken Schrad, a commission spokesman.
No one was harmed and no service was affected as a result of the violations, said Tami Gerke, a spokeswoman for AGL Resources Inc., the Atlanta company that owns VNG.
"Our industry records show no major issues with our pipelines," Gerke wrote in an e-mail response to questions. "Due to regular inspections such as the one completed by the VSCC and audits done regularly by VNG, our customers can be assured that any issues are addressed immediately."
Under the settlements, the company will pay $1 million up front. The commission could waive part or all of the remaining $800,000, depending on the company's compliance with the required remediation, Schrad said.
That includes the hiring of an outside consultant to evaluate the corrosion-control measures. The company must complete most changes by Aug. 15, 2011.
Showing posts with label Atlanta Gas Light. Show all posts
Showing posts with label Atlanta Gas Light. Show all posts
Thursday, July 1, 2010
Wednesday, March 10, 2010
Police seek AGL exec who disappeared on Bourbon Street
NEW ORLEANS, La. - Police are searching the French Quarter in New Orleans and checking with businesses for surveillance videotapes of a Texas energy executive who disappeared after walking out of a Bourbon Street bar.
About 30 detectives are looking for 54-year-old Douglas Schantz, the top executive of an AGL Resources unit. He was last seen leaving the Razzoo Bar and Patio about 2 a.m. on March 5, where his exit was caught on video cameras.
Police say there has been no activity on his credit cards or cell phone.
Schantz is president of Houston-based Sequent Energy Management. He was in New Orleans to give Tulane University a $25,000 gift during a reception on March 4.
After the dinner, he was with colleagues on Bourbon Street for about two hours.
Mark Homestead, a senior vice president at Sequent, said Schantz did not have too much to drink and left the bar before the rest of the group.
He didn’t make his scheduled flight back to Houston, and hasn’t called or e-mailed colleagues or his family, company spokeswoman Tami Gerke said on March 8.
Houston police say he also never made it back to his hotel, which is within walking distance of where he was last seen on Bourbon Street.
Police say his credit cards and ATM card have not been used.
“We are deeply concerned about Doug, and personnel from AGL Resources have been working around the clock with law enforcement agencies to determine Doug’s whereabouts,” said John Somerhalder, president and chief executive of Atlanta-based AGL.
AGL employees and Schantz’s family have been circulating flyers in the New Orleans French Quarter.
Sequent manages pipeline capacity for AGL and for Georgia gas marketers.
About 30 detectives are looking for 54-year-old Douglas Schantz, the top executive of an AGL Resources unit. He was last seen leaving the Razzoo Bar and Patio about 2 a.m. on March 5, where his exit was caught on video cameras.
Police say there has been no activity on his credit cards or cell phone.
Schantz is president of Houston-based Sequent Energy Management. He was in New Orleans to give Tulane University a $25,000 gift during a reception on March 4.
After the dinner, he was with colleagues on Bourbon Street for about two hours.
Mark Homestead, a senior vice president at Sequent, said Schantz did not have too much to drink and left the bar before the rest of the group.
He didn’t make his scheduled flight back to Houston, and hasn’t called or e-mailed colleagues or his family, company spokeswoman Tami Gerke said on March 8.
Houston police say he also never made it back to his hotel, which is within walking distance of where he was last seen on Bourbon Street.
Police say his credit cards and ATM card have not been used.
“We are deeply concerned about Doug, and personnel from AGL Resources have been working around the clock with law enforcement agencies to determine Doug’s whereabouts,” said John Somerhalder, president and chief executive of Atlanta-based AGL.
AGL employees and Schantz’s family have been circulating flyers in the New Orleans French Quarter.
Sequent manages pipeline capacity for AGL and for Georgia gas marketers.
Friday, December 4, 2009
Georgia speaker resigns amid allegations of affair with pipeline lobbyist
ATLANTA - Glenn Richardson, Georgia’s first GOP speaker of the House since Reconstruction, resigned on Dec. 3 after a suicide attempt and amid allegations by his ex-wife that he had an affair with an Atlanta Gas Light lobbyist. The affair occurred while the Georgia House was considering legislation that allowed AGL to build a $300 million pipeline. Richardson co-sponsored the legislation, which ultimately died without being passed.
Richardson revealed in November that he had attempted suicide by swallowing sleeping pills while depressed following the divorce. But his ex-wife in November went on local TV and accused him of having "a full-out affair" with the lobbyist while they were still married, and claimed that the suicide attempt was nothing more than an attempt to gain attention and engender sympathy.
Richardson did not address those allegations in a brief statement issued through the House communications office in which he said he will leave both his position as speaker and his House seat on Jan. 1. He did mention in the statement that he had grappled with depression resulting in his suicide attempt.
"I fear that the media attention of this week has deflected this message and done harm to many people who suffer from this condition," he said of his depression in the statement.
The 49-year-old Richardson, from Hiram, Ga., once thought to be a serious contender for governor, had gone back to shaking hands at chicken-and-grits fundraisers after trying to kill himself. But he had been silent since his ex-wife claimed on local television that he slept with the 34-year-old AGL lobbyist.
Sheriff's deputies found him on Nov. 8, slumped semiconscious on the edge of the bathtub at his west Georgia home after he called his mother to say he had swallowed pills. A suicide note and a silver .357 Magnum were on the counter next to him. The contents of the note have not been released. Richardson also called his ex-wife, who he now accuses of failing to report to 911 his phone call to her during the attempted suicide.
Richardson revealed in November that he had attempted suicide by swallowing sleeping pills while depressed following the divorce. But his ex-wife in November went on local TV and accused him of having "a full-out affair" with the lobbyist while they were still married, and claimed that the suicide attempt was nothing more than an attempt to gain attention and engender sympathy.
Richardson did not address those allegations in a brief statement issued through the House communications office in which he said he will leave both his position as speaker and his House seat on Jan. 1. He did mention in the statement that he had grappled with depression resulting in his suicide attempt.
"I fear that the media attention of this week has deflected this message and done harm to many people who suffer from this condition," he said of his depression in the statement.
The 49-year-old Richardson, from Hiram, Ga., once thought to be a serious contender for governor, had gone back to shaking hands at chicken-and-grits fundraisers after trying to kill himself. But he had been silent since his ex-wife claimed on local television that he slept with the 34-year-old AGL lobbyist.
Sheriff's deputies found him on Nov. 8, slumped semiconscious on the edge of the bathtub at his west Georgia home after he called his mother to say he had swallowed pills. A suicide note and a silver .357 Magnum were on the counter next to him. The contents of the note have not been released. Richardson also called his ex-wife, who he now accuses of failing to report to 911 his phone call to her during the attempted suicide.
Monday, September 28, 2009
AARP loses motion in Atlanta Gas Light surcharge case
ATLANTA, Ga. - The Georgia Public Service Commission on Sept. 8 denied a request to force Atlanta Gas Light Co. to disclose information on a planned $400 million pipeline system upgrade requested by one of the project’s critics.
Commissioners voted 4-1 to reject a “motion to compel” filed by AARP Georgia after AGL officials objected to answering questions about the gas utility’s plan to boost the capacity of pipelines throughout metro Atlanta and of three liquefied natural gas (LNG) storage facilities in Cherokee and Rockdale counties and the city of Macon.
The 10-year project would be financed by increasing a surcharge the utility already is collecting for a pipeline replacement program.
During a brief debate, Commissioner Bobby Baker introduced a motion to reject a PSC staff recommendation to deny AARP’s request.
Although the AGL proposal is not a typical rate case, Baker argued that the utility raised issues normally associated with such proceedings.
“(The costs of) capital projects typically are recovered through ratemaking,” he said. “If parties like AARP can’t have an opportunity for discussion at this time, they’ll never have an opportunity.”
But commission Chairman Doug Everett said AARP submitted more than 140 questions, so many that forcing AGL to respond would unnecessarily slow the process.
“Some of the questions were, frankly, ridiculous,” added Commissioner Chuck Eaton.
Everett said AARP lawyers will have adequate opportunity to ask questions during two days of PSC hearings on the AGL project, which began on Sept. 9.
Commissioners defeated Baker’s motion, then voted to uphold the staff’s recommendations.
Commissioners voted 4-1 to reject a “motion to compel” filed by AARP Georgia after AGL officials objected to answering questions about the gas utility’s plan to boost the capacity of pipelines throughout metro Atlanta and of three liquefied natural gas (LNG) storage facilities in Cherokee and Rockdale counties and the city of Macon.
The 10-year project would be financed by increasing a surcharge the utility already is collecting for a pipeline replacement program.
During a brief debate, Commissioner Bobby Baker introduced a motion to reject a PSC staff recommendation to deny AARP’s request.
Although the AGL proposal is not a typical rate case, Baker argued that the utility raised issues normally associated with such proceedings.
“(The costs of) capital projects typically are recovered through ratemaking,” he said. “If parties like AARP can’t have an opportunity for discussion at this time, they’ll never have an opportunity.”
But commission Chairman Doug Everett said AARP submitted more than 140 questions, so many that forcing AGL to respond would unnecessarily slow the process.
“Some of the questions were, frankly, ridiculous,” added Commissioner Chuck Eaton.
Everett said AARP lawyers will have adequate opportunity to ask questions during two days of PSC hearings on the AGL project, which began on Sept. 9.
Commissioners defeated Baker’s motion, then voted to uphold the staff’s recommendations.
Atlanta Gas Light says pipeline plan would boost service
ATLANTA, Ga. - Speaking before the Georgia Public Service Commission, company executives of Atlanta Gas Light (AGL) said approval of the first three-year phase of the gas pipeline improvement plan would decrease the risk of outages for about 160,000 AGL customers in seven metro Atlanta communities: Gwinnett, Henry and Paulding counties, and Marietta, Conyers, Cumming and Newnan.
AGL said the planned expansion of pipeline capacity and natural gas storage facilities would reinforce its ability to provide gas service even if temperatures dipped to 10 degrees.
Expansion is necessary to meet the demand for gas that has increased with population growth in some areas outside the Perimeter, the company said.
The project has attracted attention because of its cost and because the utility has proposed to pay for it through a surcharge on ratepayers rather than making a standard rate recovery case before the PSC.
Critics, including consumer advocates, maintain that surcharge cases require less scrutiny of a company’s proposal, and that they can lead to overcharges.
Residential customers would pay an additional surcharge of 95 cents a month if the project is approved, on top of an existing monthly surcharge of $1.95. That fee pays for a pipeline replacement program AGL started in 1998.
AGL said the planned expansion of pipeline capacity and natural gas storage facilities would reinforce its ability to provide gas service even if temperatures dipped to 10 degrees.
Expansion is necessary to meet the demand for gas that has increased with population growth in some areas outside the Perimeter, the company said.
The project has attracted attention because of its cost and because the utility has proposed to pay for it through a surcharge on ratepayers rather than making a standard rate recovery case before the PSC.
Critics, including consumer advocates, maintain that surcharge cases require less scrutiny of a company’s proposal, and that they can lead to overcharges.
Residential customers would pay an additional surcharge of 95 cents a month if the project is approved, on top of an existing monthly surcharge of $1.95. That fee pays for a pipeline replacement program AGL started in 1998.
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