CHANDLER, AZ — Southwest Gas has agreed to pay a $2 million fine and make safety improvements to settle allegations of utility violations following two major gas leaks in 2021.

One of the leaks led to an explosion at a Chandler strip mall that seriously injured four men. The other spill, in Scottsdale, led to the evacuation of nearby homes.

In both cases, the leaks were due to thermal degradation of the Driscopipe 8000 gas lines, which were not properly mapped into the Southwest Gas system.

For years, Driscopipe 8000 has been known to have the potential to become brittle and crack in hot desert environments. The company’s website said premature degradationit can only occur when several conditions were involved, including the pipe having gas inside but not flowing. The company’s examples included “dormant services” that have been disconnected from a customer for years, or a “stub” pipe never extended to a customer.

After a similar explosion since 2014Southwest Gas had agreed to conduct more frequent leak patrols and expedite the removal of certain sections of Driscopipe 8000 lines. Those safety measures did not appear in the areas of the Chandler and Scottsdale leaks in 2021 because of mapping issues discovered in a subsequent investigation.

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The new consent agreement between Southwest Gas and the Arizona Corporation Commission is dated Oct. 30 and is subject to final approval by the commissioners.

Southwest Gas agrees to pay $2 million to the General Slate Fund as a civil penalty, which will not be recoverable in installments.

In addition, the agreement includes enhanced safety inspections and fixes, including:

• Rapid replacement or abandonment of inactive Driscopipe 7000 and 8000 stubs and services. This must occur within 6 months of discovery in the Phoenix, Yuma and Bullhead City Districts or within 12 months in all other locations in the Slate of Arizona.
• Southwest Gas will continue its leak patrols at a rate of 6 times per calendar year for Driscopipe 7000 and 8000 lines. Some Driscopipe 8100 lines are also included due to concerns that the lines may be mislabeled as 8000 pipe in the early years of change.
• Any grade 1 or 2 leaks of 7000 or 8000 pipelines and all damages will be reported by SW Gas employees to the Arizona pipeline safety office within one hour of visual confirmation.

In the consent agreement, Southwest Gas neither admits nor denies any breach of safety. The company previously settled a lawsuit of the victims of the Chandler mall explosion.