Merrimack Valley Communities Hit By Gas Blasts Get $80M In Settlement With Columbia Gas

Aftermath Of Merrimack Valley Fires And Gas Explosions — LAWRENCE, MA - SEPTEMBER 19: Columbia Gas workers worked on pipes off of Parker Street in South Lawrence, MA on Sep. 19, 2018. Columbia Gas said Thursday that restoration of gas service across the Merrimack Valley could take several months, a dark new prediction for local business owners and residents as frustrations continue to grow with the company amid uncertainty over the future. More than 8,600 gas customers could go without service entering the winter months, as Columbia Gas finalizes plans to replace the 48-mile cast-iron pipeline system in those areas following the fires and gas explosions that rocked communities in North Andover, Andover, and Lawrence the previous week.

Bianca Vázquez Toness is the Managing Editor and Correspondent for K-12 Education at WGBH Radio. She has covered everything from technology to immigration to presidential elections, but keeps coming back to stories about kids and schools. She's worked for Minnesota Public Radio, WBUR and Bloomberg News. She was a 2016-2017 Knight Science Journalism Fellow at MIT.

May 07, 2019

The utility company Columbia Gas, responsible for a series of natural gas explosions in the Merrimack Valley in September, will pay $80 million to the three communities devastated by the explosions. The money is meant to cover the cost of repairing roads and other infrastructure torn up during restoration efforts, as well as miscellaneous expenses such as employees' overtime.

The city of Lawrence will receive about half of the settlement, $36.9 million, since it suffered the most damage. Lawrence Mayor Dan Rivera said at the Tuesday news conference it was the best deal that could be reached and spares taxpayers from bearing the financial burden.

"We all wish it could be more. But when you take into account the litigation costs, this is a good deal," Rivera said.

Andover Town Manager Andrew Flanagan said nearly $62 million of the settlement has already been paid. Flanagan said the three communities explored suing the utility but determined it wasn’t worth the time and expense.

"It was absolutely in the best interest of our residents and businesses to reach an agreement that not only reimbursed the communities but provided us with the resources to move our cities and towns forward in a meaningful way," Flanagan said.

Columbia Gas President and CEO Mark Kempic called it the "best possible outcome" and thanked the communities for their "strength, patience and resilience." The third community affected was North Andover.

Kempic said state regulators will determine whether ratepayers will bare the costs of these infrastructure upgrades. The total cost of the disaster to Columbia Gas is at $2 billion.

One person died, dozens were injured and thousands were left without gas service for months.

Material from the Associated Press was used in this report.