Columbia Gas pleads guilty to felony
Company accepts responsibility for 2018 explosion
Columbia Gas admitted fault for the fatal 2018 Merrimack Valley gas explosions in federal court Monday, pleading guilty to a pipeline safety violation charge that carries an accompanying $53 million fine.
Mark Kempic, president and chief operating officer of Columbia Gas, stood before District Court Judge Richard Stearns and said he was authorized by the company’s board of directors to enter the plea.
“You understand the crime to which the corporation is pleading is a felony?” Stearns asked.
“Yes I do your honor,” Kempic said.
The lightly attended hearing had the feeling of a formality after U.S. Attorney Andrew Lelling announced two weeks ago Columbia Gas’ agreement to plead guilty to the charge and to sell the company.
Eversource announced late last month it reached an agreement to purchase Columbia Gas from its parent company, NiSource, for $1.1 billion pending approval from the state’s Department of Public Utilities. NiSource will also pay a fine to the feds equivalent to any profits the company makes from the sale.
Alejandro Mayorkas, a former deputy secretary of Homeland Security, spoke briefly outside the courtroom, saying, “From the very outset, the company accepted responsibility for the tragic events of September 13, 2018. Today’s entry of the plea was another step in that process and the company continues to move forward.”
The 2018 explosions ripped through Lawrence, Andover and North Andover two years ago, killing a teenager, seriously injuring 23 others and damaging 131 buildings. The explosions occurred when a crew caused a dangerous, rapid increase of gas pressure after shutting down a gas main line in Lawrence. Prosecutors said the company had a “reckless disregard” for safety in their work, including not knowing the location of all underground gas lines.
Columbia Gas has agreed to pay a $143 million settlement to a class of plaintiffs, and the agreement is pending in Essex Superior Court. The family of Leonel Rondon, 18, who died when a chimney dislodged from a house and fell on the car he was sitting in, also reached a settlement with Columbia Gas last year for an undisclosed amount.
Stearns said restitution would not be requested because of Columbia Gas’ settlement in state court, although the sentencing April 6 requires some form of restitution to be determined, he said.
Victims will be allowed to address the court at sentencing and send letters about the financial and emotional harm they suffered from the blasts.