Southwest agrees to pay $2 million penalty for explosion at Chandler business

CHANDLER, Ariz. — Southwest Gas has agreed to pay a civil penalty of $2 million following an investigation into a 2021 gas explosion at a Chandler business that injured four people. 

On Aug. 26, 2021, an explosion was reported at a business near Ray and Rural roads that caused the structure's roof to completely collapse and the evacuation of several nearby homes. Four people sustained injuries in the destructive blast.

VERSIÓN EN ESPAÑOL: Southwest Gas acepta pagar una multa de 2 millones de dólares por explosión de gas en negocio de Chandler

The total cost of damages caused by the explosion exceeded $5 million, according to public records.

An investigation traced the explosion to a M8000 pipe purchased by Southwest that had degraded, resulting in a leakage from the service line. Southwest had apparently failed to properly map where this type of piping material was located and needed to increase leak patrols, according to the Arizona Corporation Commission.

Southwest has previously said it failed to replace the faulty piping because of a clerical mistake in construction records.

On Wednesday, the commission approved a consent agreement with Southwest that levies a penalty against the utility provider and ordered Southwest to address the defective piping material. 

The agreement was made to additionally resolve a separate incident in Scottsdale also involving the M8000 material.

Southwest has agreed to increase leak patrols along its extensive network, according to the commission.

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