STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
IN RE: NOTICES OF PROBABLE VIOLATIONS
ISSUED TO NEW ENGLAND GAS COMPANY
Docket No. D-03-1
Whereas: The Rhode Island Division of Public Utilities and Carriers (“Division”) had issued nineteen separate “Notices of Probable Violations” (“NOPV’s”) to the New England Gas Company (“NEGC”) during the years 2000 and 2001.
Whereas: Upon further investigation, the Division later withdrew five of the nineteen NOPV’s in January of 2002.
Whereas: The remaining fourteen NOPV’s were informally adjudicated by the Division on July 18, 2002, which subsequently resulted in NEGC requesting a formal evidentiary hearing before the Division.
Whereas: The Advocacy Section of the Division and NEGC thereafter began settlement discussions relative to the remaining fourteen NOPV’s.
Whereas: As a result of those settlement discussions the parties were able to reach a dispositive agreement, which was proffered to the Division on March 3, 2003 in the form of a formal “Settlement Agreement”. The Settlement Agreement is attached to this order, and incorporated by reference.
Whereas: The Division has examined the Settlement Agreement and finds that it represents a reasonable resolution to the fourteen remaining NOPV’s in issue.
Now, therefore, it is
(17393) ORDERED:
That the attached Settlement Agreement is hereby approved and adopted by the Division as a final resolution to the NOPV’s discussed herein and identified in greater detail in the attached Settlement Agreement.
DATED AT WARWICK, RHODE ISLAND ON MARCH 7, 2003.
_________________________________
Thomas F. Ahern, Administrator
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
IN RE: NOTICES OF PROBABLE )
VIOLATIONS (NOPVs) ISSUED ) Docket No. D-03-1
TO NEW ENGLAND GAS COMPANY )
The Advocacy Section of the Division of Public Utilities and Carriers (the “Advocacy Section”) and the New England Gas Company (the “Company”) (collectively referred to herein as the “Parties”) have reached an agreement in connection with the six (6) Notices of Probable Violations (“NOPVs”) issued by the Division of Public Utilities & Carriers (“Division”) as set forth below:
1. Nineteen (19) NOPVs were issued by the Division on separate occasions. The NOPVs were 00-25; 00-26; 00-27; (00-31, 00-32 and 00-33 are three separate violations assigned one Division tracking number); 00-42; 00-43; 00-44; 00-45; 00-46; 01-4; 01-5; 01-07; 01-8; 01-25; 01-26; 01-28; and 01-29.
2. Of the original nineteen (19) NOPVs, five (5) were withdrawn and closed by the Division in January of 2002, i.e., NOPVs 00-26; 00-44; 00-45; 01-28; and 01-29.
3. On July 18, 2002, the Division issued a letter to the Company that informally adjudicated the remaining fourteen (14) NOPVs (referred to hereinafter as the “Informal Adjudication”). A copy of the Informal Adjudication is attached hereto and marked “Exhibit A.”
4. Within the proscribed time-period, the Company requested a formal evidentiary hearing (the “Request for Formal Hearing”) regarding certain Division findings and rulings, as well as the penalties that were imposed, in connection with certain NOPVs that were decided adversely to the Company by the Informal Adjudication, i.e., NOPVs 00-25; 00-27; 00-42; 00-46; 01-25 and 01-26.
5. In October of 2002, the Division and the Company commenced negotiations in an effort to resolve all of the issues that were the subject of the Company’s Request for Formal Hearing.
6. In December of 2002, the Division and the Company arrived at a mutually satisfactory settlement of the NOPVs and associated penalties that were the subject of the Company’s Request for Formal Hearing.
7. The Company and the Advocacy Section believe that this settlement, as a whole, constitutes a just and reasonable resolution of the issues in this proceeding, and jointly request its approval by Division.
1. With respect to the NOPVs remaining in dispute in connection with the Company’s Request for Formal Hearing, the Company and the Advocacy Section agree as follows:
a. NOPV 00-25: The Company agrees that it violated 49 C.F.R. § 192.723 by failing to conduct leakage survey at 835 Jefferson Blvd., Warwick, Rhode Island within three (3) years of September 9, 1997;
b. NOPV 00-27: In connection with Coventry, Rhode Island, Company agrees that it violated 49 C.F.R. § 192.13(c) by failing to follow its Operations & Maintenance Plan, Section 6105 that requires that walking leak surveys be conducted within three (3) years;
c. NOPV 00-42: In connection with 835 Jefferson Blvd., Warwick, Rhode Island the Company agrees that it violated 49 C.F.R. § 192.13(c) by failing to follow its Operations & Maintenance Plan, Section 6105 that requires that walking leak surveys be conducted within three (3) years;
d. NOPV 01-25: In connection with Burriville, Rhode Island, Company agrees that it violated 49 C.F.R. § 192.13(c) by failing to follow its Operations & Maintenance Plan, Section 6105 that requires that walking leak surveys be conducted within three (3) years;
e. NOPV 01-26: In connection with Tiverton, Rhode Island, Company agrees that it violated 49 C.F.R. § 192.13(c) by failing to follow its Operations & Maintenance Plan, Section 6105 that requires that walking leak surveys be conducted within three (3) years; and
f. NOPV 00-46: (the alleged failure to abandon a gas service line at 875 Jefferson Blvd. within a five-year period as required under Rule V of the Division’s Rules and Regulations Prescribing Standards for Gas Line Abandonment and Leakage Survey Procedures) is withdrawn with prejudice.
2. The Company agrees to pay the Division (State of Rhode Island) the following penalties in connection with each of the violations highlighted in Part II, Paragraphs 1(a)-(e) of this Settlement Agreement:
3. The Company further agrees that its shareholders shall assume the entire burden of the penalties imposed upon the Company by this Settlement Agreement. Accordingly, the Company agrees that it shall not make any filing(s) in any forum(s) that seek to recover in rates all or any portion of the penalties assessed upon the Company by this Settlement Agreement. Nor shall the Company, by any other means, seek to recover all or any portion of the penalties assessed upon the Company by this Settlement Agreement.
4. The Company dismisses with prejudice its Request for Formal Hearing.
5. The Advocacy Section and the Company further propose that this Settlement Agreement, upon adoption by the Division, shall constitute a Final Order of the Division. The Company waives any and all right of appeal or judicial review that might otherwise attach to a Final Order of the Division.
1. This Settlement Agreement is the result of a negotiated settlement. The discussions which have produced this Settlement Agreement have been conducted with the explicit understanding that all offers of settlement and discussion relating thereto are and shall be privileged, shall be without prejudice to the position of any party or participant presenting such offer or participating in any such discussion, and are not to be used in any manner in connection with these or other proceedings.
2. The agreement by any party to the terms of this Settlement Agreement shall not be construed as an agreement as to any matter of fact or law beyond the terms thereof.
3. The Parties agree that none of the Division’s findings or conclusions regarding the NOPVs were found by the Division to be causally related to the explosion under investigation. The findings herein should not be used or construed as evidence that the actions of the Company were responsible for the explosion. Matters or issues other than those explicitly identified in this agreement have not been settled upon or conceded by any party to this Settlement Agreement, and nothing in this agreement shall preclude any party from taking any position in any future proceeding regarding such unsettled matters.
4. Payment of $35,000.00 is due upon the filing of this Settlement Agreement with the Division, and should be made by check or money order payable to the “Rhode Island Division of Public Utilities and Carriers,” and delivered to the attention of: Charles Brown, Division of Public Utilities and Carriers, 89 Jefferson Blvd., Warwick, Rhode Island 02888.
IN WITNESS WHEREOF, the Parties agree that this Settlement Agreement is reasonable, in the public interest and in accordance with law and regulatory policy, and have caused this agreement to be executed by their respective representatives, each being authorized to do so.
Date at Providence this 28th day of February, 2003.
NEW ENGLAND GAS COMPANY ADVOCACY SECTION OF THE
By its attorneys, DIVISION OF PUBLIC UTILITIES
AND CARRIERS
By its attorneys,
_______________________________ _______________________________
Craig L. Eaton, # 5515 Leo J. Wold, # 3613
Adler, Pollock & Sheehan, P.C. Special Assistant Attorney General
One Financial Plaza 150 South Main Street
Providence, RI 02903 Providence, RI 02903
Tel: 401-274-7200 Tel: 401-274-4400, ext. 2218
Setagr6b-1/31/03