SoCalGas Temporarily Controls Flow of Gas at Leaking Aliso Canyon Well; Initiates Process of Permanently Stopping the Leak

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Feb 11, 2016, 04:29 ET

LOS ANGELES, Feb. 11, 2016 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced that it temporarily has controlled the flow of natural gas at the leaking well at its Aliso Canyon storage facility outside Los Angeles. It will continue to work in coordination with the California Division of Oil, Gas and Geothermal Resources (DOGGR) and other agencies during the process of permanently sealing the well.

On Dec. 4, 2015, SoCalGas commenced drilling a relief well to stop the natural gas leak by plugging the leaking well at its base. On Feb. 11, 2016, the relief well intercepted the base of the leaking well, and the company began pumping heavy fluids to temporarily control the flow of gas out of the leaking well. DOGGR officials and representatives from other state and local agencies were at the site to observe the operation. The leak and the flow of gas will be declared ended once DOGGR has confirmed that the well has been permanently sealed.

"We have temporarily controlled the natural gas flow from the leaking well and begun the process of sealing the well and permanently stopping the leak," said Jimmie Cho, SoCalGas senior vice president of gas operations and system integrity, and SoCalGas incident commander.

While this is a positive development, cement will need to be injected from the relief well into the leaking well at its base in order to permanently seal it, which could occur over the next several days. The process by which DOGGR will confirm that the leaking well is permanently sealed could take several additional days after the cement is injected. The company also is continuing its preparations to drill a back-up relief well as a precautionary measure and will continue these efforts at least until the leak has been stopped permanently, the timing of which has not been determined yet.

Residents in Porter Ranch who temporarily relocated because of the odor from the gas leak have been notified today of this development, as have the majority of other residents of Porter Ranch. Once DOGGR confirms that the well has been permanently sealed, the company will start winding down its temporary relocation program. Subject to certain exceptions, residents who have temporarily relocated to short term housing, such as hotels, will have up to eight days/seven nights to transition back home, and residents who have been placed in rental housing will have through the agreed term of their leases to return home. Specific information on return home process can be found here: https://www.alisoupdates.com/acu-return-home-faq

About Southern California Gas Co: Southern California Gas Co. (SoCalGas) has been delivering clean, safe and reliable natural gas to its customers for more than 145 years. It is the nation's largest natural gas distribution utility, providing service to 21.6 million consumers connected through 5.9 million meters in more than 500 communities. The company's service territory encompasses approximately 20,000 square miles throughout central and Southern California, from Visalia to the Mexican border. SoCalGas is a regulated subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "intends," "depends," "should," "could," "would," "will," "confident," "may," "potential," "possible," "proposed," "target," "pursue," "goals," "outlook," "maintain" or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions, including issuances of permits to construct and licenses for operation, by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, California Energy Commission, U.S. Environmental Protection Agency, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States; the timing and success of business development efforts and construction, maintenance and capital projects, including risks in obtaining, maintaining or extending permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; energy markets, including the timing and extent of changes and volatility in commodity prices, and the impact of any protracted reduction in oil and natural gas prices from historical averages; the impact on the value of our natural gas storage assets from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for natural gas storage services; delays in the timing of costs incurred and the timing of the regulatory agency authorization to recover such costs in rates from customers; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; capital markets conditions, including the availability of credit and the liquidity of our investments; inflation and interest rates; the availability of electric power and natural gas, and natural gas pipeline and storage capacity, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; cybersecurity threats to the energy grid, natural gas storage and pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers, terrorist attacks that threaten system operations and critical infrastructure, and wars; weather conditions, conservation efforts, natural disasters, catastrophic accidents, and other events that may disrupt our operations, damage our facilities and systems, and subject us to third-party liability for property damage or personal injuries some of which may or may not be covered by insurance; risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments;business, regulatory, environmental and legal decisions and requirements; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements due to insufficient market interest, unattractive pricing or other factors; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond our control. These risks and uncertainties are further discussed in the reports that the company has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov. Investors should not rely unduly on any forward-looking statements. These forwardlooking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Southern California Gas Co.