The Aliso Canyon blowout, the largest methane leak in U.S. history, led to over $2 billion in settlements and fines against Southern California Gas Co. and its parent company, Sempra Energy. Despite the scale of the disaster, only a single misdemeanor criminal charge was filed.
The 2015 gas leak released 100,000 tons of methane and other chemicals into the air near Porter Ranch. Residents reported headaches, nosebleeds, and nausea. Later, a study found that pregnant women within six miles of the leak had a 50% higher risk of giving birth to underweight babies.
SoCalGas and Sempra have denied wrongdoing in all settlements and maintain there are no long-term health risks.
Breakdown of Settlement Costs
The payouts include:
The state barred SoCalGas from charging ratepayers for these costs.
Health Effects and Legal Fallout
Thousands of lawsuits followed the leak. Families, firefighters, and even a state utility employee sued for illnesses allegedly caused by exposure to methane, benzene, and other chemicals.
“You had people who had to relocate, schools were closed, pets were killed or affected by the chemicals,” said attorney Brian Panish, who represented over 7,000 clients. “It was devastating for the entire community.”
Panish said SoCalGas delayed the case by withholding more than 150,000 documents. A judge issued $5.7 million in sanctions. Eventually, a group of nine law firms reached a $1.8 billion settlement.
“It took a lot of work from a lot of lawyers and a lot of plaintiffs that hung in there and didn’t give up,” Panish said.
The Parris Law Firm also sued on behalf of dozens of firefighters and a state investigator. One firefighter, Daniel Mehterian, said:
“Now we are all suffering intense nosebleeds, severe headaches, nausea, dizziness and more.”
A state utility employee, Kenneth Bruno, sued after developing leukemia, blaming benzene exposure. His lawsuit alleged he was never told to wear protective gear while inspecting the site.
Investigations and Accountability
Blade Energy Partners concluded the cause was a corroded well casing. Their report also found SoCalGas had no real-time pressure monitoring and had ignored over 60 previous leaks.
The criminal case resulted in a no-contest plea and a $4.3 million fine. Critics called it a “slap on the wrist” for a company with over $10 billion in revenue at the time.
Parris said criminal accountability fell short:
“The reality is that the government failed the people of Porter Ranch and they’re still failing them.”
Public Spending and Future Risks
L.A. County used its portion of the settlement to fund projects including:
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A $21 million health study by UCLA
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Air filtration systems in schools
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Lead paint cleanup near Exide
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Greenhouse gas mitigation
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Electric school buses
The California Attorney General’s Office tracks how some funds are spent.
The Center for Environmental Health also reached an agreement requiring SoCalGas to install monitors and alert nearby residents if dangerous gas levels are detected.
Even so, Aliso Canyon remains open despite public pressure to shut it down.
“Instead of causing massive damage in a year or two, it is going to take 30 years before it kills you, but it will kill you,” Parris said.
