Kennewick-based Cascade Natural Gas Corp. will pay $2 million to settle violations issued by the state Utilities and Transportation Commission for a 2023 explosion that killed one and injured another. 

The UTC suspended $250,000 of the penalty on the condition that Cascade complete specific compliance actions, according to a release. The natural gas provider is also prohibited from recovering any costs of the penalty from its customers. 

In addition to the penalty, the settlement terms also require Cascade to:  

• Contract with a third party to conduct an audit of its safety management program and correct any deficiencies identified. 

• Allow staff and the commission to provide input throughout the audit process. 

• Create a new company policy to oversee and manage contractors. 

• Notify the commission if liquefied natural gas, or LNG, is used in future operations. 

“In support of the settlement, the company states it understands the seriousness of the incident and has taken steps to improve contractor oversight and safety protocols,” the UTC said in a statement. “Cascade fully cooperated with the investigation and is committed to preventing similar incidents in the future.”   

The penalties stem from an incident on Sept. 22, 2023. A Southern Pines Trucking driver hauling an LNG trailer pulled away from an active LNG transfer in Toppenish, releasing around 83 barrels of LNG, according to a release. The escaping LNG formed a vapor cloud, which ignited upon contact with a nearby ignition source.  

One of the on-site contractors sustained severe burns and died two days later. Another contractor was not physically harmed while the truck driver was treated for burns and released from the hospital.   

Equipment and vehicles were damaged, but there was no other environmental harm, UTC staff reported. The investigation found 66 alleged violations of state and federal pipeline safety laws and regulations. 

UTC staff initially recommended to the agency’s board that Cascade be required to pay $5.7 million for the violations. 

“Safety is a core value at Cascade, and we take these allegations seriously,” the company said in a statement about the safety violations in an April story that appeared in the Tri-Cities Area Journal of Business. 

Cascade serves 222,000 customers across the state.