SoCalGas to pay $40M to class on top of $1.8B to individuals

Southern California Gas Co. has agreed to pay an additional $40 million to class members after settling an $1.8 billion deal with San Fernando Valley residents over damages from the 2015 Aliso Canyon gas blowout. However a small but vocal group of residents said it's not enough during a protest Tuesday.

After SoCalGas, while denying any wrongdoing, agreed to pay over 35,000 San Fernando Valley residents $1.8 billion to settle allegations that the blowout caused health problems, attorneys from several of firms recommended plaintiffs take the deal.

Also subject to court approval is an agreement involving settlements with class members separate from the $1.8 billion individual plaintiffs could receive. An additional $40 million is on the table in that deal, attorneys said Tuesday.

However Porter Ranch resident Matt Pakucko, president of the activist group Save Porter Ranch, who along with others, held a news conference Tuesday in front of a SoCalGas facility, called the deal "insulting," in a phone interview.

"Your average person looks at $1.8 billion, and says 'Wow, all that money.' But do the math: $1.8 billion divided by 35,700 plaintiffs, minus attorneys' fees, attorneys' expenses, taxes. We'll be lucky to get $30,000 each if it was divided evenly, which it won't be," Pakucko said. "That doesn't nearly cover people's past expenses and it certainly doesn't cover any forward looking medical issues."

Homeowners and residents living near the Aliso Canyon facility allege they suffered personal injury and property damage after a negligently maintained natural gas storage well failed and released nearly 100,000 tons of methane and other substances into the atmosphere over 118 days. Southern California Gas Leak Cases, JCCP 4861. (L.A. Sup. Ct., filed June 3, 2019).

Pakucko said the Aliso Canyon storage facility is still emitting toxic gases and he and his group want it shut down. However, attorneys involved in the case said only the California Public Utilities Commission has the power to do that. A court doesn't have the jurisdiction to close the facility, they said.

Asked Tuesday if it planned to close Aliso Canyon, utilities commission spokesperson Terrie Prosper said, "Our proceeding to determine the feasibility of minimizing or eliminating the use of Aliso Canyon is underway."

Documents Prosper shared appear to show the commission has been considering shutting down the facility since 2017.

The $1.8 billion settlement needs 97% plaintiff participation to move forward, SoCalGas said in a statement Monday.

Responding to Pakucko Tuesday, plaintiffs' attorney Brian J. Panish of Panish Shea & Boyle LLP said even if all 35,717 people involved in the $1.8 billion deal were given $10 million each, some would still be upset.

"That's just life," Panish said. "They have the right to say that. They have the right not to be in the lawsuit and they have the right to wish for whatever they want. But wishing for something and being able to obtain it are two different things. And if we won everything, we still can't force the Aliso Canyon to be shut down. That's not the power of the court, nor us as lawyers. They've got to go to the Legislature."

R. Rex Parris of Parris Law Firm, who represents Pakucko and Save Porter Ranch, as well as other plaintiffs, said the group's frustration over the facility remaining open, and the settlement is, "understandable yet regrettable."

"It's very important not to discount them. They were instrumental in the beginning in sounding the alarm," Parris said. "They woke people up to what had happened. ... But I've watched this process every step of the way from the beginning. What Brian Panish accomplished was magic."

SoCalGas and its parent company, Sempra, deny any wrongdoing. The disaster is the largest natural gas leak in U.S. history.

Gary Praglin of Cotchett Pitre & McCarthy LLP, who served on the plaintiffs steering committee, said Tuesday he recommended his clients agree with the deal and called it "the best for the most people.

"It would be great if you could satisfy everyone, but this is truly the best settlement for the most people," Praglin said. "It's truly an amazing result in a case like this where SoCal Gas was originally going to pay nothing. This went from zero to $1.8 billion."