The City of Drakesboro in Muhlenberg County is under investigation by the Kentucky Public Service Commission after a recent inspection of its municipal natural gas utility found 35 violations of safety standards.
In an order issued Thursday, the PSC gave the City of Drakesboro until Friday to either contract with a qualified third party to operate its natural gas system, or to shut down the system. A third party has been operating the system in recent weeks, but Drakesboro has not contracted with it for continued services.
The inspection found failure to introduce odorant into the gas. Natural gas is odorless and leaks can go undetected in the absence of odorant.
The PSC says Drakesboro was allowing unqualified personnel, possibly including jail inmates, to operate or service the system.
There were reportedly improper repairs to a damaged gas main; proper emergency procedures weren’t followed in response to reported leaks; Drakesboro failed to conduct regular leak surveys and inspections; and there was an absence of required safety programs.
Officials say Drakesboro did not provide customers with required safety information and failed to have necessary written operating procedures, as required by regulations.
They also failed to comply with numerous record-keeping requirements, including the filing of annual reports, according to a PSC news release.
If Drakesboro is found to have committed all of the violations cited in the inspection report, it could be subject to penalties of more than $7 million. The amount of the penalties is based on federal law, under which the PSC operates Kentucky’s natural gas safety program.
Drakesboro officials have been ordered by the PSC to appear at a hearing in Frankfort on March 8th. The hearing may be postponed if Drakesboro either contracts with a qualified third-party operator or shuts down its gas system.
Officials say Drakesboro and its current third-party operator have not come to terms on a contract. The third-party operator has told PSC staff that it has not been paid for the work it has done thus far and will not continue to operate the system beyond Friday without a contract that assures payment.
The March 8th hearing will be streamed on the Public Service Commission website.