Duke Energy Facing Fines

HOUSTON, December 16, 2004 - Officials with Duke Energy are considering whether or not they should agree to pay a $37,500 fine and admit wrongdoing that stems from an explosion and fire at an underground gas storage cavern in Liberty County.

That fire started on August 19 and burned for almost a week, forcing the evacuation of around 300 people in the surrounding area.

Details of the settlement offered by state regulators indicate that Duke would be fined for allowing the "uncontrolled escape" of six billion cubic feet of natural gas from the salt dome.

The amount of the fine would double if Duke refuses to agree and forces the state to file a complaint against the company and go through hearings.

Duke has also been cited in the settlement for failing to keep adequate records on the storage caverns and recommends that the company install industrial-strength firefighting equipment at the site.

Duke officials say they plan to have the facility back in service in January.

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