PG&E pleads 'not guilty' to pipeline failing charges

Pacific Gas and Electric Company (PG&E) is in federal court to answer criminal charges laid against it following the San Bruno, California, US pipeline rupture in 2010. The company has pleaded not guilty to 12 charges related to the incident that claimed eight lives and caused severe damage to the residential area.

The incident on September 9th 2010 occurred when a high-pressure gas pipeline exploded. The explosion triggered a large fire that caused damage to over 100 residential properties and killed eight people. PG&E has been charged with breaking federal safety rules, with prosecutors alleging that the company knowingly failed to maintain safety levels that could have avoided the incident.

A 12-count indictment was issued by a federal grand jury this month that accused the energy firm of wilfully failing to inspect certain areas of its ageing pipeline system, including the section in San Bruno that triggered the explosion. The company has also been accused of failing to maintain accurate pipeline records.

PG&E has pleaded not guilty to all the charges but has accepted that the fault for the incident lies with it. The company said in a statement that it doesn't "believe any employee intentionally violated federal pipeline safety regulations, San Bruno was a tragic accident and we're accountable for that."

If PG&E is found guilty of the 12 charges, it could be liable to pay around $3.5 million (£2 million) in statutory penalties. It could also be liable to pay an alternative fine imposed by the court that is based on any financial gain the company could have benefited from as a result of any violations. According to the US Justice Department, the alternative fine could also be based upon the losses of those affected by the 2010 explosion.

The energy company also faces penalties and state fines that could end up costing it around $2 billion as a result of violating the federal Pipeline Safety Act between the years 2003 and 2010, resulting in the San Bruno rupture.