Knoxville, TN – The Knoxville Utilities Board is under fire after state officials issued a final report on a deadly West Knox County house explosion that places blame with the utility and proposes a fine.

The report from the Tennessee Regulatory Authority’s Gas Pipeline Safety Division focuses on the explosion that happened in the Whittington Creek subdivision in the early morning hours of Dec. 9, 2009. TRA blames KUB for failing to act sooner to either better monitor or replace pipe fittings that led to numerous leaks and issues spanning nearly a decade.

The Grey Pointe Drive home belonged to Steve and Sue Krzeski, who were blown from their bedroom into the backyard. They were hospitalized for their injuries but survived. The couple’s son, 18-year-old Nick Krzeski, was killed in the blast.

Knox County fire investigators later concluded that natural gas likely leaked from the connection near the street and then traveled along the water line into the basement where it was sparked by the gas-fired furnace. The report stopped short of determining a cause for the leak.

In its own report, KUB, too, concluded it could not determine a cause.

The Krzeskis filed a wrongful death lawsuit, blaming KUB for the explosion. The utility responded by saying it “conducted an extensive investigation of the circumstances surrounding the explosion, the results of which were provided to the Tennessee Regulatory Authority. In spite of these efforts, we were unable to determine its cause.”

The Krzeskis’ neighbors, Steve and Brenda Stephenson, had filed suit earlier, asking for at least $750,000 for damages to their house, negligence and emotional distress.

A neighbor’s insurance company also sued the utility.

KUB reports all three lawsuits have now been settled.

“A voluntary compromise settlement was reached in May 2011 in all pending litigation arising out of the December 9, 2009 explosion that occurred in the Whittington Creek subdivision. While the exact cause of the explosion was undetermined, KUB’s decision to enter into an agreement was based upon a number of factors, including the anticipated cost of continued trial preparation, staff time being devoted to those efforts, and the prospect of lengthy trials and appeals that could easily stretch into years.Because the specific terms of the agreement are confidential at the request of the parties, this will be KUB’s only comment on the matter.”

On Thursday, nearly two years after the explosion, the TRA announced it had issued a formal notice of violation and incident report to KUB, finding the utility at fault in the explosion and proposing a fine of $250,000 dollars. KUB has 30 days to respond.

“We’re not penalizing KUB for purchasing that kind of equipment, but we’re penalizing them for not having adequate, continuing surveillance in place, especially since they understood that the tees could be problematic because of what they’d had happen in the past,” said TRA Chairman Kenneth Hill.

The report finds that KUB was in direct violation of the Minimum Federal Safety Standards for gas pipeline safety, as established by the U.S. Department of Transportation.

TRA investigators have determined that the likely cause of the natural gas explosion stemmed from the failure of a connection – referred to as a “bolt-on saddle service tee” – between the small natural gas service line and the main line at the Grey Pointe Drive residence. Upon review of KUB’s leak report and repair data by the TRA of bolt-on saddle tees, it was discovered that there were 158 gas leaks associated with this type of saddle service tee between 2000 and 2009.

The report further revealed that the Krzeskis’ fitting failed a pressure test and that two of the four bolts were broken, although investigators were unable to determine if that happened before or after the explosion.

The TRA agreed with much of the Knox County fire investigator’s findings, in that the natural gas likely traveled along the water line to the house, with a contributing factor being the hard-packed clay around the gas line, which would have prevented the gas from escaping into the air.

“There was probably a conjuncture of several different items making it sort of the perfect storm of factors,” Hill said. “There was a failure of that tee, there was the ground itself was hard-packed clay, and then there was the close proximity of the utility lines, specifically a water line there, and probably the gas leaked from that tee, followed the water line into the basement, and then collected there and caused the explosion.”

The TRA report explains that the fine comes as a result of KUB’s lack of response to its own history of problems.

“The available leak data and repair information were sufficient to put KUB on notice that it should locate and ascertain the condition of all bolt-on saddle service tees in its distribution system so that risks to public welfare and property could be minimized. Evidence of a significant problem existed as early as 2002, when leaks from bolt-on saddle service tees accounted for 34.7% of all below-ground leaks,” the report stated.

In addition, the TRA’s Gas Pipeline Safety Division also directs KUB to:

•Prepare and submit a plan for improving surveillance of the KUB natural gas distribution system no later than January 31, 2012.

•Identify the specific individual or individuals who will be responsible for insuring that all steps are followed.

•Identify specific records and other sources of information that will be reviewed in complying with Federal Code §192.613.

•Identify the individual or individuals responsible for review of each record or other source of information.

•Identify the manner in which KUB will use the information obtained from each source.

KUB officials said they are surprised by the findings.

In a statement, they said, “The report places blame on the mechanical fitting at the site of the incident, despite extensive testing by industry experts which was unable to determine a cause for the leak. Regardless, out of an abundance of caution, KUB took action in 2010 to remove these fittings from our system, and that work was completed earlier this year. Although KUB no longer uses these fittings, it should be noted that they are still approved for use and being installed on systems across the state.”

“KUB takes its safety responsibilities very seriously, and it is for those reasons that KUB has already taken aggressive actions to respond to this tragic event. We continue to be committed to continuous improvement in the system,” said Mintha Roach, KUB President and CEO.

In the statement, KUB also points out it has already stepped up leak survey activities, increasing the cycle of leak surveys from a 5-year cycle to a 3-year cycle, and has invested in more sensitive equipment to ensure the integrity of the system.

KUB officials said they will be working with TRA in the coming days to address the terms of the Notice and to discuss the TRA’s proposed civil penalty.

Meanwhile, Hill said TRA has turned over its report to the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration for further review. Hill said the federal agency is looking into the type of fittings formerly used by KUB to determine whether any action should be taken to increase monitoring of those fittings or perhaps even ban their usage.

Meanwhile, TRA officials will be investigating which other utilities statewide are currently using those connectors, advising that find alternatives.

“If other utilities are using these fittings, they should receive the message that they need to re-double their efforts when it comes to surveilling these situations, these facilities, they need to be careful, they need to watch their inspections, and it is their duty, and it’s TRA’s duty as well to protect the consumers and the general public, and you can’t do that unless you’re investigating your own lines and inspecting them on a regular basis to make sure they’re not leaking,” Hill said.