In an earnings call Tuesday, Equitrans Midstream leaders said the costs of handling a gas leak at their Rager Mountain facility in Cambria County last year that spewed large amounts of methane into the air cost them $8.1 million last year in expenses and money reserved for potential regulatory penalties.
And they expect that amount to be higher in 2023.
“Based on initial estimates we have included $8-10 million of operating expenses and approximately $5 million of (capital expenses) related to the ongoing work following the Rager Mountain incident in our 2023 guidance,”
The Pennsylvania Department of Environmental Protection has said their investigation has revealed “numerous violations” at the facility. Equitrans said in their call that their independent investigation continues into what caused it.
“We currently do not have permission to inject gas into the field but we are having active discussions with (the Federal Pipeline and Hazardous Material Safety Administration) and they will authorize to inject gas in the coming season,”
Equitrans Midstream Corporation (ETRN) on Tuesday reported a fourth-quarter net income of $80.6 million, after reporting a loss in the same period a year earlier. The Canonsburg, Pennsylvania-based company said its losses narrowed to $269.3 million for the year.