California officials announced a tentative settlement agreement during a press conference Wednesday to resolve claims stemming from the massive 2015 Aliso Canyon methane gas leak, the biggest in U.S. history, which caused thousands to flee their homes.

The $119.5 million settlement is an agreement with the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Attorney General’s Office and the California Air Resources Board.

“Under the terms of the $119.5 million settlement agreement, SoCalGas will, among other things, reimburse city, county and state governments for costs associated with their response to the leak; establish a program with the California Air Resources Board to mitigate the methane emissions from the leak; and fund local environmental benefit projects to be administered by the government parties,” the utility company said in a statement.

The settlement is subject to approval by the Los Angeles Superior Court, according to LA County Supervisor Kathryn Barger, who represents Santa Clarita as part of the fifth district.

“We are ensuring justice to the residents of the North San Fernando Valley that is long overdue,” Barger said. “For over two and a half years, this community has endured such upheaval because of the Aliso Canyon disaster.”

The settlement agreement has been allocated for:
– The long-term health study;
– New independent air monitoring and symptom reporting system; and
– Reimbursements for temporary relocation to residents.

Related story: Aliso Canyon Announces New Gas Leak Months After Re-Opening

Several lawmakers representing both Santa Clarita and the Porter Ranch area commented on the deal.

Assemblyman Dante Acosta called the settlement an “excellent first step” in paying for the damages.

“My constituents deserve to be safe and healthy in their homes, and this settlement is an excellent first step in ensuring that such a leak will not happen again,” he said. “I was glad to hear that not only will SoCalGas be reimbursing city, county and state governments for their response to the leak, but that they will also be adding safety measures to the facility.”

State Senator Henry Stern was more critical of the payout, citing misgivings about where the money would go.

“While the public health study is a big win, only 1/4 of the $119.5 million would stay in our impacted community,” Stern said. “Millions would go to SoCalGas pet projects in the Central Valley that only deepen our dependence on this dangerous gas field.”

Katie Hill, who is running to replace Steve Knight as the CA-25 U.S. Representative, called the settlement “deeply flawed” and vowed to stand behind Stern’s push for funds to be allocated directly to the residents affected.  

“A settlement that sends millions of dollars to communities who weren’t even impacted by the leak and doesn’t bring us any closer to the closing of the Aliso Canyon facility is unacceptable,” Hill said. “We owe it to the families of Porter Ranch who had their health jeopardized to do more. This settlement is not the solution that our community needs and deserves.”

The agreement also prevents SoCalGas from passing the costs associated with the settlement onto ratepayers.

California Attorney General Xavier Becerra, Los Angeles Mayor Eric Garcetti, City Councilman Mitch Englander and LA County Supervisors Kathryn Barger and Hilda Solis were in attendance during the conference.

“I will not stop demanding accountability, from this utility and from others, from regulators, with the ultimate goal of permanently closing down this facility once and for all,” Englander said, adding that in 2017 Gov. Jerry Brown set a 10-year goal of closing Aliso Canyon.

Officials said the invisible gas was flowing from an underground storage facility owned by the company for about four months.

The gas leak, which was discovered on October 23, 2015, released more than 100,000 metric tons of methane into the air and forced thousands of residents to relocate due to health concerns, according to Barger.

Residents reported experiencing health issues such as headaches, nosebleeds and nausea, CNN reported.

Class-action lawsuits have also been filed. One seeks to compensate all individuals who were affected by the gas leak. Another would compensate businesses for their losses, according to Southern California Public Radio.

“SoCalGas is delivering on our commitment to the governor and the people of California to fully mitigate the methane emissions from the leak at our Aliso Canyon facility,” said Bret Lane, president and chief operating officer for SoCalGas. “The settlement will also help California meet its ambitious climate goals by advancing projects that capture methane from dairy farms and waste and convert that energy into renewable natural gas for use in transportation.”

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