( CNN ) -- Pacific Gas & Electric Co. will pay San Bruno , California , $ 70 million in restitution for the pipeline rupture that killed eight people and destroyed dozens of homes in September 2010 , the utility and city said Monday . `` This money will be used for the benefit of all the citizens of our city and to help us , as a community , get beyond the tragedy and devastation caused by PG & E 's explosion and fire , '' San Bruno Mayor Jim Ruane said in a joint news release . Federal officials said in August that a faulty pipe , flawed operations and inadequate government oversight led to the natural gas explosion in the San Francisco suburb . `` The community of San Bruno has suffered through a terrible tragedy and we understand that this accident will affect this community forever , '' PG & E President Chris Johns said . The city will establish a separate not-for-profit public purpose entity to manage the funds and determine how the restitution should be spent for the benefit of the community as a whole , the statement said . `` This $ 70 million payment is in addition to PG & E 's commitment to fund replacement and repair of the city 's infrastructure and other costs related to the accident and restoration of the neighborhood , '' it said . `` The utility will not seek to recover the contribution through insurance or customer rates . '' During a public board meeting after delivering their final report on the matter , National Transportation Safety Board investigators sharply criticized pipeline owner PG & E for the explosion , saying the pipe was inadequate from the time it was installed in 1956 . That was compounded `` by a litany of failures '' over the years , including poor record-keeping , inadequate inspection programs and `` an integrity management program without integrity , '' NTSB Chairwoman Deborah Hersman said . `` It was not a question of if this pipeline would burst , '' she said . `` It was a question of when . '' Hersman said the probe yielded `` troubling revelations about a company that exploited weaknesses in a lax system of oversight , and government agencies that placed a blind trust in operators to the detriment of public safety . ''
Money from PG & E will benefit all citizens , San Bruno 's mayor says . Comment: Federal investigators say a faulty pipe and inadequate oversight led to the blast .