Southern Natural Gas has agreed to pay ARCO Oil and Gas 500,000 for damages resulting from an explosion March 19, 1989 on an ARCO drilling platform in the Gulf of Mexico . The blast and resulting fire occurred when subcontractors hired by SNG tried to make repairs and cut into the pipeline that transported gas to shore. Representatives agreed on the settlement Monday during a recess in a civil trial that began June 11 in State District Court in Madison County. Seven people were killed and 23 injured, and the platform was destroyed. SNG , which bought gas from SNG , made no admission of guilt but agreed to pay 500,000 and a total of $ more than $300 million to 23 ARCO employees injured in the blast.
Southern Natural Gas has agreed to pay ARCO Oil and Gas 500,000 for damages resulting from an explosion March 19, 1989 on an ARCO drilling platform in the Gulf of Mexico . The blast and resulting fire occurred when subcontractors hired by SNG tried to make repairs and cut into the pipeline that transported gas to shore. Seven people were killed and 23 injured, and the platform was destroyed. SNG , which bought gas from SNG , made no admission of guilt but agreed to pay 500,000 and a total of $ more than $300 million to 23 ARCO employees injured in the blast.