West Reading chocolate factory explosion: Federal judge orders Pa. Public Utilities Commission to turn over inspection reports to federal investigators [Update]

A federal judge has stepped in to settle a dispute between a state agency and federal officials investigating a fatal explosion at a West Reading chocolate factory in March 2023.

The National Transportation Safety Board was seeking unredacted inspection reports from the Pennsylvania Public Utilities Commission pertaining to UGI Utilities Inc., the natural gas pipeline operator whose assets were involved in the explosion.

The NTSB has been investigating the March 24, 2023, blast that killed seven workers at an R.M. Palmer Co. plant. Initial findings of the investigation have shown the blast was caused by a natural gas leak.

The PUC refused to provide the documents requested by the NTSB, saying in September that it is not allowed to share the requested material because it is considered confidential security information.

The NTSB issued a subpoena for the records and asked a federal judge to order the PUC to comply with it. On Tuesday, U.S. Judge for the Middle District of Pennsylvania Christopher C. Conner issued such an order. It requires the PUC to produce the subpoenaed inspections, which stretch back five years, within seven days.

Officials from the PUC said Wednesday that they were pleased with the judge’s order, saying it allows them to comply with the NTSB request without violating state law.

“The PUC is pleased that the court’s order allows the commission to comply with applicable Pennsylvania law and with the National Transportation Safety Board’s subpoena requesting PUC reports pertinent to their investigation of the natural gas explosion of the R.M. Palmer plant in West Reading,” a statement from the PUC said. “From the beginning, the PUC has underscored a commitment to assist the NTSB with this investigation — while also complying with the commission’s legal obligation to safeguard confidential security information.”

The PUC statement said the court decision was the result of discussions between NTSB officials and the PUC, which was represented by the Pennsylvania Office of Attorney General.

A state versus federal dispute

The dispute between the two agencies led the NTSB last fall to remove the PUC as a party to the investigation.

“The NTSB has used the party system for decades as part of the agency’s investigative process, which allows the sharing of factual investigative information during the early phases of an investigation,” according to a NTSB statement announcing the move. “This sharing of information is critical to a comprehensive and efficient investigation and ensures a party to an investigation has sufficient information to take any immediate actions necessary to ensure safety.”

The statement went on to say that federal regulations authorize the NTSB to inspect any records pertaining to an investigation, adding that the PUC was obliged to provide requested information related to the incident.

The PUC claimed that the commission is prohibited from turning over the unredacted information by Pennsylvania’s Public Utility Confidential Security Information Disclosure Protection Act, a state statute that NTSB officials believe is preempted by federal law.

“Pennsylvania public officials and/or government employees who release confidential security information face criminal penalties — including imprisonment, fines and removal from office or loss of employment — and the PUC has strict policies and controls for handling confidential security information,” a PUC statement read.

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