An independent state investigation and enforcement bureau is seeking more than $2.5 million in civil penalties from UGI Utilities Inc. in the fatal March 2023 explosion at a West Reading chocolate factory.

The blast at the R.M. Palmer plant in the first block of South Second Avenue claimed the lives of seven workers.

Last year the National Transportation Safety Board, which investigated the explosion, issued a final report deeming the blast was caused by a natural gas leak.

According to the report, a cracked, out-of-use fitting allowed natural gas to leak into the basement of what was known as Building 2. The gas accumulated there and was ignited by an unknown source, causing an explosion and fire that killed seven, injured 10 and destroyed the building.

On Wednesday, the Pennsylvania Public Utility Commission’s Bureau of Investigation and Enforcement announced it had filed a formal complaint against UGI, which provided natural gas service to the factory.

“The complaint filed today alleges multiple violations of the Public Utility Code, commission regulations and federal pipeline safety standards related to the design, operation and oversight of UGI’s gas distribution facilities serving the factory,” a statement announcing the complaint reads.

Officials from UGI said Wednesday that they are carefully reviewing the complaint.

“As UGI reviews the complaint, the company will continue to cooperate with the PUC’s investigation,” a statement issued by the company reads. “UGI is committed to providing safe and reliable service to its customers and communities.”

The bureau is seeking that $2,576,627 in civil penalties be paid by UGI, the maximum allowed by law. It is also seeking corrective actions aimed at strengthening pipeline safety oversight, addressing risks associated with aging plastic pipeline materials and expanding advanced methane leak detection technologies.

Those actions include:

• Expanding the deployment of smart remote methane detection systems that are capable of identifying natural gas leaks and alerting operators or emergency officials through modern communications networks.

• Establishing new procedures for retiring aging Aldyl-A plastic service tees with Delrin inserts, which have been linked to failures in vintage plastic pipeline systems.

• Increasing leak survey frequency for older plastic pipelines, particularly in dense urban areas where underground leaks may quickly become hazardous.

• Improving tracking, mapping and risk analysis of vintage plastic pipeline assets installed prior to 1983.

• Strengthening emergency response coordination procedures and integrity management programs designed to identify and mitigate risks affecting pipeline infrastructure.

The bureau’s statement said that, immediately following the explosion, PUC engineers responded to the scene and launched an extensive investigation and technical analysis of the UGI’s gas distribution system serving the facility.

“The investigation determined that natural gas leaked from a retired plastic service tee connected to a vintage Aldyl-A plastic pipeline located beneath Cherry Street near the Palmer facility,” the statement said. “Gas migrated underground and entered the factory building, where it was ignited by an unknown source.”

Based on its investigation, the PUC alleges UGI committed 27 violations, which are detailed in the complaint. They include:

• Failing to maintain accurate facility records and mapping for pipeline infrastructure serving the Cherry Street segment.

• Not adequately identifying and managing risks associated with vintage plastic pipeline components, including Aldyl-A infrastructure installed in 1982.

• Failing to account for elevated ground temperatures from nearby heat sources, including steam lines, when designing or maintaining plastic pipeline facilities.

• Not implementing sufficient integrity management and surveillance procedures to identify and mitigate potential hazards affecting the system.

• Failing to maintain adequate emergency response procedures and coordination, including communication protocols during the initial response to the explosion.

• Failing to take all reasonable measures necessary to protect the public and maintain safe facilities, as required under the Public Utility Code.

The complaint will be reviewed through the PUC’s formal adjudicatory process before the commission’s Office of Administrative Law Judge. UGI will have an opportunity to respond to the allegations before the commission determines whether violations occurred and what penalties or corrective actions may be imposed.

In their statement, UGI officials called the chocolate factory explosion a tragedy.

“What occurred at R.M. Palmer was a heartbreaking tragedy, and our deepest sympathies remain with the victims’ families, the West Reading community and all those affected,” it reads.

The statement stresses that public awareness and education to safety issues regarding natural gas remain a priority for UGI, urging people to visit UGI.com/safety for more information.

“The clear guidance, if you smell natural gas, is to evacuate immediately and get at least the length of a football field away before calling UGI at 800-276-2722 or 911,” the statement reads.