ATMOS ENERGY CORPORATION - MID-TEX

Incident Narrative

"ON DECEMBER 25, 2023, AT APPROXIMATELY 11:30 P.M., ATMOS ENERGY RECEIVED A NOTIFICATION OF AN EXPLOSION. THE FIRST ATMOS ENERGY TECH ARRIVED ON THE SCENE AT 11:50 P.M. ON DECEMBER 25, 2023, AND REQUESTED ADDITIONAL COMPANY RESOURCES. WHILE ATMOS ENERGY WAS RESPONDING TO THE EVENT AND MAKING THE AREA SAFE, AN ATMOS ENERGY REPRESENTATIVE SPOKE WITH THE RAILROAD COMMISSION OF TEXAS FROM 12:58 A.M. UNTIL 1:16 A.M. TO INFORM THAT STATE REGULATOR AND ANSWER QUESTIONS. AFTER THAT CALL WAS COMPLETE, THE SAME ATMOS ENERGY REPRESENTATIVE CALLED THE NRC TO REPORT THE POTENTIAL INCIDENT AT 1:18 A.M. ON DECEMBER 26. AT 4:42 A.M., ON DECEMBER 26, 2023, THE GAS SYSTEM IN THE VICINITY WAS ISOLATED AND SHUT OFF. BASED ON THE INFORMATION OBTAINED IN THE ONGOING RESPONSE AND EVACUATIONS, ATMOS ENERGY CONFIRMED DISCOVERY THAT THE INCIDENT MET REPORTING CRITERIA ON DECEMBER 27, 2023, AT 3:30 P.M. THERE WERE NO FATALITIES OR INJURIES AT THE AFFECTED RESIDENCE. ON FEBRUARY 20, 2024, ESTIMATES FOR THE HOME'S REPAIR COSTS WERE PROVIDED. WHEN COMBINED WITH THE COMPANY'S COSTS, THE TOTAL AMOUNT WAS BELOW THE REPORTABLE THRESHOLD. THE COMPANY'S INVESTIGATION CONCLUDED THAT THE RELEASE WAS FROM A SERVICE TAP TEE CAP, WHICH WAS OVER-TIGHTENED DURING INSTALLATION BY A LONESTAR GAS CONTRACTOR IN 1989, CAUSING A CRACK AND ULTIMATELY FAILURE. THIS CONSTRUCTION ACTIVITY, WHICH IS REFERENCED IN PART G7, 4, OCCURRED PRIOR TO ATMOS ENERGY'S OWNERSHIP OF THE FACILITIES AND PRIOR TO THE ADOPTION OF THE COMPANY'S OPERATOR QUALIFICATION PLAN. THE VOLUME OF GAS RELEASED (PART A, 21C) IS STILL UNKNOWN. A VALUE OF 1 WAS ENTERED AS IT IS THE LOWEST VALUE THAT WILL VALIDATE IN THE FIELD."