United States v. Pacific Gas & Electric Co.

153 F. Supp. 3d 1076, 2015 U.S. Dist. LEXIS 171595, 2015 WL 9460310
District Court, N.D. California·Decided December 23, 2015·No. Case No. 14-cr-00175-TEH·Published·Cited by 2 cases

Opinion

ORDER DENYING DEFENDANT’S MOTION TO DISMISS FOR FAILURE TO STATE AN OFFENSE: COUNTONE

THELTON E. HENDERSON, United States District Judge

This matter came before the Court on October 19, 2015 for a hearing on Defendant Pacific Gas & Electric (“PG&E”)’s Motion to Dismiss for Failure to State an Offense: Count One. After carefully considering the parties’ written and oral arguments, the Court now DENIES Defendant’s motion, for the reasons set forth below.

BACKGROUND

On September 9, 2010, a gas line owned and operated by PG&E ruptured, causing a fire that killed 8 people and injured 58 others. Superseding IndMment (“SI”) ¶ 5 (Docket No. 22): The fire damaged 108 homes, 38 of which were completely destroyed. Id On July 30, 2014, a grand jury returned a superseding indictment (“Indictment”) charging PG&É with 28 counts, including one count of obstructing the National Transportation Safety Board (“NTSB”) investigation.that followed,the explosion. Id ¶ 61.

The NTSB is “an independent establishment of the United States Government,” charged by Congress with “investigating] and- reporting] on the safe transportation of hazardous material,” including by pipeline. 49 U.S.C. §§ 1111(a), (g). The NTSB began an investigation immediately after the San Bruno explosion, examining the cause of the explosion, the characteristics and history of the failed pipe, the adequacy of PG&E’s emergency response, and PG&E’s operations. Id. ¶¶ 54-55. The investigation revealed a number of deficiencies in PG&E’s recordkeeping, integrity management program, and maintenance practices as they related to various sections of the pipeline, including the line that ruptured — Line 132. Id The agency concluded that these deficiencies were a probable cause of the explosion. Id.

Among the issues the NTSB investigated was PG&E’s practice of raising the [1078]*1078pressure of pipelines in high consequence areas (“HCAs”) — densely populated locales where a release of gas could pose a significant risk of injury or death — to levels “above the maximum operating pressure experienced by a pipeline segment in the five years before the segment was identified as being in an HCA (the ‘5-year MOP’),” or above “the maximum allowable operating pressure (‘MAOP’)” for that segment. Id. ¶¶ 15, 56. The Indictment alleges that PG&E adopted this practice of pressure increases to avoid having to conduct the expensive testing that was required of “high risk” segments, which are pipeline segments in HCAs “with unstable manufacturing threats.” Id. ¶¶ 15, 38. Specifically, “PG&E chose to only consider a manufacturing threat unstable if the pressure on the pipeline exceeded the 5-year MOP by 10% or more,” despite the fact that PG&E knew the Pipeline' Safety Act considered a pipeline segment “unstable” if there was any increase at all in the 5-year MÓP. Id. ¶ 38.

On February 22, 2011, in response to NTSB data requests on these pressure increases, PG&E provided a copy of Risk Management Instruction-06 (“RMI-06”), a document that set forth PG&E’s “10% or more” policy. Id. ¶ 57. Then, on April 6, 2011, PG&E sent a letter to the NTSB. withdrawing the “10% or more” version of RMI-06, claiming that it was an “unapproved draft” and attaching another version of RMI-06 that did not include the “10% or more” policy. Id. ¶ 59. PG&E did not disclose in the letter that its integrity management group had actually followed the “10% or more” policy set forth in the original copy of RMI-06 for two years “in or about 2009 through in or about April 2011,” despite knowing that the policy violated the Pipeline Safety Act; Id. ¶ 60.

On-the basis of this conduct, the Indictment charges that PG&E “did corruptly influence, obstruct, and impede” the NTSB investigation. Id. ¶ 61.

LEGAL STANDARD

Under Rule 12(b) of the Federal Rules of Criminal Procedure, a defendant may “raise by pretrial motion any defense, objection, or request that the court can determine without a trial on the merits,” including a motión to dismiss an indictment for “failure to state an offense.” Fed. R. Crim. P. 12(b)(1), 12(b)(3)(B)(v).

An indictment must contain “the statute, rule, regulation, or other provision of law that the .defendant is alleged to have violated,” and “a plain, concise, and definite written statement of the essential facts constituting the. offense.” Fed. R. Crim. P. 7(c)(1). “The sufficiency of an indictment is judged by whether the indictment adequately alleges the elements of the offense and fairly informs the defendant of the charge, not whether the Government can prove its case.” United States v. Blinder, 10 F.3d 1468, 1471 (9th Cir.1993) (citation and quotation marks omitted). The district court must “accept the truth of the allegations in the indictment in analyzing whether a cognizable offense has been charged.” United States v. Boren, 278 F.3d 911, 914 (9th Cir.2002).

DISCUSSION

PG&E moves to dismiss Count One of the Indictment, which charges PG&E with obstruction of the NTSB’s investigation in violation of 18 U.S.C. .§ 1505 (“Section 1505”). Def.’s Mot. to Dismiss for Failure to State an Offense: Count One (“Mot.”) (Docket No. 125). PG&E argues first that an NTSB investigation is not a “proceeding” within the meaning of Section 1505 (Mot. at 8-16), and second that Section 1505 is itself either facially void for vagueness or unconstitutional as applied to PG&E’s conduct (Mot. at 16-22). The Government responds first that “[t]he plain [1079]*1079language of the statute, ease law, and legislative history establish that an investigation by a federal agency that is more than a ‘mere police investigation’ constitutes a ‘proceeding’ ” within the meaning of Section 1505 (Am. Opp’n to Def.’s Mot., to Dismiss for Failure to State an Offense: Count One (“Opp’n”) at 1 (Docket No. 155)), and second that Section 1505 is neither facially unconstitutional nor unconstitutional as applied to PG&E’s .conduct (Opp’n at 11-13).

I. The NTSB Investigation Is a Section 1505 “Proceeding”

Section 1505 states in pertinent part: Whoever corruptly, or by threats or force, or by any threatening letter or communication influences, obstructs, or impedes or endeavors to influence, obstruct, or impede the due and proper administration of the law under which any pending proceeding is being had before any department or agency of the United 'States... [s]hall- be fined under this title [or] imprisoned- not more than 5 years —

PG&E’s motion turns on whether "an NTSB investigation is a “pending proceeding... being had before any department or agency of the United- States.”

a. The Plain Language of Section 1505 Includes Investigations

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United States v. Pacific Gas & Electric Co., 153 F. Supp. 3d 1076, 2015 U.S. Dist. LEXIS 171595, 2015 WL 9460310 (N.D. Cal. 2015).

153 F. Supp. 3d 1076 (United States v. Pacific Gas & Electric Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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