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SoCalGas and SDG&E issue construction contracts for multi-billion dollar pipeline safety enhancement program

August 2014

Client(s) Southern California Gas Co. and San Diego Gas & Electric Co.

Jones Day represented Southern California Gas Co. and San Diego Gas & Electric Co. in connection with a multi-billion dollar, multi-year Pipeline Safety Enhancement Program (PSEP) involving replacing approximately 294 miles of gas pipeline and upgrading or replacing more than 500 main line valves across a 20,000 square mile service territory. In February 2014, Jones Day completed a customized form of "alliance" contract that allows the owners to award construction contracts for specific geographic regions to prequalified contractors and provides for pre-construction services and cost validation by the contractor as work scopes are developed. Jones Day has prepared the primary contracts to be used in connection with the implementation of this program, like the program management/construction management/engineering contract, the permitting program contract and the construction contracts. Jones Day also advised on the overall insurance program for the PSEP, including the Owner Controlled Insurance Program.

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