Southern California Gas Co. (SoCalGas) has agreed to pay up to $1.8 billion in three settlement agreements stemming from the country’s largest ever methane leak in 2015 at the Aliso Canyon natural gas storage facility.*

Aliso Canyon

The agreements announced Monday “are expected to resolve substantially all material civil litigation against SoCalGas” related to the incident, the Sempra Energy subsidiary said.

SoCalGas expects to record an after-tax charge of roughly $1.1 billion as a result of the settlements, the company said, noting that the costs would not be borne by ratepayers.

The first agreement is subject to obtaining roughly 97% participation from the about 36,000 individual plaintiffs, as well as court approval and other conditions, the company said.

Plaintiffs in the...