The explosion happened south of Rising City.
A neighbor, Lynn Prokupek, said she and her husband, Darryl, heard ``an explosion that shook the windows and sounded like a sonic boom.''
About 10 minutes later, one person who was badly burned came to their house, Prokupek said.
``I don't know how he made it over here,'' she said.
Officials with the State Fire Marshal's Office who were on the scene confirmed that one person had been killed. The victim's name was withheld pending notification of relatives.
Fire units from Rising City and Shelby responded to a trouble call that came in sometime between 8 a.m. CDT and 9 a.m.
Neva Sorensen, 83, the owner of the home, was in fair condition at David City Hospital. Another person who was injured was sent to Columbus Community Hospital and then flown to St. Elizabeth's Medical Center in Lincoln.