Beleive it or not, they've done an episode of this on Mythbusters. It CAN happen and it's pretty impressive. On Mythbusters, they actually managed to create a mini sewer, and blow their test manhole covers like 100ft in the air.
Sewers are full of waste, and waste creates methane which is highly explosive. if it's ignited, it most certainly can explode and send manhole covers flying! In fact, the test sewer explosion they built on Mythbusters looked a lot like the one in the video in the OPs link.
It's rare that it happens though... there are all kinds of conditions that have to be met, so it's not like any old sewer can rocket itself into oblivion, but its possible, typically with older sewer systems. The newer ones are designed to prevent this kind of accident.
Edited by MissMelsWell, 24 November 2011 - 04:27 PM.