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TPC Group Inc. Pleads Guilty, Agrees to Over $160M Settlements for Texas Chemical Plant Explosion and Environmental Violations

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Published on November 24, 2024
TPC Group Inc. Pleads Guilty, Agrees to Over $160M Settlements for Texas Chemical Plant Explosion and Environmental ViolationsSource: U.S. Chemical Safety Board

Following a significant chemical plant explosion in 2019 that disrupted Thanksgiving for thousands of Texans, Attorney General Ken Paxton secured a settlement with TPC Group Inc. and its LLC over alleged safety and environmental infractions, according to a recent announcement. The Port Neches facility, owned by TPC, was the site of the blast, which investigation revealed continued operation despite the company's knowledge of existing facility problems.

The legal action taken by the state further alleged that after the explosion, TPC failed to adhere to Texas air quality laws by using equipment that did not meet the standards of the air permits the company had obtained. For this failure, the company is slated to pay over $12.6 million in penalties and fees for the post-December 2022 violations, while previous violations were adjudicated in bankruptcy court, where TPC was required to submit following the financial turmoil spurred by the explosion. In August 2024, as part of the bankruptcy proceedings, a Stipulation and Notice of Subordination Agreement was filed, positioning the penalties at $150 million.

In addition to the financial penalties for environmental violations, TPC has also entered a guilty plea to criminal charges under the federal Clean Air Act. "In Texas, we believe in ensuring all industries operate safely and being responsible stewards of our environment," Paxton stated, emphasizing the message that industries in the state are expected to prioritize safety and environmental responsibility or prepare to face strict consequences, as mentioned by the Texas Attorney General's Office.

The settlement requires TPC to make repairs or replace equipment at the Port Neches plant, one of many actions the state is taking to hold the company accountable and prevent future incidents. Despite its financial and legal challenges, the Texas Attorney General's Office has made it clear: prioritizing environmental protection and public safety is non-negotiable, for businesses operating within the state.