Texas and TPC Group Reach $12.6 Million Settlement Over 2019 Chemical Plant Explosions

Texas Attorney General Ken Paxton announced a $12.6 million settlement between the state and TPC Group, resolving environmental violations tied to the November 2019 explosions at the company's Port Neches chemical plant. The settlement requires TPC Group to repair or replace faulty equipment and pay penalties for violating state emissions laws following the blasts.

Under the terms of the settlement, TPC Group will be required to take corrective actions, including repairing or replacing the faulty equipment at the Port Neches plant to ensure it meets environmental standards. The company will also pay $12.6 million in penalties for its violations of Texas air quality regulations.

This settlement follows a previous $30 million settlement in May, when TPC Group pleaded guilty to a Clean Air Act violation related to the explosions. The company, which filed for bankruptcy in 2022, also agreed in August to pay $150 million in penalties for additional violations identified by the Texas Commission on Environmental Quality (TCEQ).

The explosions, which occurred just days before Thanksgiving in 2019, caused extensive damage and forced the evacuation of over 50,000 people from the surrounding area, located approximately 100 miles east of Houston. The blasts released more than 11 million pounds of hazardous substances into the air, triggering over $130 million in property damage and negatively impacting public health and the environment, according to the U.S. Justice Department.

Following the explosion, Texas filed a lawsuit against TPC Group in 2020, alleging the company continued to operate its Port Neches facility despite knowing about existing issues at the plant. The lawsuit also claimed TPC Group violated state emissions limits even after the explosion occurred. Additionally, the state accused the Houston-based company of breaching clean air laws multiple times between January 2018 and September 2019.

In a statement, TPC Group expressed its commitment to working closely with the Texas Commission on Environmental Quality (TCEQ) and the Attorney General’s office to ensure compliance with state emission limits. The company also addressed the operational challenges it faced following the explosion, noting that it had installed custom emission control units while converting the Port Neches plant. These units were intended to address the plant's operational issues in the wake of the explosion.

“TPC Group is committed to complying with the emission limits of its permits and has been working diligently to address the issues,” said Sara Cronin, TPC Group's vice president of communications and public affairs. “The agreement is reflective of our dedication to work every day to be a positive part of the communities in which we operate.”

Paxton emphasized that the penalties serve as a warning to all industries in the state, stating, "These penalties send a clear message: operate responsibly to protect the health and safety of your fellow Texans, or face the consequences."