AUSTIN – Attorney General Ken Paxton announced a settlement of the State’s lawsuits against TPC Group Inc. and TPC Group, LLC, whose chemical manufacturing plant in Port Neches exploded in November 2019. The explosion forced thousands of Texans to evacuate their homes during the Thanksgiving holiday. The State’s investigation indicated TPC knew the facility had problems but continued to operate anyway. The State also filed suit against TPC for violations at its Houston plant.
The State’s lawsuits alleged that even after the explosion, TPC failed to comply with Texas air laws, operating equipment that did not meet the requirements of the company’s air permits. The State’s settlement in the Port Neches case requires TPC to repair or replace its equipment. The company also will pay penalties and fees of $12.6 million for the violations that took place after December 16, 2022.
Because TPC filed for bankruptcy in the wake of the explosion, violations prior to December 2022 were resolved in bankruptcy court. In August 2024, the bankruptcy trustee filed a Stipulation and Notice of Subordination Agreement agreeing to penalties of $150 million. The State voluntarily subordinated its claim to ensure individuals harmed by the 2019 explosion were made whole to the greatest extent allowed under bankruptcy law.
TPC has also pleaded guilty to criminal violations of the federal Clean Air Act.
“In Texas, we believe in ensuring all industries operate safely and being responsible stewards of our environment,” said Attorney General Paxton. “These penalties send a clear message: operate responsibly to protect the health and safety of your fellow Texans, or face the consequences.”
To read the settlement announcement in the Texas Register, click here.
