Texas AG Wins Over $100 Million in Penalties Stemming from Plant Explosion

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  • Texas AG Ken Paxton has announced a settlement with TPC Group, Inc. and TPC Group LLC (collectively, “TPC”), to resolve lawsuits alleging that TPC violated Texas law through conduct that resulted in an explosion that leveled a chemical manufacturing facility in Port Neches, Texas. The settlement is part of a global resolution of state and federal claims stemming from the operation of TPC’s Texas plants.
  • According to the U.S. DOJ’s description of the allegations underlying the federal claims, TPC was aware that its manufacturing process created a “popcorn polymer,” which can cause explosions and fires, but took no measures to prevent an explosion which led to mandatory evacuations and injured workers. TPC also pled guilty to criminal violations of the federal Clean Air Act.
  • According to Texas’s published notice of the proposed resolution of the state actions, the settlement requires TPC to repair or replace its equipment. TPC will also pay civil penalties and fees of $12.6 million for violations that took place after December 16, 2022; violations prior to that date were resolved in bankruptcy court with an agreement to pay $150 million in penalties.
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