Texas Settles Lawsuits Against TPC Group for 2019 Port Neches Explosion, Company to Pay $12.6 Million in Penalties

Attorney General Ken Paxton announced a settlement with TPC Group Inc. and TPC Group, LLC over their chemical manufacturing plant in Port Neches, Texas, which exploded in November 2019, forcing the evacuation of thousands of residents during the Thanksgiving holiday. The explosion resulted in significant damage to the surrounding area and raised serious concerns about the safety practices at the facility.

The State’s investigation revealed that TPC was aware of ongoing safety issues at the Port Neches plant but continued to operate the facility without addressing these concerns, putting both the public and the environment at risk. In addition to the explosion, the State found that after the incident, TPC failed to comply with Texas air quality regulations, continuing to operate equipment that did not meet the requirements of its air permits.

As part of the settlement, TPC is required to repair or replace the non-compliant equipment at its Port Neches plant to ensure future compliance with air quality laws. The company will also pay $12.6 million in penalties and fees for violations that took place after December 16, 2022. This settlement follows TPC’s bankruptcy filing in the wake of the explosion, which allowed the company to resolve certain claims in bankruptcy court.

In August 2024, the bankruptcy trustee filed a Stipulation and Notice of Subordination Agreement, agreeing to pay $150 million in penalties related to the explosion. The State of Texas voluntarily subordinated its claims to ensure that individuals harmed by the explosion would be compensated to the fullest extent allowed under bankruptcy law.

In addition to the state’s civil settlement, TPC has pleaded guilty to federal criminal violations under the Clean Air Act, acknowledging the company’s failure to meet environmental standards.

Attorney General Paxton emphasized the importance of corporate responsibility, stating, “In Texas, we believe in ensuring all industries operate safely and are responsible stewards of our environment. These penalties send a clear message: operate responsibly to protect the health and safety of your fellow Texans, or face the consequences.”

The settlement announcement is available at the Texas Register.