Austin, TX – Texas Attorney General Ken Paxton has announced a settlement resolving the state’s lawsuits against TPC Group Inc. and TPC Group LLC following the devastating explosion at the company’s Port Neches chemical plant in November 2019. The blast, which occurred just before Thanksgiving, forced the evacuation of thousands of residents and caused significant environmental and property damage.
An investigation by the state revealed that TPC Group was aware of safety issues at the facility but continued operations without addressing critical risks. The explosion released over 11 million pounds of hazardous substances, including butadiene, a highly flammable chemical used in plastic production, causing extensive damage and injuring several employees and contractors.
“Protecting our environment and the safety of the citizens of Southeast Texas will always be a priority of our office,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The community of Port Neches and their neighbors will never forget the horror of being awakened in the middle of the night – hours before Thanksgiving – by the frightening sounds of the TPC plant explosion at their doorsteps. TPC violated the law when it ignored its own safety protocols, which led to a disastrous explosion with catastrophic consequences that directly endangered the lives of TPC workers and the surrounding community. Today’s guilty plea shows that businesses that choose to place profits over safeguards and legal compliance will face serious consequences.”
Under the settlement, TPC Group has agreed to pay $12.6 million in penalties for violations that occurred after the company’s bankruptcy in 2022. The company will also be required to repair or replace equipment to ensure compliance with air quality regulations at its Port Neches and Houston plants.
“These penalties send a clear message that companies must prioritize safety and compliance,” said Attorney General Paxton. “We will hold corporations accountable when they fail to protect the health and safety of Texans.”
The explosion was caused by a dangerous buildup of “popcorn polymer” inside a pipe at the plant. This material, which expands rapidly under certain conditions, accumulated over several months in a pipe connected to out-of-service equipment. The pipe ruptured, releasing 6,000 gallons of liquid butadiene that vaporized, ignited, and exploded, sending shockwaves up to 30 miles away.
The U.S. Chemical Safety Board (CSB) concluded that TPC Group failed to address known safety hazards, including the buildup of popcorn polymer, and ignored recommendations to regularly flush pipes connected to inactive equipment. The explosion resulted in $153 million in property damage and forced the evacuation of nearby residents. The CSB also found that TPC did not have adequate safety policies to manage the risks associated with the chemical and lacked emergency isolation valves to prevent further explosions.
In response to the findings, TPC Group stated that it has already invested millions of dollars to improve safety and upgrade equipment. The company has implemented new safety reviews and is working to mitigate future hazards. Federal investigators have also recommended further safety improvements, including revisions to industry safety guidelines for managing popcorn polymer.
As part of a federal settlement, TPC Group has pleaded guilty to criminal violations of the Clean Air Act for failing to implement its own safety procedures. In addition to the civil penalty of $12.1 million, the company will pay $18 million in criminal fines and invest $80 million in safety upgrades across its facilities. TPC will also be required to install air monitoring systems at its plants and provide emission data to the public.
“Port Neches residents will always remember the day before Thanksgiving 2019,” said Acting Associate Attorney General Benjamin C. Mizer. “That day, powerful explosions at the TPC Group’s facility caused evacuations, injuries, air pollution, and more than $130 million in damage. This entirely preventable accident was the result of the company’s failure to take the necessary precautions to control a hazardous chemical even though it was well aware of the serious risks. Today’s criminal plea and settlement send a clear message that safety measures are not optional and that we will hold violators accountable.”
The settlement also follows a bankruptcy court decision where TPC Group agreed to a $150 million penalty to resolve related claims. The Texas Attorney General’s office subordinated its claims in bankruptcy proceedings to maximize compensation for individuals harmed by the explosion.
The Texas Attorney General and federal authorities are committed to ensuring that TPC Group implements safer practices at its Port Neches and Houston facilities to prevent future accidents. TPC will also be required to hold community meetings to inform local residents about safety measures and risks at its plants.
“Today’s settlement serves as a reminder that companies must comply with safety standards to protect workers, the community, and the environment,” said EPA Regional Administrator David M. Uhlmann. “The changes required by this settlement will help safeguard future generations from similar incidents.”
