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Thursday, September 12, 2024

Texas petrochemical firm fined over $30M after pleading guilty to Clean Air Act violation

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Attorney General Merrick B. Garland & Deputy Attorney General Lisa O. Monaco | https://www.justice.gov/agencies/chart/map

The Justice Department and Environmental Protection Agency (EPA) announced the filing of a felony criminal charge and related civil complaint and consent decree under the Clean Air Act (CAA) against TPC Group LLC, a Texas petrochemical company. TPC Group entered a plea of guilty to a one-count information charging the company with a violation of the Clean Air Act before U.S. Magistrate Judge Zack Hawthorn for the Eastern District of Texas.

The filings address explosions that caused injuries, evacuations, and significant air pollution. The company has agreed to pay over $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and safety issues at TPC Group’s Port Neches and Houston facilities.

According to court information, on Nov. 27, 2019, two explosions at TPC Group’s Port Neches facility prompted evacuations of thousands of residents from Port Neches and surrounding areas, released more than 11 million pounds of hazardous substances, and caused over $130 million in offsite property damage. Four employees and one contractor suffered injuries including concussions, burns, perforated eardrums, tinnitus, and cracked teeth.

“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 necessary precautions.”

“When a disaster happens like at Port Neches, public safety is paramount,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “TPC Group’s knowing failure to comply with chemical accident prevention provisions placed its workers, neighbors, and environment in danger.”

“TPC recklessly risked the lives of thousands of Port Neches residents,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlements hold TPC accountable for endangering the community.”

“Protecting our environment and citizens' safety will always be a priority,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas.

“The people had their lives disrupted because of this major disaster,” said EPA Regional Administrator Dr. Earthea Nance.

TPC Group produced Butadiene at its facility—a chemical used in tires, latexes, and plastics production—which can form a dangerous polymer causing catastrophic events if not managed properly.

An initial explosion occurred at the South Unit followed by secondary explosions that blew contaminants into the air leading to mandatory evacuations within a four-mile radius.

The company has agreed to pay $18 million in criminal fines with an additional $12.1 million in civil penalty payments through bankruptcy proceedings along with spending approximately $80 million on improving its risk management program.

TPC Group has been charged with knowingly failing to implement its own operating procedures that would have prevented the explosion as required by Clean Air Act regulations.

The civil complaint includes multiple claims against TPC Group for violations leading up to these incidents both at Port Neches now used for storage purposes only—and Houston facilities.

Under proposed civil consent decree terms:

- Update safety information

- Overhaul process hazard analysis program

- Revise operating procedures & training

- Conduct incident investigations & publish reports online

- Install air monitors providing data publicly available

These measures aim towards ensuring compliance preventing future incidents safeguarding communities nearby from potential harm posed by such industrial operations while holding responsible parties accountable under regulatory frameworks enforced collaboratively between federal agencies including OSHA involved during investigation phases post-explosion event establishment unified command structures overseeing emergency responses coordinated efforts among various stakeholders addressing impacts arising thereof accordingly thereto hereinabove mentioned contextually relevant circumstances surrounding case details described therein fully comprehensively documented respective sources cited officially referenced publicly accessible platforms provided links attached further reading purposes interested individuals seeking additional insights regarding matter subject ongoing judicial review processes awaiting final approvals pending completion stipulated periods designated commenting 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