United States v. TPC Group LLC

On May 21, 2024, TPC Group LLC, pleaded guilty to violating the Clean Air Act. This case is part of a global resolution negotiated in coordination with EES, arising out of explosions that caused injuries, evacuations, and significant air pollution. The company has agreed to pay more than $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and improve safety issues at TPC Group’s Port Neches and Houston facilities.

On November 27, 2019, two explosions at TPC Group’s Port Neches facility prompted evacuations of thousands of residents from the City of Port Neches and surrounding areas, released more than 11 million pounds of extremely hazardous substances, and caused more than $130 million in offsite property damage and other impacts to human health and the environment. Four employees and one contractor suffered injuries including concussions, burns, perforated eardrums, tinnitus and cracked teeth.

TPC Group’s facility produced Butadiene, a hazardous chemical used in the production of tires, latexes, and plastics. Butadiene can form a “popcorn polymer,” which can grow at an accelerating rate and cause catastrophic events, including explosions and fires. The company was aware that this polymer was forming in some of its production lines, and knew the risks it posed, but failed to take necessary measures to prevent the explosion. An initial explosion occurred at the facility’s South Unit, followed by a secondary explosion, and a series of fires erupted at the facility blowing contaminants into the air.

As a result of the explosions, authorities ordered mandatory evacuations for residents within a four-mile radius of the facility. Voluntary orders to shelter in place were issued for residents in the surrounding area and local schools were closed for multiple days to allow buildings to be cleaned, repaired, and inspected.

Under parallel settlements seeking to resolve the criminal and civil cases, the company has agreed to pay $18 million in criminal fines. The plea agreement also includes a one-year term of probation and publishing of a public apology. The $12.1 million in civil penalty payments will be made through bankruptcy proceedings. TPC Group will also spend approximately $80 million to improve its risk management program and improve safety issues at both facilities. TPC Group has agreed to plead guilty to knowingly failing to implement its own written operating procedures, including monthly flushing of production lines, that would have prevented the explosion. Clean Air Act regulations require planning to prevent accidental releases of hazardous chemicals and makes implementation of those plans mandatory.

The U.S. Environmental Protection Agency Criminal Investigation Division EPA investigated this matter and received extensive cooperation from the Occupational Safety and Health Administration (OSHA).