The Texas Attorney General announced a settlement of more than $100 million from a lawsuit against TPC Group Inc. and TPC Group LLC related to the 2019 Port Neches explosion.
The explosion resulted in a multidistrict lawsuit involving numerous personal injury attorneys representing victims whose homes were damaged in the TPC Group Lawsuit. This explosion also forced TPC into bankruptcy.
On the same day, TPC Group entered a guilty plea before Federal Judge Zach Hawthorne in the Eastern District of Texas on charges accusing it of violating the Clean Air Act. In addition, TPC agreed to pay a total of $30.1 million in criminal and civil penalties and to spend $80 million to complete necessary injunctive relief and bring its operations into compliance.
On Friday, the attorney general’s office issued a statement claiming that a state investigation showed TPC knew there were problems with the facility but continued to operate anyway. The state lawsuit alleges that TPC did not comply with Texas aviation laws after the explosion and operated equipment that did not meet the requirements of the company’s air permit.
The Texas settlement requires TPC to pay $12.6 million for violations that occurred after December 16, 2022.
But because of the bankruptcy and to ensure that those affected by the 2019 explosion “recover to the fullest extent permitted by bankruptcy law,” Texas has voluntarily agreed to pay $150 million. The trustee also agreed to refrain from seeking a fine. In August, the bankruptcy trustee filed provisions and notice of subordination agreement with the state.
Details of the state settlement were recorded in the Texas Secretary of State’s records. The case is Texas v. TPC Group Inc. and TPC Group LLC, case number D-1-GN-20-001042, 250th District Court, Travis County. and Texas v. TPC Group Inc., case number D-1-GN-22-000865, 201st District Court, Travis County.
The judgment requires TPC to submit written certification to the Texas Commission on Environmental Quality within 18 months of the consent judgment that it is implementing pollution controls to comply with Clean Air Act emission limits. It includes a permanent injunction sought against TPC.
TPC is represented in MDL and bankruptcy cases by Baker Botts attorneys Kevin T. Jacobs, Russell Lewis and Jonathan Heavens in Houston, and Michael L. Baker of Strong, Pipkin, Bissell & Ledyard in Beaumont. Acting as an agent.
In December 2022, Baker Botts announced the successful restructuring of over $1.3 billion in secured debt and large tort claims.
Baker Botts said the reorganization plan “will eliminate more than $950 million of TPC Group’s approximately $1.3 billion in secured debt, resulting from the 2019 explosion at TPC Group LLC’s Port Neches facility. “More than 11,000 lawsuit claims have been discharged.”
