[co-author: Stephanie Kozol]
Texas Attorney General Ken Paxton and Magellan Terminals Holdings LP settled Texas Clean Air Act violations claims, resulting from an alleged explosion and fire at the company’s Corpus Christi bulk petroleum facility. Magellan agreed to pay Texas $588,000 in civil penalties and $12,000 in attorney’s fees as part of the settlement.
On December 5, 2020, while seven contract workers inspected and cleaned an oil storage tank owned by Magellan, it exploded. The explosion injured the workers and caused a large fire, which Corpus Christi firefighters extinguished. Although several agencies investigated the incident, the cause of the explosion remains unknown.
In the aftermath of the accident, Magellan submitted a corrective action plan to the Texas Commission of Environmental Quality. The plan included prohibiting certain equipment during cleaning, requiring new cleaning procedures, and mandating contractors use certain personal air monitors while cleaning. The corrective action plan suggested that contractors may not have realized that combustible vapors remained in the tank and may have used cleaning equipment and procedures that caused the vapors to combust.
Why It Matters
In light of state AGs continuing focus on environmental protections, companies should engage the appropriate regulatory counsel to establish operating guidelines that comply with the law and maximize safety. Further, companies should review their contractors’ operational practices to ensure compliance with minimum safety standards.
