Port Arthur, TX – KMTEX LTD and associated companies have been sentenced to pay $3.5 million for criminal violations of the Clean Air Act stemming from a deadly 2011 explosion and years of falsified environmental reports, according to court documents unsealed this week. The case, prosecuted by the Department of Justice’s Environmental Crimes Section and investigated by the EPA’s Criminal Investigation Division, highlights a pattern of negligence and deceit at two Texas oil and chemical processing facilities.
The core of the case revolves around a catastrophic tank explosion at KMTEX LTD’s Port Arthur facility on March 31, 2011. The explosion claimed the life of one worker and left two others with severe injuries. Investigators determined the blast was triggered by improperly authorized “hot work” – welding – performed on piping connected to a tank that had not been properly prepared. Crucially, KMTEX LTD and KTX Properties Inc. falsified the required “hot work” permit, failing to ensure the tank was drained, isolated, and decontaminated, as mandated by Occupational Safety and Health Administration (OSHA) regulations.
The investigation revealed a systemic failure to adhere to industry safety standards. The exploding tank collapsed, spilling burning product and contributing to the severity of the injuries. Beyond the immediate tragedy, the explosion released hazardous air pollutants into the surrounding environment, triggering the Clean Air Act violations. Prosecutors presented evidence demonstrating the companies knowingly disregarded established procedures designed to prevent such incidents.
Separate Violations at Crosby Facility
The investigation wasn’t limited to the Port Arthur incident. Crosby LP and Ramsey Properties LP, also affiliated with the larger network, were charged with failing to monitor for leaks of ground-level ozone-producing air pollutants at their chemical processing facility in Crosby, Texas, between 2008 and 2012. The companies further compounded the violations by submitting falsified records and reports to both the EPA and the Texas Commission on Environmental Quality, falsely certifying compliance with their Title V permit requirements. This deliberate misrepresentation aimed to conceal their failure to meet mandated environmental standards.
Penalties and Community Impact
As part of the plea agreement finalized on October 12, 2016, the companies are required to pay $3.3 million in criminal fines. An additional $200,000 will be directed to the Southern Environmental Enforcement Network (SEEN) as a community service payment. SEEN will utilize these funds for hazardous air release prevention and emergency response training for state and local environmental and law enforcement agencies, aiming to improve preparedness and response capabilities in the future.
Legal Basis of the Charges
The defendants were charged with violating specific sections of the Clean Air Act: 42 U.S.C. 7413(c)(4) and 42 U.S.C. 7413(c)(1). These statutes address negligent release of hazardous air pollutants and falsification of records submitted to regulatory agencies, respectively. Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas, along with Trial Attorneys Richard Powers and David Kehoe of the Department of Justice, led the prosecution. The Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department, and the Occupational Safety and Health Administration provided crucial assistance throughout the investigation.
Key Facts
- Defendant: KMTEX LTD and affiliated companies
- Crime: Violations of the Clean Air Act, negligent release of hazardous air pollutants, falsifying environmental records
- Location: Port Arthur and Crosby, Texas
- Date of Incident: March 31, 2011 (explosion), 2008-2012 (reporting violations)
- Fatalities: 1 worker killed in the Port Arthur explosion
- Injuries: 2 workers severely injured in the Port Arthur explosion
- Penalties: $3.5 million in fines and community service payments
- Statutes Violated: 42 U.S.C. 7413(c)(4), 42 U.S.C. 7413(c)(1)
Source: EPA ECHO Enforcement Case Database
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