State seeks $1 million in penalties following West Texas facility fire and contamination

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Permian Basin Containers fire July 23, 2024

Attorney General Ken Paxton filed a lawsuit against Permian Basin Containers, LLC ("PBC") and related entities for violations of Texas environmental laws and regulations after the company caused a catastrophic chemical fire in Odessa that endangered public health. 

Texas Attorney General Ken Paxton has filed a lawsuit against an Odessa-based container company and its owners, alleging they caused a "catastrophic" chemical fire in 2024 and subsequently failed to clean up toxic contamination that spread into a West Texas neighborhood.

The lawsuit, filed on behalf of the Texas Commission on Environmental Quality (TCEQ), names Permian Basin Containers, LLC (PBC), its parent company BRN Odessa LLC, and individuals Arnaldo G. Ibarra Sr., Arnaldo G. Ibarra Jr., and Bryan M. Neal as defendants. The state is seeking more than $1 million in civil penalties and is demanding the full remediation of the affected sites.

The 2024 Odessa chemical fire

The backstory:

The legal action stems from a massive fire that broke out in the early hours of July 23, 2024, at the PBC facility located at 8100 North County Road West in Odessa. The facility was used to wash large plastic "totes" that contained oilfield chemical residues.

According to the petition, neighbors reported hearing explosions as chemical totes caught fire and burst. The Odessa Fire Department issued an immediate evacuation order for residents within a two-block radius due to unknown health risks from the thick, black smoke.

Approximately two million gallons of firefighting water mixed with unknown chemicals flowed off the property, flooding the surrounding area. At least 14 properties and one private groundwater well were contaminated by the initial runoff.

After the fire, PBC failed to remove hazardous debris, which led to further contamination when the site was hit by heavy rains in late August and early September 2024, according to the petition.

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Environmental and health risks

State investigators and environmental contractors confirmed the presence of several toxic substances at the site and in the air, including benzene, arsenic, lead, toluene, and styrene.

TCEQ officials noted that the site smoldered for weeks, with odor surveys documenting "highly offensive" chemical smells that caused investigators to experience eye, nose, and throat irritation.

Failure to remediate

The state alleges that the defendants ignored repeated directives from the TCEQ to contain the contamination and remove hazardous waste. According to the lawsuit, PBC ceased all remediation efforts on October 9, 2024, forcing the state to step in and hire a contractor at a cost of nearly $600,000 to protect public health.

What they're saying:

"I will not allow any company to threaten the health of Texas communities and fail to take responsible measures to fully address the harm it has caused," Attorney General Paxton said in a statement. "My office is taking action to protect Texans, help the affected community, and ensure the cost of this damage does not fall on taxpayers."

Legal remedies sought

The State of Texas is requesting:

  • Injunctive Relief: Requiring the defendants to immediately stop all unauthorized discharges and complete a full assessment and cleanup of all affected properties.
  • Civil Penalties: Fines ranging from $50 to $25,000 per day for each violation of state environmental laws.
  • Cost Recovery: Reimbursement for the $599,849.58 already spent by the state for emergency cleanup operations.

The Source: Information in this article was gathered from the State of Texas's Original Petition filed in Travis County and official statements from the Office of the Attorney General.

TexasNews