February 10, 2023

Magellan Terminals Holdings to Pay $600,000 in Settlement over Texas Clean Air Act Allegations

Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Texas AG Ken Paxton settled with Magellan Terminals Holdings, L.P. over allegations that the company violated the Texas Clean Air Act through conduct that resulted in a large fire at its bulk petroleum terminal in Corpus Christi, Texas.
According to the AG’s office, the fire occurred in 2020 when a Magellan contractor was cleaning out light crude oil material from the bottom of a storage tank. Although the fire was extinguished the same morning, six contract workers were injured and one later died as a result of the explosion and fire.
Magellan previously submitted and implemented a corrective action plan approved by the Texas Commission on Environmental Quality that is meant to prevent similar occurrences in the future, which included prohibitions on using certain equipment during tank cleaning, implementation of new tank cleaning procedures, and requirements for personal air monitors when cleaning tanks. Under the terms of the settlement, Magellan paid Texas $588,000 in civil penalties and $12,000 in attorney’s fees.

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