Grand jury indicts Arkema, two execs on charges related to hurricane

HOUSTON—Rubber chemical manufacturer Arkema Inc. has decried as "outrageous" the issuance of criminal charges against the company and two of its top executives in connection with fires at the firm's Crosby, Texas, plant in the wake of Hurricane Harvey.

A Harris County, Texas, grand jury handed down indictments Aug. 3 against Arkema, Arkema CEO Richard Rowe and Crosby Plant Manager Leslie Comardelle, charging that the company and the executives played a role in "recklessly" causing the release of a "toxic cloud" of chemicals at Crosby in late August and early September of 2017.

"Companies don't make decisions, people do," said Harris County District Attorney Kim Ogg in a news release about the indictment. "Responsibility for pursuing profit over the health of innocent people rests with the leadership of Arkema."

If found guilty, Arkema could face a fine of up to $1 million, and Rowe and Comardelle each could face up to five years in prison.

Arkema already faces lawsuits from Harris and Liberty counties seeking permanent injunctions and civil penalties against the company related to the fires caused at Crosby by Hurricane Harvey.

At the Crosby plant, Arkema manufactures liquid organic peroxides used in the polymerization process. The plant lost power Aug. 28, 2017, during Hurricane Harvey, causing refrigerated trailers in which peroxides were stored to do likewise.

Multiple trailers caught fire and burned for several days. On Sept. 3, Arkema chose to conduct a controlled ignition of the six remaining trailers, rather than risk further damage by letting those trailers to catch fire as they may.

Local residents evacuated because of the Crosby fire returned home Sept. 4.

In the civil suit Harris County filed against Arkema in November 2017, the county accused the company of violating Texas water, health and safety, and administrative laws "by discharging from its facility at least one air contaminants (sic) in such concentration and/or such duration as to be injurious to human health, welfare, or property, or as to interfere with the normal use and enjoyment of property."

Among the substances Harris Country accused Arkema of illegally releasing included ethylbenzene, 2-ethylhexanol, acetone, naphtha, naphthalene, organic peroxide, carbon monoxide, ethane and nitrogen dioxide.

In an Aug. 3 statement, Arkema said the Harris County indictments ran counter to the facts of what really happened at the Crosby plant

"These criminal charges are astonishing, especially since the U.S. Chemical Safety Board concluded that Arkema behaved responsibly," the company said.

The CSB completed its eight-month investigation into events at the Crosby plant on May 24, 2018, Arkema said. According to its report, the Crosby plant:

• Had detailed hurricane preparedness, flooding and emergency response plans in place, and implemented those plans during Hurricane Harvey;
• Implemented multiple backup systems to address an emergency involving loss of power;
• Met the current standards from the Federal Emergency Management Agency to prevent loss of refrigeration during a 100-year flooding event; and
• Would probably have retained refrigeration during the conditions FEMA designated as a 500-year flooding event.

However, the Harris County Flood Control District reported that the amount of rain that fell on Crosby during Hurricane Harvey had a probability of occurring only once every 5,000 to 20,000 years, according to Arkema.

"Arkema's plant met all requirements related to flood planning, and there simply are no requirements or guidance that would have been enough to prevent the incident in the face of such unexpected flooding," the company said.

There was no immediate word as to when hearings would begin in the case.