Texas Sues Odessa Container Firm Over 2024 Chemical Fire, Toxic Contamination

AUSTIN, TX — 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 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, names Permian Basin Containers LLC, 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 full remediation of the affected sites. 

The suit stems from a massive fire that broke out in the early hours of July 23, 2024, at the Permian Basin Containers facility at 8100 North County Road West in Odessa. The facility was used to wash large plastic totes containing oilfield chemical residues. 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 because of thick black smoke and unknown health risks. 

Approximately 2 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, according to the petition. 

State investigators and environmental contractors confirmed the presence of toxic substances at the site and in the air, including benzene, arsenic, lead, toluene and styrene. The site smoldered for weeks, with odor surveys documenting “highly offensive” chemical smells that caused investigators to experience eye, nose and throat irritation. 

The state alleges the defendants ignored repeated directives from the TCEQ to contain the contamination and remove hazardous waste. Permian Basin Containers ceased all remediation efforts Oct. 9, 2024, forcing the state to hire a contractor at a cost of nearly $600,000. Heavy rains in late August and early September 2024 caused further contamination after the company failed to remove hazardous debris, the petition states.

“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,” 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.”

The state is requesting injunctive relief requiring the defendants to immediately stop all unauthorized discharges and complete a full assessment and cleanup of all affected properties. It also seeks civil penalties ranging from $50 to $25,000 per day for each violation of state environmental laws and reimbursement for the $599,849.58 already spent on emergency cleanup operations. 

The information was gathered from the State of Texas’s original petition filed in Travis County and official statements from the Office of the Attorney General.