Formosa Plastics To Pay $50 Million In Texas Residents' Clean Water ...

The Best of the Tribune in your Inbox

The Brief keeps Texas voters and political observers up to speed on the most essential coverage of their elected officials, the policies that shape their daily lives and the future of our great state.

Sign up Close Search for: Search

• Investigations
• Guides
• About
• Events
• Data
• Newsletters
• Donate

Close Skip to content

About

Corrections and Clarifications

About The Texas Tribune | Staff | Contact | Send a Confidential Tip | Ethics | Republish Our Work | Jobs | Awards | Corrections | Strategic Plan | Downloads | Documents

Our reporting on all platforms will be truthful, transparent and respectful; our facts will be accurate, complete and fairly presented. When we make a mistake — and from time to time, we will — we will work quickly to fully address the error, correcting it within the story, detailing the error on the story page and adding it to this running list of Tribune corrections. If you find an error, email [email protected].

Sign up for The Brief, The Texas Tribune’s daily newsletter that keeps readers up to speed on the most essential Texas news.

Editor’s note: This story has been updated with comment from Formosa.

Petrochemical manufacturer Formosa Plastics has agreed to pay $50 million to settle a lawsuit in whicha judge ruled the company illegally dumped billions of plastic pellets and other pollutants into Lavaca Bay and other waterways, according to the settlement.

In addition to the financial settlement, the company agreed to comply with “zero discharge” of all plastics in the future and to clean up existing pollution.

For a decade, Port Lavaca-area residents and environmental groups urged state and federal regulators to hold Formosa Plastics accountable for what they alleged was the rampant and illegal discharge of plastic pellets and other pollutants into Lavaca Bay and nearby waterways. Formosa has a plant in Point Comfort on Lavaca Bay.

“The years of fighting to protect the natural resources of the Lavaca Bay-Cox Creek area have finally paid off,” Diane Wilson, a former shrimper and a plaintiff in the suit, said in a statement released Tuesday by Texas RioGrande Legal Aid, which represented the residents who filed suit. “It’s a huge victory for the environment — and for the people who love and depend upon it. We look forward to working with Formosa to restore the health of our environment and make sure it stays pristine.”

Ken Mounger, executive vice president for the U.S. branch of Formosa, said the conditions of the settlement demonstrate the company’s “commitment to manufacturing our products in a safe and environmentally friendly manner.”

U.S. District Judge Kenneth M. Hoyt still must approve the settlement.

Reference

The proposed settlement Download

In June, Hoyt ruled that the Taiwanese-owned company violated its state-issued permits and the federal Clean Water Act over the discharge of pollutants. He also faulted the Texas Commission on Environmental Quality over not bringing the company into compliance.

TCEQ is reviewing the settlement agreement, but the organization is “generally supportive of the efforts of parties to resolve their concerns though settlement, which can serve as a pathway to compliance and protect human health and the environment,” spokesman Andrew Keese wrote in an email.

During the trial, which began in late March, the plaintiffs brought in boxes full of plastic they had collected from Lavaca and Matagorda bays and Cox Creek over several years.

“The evidence demonstrates that Formosa has been in violation of its Permit concerning the discharge of floating solids … since January 31, 2016 and that the violations are enormous,” Hoyt wrote in his June ruling, in which he described Formosa as “a serial offender.”

This is the largest settlement of a Clean Water Act suit filed by private individuals, a Texas RioGrande Legal Aid representative wrote in an email. The Clean Water Act regulates the discharge of pollutants into U.S. surface waters, including lakes, rivers and streams.

The settlement will be paid out over five years into a fund to support projects that reverse the damage of water pollution in Calhoun County, where the Point Comfort facility is located, according to documents detailing the settlement. None of the money will go to the plaintiffs.

Formosa will improve how its plant eliminates plastic pellets as part of the settlement agreement. Plaintiffs will be able to review decisions and make objections, from hiring an engineer to design improvements to monitoring the company while it works toward zero discharge.

If Formosa is found to be in violation again, each documented discharge will be paid into the settlement fund. The first penalty would come at $10,000 per discharge this year, with yearly increments to more than $54,000 per discharge.

Kiah Collier contributed to this report.

Learn about The Texas Tribune’s policies, including our partnership with The Trust Project to increase transparency in news.

You've read article this month. You have unlimited free articles remaining because we don't have a paywall.

Texans need the truth. Help us report it.

Independent Texas reporting needs your support. The Texas Tribune delivers fact-based journalism for Texans, by Texans — and our community of members, the readers who donate, make our work possible. Help us bring you and millions of others in-depth news and information. Will you support our nonprofit newsroom with a donation of any amount?

Support Independent Texas News

Become a member. Join today.

Choose an amount or learn more about membership.

$18 $20 $25 Other Donate Now

You've read articles this month. You have unlimited free articles remaining because we don't have a paywall.

Texans need the truth. Help us report it.

Independent Texas reporting needs your support. The Texas Tribune delivers fact-based journalism for Texans, by Texans — and our community of members, the readers who donate, make our work possible. Help us bring you and millions of others in-depth news and information. Will you support our nonprofit newsroom with a donation of any amount?

Support Independent Texas News

Become a member. Join today.

Choose an amount or learn more about membership.

$18 $20 $25 Other Donate Now

Stacy Fernández

[email protected]

• x

Stacy Fernández was the Tribune’s breaking news reporter in 2019-20. When she wasn't breaking stories, Stacy covered the gun beat and led the Tribune’s reader-driven explainer series, Texplainer.... More by Stacy Fernández

READ MORE

Former Uvalde schools officer found not guilty in trial over his response to Robb Elementary shooting

Jan. 21, 2026

How Texas is getting ready for this weekend’s winter storm

Jan. 21, 2026

Immigrant’s death in ICE custody ruled homicide by El Paso medical examiner

Jan. 21, 2026

Federal court focuses on informant in appeal of Texas death row inmate’s conviction

Jan. 21, 2026Jan. 21, 2026, 6:03 p.m. Central

Understanding Texas’ big investment in dementia research

Dec. 22, 2025Jan. 21, 2026, 11:48 a.m. Central January 21, 2026 View More Events

latest from our reporters

North Texas school district cancels Islamic Games for alleged ties to group governor calls terroristic

By Marrisa Green and Cecilia Lenzen, Fort Worth Report Jan. 21, 2026

An arctic storm is expected to blanket the state. Here’s what Texans can expect.

by Colleen DeGuzman Jan. 21, 2026

Texas counties, auto industry push back on proposed ID restrictions on car registration tied to immigration

by Alex Nguyen Jan. 21, 2026

How Texans can prepare for this weekend’s winter weather

by María Méndez Jan. 21, 2026

Gov. Abbott endorses Nate Sheets over Sid Miller for agriculture commissioner

by Kate McGee Jan. 21, 2026

How to know the difference between a local power outage and rolling blackouts

By Megan Munce July 19, 2022Jan. 21, 2026, 10:58 a.m. Central Sponsor Post

8 Best Prop Firms for US Traders

Sponsor content from Brynex Tech Jan. 21, 2026

James Talarico unveils Spanish-language TV ad, signaling push for Latino support in Texas Senate bid

by Gabby Birenbaum Jan. 21, 2026

The EPA is easing pollution rules under Trump. Here’s how it’s affecting Texas.

by Alejandra Martinez Jan. 21, 2026

Under new postal service guidance, Texans shouldn’t wait to send voter registrations or mail-in ballots

By Natalia Contreras, Votebeat and The Texas Tribune Jan. 21, 2026

Link Copy link

Loading Comments... Write a Comment... Email (Required) Name (Required) Website