Analyze

Facing a pivotal federal investigation into Louisiana’s relationship with petro-chemical companies, the state’s attorney general hired lawyers who were simultaneously representing one of the main corporations at the center of the investigation, documents reveal.

The revelations, contained in documents released under public records requests, have led to allegations of a major conflict of interest and come just weeks after the Environmental Protection Agency [EPA] dropped its civil rights investigation.

Internal emails, contracts and payments, show that the office of the attorney general, Jeff Landry, hired two lawyers to enter closed-door negotiations with the EPA during the 14-month civil rights investigation. But John King and Tim Hardy were also representing the Taiwanese chemicals firm Formosa in separate litigation, challenging a decision to revoke the company’s state air permits. (Moran and Sneath 2023).

In the 1980s, Formosa Plastics Corporation purchased financially struggling petrochemical plants in Delaware, Texas, and Louisiana. The company subsequently shifted its operations to Texas and Louisiana, where a competitive bidding process ensued between the two states, both of which were known for industry-friendly policies (Tubilewicz 2021). As political scientist Tubilewicz (2021, 16) has argued, the politics surrounding Formosa's investments in these states were not purely motivated by profit but were also shaped by the ongoing struggles of sub-state actors such as politicians and NGOs over issues of internationalization and representation in global affairs.

An example of this can be seen in Formosa's attempt to build a rayon fiber plant in Louisiana's St. John Parish in the late 1990s, an area also known as "Cancer Alley." Protests broke out due to concerns about massive tax exemptions, displacement of Black residents, and the plant's location on the historic Whitney Plantation (Tubilewicz 2021, 11). However, the project was eventually abandoned due to declining market demand and delays. In addition, the local St. John Governor was indicted for illegal industrial rezoning of land around the plantation and receiving $200,000 in real estate commission (Tubilewicz 2021, 11).

This supplementary legal document describes recommendations for storm- and waste-water management improvements for the Formosa petrochemical plant in Calhoun County, Texas. The text is a fairly standard drainage assessment. The author describes non-trivial discharge of pollutants out of the plant’s outfalls, which drain into local waters, and the inability of the plant’s systems to prevent flooding from even small storms. For some context on this, it is pretty standard to design a stormwater system to be able to drain the 100-year storm (that is, the storm with a 1% or less chance of occurring in any given year). Formosa’s Texas plant demonstrated the inability to convey even the 2-year storm.

Emphases are mine:

“Problem areas were identified based on the results from the outfall drainage studies provided by Formosa. Thus, all the results in the OPCC rely on those studies, uncertainities associated with those studies, and the assumptions made for those studies, some of which may or may not be appropriate as I pointed out in Supplement #2 [Page 4]” (3)

“The proposed improvements assume that the conveyance capacity of the problem areas is increased 100%, which would be able to handle twice as much flow that it currently does. The results from the Drainage Study are not conclusive as to what storm event Formosa’s system currently is capable of conveying. The report does mention that the system is not capable of conveying the 2-year storm, and “sometimes” not even the 1-year storm event.” (3)

“A 45% contingency is applied to the OPCC due to the uncertainties associated with underground utilities, likelihood of existence of low road crossings and need to replace those, groundwater impacts, other unknowns, and additional costs associated with engineering, etc. 45% is reasonable and in line with industry practices in my experience, especially given the large amount of unknown information available.” (4) 

“My opinion from my July 9, 2018 report that “there have been and are still pellets and/or plastic materials discharges above trace amounts through Outfall 001” is further supported by the deposition testimony of Lisa Vitale, as representative for Freese & Nichols, Inc, that she and her colleagues have seen floating white pellets or small plastic pieces in Lavaca Bay and in the area near outfall 001 as part of her work on the receiving water monitoring program for Formosa’s TPDES permit...Ms. Vitale also testified that she told John Hyak of Formosa about these sightings as well as has sent him water samples with the pellets about five or six times, including at least one time prior to 2010. This, along with the June 2010 EPA Report I cited in my July Report, demonstrates to me that Formosa was aware of problems related to discharges of plastics from its facility since at least in 2010.” (6)