PRESS RELEASES

December 9, 2005 -- The City of Houston and Texas Petrochemicals LP Company today signed an agreement under which TPC will make significant reductions in its emission of 1,3 butadiene, a chemical designated by the EPA as a hazardous air pollutant. 1,3 butadiene is an ozone precursor and, at certain exposure levels, is a significant health hazard. TPC will make these reductions through equipment upgrades and enhancement in monitoring and repair activities.

The commitment by TPC to undertake these substantial obligations, and to agree to be held liable to the City in a court of law for failure to comply is unprecedented. "Texas Petrochemicals is really leading the way with this agreement," said Mayor Bill White. "When I met with Charlie Shaver, the CEO, earlier this year, he said that TPC was committed to do its part to improve the air quality in Houston. We insisted that any plan have specific milestones and be enforceable in court. That kind of agreement is unprecedented and TPC stepped up to that responsibility. Now, we have a solid working relationship."

Specifically, TPC agreed to the following terms:

• TPC will reduce butadiene emissions from its flare to a total annual cap of 5,702 pounds per year, from a 2004 level of 34,313.
• TPC will implement enhanced monitoring and repair of its cooling towers and of leaks throughout the facility that cause fugitive emissions, which will achieve a minimum reduction of 9,062 pounds of butadiene per year. These emissions generally come from leaks that are only discernable through vigilant monitoring, including the use of an infrared camera. Also, the threshold level for repair will be reduced.
• Ground level butadiene attributable to TPC's operations will remain below 1 ppbv on an annual average.
• TPC's emissions will be verified by independent auditors selected with the City's approval.
• TPC will provide the City with quarterly reports on its performance of the agreement.
• TPC will alert the City, by e-mail, at the same time plant management receives notice, if monitoring data indicates that more than ten (10) pounds of BD is to be emitted from the flare, or if data indicates a potential leak at a cooling tower, or if fenceline monitoring indicates a concentration above 25 ppbv for any hour.
• Failure by TPC to comply with the terms of the agreement will constitute a breach of contract, actionable in a court of law.