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City of Baytown and ExxonMobil reach Chapter 212 agreement

November 23, 2022

The City of Baytown and ExxonMobil have announced a new 35-year agreement that will continue to strengthen the long-standing relationship between community and industry while promoting innovation into the future.

Representatives from the city and ExxonMobil have finalized a Chapter 212 agreement that will keep jobs in Baytown and potentially attract long-term development from the company. As part of the arrangement, ExxonMobil will make yearly payments over the next 35 years, worth at least $717.5 million. In addition, the deal includes $75 million in advanced tax payments that the city could potentially use for community-enhancing amenities.

ExxonMobil’s business footprint in Baytown includes the Baytown Olefins Plant, Baytown Refinery and the Baytown Chemical Plant. ExxonMobil has also maintained a strong presence within the community, providing support to the city, Lee College and Goose Creek CISD.

“We are appreciative of our partnership with a global industry leader that continues to invest in Baytown,” City Manager Rick Davis said. “Big companies continue to build and thrive here due to the fiscally-strong tax environment. This agreement shows ExxonMobil’s dedication to Baytown and the company’s strong desire for future investments in our evolving community.”

The City of Baytown had made a 212 agreement with Enterprise Products for $66 million in 2019. The agreement is helping to build the new public safety facility to house both the police and fire departments on North Main. 

Mayor Brandon Capetillo was thankful to ExxonMobil and city staff for putting together the agreement. 

“I want to thank our staff and certainly ExxonMobil for working through this fairly quickly,” Capetillo said. “I believe it will be beneficial to the citizens of Baytown in many aspects. Both to secure their financial future and certainly a benefit to what Baytown can become.” 

ExxonMobil Baytown Olefins Plant Manager Kate Lightfoot also commented on the agreement. 

“We are proud of this Chapter 212 agreement as it gives the city and ExxonMobil the ability to have a stable and predictable rate for the next 35 years, which is so important for planning and future investments,” Lightfoot said. “We thank the city for our valued partnership and this innovative approach with the Chapter 212 and look forward to many years of continued success for our community.” As part of the agreement, the city will not be responsible for providing municipal services to the ExxonMobil properties. The deal also allows the city flexibility to continue to lower taxes for residents.

“Our city leaders remain dedicated to lowering the property tax stress on residents,” Davis said. “Another great benefit of this deal is the ability for us to continue efforts to decrease the burden.”

A Chapter 212 agreement is part of the Texas Local Government Code, Section 212.172, that grants cities the ability to enter into a written contract with property owners in the city’s Extraterritorial Jurisdiction to grand land immunity from annexation for a period not to exceed a total duration of 45 years. It also nvolves the city getting money in lieu of taxes without needing to provide services to the property.

For more information, contact Jason Calder at 281-420-5802 or

By Jason Calder, City of Baytown