8-K

               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549


                        _________________


                            FORM 8-K

                         CURRENT REPORT
             Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934

                        _________________


                 Date of Report: December 11, 2003
                (Date of earliest event reported)


                       TEMPLE-INLAND INC.
     (Exact Name of Registrant as Specified in its Charter)

      Delaware             001-08634             75-1903917
  (State or Other         (Commission           (IRS Employer
    Jurisdiction          File Number)       Identification No.)
 of Incorporation)



        1300 South MoPac Expressway, Austin, Texas 78746
            (Address of Principal Executive Offices)


                         (512) 434-5800
      (Registrant's telephone number, including area code)



                         Not Applicable
  (Former Name or Former Address, if Changed Since Last Report)



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Item 7.  Financial Statements and Exhibits

     (c)  Exhibits.

     99.1 Press release issued by Gaylord Chemical Company, a
          wholly-owned subsidiary of Temple-Inland Inc., on
          December 11, 2003, announcing the agreement in
          principle to settle all claims, including claims for
          compensatory and punitive damages, arising from the
          October 23, 1995 explosion of a rail tank car at the
          Gaylord Chemical plant in Bogalusa, Louisiana.


Item 9.  Regulation FD Disclosure

     On December 11, 2003, Gaylord Chemical Company, a wholly-
owned subsidiary of Temple-Inland Inc., issued a press release
announcing the agreement in principle to settle all claims,
including claims for compensatory and punitive damages, arising
from the October 23, 1995 explosion of a rail tank car at the
Gaylord Chemical plant in Bogalusa, Louisiana. A copy of the
press release is furnished as exhibit 99.1 of this report.


                            SIGNATURE

     Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.


                              TEMPLE-INLAND INC.


Date: December 11, 2003       By:  /s/ M. Richard Warner
                                   --------------------------
                              Name:  M. Richard Warner
                              Title: President



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                          EXHIBIT INDEX

Exhibit   Description                                      Page
- -------   ------------                                     ----

99.1      Press release issued by Gaylord Chemical          4
          Company, a wholly-owned subsidiary of
          Temple-Inland Inc., on December 11, 2003,
          announcing the agreement in principle to
          settle all claims, including claims for
          compensatory and punitive damages, arising
          from the October 23, 1995 explosion of a
          rail tank car at the Gaylord Chemical plant
          in Bogalusa, Louisiana.

EX-99

                                                     Exhibit 99.1

                     [GAYLORD CHEMICAL LOGO]

                  Press Release - Jury Verdict


     On December 9, 2003, Gaylord Chemical Corporation and its
parent, Gaylord Container Corporation agreed in principle to
settle all claims, including claims for compensatory and punitive
damages, arising from the October 23, 1995 explosion of a rail
tank car at the Gaylord Chemical plant in Bogalusa, Louisiana.
In exchange for payments by certain of its insurance carriers and
assignment of the companies' insurance coverage rights against
its non-settling carriers, Gaylord Chemical and Gaylord Container
will receive full releases and/or dismissals of all claims for
damages, including punitive damages.  Neither Gaylord Chemical
nor Gaylord Container contributes to the settlement.  The
settlement is subject to a fairness hearing and final court
approval.

     On December 10, 2003, a jury in Louisiana awarded punitive
damages of $92 million in favor of a class of plaintiffs
allegedly injured in the release and against the companies'
insurance carriers that did not settle.  The jury's decision does
not affect the companies' settlement reached by Gaylord Chemical
and Gaylord Container.








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