CF Industries Holdings Inc., Deerfield, Ill., said April 19 that it has reached a global settlement on the terms of a consent decree with the U.S. Environmental Protection Agency (EPA), Oklahoma Department of Environmental Quality, Iowa Department of Natural Resources, and Mississippi Department of Environmental Quality involving compliance with the Clean Air Act (CAA).
The settlement resolves a complaint relevant to potential emissions standards deficiencies at the company’s U.S.-based nitric acid manufacturing facilities acquired through its April 2010 purchase of Terra Industries Inc. The consent decree will not be final until it has been approved by a federal court.
Under the terms of the settlement, CF will pay a civil penalty of $625,000 and undertake capital projects to achieve lower nitrous oxide emission limits at its nitric acid facilities in Iowa, Mississippi, and Oklahoma. The company estimates that the total cost of emission control and monitoring equipment will be approximately $17 million.
“We are pleased this matter has been resolved through a negotiated settlement that reflects our commitment to environmental compliance,” said Stephen Wilson, CF chairman, president, and CEO. “Stewardship is at the core of our environmental philosophy.”
The consent decree arose from an EPA information request to Terra in August 2007. The company worked with EPA to reach a settlement and develop a plan to implement emissions reduction initiatives that exceed CAA compliance standards. In doing so, the company has not admitted any violation of law or regulation.