The fire that triggered the devastating ammonium nitrate blast at the West Fertilizer Co. facility in West, Texas, on April 17, 2013, was “incendiary,” meaning that it was intentionally set, according to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

ATF made the surprising announcement on May 11 at a noon press conference at the Houston office of the ATF and the Texas State Fire Marshal’s Office (SFMO). ATF Special Agent in Charge Robert Elder referred to the fire as “a criminal act,” a conclusion that investigators reached after conducting an exhaustive three-year investigation that is still “active and ongoing.”

“We have come to this conclusion from over 400 interviews, a systematic fire scene investigation, considering witness observations, viewing both witness photographs and video, as well as extensive scientific testing at the ATF fire research laboratory located in Maryland,” Elder said. “All reasonable, accidental, and natural fire scenarios were hypothesized, considered, tested, and eliminated as being fire causes. The only hypothesis that could not be eliminated and was confirmed by extensive testing…was incendiary.”

Elder said no arrests have been made, but the interviews have “produced many leads in a complex investigation with many moving parts.” He said ATF is offering a reward of up to $50,000 for information leading to an arrest, and another $2,000 has been added by the Waco-McClennan County Crime Stoppers. Elder said anyone with information should call (254) 753-4357.

Elder said the ATF has spent more than $2 million so far on an investigation that has left “no stone unturned, including rebuilding “to exact specifications” portions of the West Fertilizer facility “in order to determine exactly what happened.” He said the West blast is one of ATF’s largest fire investigation in terms of scope, man hours, and money spent, noting that the devastating blast claimed 15 lives, destroyed more than 500 homes, and caused injuries and damage in a 37-block area of West.

“Your loss is felt by ATF,” Elder said, addressing the families of the victims. “It has been a driving factor into why we have gone to the lengths and the details that we have. These individuals were people serving their community in a voluntary capacity. They are true community servants. The lost their lives serving their community, and they deserve the best that we can give them.”

An initial investigation into the blast (GM May 20, 2013) by ATF and SFMO had ruled the cause undetermined, but outlined three possible scenarios, including a battery-powered golf cart that was kept in the fertilizer and seed building where the fire started, the building’s 120-volt electrical system, or an intentional criminal act. Investigators in May 2013 (GM May 13, 2013) also arrested a West EMS paramedic for possessing pipe bomb materials, but later said there was no evidence tying the individual to the West fire (GM Aug. 12, 2013).

Intrepid Potash Inc. on May 9 reported a first-quarter net loss of $18.4 million ($0.24 per diluted share), compared with net income of $6.5 million ($0.09 per diluted share) in the first quarter of 2015. The company also announced that it is idling operations at its West facility in Carlsbad, N.M., which generated 42 percent of Intrepid’s potash production in 2015.

“In the quarter, we continued to be significantly impacted by declines in potash pricing and general oversupply in the U.S. markets. In response to this challenging environment, we are taking actions to lower our overall production costs and optimize our mine portfolio,” said Bob Jornayvaz, Intrepid’s executive chairman, president, and CEO. “Accordingly, today we announced the difficult, but necessary, decision to idle the West facility in July. At the same time, we successfully converted our East facility to Trio^®-only production in early April, ahead of our original timeline. These two transitions remove our two highest-cost potash production facilities from our portfolio, substantially increase our Trio^® production, and allow us to focus on our lower cost solar production.”

Intrepid said the West facility’s operations have become increasingly less profitable in recent months as oversupply and foreign competition in the U.S. potash market pressured prices. The facility is expected to transition to care and maintenance in July, and will remain in that mode until Intrepid determines otherwise. Approximately 300 Intrepid employees will be impacted by the decision, and the company anticipates that it will incur charges of $1-$3 million (approximately $0.01-$0.04 per share) in the second quarter related to the idling of the facility.

“The decision to idle the West facility was difficult, but necessary in order to better position Intrepid for long-term success,” said Jornayvaz. “While the transition of this facility to a care-and-maintenance mode significantly reduces our potash production capacity, this move, in combination with the transition of the East facility to Trio^®-only production, removes our two most expensive potash facilities from production during this period of low potash prices. We believe our remaining potash production facilities, which consist of our three low-cost solar solution mines, will improve our position on the world cost curve and provide the right model for our portfolio in this challenging environment.”

Intrepid sold 218,000 st of potash in the first quarter, down 13,000 tons, or 6 percent, from the same period last. The average net realized sales price for potash was $216/st in the quarter, down 40 percent from last year’s first quarter and a 22 percent decline from fourth-quarter 2015. Intrepid said potash prices were pressured by high levels of global potash supply, combined with the strength of the U.S. dollar and its effect on import tons coming into the North American market.

Potash production for the first quarter totaled 215,000 st, a 9 percent decline from the year-ago quarter due to deferred production at the HB facility from early in the first quarter to the second quarter.

Trio^® sales for the first quarter totaled 50,000 st at an average net realized sales price of $316/st, compared with 62,000 st and $367/st, respectively, in the year-ago quarter. “Trio^® pricing continues to demonstrate some resiliency to the market pressures evident for other commodities, though competition in certain key markets resulted in a 4% price decline compared to the sequential fourth quarter,” the company said.

Adjusted for restructuring costs and write-offs of deferred financing fees, Intrepid’s first quarter net loss was $17.4 million ($0.22 per diluted share), compared with adjusted net income of $6.5 million ($0.09 per diluted share) in last year’s first quarter. Cash, cash equivalents, and investments as of March 31, 2016, totaled $54.9 million. Cash flow used in operations for the first quarter of 2016 was $1.1 million and capital expenditures totaled $6.0 million.

Jornayvaz reported that Intrepid has reached an agreement with lenders for its credit facility to extend until no later than July 31, 2016, the previous waiver of the requirements under the facility to meet quarterly financial covenants and to deliver 2015 financial statements without a going concern modification.

“While this agreement further reduces the amount under the facility, it provides us with the time to thoughtfully continue our negotiations with the noteholders,” he said. “In addition, we are performing due diligence surrounding an alternative credit facility proposal we have received. Our noteholders have also agreed to waive until June 30, 2016, the financial covenants under the notes. We continue to work with our lenders towards a mutually agreeable long-term solution to our debt covenant issues”

Intrepid Potash announced on April 25 that it is raising its warehouse posting for 60 percent granular potash to $245/st FOB St. Joseph, Mo., up $15/st from the previous price at that location. The increase matches the Midwest warehouse posting increases announced by Agrium Inc. on April 15 and The Mosaic Co. on April 22.

Also effective April 25, Intrepid’s potash postings FOB Carlsbad, N.M., moved to $245/st FOB for 60 percent granular and $252/st FOB for 62 percent HB standard. The company’s potash postings FOB Wendover and Moab, Utah, remained unchanged at $315/st for 60 percent standard and $320/st for 60 percent granular.

The Mosaic Co. reported on April 22 that it is raising its muriate of potash (MOP) list prices in North America by $15/st, effective immediately. “We have been making significant production cuts to match demand, and we expect near record global shipment in the second-half of 2016,” a company source said.

The announcement follows a similar one made by Agrium Inc. on April 15. Agrium’s $15/st increase on that date resulted in its warehouse postings moving to $245/st FOB most Midwest locations.

Agrium informed customers that it is increasing potash prices across all zones in the U.S. by $15/st, effective April 15, 2016. The company offered no other details on what the new postings are in each U.S. pricing zone.