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EPA orders FMC to halt toxic gas releases

In a June 14 unilateral administrative order, the U.S. Environmental Protection Agency (EPA) ordered the FMC Corporation to halt phosphine gas releases from additional waste ponds at the Eastern Michaud Flats Superfund site, where FMC operated an elemental phosphorus plant from 1947 to 2001. The Superfund site, designated in 1990, also includes the J.R. Simplot Co.’s Don phosphate fertilizer plant.

The FMC ponds, used to manage wastewater containing elemental phosphorus, were capped and closed under a 1999 Resource Conservation and Recovery Act (RCRA) consent decree. In 1998, FMC paid $11.9 million – the largest civil penalty settlement ever at that time – under a 1976 hazardous waste law. It also had to cap the ponds, which had caught fire periodically over the decades.

Construction of the pond caps was completed by 2005. In its latest Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) order, EPA said FMC must do a better job of protecting onsite personnel and the environment from potential exposure to the phosphine gas, which can be toxic and explosive. It can also damage respiratory, nervous, and gastrointestinal systems, as well as the heart, liver, and kidneys.

In December 2006, EPA issued a similar order requiring FMC to extract and treat gas from under the Pond 16S cap that had accumulated to high concentrations. Phosphine, hydrogen sulfide, and hydrogen cyanide gases were detected in and around a number of the ponds that year. The Pond 16S concentrations were successfully lowered with a gas extraction and treatment system.

The June 14 order requires FMC to design and operate gas extraction and treatment plants at three other ponds, plus extract and treat phosphine gas at other RCRA capped ponds where EPA determines it is needed to protect human health and the environment, conducting additional monitoring. A one-year period to demonstrate that Pond 16S gases can be maintained at safe levels began in November 2009.

In April 2010, FMC notified EPA that it was extracting gas at Pond 15S to address high phosphine concentrations under that cap, which were being released into ambient air. After EPA requested more information, FMC provided data showing concentrations there at or exceeding 20 parts per million. Phosphine gas concentrations have been measured at or exceeding 1 ppm in air outside of Ponds 8E and 17.

Idaho Department of Health and Welfare (IDHW) toxicologists, plus Centers for Disease Control and Prevention officials in Atlanta, analyzed data from the site after EPA requested help. The state concluded this month that phosphine gas from FMC’s Pond 15S between February and May posed a threat to the 12 workers cleaning up the site, as well as to anyone else who happened onto the property.

“The phosphine gas being released from Pond 15S is an urgent public health hazard to the health of people breathing the air in the proximity of Pond 15S, including workers, visitors to the pond area and any potential trespassers in the pond area,” a Health and Welfare public health toxicologist wrote in a June 1 letter to EPA.

The IDHW declared phosphine gas levels at Pond 15S an “urgent public health threat,” which FMC disputes, saying department officials lacked complete, up-to-date information and never visited the site. The company disagreed with some of EPA’s findings and conclusions in the order, but vowed to comply with it.

“FMC designed the ponds to allow for the capture and treatment of phosphine, which the ponds were known to generate as the phosphorus degrades and which was anticipated and addressed in the pond closure and post-closure plans,” Paul Yochum, former plant manager and now an FMC consultant, stated in a news release.

Yochum said the measures that FMC implemented and EPA approved for RCRA closure of the ponds continue to be the most protective, technically proven, and environmentally responsible means to manage phosphorus waste sediments.

Jim Werntz, EPA’s Idaho office director in Boise, said FMC needs to stop the gas emissions and ensure safety at the pond site. He called Monday’s EPA order an emergency response. “Work is already under way at FMC to capture and treat dangerous pond gases at two ponds,” Werntz said, adding the order requires FMC to design and deploy a more robust monitoring program.

EPA also will involve the Shoshone-Bannock Tribes and seek tribal input in reviewing and approving the projects and design documents required under the order. Much of the FMC site is on the Fort Hall Indian Reservation and not far from Interstate 86 and the Pocatello Regional Airport.

Mosaic does not comment on Fertinal rumors

Plymouth, Minn.-The Mosaic Co. said last week that it does not respond to rumors when asked about reports in The Wall Street Journal and other major media that it is in negotiations to acquire Mexico’s Grupo Fertinal S.A. The paper said the information came from sources familiar with the matter and that the deal, which was still not a sure thing, was valued at $1 billion. Mosaic has been interested in procuring additional phosphate rock supplies, having recently bought a stake in Peru’s Bayovar rock project. Fertinal would give it further access to rock (GM June 18, 2007; Sept. 3, 2007).

Majority stake in Uralkali sold

Moscow-Russian potash producer OJSC Uralkali reports that it has been informed by Madura Holding Ltd. that Madura has disposed of its 53.2 percent of the share capital of Uralkali. The interest went to Kaliha Finance Ltd., Aerellia Investments Ltd., and Becounioco Holdings Ltd. The three are owned by Suleyman Kerimov, Alexander Nesis, and Filaret Galchev, respectively. Uralkali said the largest stake, 25 percent, was acquired by Kaliha. Dmitry Rybolovlev, who controls Madura, was also reported by the Russian media to have sold 20 percent of OAO Silvinit, the other major Russian potash producer, to Kerimov. Speculation is that Uralkali and Silvinit may eventually be joined as a single major potash company to further enhance their weight within the industry. Another theory is that Uralkali might be merged with minerals giant OAO Norilsk Nickel.

Minnesota wind-to-ammonia plant under way

Morris, Minn.-University of Minnesota Renewable Energy Center researchers expect to have a test plant using wind power to produce anhydrous ammonia up and running by the end of the year. Construction on the Morris plant began earlier this month, according to Michael Reese, director of the center, and should produce fertilizer by the end of the year using surplus energy generated onsite by a 1.65-megawatt wind turbine that already helps power the nearby campus. Reese explained that hydrogen is produced through electrolysis. Hydrogen and oxygen will be separated from water and wind electrical energy in an electrolyzer by a series of cells with special membranes under charge. In a different process, nitrogen will be separated from air via a molecular sieve. Then, under the appropriate pressure and temperature, hydrogen and nitrogen will be introduced together into a reactor and passed through a catalyst bed. A portion of the hydrogen and nitrogen will form NH3 in a modified Haber Bosch high pressure process. The test plant will produce fertilizer for use on university farm land. But Reese and his associates believe a similar system in which fertilizer is produced and sold nearby could contribute to the local economy. It also would take advantage of the region’s wind potential while skirting that industry’s main hurdle of needing expensive transmission lines to ship electricity east to the urban areas that need it, Reese said. The question is whether a renewably produced fertilizer can compete in the market. At the current price of about $500 a ton, that would be difficult. But if prices return to the near-$1,200-per-ton range seen a couple of years ago, “then sure, I believe it would work,” Reese said.

Chemtrade expects Beaumont plant up in October

Toronto-Chemtrade Logistics Income Fund said June 15 that it expects its Beaumont, Texas, plant to be back up by the end of October. The plant was idled by fire in May (GM May 31, p. 14). “The investigation team now believes that the source of the fire was a newly installed piece of equipment,” said Mark Davis, Chemtrade president and CEO. “From our customers’ perspective, we have ensured that this incident will not affect them and that we will continue to provide the products and services they require. The interruption to Beaumont’s production is disappointing since the plant had been operating very well since completing a significant capital re-investment program. We remain fully committed to the future of our Beaumont plant. We will repair the damage quickly, and continue to invest in the plant’s reliability and efficiency.” Chemtrade says it has arrangements in place to ensure that its customers will remain supplied with sulfuric acid and spent acid regeneration services through the duration of repairs. Chemtrade said it carries both property and business interruption insurance, and expects to recover substantially all of its costs and lost profits. It also said it does not believe the incident will impact its ability to sustain its monthly distributions.

Scotts increases guidance

Marysville, Ohio-The Scotts Miracle-Gro Co. on June 16 updated its financial outlook for fiscal 2010 based on strong continued demand for its products in the United States. The company said it expects adjusted earnings for fiscal 2010 to be in the range of $3.25-$3.35 per share. In early May, Scotts had said it expected earnings to be at least $3.25 per share, compared with adjusted earnings per share of $2.62 a year ago. Scotts expects sales growth to range from 5-7 percent for the full year, and gross margins to improve by up to 100 basis points. It also reaffirmed its outlook that free cash flow would be at least $200 million. Consumer purchases of the company’s products in the U.S., as measured by point-of-sale data from its largest retail partners, have increased more than 6 percent on a fiscal year-to-date basis through the first weekend of June. Improvements were posted in every major product category. This growth has been led by consumer purchases of growing media products, which have improved 10 percent year-to-date on the continued strength of gardening activities. “Consumers remain engaged in our category and we continue to believe we are gaining market share,” said Jim Hagedorn, chairman and CEO. “Consumer engagement in May remained strong even though year-over-year consumer purchases declined from their exceptionally high levels in 2009. We expected May comparisons to be challenging, however, and now that we have cleared the peak of our season, we believe it is appropriate to establish a tighter range around our outlook.”

Ameropa, SA Services announce agreement

Tampa-Ameropa North America and SA Services LLC have announced that they have entered into an exclusive joint marketing agreement. The combined entity will purchase and sell seaborne sulfuric acid worldwide. By combining the strengths of both companies, the venture will aspire to a larger share of the global sulfuric acid trade and becoming a more reliable partner for suppliers and buyers alike. For further information contact: Marcus Conrad at Marcus.Conrad@ameropa-na.com or 1-813-282-8228 or Allison Beeler Evans at allison@saservices.us or 1-813-486-1562.

Nutrients Plus gains rights to New Day additive

Virginia Beach-Nutrients Plus LLC (NP) reports that it has signed an agreement with New Day Farms LLC, an Ohio poultry layer corporation, for exclusive rights to purchase New Day’s composted poultry manure, an organic additive, for its fertilizers. NP says through extensive research conducted by Ohio State University (OSU), New Day’s unique approach to processing makes for a refined input into NP’s formulations. NP says the New Day product, Nature Pure®, is not a poultry litter containing bedding material such as saw dust. The high calcium diet New Day uses for egg layers produces a nutrient rich, litter-free compost with 9 percent calcium, and the production minimizes salt levels common to less processed manures. The biological activity is preserved as composting processes involve no use of dryers and granulation occurs simultaneously. NP said Nature Pure provided the best residual responses at the 1N/M rate (one pound of nitrogen per 1,000 square feet), according to an OSU study in a test on grass. In the same study, Nature Pure was one of four fertilizers which “provided the best residual color/quality responses for twelve to thirteen weeks.” NP says its fertilizer products are registered and sold in 40 states and Canada. Brand names and markets served include ClarusTM Screamin’ Green®, distributed to the consumer by retail lawn and garden dealers; ClarusTM Pro, sold to the direct segment of the landscape industry; ClarusTM BioDiversityTM, distributed to golf course markets; and ClarusTM 100.

CHS acquires small North Dakota location

Inver Grove Heights, Minn.-CHS Inc. has reached an agreement with the Farmers Cooperative Elevator Co. of Cavalier in North Dakota to acquire its assets. The business arrangement was approved by the Cavalier producer-members and is slated for a July 12 effective date. “Farmers Co-op Elevator has been serving area farmers and this community since 1929,” said Pat Mahar, board chairman for Cavalier and an area producer raising sugar beets, edible beans, and small grains. “Joining CHS ensures that we can continue our cooperative tradition of patronage back to the members and supporting our local economy.” “This decision also means increased access to competitive commodity markets for our farmers’ production,” said Dave Rosscup, Cavalier general manager. “The combination is a good match for both companies,” explained John McEnroe, senior vice president of CHS. “And it aligns with our core commitment to always return value to our member-owners.” Farmers Cooperative Elevator Co. of Cavalier has served its co-op members in the northeastern area of North Dakota with grain marketing and feed services. It will join the current CHS group led out of Drayton, North Dakota. The Cavalier facility is small (three employees) and does not sell fertilizer. It concentrates on grain handling and bagging of edible beans.

EPA orders Simplot to halt feedlot discharges

Seattle-The U.S. Environmental Protection Agency (EPA) on June 11 issued the Simplot Cattle Feeding Co. a legal order to halt discharges from its nearly 700-acre feedlot complex near Grand View, Idaho. “We have received a copy of the compliance order,” said Simplot spokesman David Cuoio. “We have had discussions with EPA regarding our operations at Grand View and we look forward to working with them on this matter.” Simplot confines between 30,000 and 65,000 cattle year round at this feedlot facility near the Snake River in southeastern Idaho. EPA’s order directs Simplot to immediately cease all discharge of pollutants to waters of the U.S. EPA says this action is particularly important because the Snake River has been designated as “impaired” for both bacteria and nutrients. The order stems from Simplot’s use of a constant flow stock watering system. When not used for irrigation (usually from November to March), a portion of this water is diverted to pasture, irrigation ditches, or into the Ted Trueblood Wildlife Refuge, all of which ultimately flow into the Snake River. Simplot water samples pulled from the facility’s discharge were shown to contain 1600 colonies of fecal bacteria per 100 ml of sample. EPA says Simplot is covered under an NPDES CAFO permit, and by discharging 1500 gallons per minute from the production area, they are violating their permit. While EPA recognizes that many producers use similar systems at their facilities, CAFO regulations apply to feedlots and dairies. They do not typically apply to rangeland. If watering system flows are re-used and/or do not leave the facility, they are not considered a discharge. “Simplot’s watering system adds fecal bacteria to the Snake River,” said EPA Director of Compliance and Enforcement Edward Kowalski in Seattle. “It discharges a tremendous volume of contaminated water to a river already impaired by bacteria and nutrient pollution. By re-routing overflows or storing water for future use, producers can take care of their livestock and protect Idaho water quality.” Pollutants commonly associated with animal waste or manure often include nutrients such as nitrogen and phosphorus, organic matter, pathogens, and sediments. To comply with the order, EPA says Simplot must cease all discharges to the Snake River and its tributaries immediately.