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Silvinit reports completion of bypass; Uralkali pays $258.6 M to cover mine woes

Potash producer JSC Silvinit said Dec. 20 that the 53 km Yaiva-Solikmansk railroad was opened in Russia’s Perm region. The bypass was built beyond the mine fields under development and those planned for development at the Verkhnekamsk deposit of potassium and magnesium salts. Silvinit said the bypass completely removes the threat of disruption of potash shipments from the company. The threat came after the appearance of a sinkhole in July 2007 in the area of the flooding at Berezniki-I of JSC Uralkali, and had persisted (GM Archives).

Construction of the 53 km railroad followed the launch of a bypass in early 2007 that was later within the expansion area of the sinkhole. In January 2008 a new 6 km bypass was opened. However, the possibility of an expansion of the sinkhole and crack that appeared in October 2008 was not ruled out, as there was still a risk of the negative influence of subsurface processes. As a result, a possibility persisted that shipments of potash from JSC Silvinit could stop.

Silvinit put the cost of the overall project at around 12.3 billion rubles (US$407.9 million). The railroad is part of the Belkomur project, which in the future envisages construction of an Arkhangelsk-Syktyvkar-Gainy-Solikamsk railroad and will give White Sea access to enterprises based in the Perm region, including potash producers.

In the meantime, Urallaki reported that it has completed the payment of some 7.8 billion rubles (US$258.6 million) to the federal, regional, and municipal governments, as well as the Russian Railway, to cover the costs associated with the mine accident and to bridge the financing gap for the construction of the railway link.

North East Terminal acquires Tri-Way crop inputs

Foam Lake, Sask.-North East Terminal Ltd. (NET) has announced that it is acquiring the crop inputs facility of Tri-Way Fertilizers Ltd. in Foam Lake, Sask. The Foam Lake facilities, located about 90 km northwest of Yorkton, include a chemical warehouse, two anhydrous ammonia tanks, rolling stock and fertilizer application equipment, and a 1,100-ton dry fertilizer storage shed. No terms were announced, but North East said the transaction closed on Dec. 16. “The Foam Lake asset represents a good fit, given North East Terminal’s footprint in this region,” said Garnet Ferguson, general manager for NET, a crop inputs and grain elevator business with facilities in Kelvington, Ponass Lake, and Wadena, Sask. “This acquisition will enhance our offerings to area producers, and we will work diligently to provide as seamless a transition as possible in meeting their crop input needs.” Founded in 1991, NET is a widely held, producer-owned grain terminal, with its head office located in Wadena, Sask. Formed in 1998, Tri-Way Fertilizers is a joint venture between several producer-stakeholders and Cargill Ltd., with facilities in Abernethy, Balcarres, and Leross, Sask. NET operates an inland grain terminal and sells fertilizer, chemicals, and seed at Wadena, about 50 km northwest of Foam Lake. It also already sells fertilizer, chemicals, and seed at country operations at Kelvington, about 40 km northeast of Wadena, and at nearby Ponass Lake.

Farmers sue tannery over tainted fertilizer

Cameron, Mo.-A lawsuit has been filed on behalf of 24 landowners alleging that they were misled about the safety of tannery sludge that was used as fertilizer on their farm fields. The lawsuit also states that the property was devalued because the fertilizer contained the carcinogen chromium 6, also known as hexavalent chromium. In addition, landowners are seeking damages for possible cleanup costs. Use of the material from Prime Tanning, which is now owned by National Beef Leathers, is also under investigation by the U.S. Environmental Protection Agency and state agencies, and is the object of other suits by residents claiming the fertilizer from the tannery is the cause of their brain tumors and other cancers. According to documents on file in Buchanan County Circuit Court, from at least l983 through early 2009 Prime Tanning hauled and applied thousands of tons of fertilizer containing hexavalent chromium and other metals to Missouri farms in Andrew, Buchanan, DeKalb, and Clinton counties. The chromium in the fertilizer was above acceptable limits for human exposure. In addition, the lawsuit named Elementis LTP, a chemical company that claims to be the world’s largest producer of chromium chemicals, and Burns and McDonnell, a Kansas City engineering firm, which it says designed the system to produce the fertilizer.

Smithfield faces large fine for ammonia release

Middlesboro, Ky.-The Smithfield meat packing plant here has agreed to a substantial but yet-to-be-disclosed fine for an anhydrous ammonia spill last September that reached two streams and wiped out a large part of the local fish population, according to Kentucky enforcement officials. Division of Enforcement Assistant Director Jeff Cummins told Green Markets that an agreement in principle was reached during a meeting Dec. 10 with Smithfield. “Although the agreement included a civil penalty offer, the settlement is not final until the cabinet secretary signs an agreed order with Smithfield that is being drafted,” Cummins reported. He did say that although the company could be fined $25,000 per violation per day and the cleanup took more than one day, that Smithfield would be assessed for only the day involving six violations, which by some calculations could amount to $150,000. There was no comment from Smithfield officials. According to the notice of violation, the company was cited for allowing a point source discharge of anhydrous ammonia into waters of the commonwealth without a state permit; failing to report the spill to the state by the most rapid means available; not reporting the release to the Department of Environmental Protection through the emergency response notification system; degrading waters of the commonwealth by allowing a release of anhydrous ammonia from the facility that resulted in the fish kill; allowing the release of pollutants that violate state regulations by entering waters of the commonwealth; and allowing a release that resulted in an environmental emergency requiring cabinet response.

USDA pledges millions more to climate research

Washington-The United States has joined 20 other countries to form the Global Research Alliance on Agricultural Greenhouse Gases, an international research collaborative to combat climate change, according to word from USDA officials here. The partnership, formed last month at the climate change talks in Copenhagen, was hailed by Agriculture Secretary Tom Vilsack as a means of focusing global resources on one of the most important international issues of our time. “Just as climate change has no borders, our research should not,” said Vilsack. “No single nation has all of the resources needed to tackle agricultural greenhouse gas emissions while at the same time enhancing food production and food security. We will not only pool our talents and existing resources, but draw new resources and even new scientists.” According to USDA, agriculture climate change mitigation research will be expanded by $90 million, with the findings being contributed to the alliance. The increase will raise USDA’s agricultural climate change mitigation research portfolio to over $130 million over the next four years, up from a base level of funding of just over $10 million in FY 2009. USDA’s enhanced commitment is part of a larger increase on climate change research at the department, boosting the overall investment to more than $320 million in the next four years for climate change mitigation and adaptation research for agriculture.

Only one fined in Delaware for nutrient violation

Dover-Delaware’s restrictions have been in force nearly three years on the application of nitrogen and phosphorus during winter months, and during that time there has been only one fine imposed. “We have had at least one and maybe two brought in for a hearing,” Bill Rohrer, program administrator for the Delaware Nutrient Management Commission, told Green Markets. The regulations apply to Delaware farmers, lawn-care companies, golf courses, and other nutrient handlers, and limit the application of commercial and manure-based fertilizer between Dec. 7 and Feb. 15, when nutrient runoff is a concern. Rohrer said one party was brought in for a hearing, which resulted in a $1,000 fine for applying poultry litter in January. “We don’t fine people immediately when we see this,” he explained. “It’s usually a pretty expensive process, and what we’re striving to do is to change the practices.” The rules also state that application may not occur on snow-covered or frozen ground, or on impervious surfaces such as sidewalks, roads, and other paved areas. Nutrient handlers must be certified, Rohrer added.

Iowa has similar rule to Delaware

Des Moines-Iowa now has rules similar to those in Delaware, limiting application of liquid manure on frozen ground from Feb. 1 to April and on snow-covered ground from Dec. 21 through April 1. Six hearings are being held in January and early February around the state to explain the legislation, which was passed by the state legislature in the 2009 session and signed by Gov. Chet Culver. The measure allows exemptions for farmers facing unusual circumstances, such as weather or storage capacity limits. The proposed Department of Natural Resources (DNR) rules would take effect in the winter of 2010-11. For the 2009-10 winter, DNR officials said they do not intend to impose the 100-day manure storage requirement for farmers requesting an emergency exemption.

Agriculture runoff claims refuted in Iowa

Iowa City, Iowa-Agriculture interests claim that their industry is doing its part in keeping nutrient runoff from polluting the state’s waterways, which the Iowa Policy Project charges has reached the point where state and federal regulations are required to do the job. “State policy has left Iowa waterways open to contamination by bacteria resulting from phosphorus and other nutrients in runoff from both farm fields and urban sources,” the IPP report maintains. “Blue-green algae – which some call pond scum – in lakes or other waterways in Iowa can signal the proliferation of cyanobacteria, which in some cases produce toxins that can harm people, animals and the environment.” In 2008 and 2009, the report noted, the Des Moines source waters had elevated levels above the point where water treatment problems may emerge. In 2004, high levels of cyanobacteria and cyanotoxins at Carter Lake were found after swimmers complained of rashes and analysts saw other indications of a cyanobacterial “bloom.” The report said voluntary conservation practices in agriculture are not enough to deal with the issue, and that it’s time for the state and federal governments to establish new rules for farmers and for those who apply chemicals on lawns to address runoff issues. But that’s not necessary, responds Rick Robinson, Iowa Farm Bureau environmental policy adviser, who pointed to an Iowa Department of Natural Resources estimate that concludes less than five percent of the nutrients from farms and other sources winds up running off. “I think most reasonable people would understand that given 35 inches of rainfall a year in Iowa, that’s really pretty good news,” Robinson said. “It’s unfortunate that there are groups out there continually trying to find problems, I think, with Iowa agriculture and probably don’t realize the good job that Iowa farmers are already doing.” He said the estimate that four to five percent of all available nutrients, not just fertilizer, runs off into waterways was developed before new state rules restricting manure application on frozen ground went into effect, which could reduce that run-off estimate. “There’s been a number of regulations put in place,” Robinson insisted. “So all those things, over time, have contributed to less and less nutrients leaving the landscape.” On top of this, he added, commercial fertilizers and herbicides cost money, so farmers use only what’s necessary.

Still no leads in July potash derailment

Indianapolis-The mystery appears to deepen in the July 2009 derailment involving 70 top-loading hopper cars filled with potash fertilizer that were released from a unused railroad spur leading to a inactive coal mine, derailing 22 of them and causing a $1 million cleanup. More than five months after the incident, Indiana State Police (ISP) Sgt. Joe Watts told Green Markets that there are still no new developments in the incident, which was at first believed to be caused by a prankster. Indiana Rail Road Co. posted a $20,000 reward, and its spokesman Chris Rund reported, “Our early investigation was that there is a strong possibility of equipment tampering and we are treating it as a criminal investigation.” Queried on Dec. 16, ISP’s Watts replied, “We have no new leads at this time, nor have any arrests been made. No arrests appear to be in the near future either.” The cars, coupled together and parked for long-term storage by the Indiana Rail Road Co., for some reason left this spot and traveled southwest nearly four miles to the end of the spur line in eastern Sullivan County.

Management Briefs

Jack Satterwhite, 71, formerly of Great Falls, Mont., and most recently Corvallis, Mont., passed away Dec. 25. He was an Army veteran and was with ConAgra Fertilizer from 1978-1992, retiring as president of the company. Survivors include his wife Judy, two daughters, a sister, and three grandchildren. There will be a private family memorial service, with a celebration of his life at a later date. Schnider Funeral Home, Great Falls, is in charge of arrangements.

Del Robert Braddock, 56, Leawood, Kan., passed away unexpectedly Dec. 16. He held a B.A. and an M.B.A. from the University of Kansas. He was employed with Farmland Industries Inc. for more than 20 years. Braddock joined Interoceanic Corp. in 2001, and for the past two years worked for Yara North America. Del is survived by his wife Cappi, a teenage son, a sister and brother-in-law, and other family. A funeral service was held Dec. 28 in Prairie Village, Kan. The Del Braddock Memorial Trust has been established for his son, Kyle. Checks should be made out to Wells Fargo Advisors ?Çô Reference Del Braddock Memorial Trust in the memo section. Checks need to be sent to the following address: Wells Fargo Advisors, 444 West 47th Street, Suite 310, Kansas City, Mo. 64112.