Olin, Iowa-The release of up to 800 gallons of anhydrous ammonia during an apparent theft attempt late on Oct. 4 caused the evacuation of nearly the entire population of this small farming community of 400 to 500 residents for about five hours. “The weather conditions were just right to contain the cloud,” Tom Lieting, general manager of River Valley Co-op, told Green Markets. Lieting estimated that between 600 and 800 gallons of ammonia were released during what appeared to be an aborted attempt by methamphetamine thieves. He said there have been no reports of injuries. The town was emptied while emergency responders, assisted by a team trained by operations management, dealt with the problem. A local hazmat team entered the area in protective gear to shut down the tank. The leak, which was reported around 9:45 p.m., triggered the evacuation order by emergency management officials and the sheriff’s office. A shelter for those who were affected was set up in nearby Morley. Homes on the southwest side of the town were evacuated first, and no one was allowed into town. The Iowa Department of Transportation closed Highway 38 coming into Olin until approximately 3 a.m.
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Iowa incident raises tank lock questions
Cedar Rapids, Iowa-The weekend theft from an anhydrous ammonia tank and the resulting evacuation of the entire town of Olin caused some to wonder if the special lock devices equipping this tank and thousands of others in the state are doing the job. Thousands of Tanks-A-Lok are in use in all 99 Iowa counties, and their numbers are rapidly growing in other states and Canada. In Iowa, the first state to embrace the device, the locks were paid for by donations and grant money, and the recently-passed federal farm bill is reported to contain funding for additional installations throughout the country. Questions were raised immediately after the Olin incident on the Cedar Rapids TV news. Reporters quoted Jones County Sheriff Mark Denniston as saying “Co-op people told me they wish they knew who it was so they could show them how they’re getting around it (the security device). The lock will still be on the valve, but they’ll get the valve turned.” River Valley Co-op General Manager Tom Leiting confirmed for Green Markets that the lock was still in place after the theft attempt. He declined to speculate how the tank had been accessed by the late-hour intruders, who left the valve open and fled the scene. But that hasn’t changed River Valley Co-op’s opinion about continuing to use the locks. River Valley Safety Manager Matt Hull said it hasn’t changed his mind about Tanks-A-Loks. “I don’t see any change happening here in the near future,” Hull remarked. “They have been successful as a deterrent for our company.” Kim Swinford, U.S. manager for British-based Smith Flow Control, which has the exclusive rights to distribute Tanks-A-Lok in North America, insisted that there is no way that these or other thieves could remove the locks. “There’s no way they can get into the tank by tampering with the lock,” Swinford declared. “They would have had to access the tank in another way.” She said it was possible the lock was not properly installed or that thieves may have obtained a key in some way, but conceded she had no first-hand information from the Iowa location. Iowa was the “beginning” for Tanks-A-Lok in the U.S., with the manufacturers proclaiming on their Web site “Tanks-A-Lok Completes a State-wide Lockup in Iowa, Virtually Eliminating Meth Labs Throughout the State.” Swinford said there is even a state law requiring the locks on anhydrous tanks. “Other states haven’t been quite as proactive as yet,” she noted.
Four officers on stakeout hit by ammonia
Peterson, Iowa-A stakeout team, including Clay County sheriff’s deputies and a state narcotics agent, got more than a whiff of anhydrous ammonia late last month while apprehending two persons trying to make off with the ammonia, presumably for making methamphetamine. “We all were able to get away from the vapors and get a breath of fresh air,” Special Narcotics Agent Chris Nissen told Green Markets. “But everybody’s healthy now and no one’s having any problems.” Nissen said the officers were acting on “information that it (the theft) was going to occur, so we were standing by waiting for them.” He said the pair was apprehended fleeing with about a half gallon of anhydrous in a Tupperware-like plastic container. One of the thieves threw the container up in the air, and ammonia started coming out immediately. Emergency responders treated and decontaminated the officers and suspects, one of whom sustained minor chemical burns. The two suspects have been charged with ongoing criminal conduct, a class B felony; assault while participating in a felony; two counts of possession of precursors, each class D felonies; transporting anhydrous ammonia in an unauthorized container, a serious misdemeanor; and interference with official acts, a simple misdemeanor. They are being held in the Clay County jail on $51,300 cash bond. Two motor vehicles have been seized by the sheriff’s office for forfeiture, and additional assets could be targeted as the investigation continues.
California packer fined for anhydrous violation
San Francisco-The U.S. Environmental Protection Agency has agreed to a settlement of $23,000 with Pappas & Co., which operates produce farming and packing and shipping facilities west of Mendota, for failing to submit and update federal risk management plans for its anhydrous ammonia process at two of its plants. The agency reported that Pappas submitted a risk management plan three years after bringing more than 10,000 pounds of anhydrous ammonia into its facility, and failed to submit a five-year updated plan for another facility. Pappas will also donate a hand-held ammonia detector to the fire department with jurisdiction over the facilities and install an ammonia sensor outside the facility in question for detection of toxic releases, which will better protect staff and neighbors, including a school across the street. This sensor will be equipped with an automatic dialer to alert the company and the fire department of any significant ammonia releases. In addition, Pappas must employ a third-party refrigeration contractor that will automatically receive notification of an ammonia release and inform the appropriate emergency responders and facility managers. EPA requires facilities to update and resubmit their risk management plan at least once every five years.
Urea explosion rips hole in Texas tank
Cactus, Texas-It was business as usual at Omnia Ag right after an explosion in a fertilizer tank brought both the Dumas and Cactus fire departments to the scene, along with investigators from the Texas Commission on Environmental Quality. “We were very fortunate,” Plant Superintendent Gene Legg told Green Markets. Legg said the firemen put water on the tank and fertilizer to bring things under control. The quick response, he added, even saved the fertilizer that was in the tank, which amounted to only a few hundred pounds. But the fiberglass tank itself can’t be put back in use anytime soon because a hole was blown near the bottom, and Legg was not sure how or who would be doing the repairs. State investigators said the urea had been allowed to dry and became endothermic, causing the tank explosion. “Omni Ag removed the material and is determining if the product can be used or will need to be disposed of at an authorized facility,” Spokesman Terry Clawson reported. He said although urea is considered non-hazardous, the fire departments responded as if they were dealing with hazardous material. Legg said state investigators were not concerned after looking over the situation. He said they told him there wasn’t anything that even required filing a report.
CSB draws conclusion about sulfuric acid leak
Washington-The U.S. Chemical Safety Board (CSB) released a report regarding the uncontrolled oleum/sulfuric acid release from Indspec Chemical Corp. in Petrolia, Penn., some 50 miles northeast of Pittsburgh, which forced the evacuation of three surrounding towns in October 2008. In the report the CSB encouraged companies that handle hazardous chemicals to follow proper management-of-change procedures, monitor deviations from written operating procedures, and implement appropriate safeguards to mitigate human errors. The incident forced over 2,000 residents to evacuate or to shelter-in-place for approximately eight hours. Oleum, also known as fuming sulfuric acid, was released when a tank transfer operation was left unattended during weekend operations and an oleum storage tank overflowed. The oleum formed a toxic sulfur trioxide gas, which mixed with moisture in the air to form a dense, corrosive, sulfuric acid cloud that threatened the neighboring towns. CSB Chairman John Bresland said, “The managers of companies that handle highly hazardous substances, such as oleum, need to exercise special care that appropriate process safeguards are in place. In this accident, the CSB found that for many years, operators had been using an auxiliary pump power supply that lacked safety interlocks to prevent tank overfilling.” Owned by the Occidental Petroleum Corp., the facility produces resorcinol, a chemical used for making tires and other products.
DSM finalizes sale of urea-licensing business
Heerlen, The Netherlands-Royal DSM N.V. and Maire Tecnimont S.p.A. have finalized the sale of DSM’s urea-licensing subsidiary Stamicarbon B.V. to Maire Tecnimont for a total consideration of E38 million (US$55.8 million) on a cash and debt-free basis (GM Aug. 3, 2009). DSM will report a book profit of about E30 million (US$44 million) after tax on the sale as an exceptional item in the income statement in Q4 2009. Stamicarbon employs about 50 people in urea licensing, almost all of whom are engineers and technical staff. Stamicarbon licenses patented technology and proprietary know-how to existing and prospective urea producers.
Noranda reports return of sulfuric acid capacity
Valleyfield, Quebec-The Noranda Income Fund reports that it has received notice from its sales agent, Xstrata Canada Corp., that current market conditions now permit Xstrata Canada to arrange for all the sales of sulfuric acid in quantities equal to the processing facility’s normal rate of production. As a result, it has now returned to full production. In the past few months, the Fund has seen stronger market conditions as a result of the strike of the Vale Inco operations in Sudbury and improved sales to both spot and contract customers. Since March 2009, production of sulfuric acid and zinc was reduced by approximately 20 percent due to the weakness in sulfuric acid demand and the lack of sulfuric acid storage capacity. On July 20, 2009, the Fund suspended monthly cash distributions to priority unitholders as a result of the reduced profitability and cash flow from operating the processing facility at less than full capacity, and because of weak market conditions. There have been no monthly distributions paid to ordinary unitholders since February 2009. The board of trustees decided that it was prudent to stop paying the monthly cash distribution until there is an overall improvement in the economic outlook of the Fund. The Fund said that while the return of full capacity is positive, it still faces some challenges, such as low zinc premiums and acid netbacks and a stronger Canadian dollar. In addition, the Fund is in discussions with the revolving facility syndicate about the expected current ratio and possible leverage ratio covenant breaches. At this point in time, the monthly cash distribution remains suspended. In other news, the Fund said a motion for authorization to institute a class action related to an August 2004 accidental discharge of sulfur trioxide was dismissed by the Quebec Court of Appeal. The Fund is satisfied with the judgment and hopes this will end the matter.
LOL completes acquisition of Agriliance units
Arden Hills, Minn.-Land O’Lakes Inc. said Oct. 2 that Winfield Solutions LLC, a wholly-owned subsidiary, completed the acquisition of the Agriliance LLC retail business in Arkansas, Mississippi, and Louisiana (GM Aug. 10, 2009). The approximately 40 facilities affected (retail and support) will operate as Retail Agronomy Solutions LLC, but will retain the Agriliance name at the local retail level. Terms of the acquisition were not disclosed. LOL says the acquisition will complement the company’s existing seed and crop protection products businesses, which are aligned under the WinField Solutions?äó marketing identity. “We are enthusiastic about the quality of the businesses, management teams and employees joining our organization, as well as about the opportunity to provide continued high-quality agronomic products and services to the producers across the region,” said Rod Schroeder, LOL’s executive vice president and chief operating officer of Winfield Solutions Crop Protection Products. “Our immediate goal is to make the transition as seamless as possible for employees, customers, suppliers and vendors. The retail facilities will retain the Agriliance name, and we anticipate no significant change in operations or staffing as a result of this transaction.” Schroeder indicated the transition would be facilitated by the fact that LOL has held 50-percent ownership of the facilities being acquired through its ownership position in the Agriliance LLC joint venture with CHS Inc.
King breaks ground on new phos acid plant
Eshidiya, Jordan-His Majesty King Abdullah II of Jordan laid the foundation of the phosphoric acid plant of Jordan India Fertilizer Co. (JIFCO) on Oct. 3, in the presence of Indian and Jordanian dignitaries. The project is a joint venture between Indian Farmers Fertiliser Cooperative (IFFCO) and Jordan Phosphate Mines Co. (JPMC). JPMC will supply around 2 million mt of phosphate rock to the project from nearby mines, and IFFCO will receive a consistent supply of phos acid to meet its requirement in India. The project, which has a price tag of US$625 million, is expected to export some $300 million worth of phos acid to India each year. According to the initial reports about the project (GM Jan. 7, 2008), the new plant will produce 475,000 mt/y of phos acid and around 1.5 million mt/y of sulfuric acid. JPMC will take a 48 percent stake in the project, while IFFCO will hold the remaining equity.