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Helena to pay $208,331 in civil penalty

Sante Fe-Helena Chemical Co. will pay a civil penalty of $208,331 to the state of New Mexico as part of a settlement agreement with the New Mexico Environment Department (NMED) stemming from 10 violations of the company’s air quality permit for its Mesquite fertilizer facility. According to the NMED, the violations included neglecting to conduct testing and monitoring to make sure air quality standards were met and failing to maintain records of plant operations. NMED said that as part of the settlement Helena agreed to pay the state for all the violations except one alleging the company failed to close doors and openings at the facility during operations. As part of the settlement, Helena does not admit liability for the violations. NMED dismissed the open doors violation against the company. “We are pleased that NMED has decided to uphold its original finding that our facility meets the department’s definition of ‘enclosed,’ which was based on multiple site inspections and a series of independent air quality studies,” said Louis Rodrigue, Helena vice president, Southern Business Unit. “The other violations, with which we do not agree, are clearly more administrative in scope and are not related to the environmental integrity of our facility.” Rodrigue also noted Helena’s ongoing efforts to improve and upgrade the Mesquite facility, including adding doors to the blending facility to secure material during times when the facility was not in operation, covering process areas, and updating its material handling equipment. The company also purchased a street sweeper, which it regularly uses to clean dust off roads near its facility. “We maintain our unwavering commitment to serving the needs of farmers in New Mexico, while operating in a safe, legal and environmentally sensitive manner,” said Rodrigue. “We will continue to be diligent and transparent in our ongoing and vigorous efforts to comply with the letter, and the spirit, of the laws and regulations that apply to our operations.”

Trade groups respond to draft climate bill

Washington-Sens. Barbara Boxer (D-Calif.) and John Kerry (D-Mass.) on Sept. 30 released an 821-page draft version of the Clean Energy Jobs and America Power Act, a bill that addresses climate change by establishing a mandate to cut by 2020 the nation’s greenhouse gas emissions by 20 percent from 2005 levels. The bill offers specifics on several key issues, such as incentives for natural gas and nuclear power, as well as offset projects in which farmers and other landowners may earn money for conducting environmentally-friendly projects and practices. The bill’s sponsors also decided to drop references to greenhouse gas trading provisions as “cap and trade” and are referring to them instead as a “Pollution Reduction and Investment” program. The language change didn’t work on the Agricultural Retailers Association, which issued a statement saying the bill “could result in increased costs for the agriculture industry.” ARA said the draft climate change bill does not include information on how emissions allowances will be distributed under the legislation. “ARA is concerned that a cap and trade regime will result in a significant input cost for American agricultural suppliers, farmers and ultimately an increase in food price for consumers,” the organization said. To deal with economic uncertainties, ARA claims the draft climate change plan would establish an allowance reserve that permits EPA to sell credits into the carbon market by auction if credit prices rise faster than expected. ARA noted that the proposed bill would place the carbon markets under a single regulator, the Commodity Futures Trading Commission, and empowers the CFTC to prevent manipulation and eliminate excessive speculation in the markets that adds to price volatility. Just one day after publication of the draft bill, the Economic Policy Institute released a study concluding that industries employing 4.1 million workers are at risk unless climate change legislation addresses the issue of international competitiveness. “If climate legislation increases energy costs in the United States and our foreign competitors do not have similar cost increases, we lose competitiveness and jobs,” said the Industrial Energy Consumers of America on Oct. 1.

Advocates defend farm practices

WashingtonTime magazine’s Aug. 31 cover story, “The Real Cost of Cheap Food,” has produced an outcry from agriculture advocates and at least one legislator. The article, written by Bryan Walsh, focuses on aspects of “industrialized agriculture” such as factory farms, feedlots, and fertilizer use, claiming the U.S. agricultural industry “can now produce unlimited quantities of meat and grains at remarkably cheap prices,” but does so at “a high cost to the environment, animals and humans.” In a section on fertilizer use, the Time article said the quantity of fertilizer used annually in American agriculture is “flat-out scary,” and contributes to the hypoxic “Dead Zone” in the Gulf of Mexico and the destruction of the Gulf’s fishing industry. In a Sept. 29 statement on the Senate Floor, Sen. Chuck Grassley (R-Iowa) took issue with the piece, referring to it as “one of the most skewed and one sided articles I’ve ever had the opportunity to read,” as well as “an inaccurate, incomplete and unfair reflection of family farmers across the country.” Grassley cited data from The Fertilizer Institute and USDA showing greater nutrient efficiency, which he said was “in direct contradiction to the author’s statements.” Grassley also said “technology has allowed farmers to apply the exact amount of fertilizer in the right way so there isn’t excess,” and he came to fertilizer’s defense on the Gulf hypoxia charge as well. “There is increasing recognition that causes of hypoxia relate strongly to man-made alterations of the entire system, including channelization of the Mississippi, reversal of the Atchafalaya River, and extreme loss of wetlands and barrier islands that filter nutrients and protect against storm surges ?Çô not solely nutrient issues,” he said, referring to an EPA Science Advisory Board report that said 22 percent of nitrogen and 34 percent of phosphorus loads can be attributed to point sources rather than agriculture. Grassley was not the only one critical of the Time article. According to the Peoria Journal Star, Illinois Farm Bureau President Philip Nelson called the piece “an inaccurate and misleading representation of U.S. food production,” and Rodney Weinzierl, executive director of the Illinois Corn Growers Association, was quoted as saying the article was further evidence that “so many people don’t have a clue about farming.”

ARA membership, conference revenues up

Washington-The Agricultural Retailers Association announced that the organization’s fiscal year 2009, which closed on Sept. 30, will end with $2.20 million in overall revenue compared with $1.93 million in fiscal year 2008, an increase of 14 percent. ARA’s membership dues revenue from fiscal year 2008 to fiscal year 2009 is up 18 percent, increasing from $1.31 million to $1.55 million. There was also a substantial increase in conference revenue as a result of the successful 2008 Conference & Expo held in Austin, Texas. “The success ARA experienced this past year in membership growth and increased conference attendance is directly due to the drive and desire of the late ARA President and CEO Jack Eberspacher,” said ARA Vice President of Legislative Policy and Counsel Richard Gupton. “Jack laid out the vision and strong foundation for the organization back in 2001 when he first started working for ARA. All of ARA’s success is the result of his efforts and that of a hard working, dedicated staff that pulled together during challenging times and economic uncertainty for the industry to ensure agricultural retailers and distributors continued to have a strong voice in Washington, D.C. and increased membership services.” For fiscal year 2010, ARA said it anticipates another strong year in membership and annual conference attendance. This year’s ARA Conference & Expo will be held Dec. 1-3 at the Sawgrass Marriott Golf Resort & Spa in Ponte Vedra Beach, Fla. A special tribute will be made in honor and remembrance of Eberspacher, who passed away July 5 after a diagnosis of cancer earlier this year (GM July 13, p. 1). Early discount registration for the conference ends Oct. 16.

Louisianan indicted in $177,000 fertilizer fraud

Baton Rouge, La.-A Lake Charles fertilizer contractor is facing a maximum prison sentence of 340 years for over-billing the Louisiana prison-supply system and/or substituting cheaper fertilizer than ordered and paid for, according to federal prosecutors. On Sept. 16 a federal grand jury in Lafayette indicted Wallace Eugene Fletcher, also known as Gene Fletcher, 67, on 17 counts of mail fraud, according to U.S. Attorney Donald Washington of the Western District of Louisiana and U.S. Attorney David Dugas of the Middle District of Louisiana. The grand jury alleges that during 2004 and 2005, Fletcher participated in a scheme to defraud the State of Louisiana by over-billing Prison Enterprises $177,225 for fertilizer provided to state prisons under a state contract. The indictment alleges that the scheme involved invoicing Prison Enterprises for more fertilizer than was actually delivered, providing Prison Enterprises with cheaper fertilizer than ordered and paid for, and billing at a rate not available under the contract when the fertilizer was delivered. The indictment also includes a forfeiture allegation in which the grand jury alleges that, if he is convicted of the mail fraud counts, Fletcher should forfeit the proceeds of such offenses to the United States. His Lake Charles attorney, Maurice Tynes, told the press that “I’m satisfied that he’s going to be deemed innocent.” The chemical formulas for fertilizer are sometimes complicated, Tynes said, and appear to “have confused the federal government people somewhat.” He insisted that the Prison Enterprises system has never had a complaint with Fletcher, who is the third person charged this year in the continuing investigation by the FBI and Louisiana authorities. If convicted on all of the mail fraud charges, Fletcher could receive a maximum sentence of imprisonment of 340 years, a fine of $4,250,000, or both.

One dead in AA explosion, suspect arrested

Henderson, Ky.-The Henderson County sheriff’s office has arrested and charged an individual in connection with an anhydrous ammonia explosion early on Sept. 19 in the Cairo area that killed one person and injured another. Sheriff’s investigators were not available to provide details, but press reports stated that a man identified as Joey Davidson Vaught, 49, was captured by police early last week for questioning and possible involvement in the explosion that occurred while the anhydrous was being stolen, presumably for use in making methamphetamine. There was no information regarding where the theft took place or what caused the explosion, but according to MSDS, anhydrous ammonia is explosive, particularly if its container is heated. Authorities told the press that the explosion occurred after the anhydrous ammonia was removed and placed in an unauthorized container in the back of a vehicle. One person died at Methodist Hospital following the early morning explosion, while another was admitted to the burn unit at the University of Louisville Hospital.

Tanker splits in two, spills fertilizer on freeway

Omaha, Neb.-The tank on a rig carrying 4,500 gallons of a liquid mixed starter fertilizer split in two on the freeway at mid-day on Sept. 28, spilling as much as 2,000 gallons and shutting down traffic for more than three hours. There were no collisions and no one was injured as the driver pulled off to the side out of traffic as fertilizer continued to flow from the ruptured tank. But responders reacted swiftly and contained the liquid for fear that it would get into water supplies. “It posed no immediate threat to any of the structures or homes in the area, but it did have a possible threat if it got into the water way,” Battalion Fire Chief Bernie Kanger told the local press. “Our immediate goals were to contain the product, and we did that building an earthen dike around the leak and then down stream.” Westbound freeway traffic resumed after the broken rig was moved, but cleanup efforts were expected to continue into the next day and soil tests will be needed to make sure none of the contamination remains. Dan McCarty with Environmental Solutions, which was hired to finish the cleanup, said the MSDS described the load as a liquid mixed starter fertilizer containing nitrogen, phosphorus, potassium, and sulfur. The Omaha Dept. of Environmental Quality also was on the scene, but had little to do since most of the spill was under control. “The fire department deserves a lot of credit for quickly diking off the area and containing material in place,” offered DEQ spokesman Brian McManus. “If more time had lapsed, things could have been much worse.” A second trailer was also brought in to transfer the remaining fertilizer. The tanker truck was operating out of Red Oak, Neb., and was on it way to Columbus, Neb., when the incident occurred.

Habitat for Humanity eyes Madison property

Madison, Wis.-Both Agrium Inc. and Habitat for Humanity of Dane County have confirmed that the organization has taken the first step toward acquiring the former Royster-Clark fertilizer plant that has been a community eyesore as well as a source of disagreement between Agrium and city officials. “Yes, the report about our looking to purchase the plant site is accurate,” Habitat spokeswoman Cheryl McCollum told Green Markets. “We are still in the early discussion phase with the current owners of the property, Agrium,” McCollum reported. “We have until Dec. 28 to fulfill the contingencies that are part of the purchase agreement. One of those contingencies includes approval of the purchase by our board of directors. We also are awaiting a cost analysis for the cleanup of the property from the State Department of Natural Resources.” Agrium spokesman Paul Poister said the two are still “far from a final decision (although) we are encouraged that there are real plans for the property and we are prepared to fulfill our obligations regarding cleanup.” Poister emphasized that Agrium’s top priority for what he termed as a “very complex project” is to leave the property clean and ready to be put to its best use for the neighborhood and the City of Madison. Habitat officials want to build a center for Habitat for Humanity’s operations, plus housing.

Theft and vandalism leads to ammonia leak

Lucasville, Ohio-On Sept. 22 several families were evacuated or advised to remain in their homes when anhydrous ammonia drifted into a residential area from a parked tanker that had been vandalized and tampered with in an apparent theft attempt. Scioto County sheriff’s deputies told the local press that someone opened several valves and cut hose lines, apparently to obtain ingredients for making methamphetamine. Hazmat responders contained the release, and the residential alert was called off.

Wilson Industrial receives NACD award

Brook, Ind.-Wilson Industrial Sales Co. Inc. is the recipient of the National Association of Chemical Distributors’ 2009 Responsible Distribution ProcessSM Excellence Award. Wilson, a 14-year member of NACD, was recognized at the association’s recent operations seminar and trade show in Cleveland, Ohio. Tom Wilson, founder and former president, Wilson Industrial Sales, was present to receive the award. “Their commitment to the environment and recycling of products, their involvement in the local community, and the education of their employees has established them as high achievers. Wilson Industrial Sales Co., Inc. is an outstanding example of RDP in action,” said James Benning, vice chairman of NACD’s Responsible Distribution ProcessSM Committee and director of operations for Hubbard-Hall Inc.