All posts by traceybg@gmail.com

Big turnout at Southwestern Fertilizer Conference, but tone remains cautious

Featured, News

Industry representatives turned out in force for the 2009 Southwestern Fertilizer Conference in San Antonio July 25-29. Conference organizer Pat Miller said 1,246 members were on hand for the five-day conference, roughly 90 more than the previous year’s record attendance. Spouses brought the 2009 attendance figure to 1,356, also up from the 2008 record of 1,310 total attendees.

Compared with the 2008 conference, however, when pricing for some fertilizer products spiked to record highs and buyers were in a sprint to lock in product, sources said the tone at this year’s conference could best be described by one word ?Çô caution. “There’s just very little business being done,” said one. “Nobody wants to get burned again.” Another source, commenting on the lack of activity, referred to the conference as a “four-day funeral.”

The conference’s general session speakers were also reserved and cautionary in their Tuesday morning presentations, particularly when compared with the previous year’s exuberance, whether the subject was Washington politics, the credit crunch, or crop pricing forecasts.

Richard Brock, president of Brock Associates, warned that the farm economy is not immune from the global economic collapse. “Our economy is consumer-driven,” he said. “Folks, the consumer is out of work.” Referring to the previous year’s enthusiasm, Brock said he knew the industry was in trouble when he observed the “herd mentality” of those willing to accept rosy predictions of an uninterrupted up-cycle for years to come.

Brock said deflation will be the name of the game for the next several years, and tougher times are still ahead. He predicted a sharp decline in corn, soybean, and wheat prices for the balance of 2009. “It’s hard to argue any kind of tight supply,” he said, noting that even if USDA drops its corn acreage estimate in August, average yield estimates will have to go up based on the bumper crops currently growing in Iowa and Nebraska.

Brock also spotlighted the struggling dairy, hog, and beef industries. “Agriculture, whether we like it or not, has to have balance,” he said. “You can’t survive with one sector making all the dough.”

Brock left attendees with some room for hope. While very little commodity news is positive, he observed, it is bear markets that allow good managers to separate themselves and capitalize on opportunities. He also noted that agriculture will “continue to be the safest and most profitable sector in the business world” as the world economic crisis continues. “Volatility is going to be high, but the profit potential will be better for ag producers than almost any other sector.”

Ford West, president of The Fertilizer Institute, offered a frank assessment of the political climate in Washington, highlighting the current administration’s emphasis on social and corporate responsibility, green technology, sustainability, and an aggressive stance on global climate change. “Elections have consequences,” he said, and we now have a “Democratic agenda.”

West talked of the costs of cap-and-trade to the industry, and the likelihood of “leakage” as greater emission controls force industry offshore. The U.S. is now “leading the way in a new, global CO2 reduction treaty,” he said. “We are going to have some type of carbon footprint reduction.”

West described the fertilizer industry’s effort to market itself as a green, sustainable industry. He referred to the U.S. jobs directly involved in fertilizer manufacturing and distribution as “green jobs,” and said enhancing that image remains a challenge for the industry. “We have to work to show that we are part of a sustainable food system,” he added.

The theme of sustainability was also addressed by the conference’s opening speaker, J.R. Simplot Co. CEO Bill Whitacre, who said the fertilizer industry needs to make its case to both customers and communities. “It’s part of who we are as a fertilizer industry. It is no longer a buzz word,” he said, referring to industry members as “active environmentalists” instead of “environmental activists.” Consumer demands have changed, he said, and the fertilizer industry has “an opportunity to participate. We have to convey that our stewardship is responsible.”

Whitacre said the global food crisis has not gone away, and population growth will make it a “very profound” issue over time. “Agriculture is a very good place to be, and it will continue to be in the future,” he said.

He cautioned, however, that the pricing volatility of the last year and the resulting usage cutbacks hurt the industry’s image and have contributed to a credibility problem. “We did just experience a year in which the value of fertilizer diminished,” he said, noting that more should be done to “buffer the grower from the volatility in the fertilizer industry.”

Erin Fitzpatrick of Rabobank International rounded out the Tuesday morning speaker panel by focusing on how the credit crunch has impacted farmers, retailers, and the fertilizer industry. While noting that “banks remain cautious” and are focused on preserving capital and managing risk, she said ag lenders have performed better than other sectors and U.S. farmers do have access to funds.

Fitzpatrick reported that U.S. farm size is growing and industry consolidation has raised the demand for larger loans. Defaults remain low in the ag sector, but the number is inching upward as the crisis continues. As for ag retailers, she said the middle markets have seen tighter credit than farmers, and retailers have been forced to take steps to cut costs and manage inventory through increased scrutiny of inventory valuation.

Strong profits and high cash levels have made fertilizer producers a stable sector for lenders. “Banks are searching for yield, and ag companies look attractive,” she said. But banks are under increased scrutiny from regulators, she cautioned, and are asking more questions of borrowers. Banks are looking for strong risk managers, and are shifting from “covenantlight” lending to more structured facilities, she said.

Asked if the worst is over, Fitzpatrick said credit remains tight and the recovery will take awhile, but signs of stability have emerged. “Banks will lend to those they perceive as survivors, and food and agribusiness is a necessary industry,” she said.

CF achieves strong results during challenging year; record phosphate and nitrogen exports cited

Featured, News, Nitrogen, Phosphate

Record exports, which CF Industries Holdings Inc., attributed to its investment in Keytrade AG, helped the company achieve a strong performance during the second quarter ending June 30, 2009. CF results exceeded analyst expectations.

Net income was off only 19.3 percent, versus the much larger percentages reported the prior week by other major domestic fertilizer companies (GM July 27 p. 10-14). Net income was $248.2 million for the second quarter, compared to the year-ago $307.7 million. Net income attributable to common shares was $213 million ($4.33 per diluted share), versus the year-ago $288.6 million ($5.01 per share). EBITDA was $395.7 million, versus the year-ago $460.4 million. Net sales were $991 million, versus the year-ago $1.16 billion.

“I believe our second quarter results confirm CF Industries’ ability to react nimbly and profitably to volatile market conditions,” said CF Chairman and CEO Stephen Wilson. “Given the challenging spring, these results compare very well to our record performance in last year’s second quarter.

“Faced with adverse weather conditions throughout much of the U.S. Midwest, and high inventories at the distributor and retail levels, we moved aggressively to tap export markets for phosphate and nitrogen products.” CF exported its best-ever 359,000 tons of phosphates to markets mainly in Central and Latin America, compared to the year-ago 85,000 tons.

“We also capitalized on the global competitiveness of our North American nitrogen production, exporting approximately 145,000 tons of granular urea and UAN solution.”

Second-quarter nitrogen margins were actually up at $403.2 million on sales of $755 million, versus the year-ago $362 million and $848.6 million, respectively. Wilson told analysts that the company manages its business on margins, not price. “It you look at the spread between ammonia prices available in the Midwest and the gas costs, it looks pretty darn good today,” he said.

CF nitrogen plants ran at 91 percent capacity during the quarter. Nitrogen sales under CF’s Forward Pricing Program totaled 1 million tons during the second quarter, 51 percent of nitrogen sales volumes. The year-ago FPP sales accounted for 72 percent. Six-month margins were $572.6 million on sales of $1.21 billion, versus the year-ago $559.5 million and $1.29 billion.

Despite the record exports, second-quarter phosphate margins sank to $23.8 million on sales of $236 million, versus the year-ago $107.9 million and $312.4 million. The Plant City phosphate complex was at 95 percent capacity during the second quarter; however, it began the third at significantly reduced rates to a softer domestic market. Second-quarter FPP volumes were 61,000 st, 9 percent of segment volumes, down from 330,000 st and 72 percent for the year-ago quarter. Six-month margins were $16.7 million on sales of $460.4 million, versus the year-ago $181.6 million and $541.9 million.

CF had to take a $5 million write-down ($.06 per share) on potash inventories during the second quarter due to a decline in prices. CF sold 106,000 st of potash during the second quarter and said it has orders for virtually the entire remaining potash inventory of 57,000 st, with no plans for additional purchases.

Six-month net income was $331.2 million on sales of $1.67 billion, versus the year-ago $485 million and $1.83 billion. Net income attributable to common shareholders was $275.7 million ($5.61 per share), versus the year-ago $447.4 million ($7.78 per share). EBITDA was $520.6 million, compared to $722.8 million. One source said six-month EBITDA exceed analyst estimates for the entire year.

“Given low downstream inventories, continued strong demand for corn and other crops, and very positive economics for farmers this fall, we believe we’re positioned for a good fall fertilizer application season,” said Wilson. He noted that at the end of the end of the quarter ammonia inventories were higher than planned, but that other product levels, such as UAN and urea, were low but at appropriate levels.

He said CF entered the third quarter with a low FPP book and that it made a strategic decision during May and June to limit FPP orders for fall delivery since available future prices didn’t offer what CF considered attractive margins. However, he expects improved nitrogen and phosphate prices in the fall season, noting that raw material costs such as gas, sulfur, and ammonia remain low versus year-ago levels.

In other news, Wilson said the CF board has authorized $30 million for the front-end design engineering and design study and related environmental impact work for the proposed nitrogen plant in Peru. To date, CF has spent about $10 million and expects to spend the rest in the next six-tonne months.

St sold 000 2Q-09 2Q-08 YTD-09 YTD-08
Total nitrogen 1,878 2,118 3,143 3,384
Ammonia 481 531 614 606
Urea 714 804 1,447 1,454
UAN 651 758 1,048 1,297
Other N 32 25 34 27
Avg Selling Prices $/st 2Q-09 2Q-08 YTD-09 YTD-08
Ammonia 696 513 660 502
Urea 295 417 331 404
UAN 316 313 309 301
Natural Gas Costs $/mmBtu 2Q-09 2Q-08 YTD-09 YTD-08
Donaldsonville 5.03 8.83 6.36 8.62
Medicine Hat 4.04 8.77 5.06 8.26
St sold 000 2Q-09 2Q-08 YTD-09 YTD-08
P & K volumes 674 456 1,201 926
DAP 469 379 914 763
MAP 99 77 181 163
Potash 106 NA 106 NA
Domestic 315 371 655 760
Export 359 85 546 166
Avg Selling Prices $/st 2Q-09 2Q-08 YTD-09 YTD-08
DAP 304 696 359 594
MAP 346 629 400 544
Potash 558 NA 560 NA

CF says results justify rejection of Agrium; Agrium says CF shareholders still interested

News

CF Industries Holdings Inc.’s Chairman and CEO Stephen Wilson used the company’s strong performance (see page 1) to take a jab at Agrium Inc.’s hostile takeover bid of CF. “CF Industries’s strong performance relative to its peers underscores our view that Agrium’s offer does not reflect the intrinsic earning power of this company. When Agrium’s offer was rejected in mid-May, it was very far from being compelling and, given our performance and industry dynamics, it’s even further away from being compelling now.”

“It is clear that CF’s shareholders view our offer to be very compelling as evidenced by the tender results and based on ongoing discussions we maintain with their shareholders,” said an Agrium spokesman. Some 62 percent of CF shares were tendered in the Agrium offer earlier in the summer, but many were withdrawn and the number dropped to 21 percent (GM July 27, p. 1).

“On the subject of the percent of shares currently tendered, it is customary in cases of unsolicited offers that once tender results are reported and the offer extended that most shareholders withdraw their tendered shares, 1) to preserve the liquidity of their positions, and 2) due to the fact if we bought the shares it would trigger CF’s poison pill. This is common practice for those familiar with unsolicited offers and is in no way an indication of the current level of support for our offer.”

CF’s Wilson told analysts there was no lack of communication between CF and Agrium, both at the advisor and CEO level. He said Agrium is an experienced industry player and has all the information it needs to make a compelling offer, but has chosen not to do so. “This means our focus, as it should be, is on advancing the proposed combination with Terra.” He said it is time for Terra to schedule its annual meeting. “We anticipate having regulatory clearance for our combination in early August, and at this point we’ll be positioned to close the transaction with Terra.”

TFI says government data flawed on climate change

News

The way both the U.S. Environmental Protection Agency and USDA are portraying the consequences of climate change legislation is flawed to the point of preventing the American public from getting the full story on the devastating impact that could be caused on the U.S. economy and American agriculture, according to TFI, which last week responded to presentations made by USDA and EPA to a Senate committee. The House barely passed the bill, but it awaits Senate approval.

USDA projects that the American Clean Energy and Security Act (Cap & Trade) would have a minimum negative impact on farm costs in the short term and income and benefits over the long term. TFI said it was “incredibly disappointed” to learn of the unrealistic energy production, consumption, and price assumptions that are being utilized in the EPA and the USDA economic analyses of the recently-passed House legislation.

“Energy prices are determined by the intersection of supply and demand, and the EPA and USDA economic analyses underestimate new energy demand while overestimating new U.S. energy supply that could come on-line,” said TFI President Ford West. “These numbers are at odds even with other government sources, particularly the U.S. Energy Information Administration, the nation’s premier source of unbiased energy data.”

Historically, TFI points out, the cost of natural gas has exacted a heavy toll on America’s nitrogen fertilizer producers and the farmer customers they supply. Since 2000, the U.S. nitrogen industry has closed 26 nitrogen fertilizer production facilities, due primarily to the high cost of natural gas. Currently, only 29 nitrogen plants are still operating in the U.S., and today 55 percent of the U.S. farmer’s nitrogen fertilizer is imported. Of this imported fertilizer, 82.7 percent comes from countries without climate-change policies in place to regulate carbon, and a majority of these countries are those from whom we are striving for energy independence.

“We urge USDA to evaluate other scenarios utilizing more realistic assumptions than those contained in the EPA analysis,” said West. “Only when more reliable data is available, can we ascertain the impact of cap and trade legislation on the U.S. farm economy.”

TFI also warned that the global food supply remains precariously low and the food crisis of 2008 could return. “We urge the Senate to ensure that any future climate change policy does not harm America’s remaining nitrogen fertilizer production,” said West. “Specifically, we ask that the Senate ensure that we do not outsource our nitrogen fertilizer industry and in doing so, risk the nation’s food security and in turn U.S. national security.”

Prepared by USDA Chief Economist Joseph Glauber, the analysis finds that between 2012 and 2018, the bill’s provisions would increase farm costs by three-tenths of 1 percent while farm income would decline by nine-tenths of 1 percent. Glauber states that farm production costs would be higher than the medium-term years of 2027 to 2033 and long-term years of 2042 to 2048, but that revenue from agricultural offsets will rise faster than costs from cap-and-trade legislation. The study assumes no technological change and acknowledges that the effects on sectors within agriculture and among regions will vary. The study covered the crop and livestock sectors, but not fruits and vegetables.

Agriculture Secretary Tom Vilsack and EPA Administrator Lisa Jackson testified July 22 before the Senate Agriculture Committee. Vilsack stated that the analysis “demonstrates that the economic opportunities for farmers and ranchers can potentially outpace – perhaps significantly outpace – the costs from climate legislation.” He added that he considered the figures conservative because the study does not include potential income from biomass production for bioenergy or technological change.

Simplot mine decision expected soon; magistrate visits mine site

News, Phosphate

U.S. Magistrate Mikel Williams says he will decide by Aug. 4 whether to impose a permanent injunction on the J.R. Simplot Co.’s expansion of its Smoky Canyon phosphate mine near the Idaho/Wyoming border.

Last fall, Earthjustice sued on behalf of the Greater Yellowstone Coalition, Natural Resources Defense Council, Sierra Club, and Defenders of Wildlife to block the expansion, saying it would create a major environmental disturbance and that inadequate scientific review failed to address impacts. They contend the expansion would contaminate nearby waterways, harm wildlife, and damage roadless areas in the Caribou/Targhee National Forest.

Williams took the unusual step of accompanying representatives of both parties on a six-hour field trip to the mine site on Saturday, July 25, after attorneys presented oral arguments the previous Friday at a long hearing in Pocatello to address the GYC’s motion for summary judgment asking the court to prohibit expansion until the Forest Service, BLM, and Simplot conduct additional studies and cleanup.

“I believe the field trip helped the judge put all of the arguments in perspective. He now knows where all of these physical features of the mine are located and how Simplot has been dealing with the claim of selenium contamination,” said David Maguire, an attorney representing interveners who support the mine’s expansion.

The Smoky Canyon Mine supplies Simplot’s fertilizer plant near Pocatello with 1.5 million annual tons of phosphate rock via a 90-mile slurry line. Simplot officials have said the mine’s phosphate reserves will be exhausted by 2010 if the company is not allowed to expand onto two parcels. Preparatory work has resumed after previous temporary injunctions were lifted or reversed.

At the July 24 hearing, Williams considered a cross motion filed by the BLM and Forest Service for summary judgment to dismiss the GYC lawsuit, arguing the federal agencies and Simplot had complied with the Clean Water Act, National Environmental Policy Act, and the National Forest Management Act. They said there was no basis for GYC to file a petition for permanent injunction.

Simplot also filed a motion for summary judgment, echoing the BLM and USFS arguments. Interveners said a permanent injunction would serve no purpose other than cause loss of Smoky Canyon and Don Plant jobs, impacting more than 500 employees in the region. The interveners include United Steelworkers Local 632, the Idaho Farm Bureau Federation, the cities of Pocatello, Chubbuck, Soda Springs, and Afton, and Bannock, Power, Caribou, and Lincoln counties.

In an affidavit, the interveners disputed the environmentalists’ contention that the Simplot Pocatello plant could be provided phosphate ore from Ashley Creek Properties near Vernal, Utah, if the Smoky Canyon Mine were shut down.

Scott Hobdey, regional labor economist for the Idaho Department of Labor, said in his affidavit that fewer jobs are providing a sufficient income to provide self-sufficiency for families of three or four. In 2006, 39.7 percent of jobs in Idaho provided sufficient income, but in 2008 that slipped to 35.9 percent.

Economic data shows Pocatello’s unemployment rate spiked from 5.3 percent in April to 6.3 percent in May to 8.2 percent in June, the highest rate since 1992, Hobdey noted. He previously said if the Smoky Canyon Mine and Simplot’s Don plant were to close, about 1,800 jobs would be lost directly or indirectly, causing $80.2 million in annual earnings reductions.

In another affidavit, Gynii Gilliam, Bannock Development Corp.’s executive director, said Pocatello has lost about 360 construction jobs, 560 retail jobs, 450 transportation/warehousing jobs, and 320 government administration jobs the past year. “Recruiting new businesses has become quite difficult because of the current financial markets. Retaining businesses continues to be more difficult as the economy shrinks,” she said.

Lebanon Seaboard acquires Novozymes’s turf and landscape business

News

Lebanon Seaboard Corp., Lebanon, Penn., said July 29 that it has acquired the turf and landscape business from Novozymes, a global leader in biotechnology solutions across a wide range of industries. The deal includes the Roots Turf brand of organic-based granular fertilizers, along with other unique nutritional complements.

The Roots Turf brand is an all-in-one nutrient delivery system that feeds the plant while enhancing the biological life of the soil and plant ecosystem. Roots products are used on golf and sports turf, as well as for lawn care, sod, and hydroseeding, to provide consistent color response, improved turf density, and root mass.

The acquisition reinforces LebanonTurf’s commitment to the emerging field of biological plant nutrition, according to Kathy Bishop, CEO and president of LebanonTurf, a division of Lebanon Seaboard. “Biology and microbes are fundamentally changing agronomic science and how nutrition is viewed and applied. This acquisition puts us on the front edge of that change,” Bishop said. The acquisition also complements Lebanon’s December 2008 acquisition of the Emerald Isle line of foliar and granular fertilizer products. The Emerald Isle line provides seaplant extract and other supplements for root growth, stress tolerance, and disease resistance.

“We now can offer customers access to the broadest and most complete offering of nutrition and physiological fitness products on the market today ?Çô from fundamental N-P-K offerings to highly advanced biotechnology-based products,” said Dave Heegard, vice president and general manager of LebanonTurf.

Novozymes said the divestment was part of a focused growth strategy for its microorganisms business. “We want to ensure the continued growth and profitability of our bio-agriculture business based on the development of our core technologies,” said Thomas Videbæk, executive vice president of Novozymes’s BioBusiness.

Terms of the agreement between privately-held Lebanon Seaboard, and Novozymes, a publicly-traded Danish firm, were not disclosed.

DSM to sell urea-licensing business

News, Urea

Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Maire Tecnimont S.p.A., a leading international engineering and construction group headquartered in Italy, have announced that they have reached an agreement for the sale of DSM’s urea-licensing subsidiary Stamicarbon B.V. to Maire Tecnimont for a total consideration of EUR 38 million on a cash and debt-free basis. The intended sale is expected to close by the fourth quarter of 2009, subject to regulatory and other customary approvals and notifications.

Stamicarbon, founded in 1947, is the world market leader in licensing urea technology, with over 250 licensed urea plants located in over eighty different countries and a leading market share in new capacity. Stamicarbon realized net sales of EUR 57 million in 2008 and an operating profit of EUR 25 million. In 2008 Stamicarbon’s operating profit was exceptionally high as a result of a number of large contracts closed during the year. The average operating profit for Stamicarbon has been approximately EUR 10 million per year over the past four years. 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. Its non-urea licensing portfolio has been transferred to a new entity, Knowfort Technologies B.V., and is not part of the intended sale or the 2008 results of Stamicarbon.

“Stamicarbon will operate as a member of the Maire Tecnimont Group, in particular alongside Tecnimont, and will continue to generate licensing revenues and margins as a standalone activity,” said Fabrizio Di Amato, Maire Tecnimont chairman and CEO. “Contemporaneously, we foresee that Stamicarbon will enlarge our technology portfolio and, working with Tecnimont, enhance our EPC business in the fertilizer sector through synergies in the commercial, technology and operation areas by improving process efficiency and competitiveness.”

In September 2007, DSM announced that as a result of the accelerated strategic shift towards Life Sciences and Materials Sciences, a number of businesses that do not fit in with the strategy would be carved out and divested. Urea licensing is one of these businesses. The divestment process for DSM Elastomers, DSM Agro, and DSM Melamine is underway.

NTSB among several agencies probing S.C. NH3 release that killed one, hurt seven

News

The lead investigation agency on an anhydrous ammonia release during an unloading operation July 15 at a chemical terminal (GM July 20, p. 12) that killed one person and sent at least seven others to the hospital in Swansea, S.C., says it will be at least 12 months before the cause can be established.

A spokesman for the National Transportation Safety Board, one of several federal, state, and local entities looking into the accident, which occurred in the morning at the Tanner Industries Inc. plant at Swansea, said investigators will be focusing on, among other things, a damaged hose that released the ammonia during a transfer operation between the truck belonging to another owner and the facility. “We’ll be doing analyses of it, putting it under a microscope to determine how it failed,” NTSB’s Peter Knudson told Green Markets. “We also interviewed two drivers of the tank truck and several employees of the facility itself and looked at training records (along with) specifications of the hose.” Knudson said these investigations typically take 12 to 18 months to produce accurate results. He added, “Certainly the hose ruptured. We do know that. (But) we’re going to want to understand the condition of the hose, how old it was, those kinds of things.” State environmental officials have said that a fist-sized hole was discovered in the hose.

Tanner Industries said in a brief statement that the facility is back to normal operations. “The National Transportation Safety Board has informed us that they have the lead in reviewing the incident and we are fully cooperating and working with NTSB and other federal, state and local agencies,” stated David Binder, director of quality, safety and regulatory affairs. Binder declined to answer any questions.

The U.S. Chemical Safety Board also sent a team to the site, where a woman caught in her stalled car was killed when she attempted to escape the ammonia cloud. Other state and local authorities also were conducting separate investigations.

The sheriff’s office said the body of the 38-year-old victim was found while a search was being conducted for injured persons and animals in the area near the Tanner plant. Detectives said the woman, identified as a local resident, apparently attempted to turn her car around and head out of the white, dense plume when the engine stalled. She is believed to have parked the car on the side of the road, got out to leave on her own, and quickly suffered ammonia poisoning.

Lexington County Public Safety Director Bruce Rucker said Lexington County Emergency Medical Services personnel treated 15 individuals in all, seven of whom were transported by ambulance to Lexington Medical Center with respiratory problems that did not appear to be life-threatening. Rucker said five of the seven were transported from the chemical plant and two from a home near the chemical plant. Public safety personnel went door-to-door to about 45 homes in the one-square-mile area near the chemical plant to ensure that no additional persons and no animals were injured as a result of the ammonia leak.

An aerial search showed that a large plume of ammonia traveled from the chemical plant across a highway to a largely wooded area where, before dissipating, it caused vegetation and leaves on trees to turn black in a large swath of the one-square-mile area that was searched.

Tanner Industries, headquartered in Southhampton, Penn., distributes anhydrous ammonia and ammonium hydroxide by tank truck, railcar, drum, and cylinder to U.S. customers from approximately 20 facilities. It also provides custom blending, contract packaging, and safety training services. Tanner safety courses are designed to teach industry, first responders, and HazMat units about ammonia, its properties, and how to respond to an incident.

NTSB identified the tanker truck as being owned by a company called Werner in Tampa, Fla. However, the company could not be reached for comment. Another Werner, Werner Enterprises in Omaha, said it was not their truck and that they do not haul anhydrous ammonia.

Ammonium nitrate fire sparks mass evacuation

Ammonium Nitrate, News Briefs, Texas

Bryan, Texas-An ammonium nitrate fire at an El Dorado Chemical Co., blending facility in Bryan, Texas, on Thursday, July 30, caused local authorities to call for the evacuation of the entire town of 70,000, which is about 100 miles northwest of Houston. Nearby Texas A&M University at College Station was also closed. By 9 p.m. the situation had abated and only around 1,000 people were under mandatory evacuation, according to the local media. Around midday Thursday, workers reportedly welding an empty ammonium nitrate bin sparked the fire. The workers escaped and there were no serious injuries, though several people did go to local hospitals complaining of breathing problems and eye irritation. Firemen responded quickly, but could not use water fearing it would make matters worse. As a result, the fire was allowed to burn. No explosions were reported. El Dorado is a unit of LSB Industries Inc., Oklahoma City. The company had not responded to inquiries at press time.

Worker is found dead at sulfur facility

News Briefs, Sulfur, Texas

Beaumont, Texas-Local authorities, along with OSHA inspectors, are continuing their investigation into the death of a Martin Resource Management Corp. worker whose body was found around 5:30 a.m. July 23 atop a railcar tanker loaded with sulfur. He was identified as 50-year Michael Ailes, an operator for Martin Resource at Beaumont, which provides services and operates the storage and distribution terminal. Alex Stelly, a Beaumont private attorney and Martin spokesman, told Green Markets that Ailes apparently was participating in an unloading operation and that it was not known if his death was connected to the sulfur. His body was discovered by fellow workers. At this point, the fatality is being described by the Beaumont fire department as an industrial accident pending results from an autopsy. Beaumont is one of two Martin Midstream Partners LP plants that process and distribute sulfur predominately produced by oil refineries primarily located in the Gulf Coast region. The other facility is at Port of Stockton, Calif. MMLP also owns or operates six sulfur-based fertilizer plants in Illinois, Texas, and Utah. In October 2007, MMLP completed the construction of a sulfuric acid production plant in Plainview, Tex., which processes molten sulfur into sulfuric acid.