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Police investigate fertilizer bomb incidents

Pasco, Wash.-The head of the Tri-Cities bomb squad declined to confirm that a man now in police custody threatened to use a fertilizer bomb May 21 on a group of people in a home here. The suspect has been charged with felony harassment and is in Franklin County jail on $50,000 bail. Press reports say the suspect, who is apparently involved in a domestic dispute, entered the home, where there were at least seven occupants, and after setting down the bomb warned if anyone touched it they would blow up. Bomb squad members responding for Pasco police confirmed that the device was filled with a chemical compound intended to produce an explosion. The makeup later was tentatively identified as fertilizer placed inside a fuel oil canister with a container of unknown liquid; rifle bullets, nails, and tacks were attached to the outside. Another domestic dispute May 30 in Covington in the Seattle area ended with a sheriff’s deputy shooting and killing a man who threatened to set off a 250-pound fertilizer bomb. After the standoff authorities found a semi-automatic pistol with ammunition and a scoped rifle, but no explosives.

Terra Enviro signs deal with Daimler Trucks

Sioux City-Terra Environmental Technologies Inc. (TET), a unit of Terra Industries Inc., has signed a multi-year agreement with Daimler Trucks North America LLC (DTNA) to supply all its Selective Catalytic Reduction (SCR)-equipped vehicles with an initial fill of TerraCair Ultrapure® Diesel Exhaust Fluid, and through its distribution partners, ultimately supply its dealers and distributors with TerraCair DEF in a variety of package sizes and dispensing configurations. Under terms of the agreement, DTNA will offer TerraCair DEF, an ultrapure solution certified by the American Petroleum Institute, for SCR in their diesel-powered vehicles to achieve the near-zero emissions of nitrogen oxides required by EPA regulations set to take effect Jan. 1, 2010. TET says it has the flexibility to ensure quality and supply by sourcing TerraCair DEF from a number of Terra’s six North American nitrogen products manufacturing facilities.

TFI doubts Chesapeake soil test results

Washington, D.C.-The Fertilizer Institute strongly doubts any danger to residents from fertilizer-soaked soils, as reported by a Chesapeake, Va., TV station, from last November’s release of 2 million gallons of liquid nitrogen from a collapsed storage tank. The station claimed even though an intensive cleanup effort has been underway a lab found soil from one yard in the South Hill neighborhood contained 30 percent levels of what it mistakenly called ammonium nitrate, which it said was mildly toxic. Those results, TFI Vice President of Scientific Programs Bill Herz told Green Markets, raise some skepticism. “It seems hard to understand because when you get up to such levels there may be some analytical interferences,” he suggested, noting that if the station would go back for another analysis that figure would come down. But the good news, according to Herz, is that through findings from TFI’s product testing program and other incidents that have occurred with urea ammonium nitrate being released, the toxicity is extremely low. He added, “Actually there is more to worry about ?Ǫ with the worst scenario being digging up the soil and replacing it. Luckily, this is a very benign compound which may require some soil cleanup. In fact, too much nitrogen would prevent growing anything. But from a human health standpoint, it’s not a huge concern.”

CSB cites 16 fertilizer tank failures since 1995

Washington, D.C.-Faulty or corroded wells have been identified in nearly every fertilizer tank failure since 1995, according to the U.S. Chemical Safety Board (CSB). The CSB issued an accounting as part of its final report and recommendations on the Nov. 12, 2008, catastrophic collapse at Chesapeake, Va., which released 2 million gallons of liquid urea ammonia nitrate. CSB’s recap, which includes a brief description of each incident, along with number of tanks involved, cause if determined, the consequence to communities and waterways, and injuries or deaths, is as follows:

  • Poneto, Ind., 1995 – a 500,000-gallon tank rupture
  • Pacific Junction, Iowa, March 1997 – a 1-million gallon tank rupture and cascading failure of two other tanks; release to Missouri River was prevented by a temporary dike
  • Dixon, Calif., February 1999 – a 250,000-gallon release by tank rupture during transfer out of leaking tank; one killed and two hospitalized
  • Maumee, Ohio, July 1999 – failure of two fertilizer storage tanks
  • Webberville, Mich., July 1999 – a 1-million gallon tank rupture at seams; two hospitalized
  • Cincinnati, Ohio, Jan. 8, 2000 – 379,000 gallons released into Ohio River in million-gallon tank rupture; containing walls and two vehicles destroyed
  • Morral, Ohio, Jan. 26, 2000 – a 1.5-million gallon tank rupture
  • Morral, Ohio, March 3 and 8, 2000 – two separate tank ruptures days apart; community and school evacuation
  • Wilmington, N.C., Nov. 7, 2008 – fertilizer tank failure at seam between shell and bottom caused release to waterway
  • Ashkym, Ill., Dec. 16, 2008 – 500,000-gallon release due to storage tank catastrophic failure and cascading failure of two smaller tanks

Investigation is still underway in this latest incident, according to the Illinois Fertilizer and Chemical Assn. (IFCA). IFCA told Green Markets that containment and load-out containment requirements by the Illinois Dept. of Agriculture didn’t come into play since the tank incurred a catastrophic failure and blew apart. The pressure of the release threw the fertilizer across and over the containment wall. Investigators still trying to determine the cause of the failure indicated the tank had passed previous inspection.

GSLM re-files potash expansion application

Ogden, Utah-Great Salt Lake Minerals Corp. (GSLM) is re-filing its permit application with the Army Corps of Engineers to include leases recently acquired in an exchange with the state to increase potash production by expanding solar evaporation ponds on the lake. GSLM officials said they are withdrawing their 2007 application to develop 33,000 acres and re-filing on 31,000 acres in the earlier request, and also including the 38,000 acres on the northwest arm gained in the exchange with the state. In that exchange in January, the company gave up undeveloped leases it has held since 1967 on approximately 30,000 acres that are considered of greater value to wildlife and the lake’s ecology. GSLM spokesman Dave Hyams explained, “Rather than make that a separate request the new application bundles both together to allow for a plan for long-range growth over several decades.” He added that the pond expansion would occur as demands for potash present themselves worldwide. Hyams doesn’t expect the change to cause a significant delay in the Corps of Engineers review process, which includes an environmental impact study, because much of what’s already been accomplished can be carried over. “It doesn’t delay it so much because all the work done on the original request will be grandfathered into the new application,” he noted. While Friends of the Great Salt Lake and other environmental groups have joined in opposition to the expansion, GSLM points out that all of the areas involved in the permit application are identified as suitable for mineral leasing in the Great Salt Lake Comprehensive Management Plan Resource Document. The management plan, sponsored jointly by the Utah Department of Natural Resources and the Utah Division of Forestry, Fire and State Lands, was developed to provide a coordinated natural resources management plan for the lands and resources of the Great Salt Lake. When the new ponds become productive, the state will receive millions of dollars each year in increased royalty payments. Great Salt Lake Minerals currently has approximately 43,000 acres of solar evaporation ponds and pays more in state royalties than any other company on the Great Salt Lake.

Allana Resources in discussions in Ethiopia

Toronto-Allana Resources Inc. says it has recently finished another round of high-level meetings with government officials in Ethiopia. Ethiopia is embarking on a massive infrastructure initiative, including new rail lines, and Allana senior management conducted several meetings with key ministers regarding the possibility of building a spur from the main rail corridors to the potash project in the Danakil Depression. In conjunction with these activities, Allana’s exploration team is actively planning a 2,000 meter drill program comprised of confirmation drill holes and in-fill holes to increase the confidence level of the inferred mineral resource of 105,200,000 mt, with a composite grade of 20.8 percent KCl.

OCI announces first NH3 comment

Cairo-Orascom Construction Industries Inc. (OCI) said June 1 that Egypt Basic Industries Corp. (EBIC) has successfully completed its first export shipment of anhydrous ammonia, totaling 23,400 mt, using its export facilities in Sokhna Port on the Egyptian Red Sea coast. Exports take place through a dedicated jetty operated by EBIC. EBIC owns and operates two port storage/export tanks with a total capacity of 80,000 mt, and a loading arm with a capacity of 1,200 mt per hour. EBIC’s name plate capacity is 2,000 mt/d, or 700,000 mt/y.

Yara issues U.S. dollar bonds

Oslo-Yara International ASA said June 4 that it has decided to launch a new U.S. dollar bond offering. It is Yara’s second ten-year U.S. dollar bond offering pursuant to rule 144A/Regulation S, subject to market conditions. Yara issued its inaugural U.S. dollar bond of 500 million U.S. dollars in December 2004, with maturity in 2014. Yara intends to use the net proceeds of the new issue to repay short term financing.

Bunge announces new credit facilities

White Plains, N.Y.-Bunge Ltd. said June 3 that it has successfully entered into two unsecured, committed revolving credit facilities with a syndicate of banks for an aggregate principal amount of approximately $1.65 billion. The credit facilities consist of a $1 billion three-year facility and a $645 million 364-day facility. The new facilities replace two existing revolving credit agreements with an aggregate borrowing capacity of $1.7 billion that were scheduled to mature in 2009.

Compass proposes $100 M private placement

Overland Park, Kan.-Compass Minerals International Inc. said May 21 that it is proposing to offer, in a private placement, $100.0 million in aggregate principal amount of senior notes due 2019. The proceeds will be used to fund the concurrent tender offer to purchase any or all Compass outstanding $89.6 million in aggregate principal amount 12 percent senior subordinated discount notes due 2013. The senior notes being offered will not be registered under the Securities Act of 1933, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. The senior notes are being offered only to qualified institutional buyers under Rule 144A and outside the U.S. in compliance with Regulation S under the Securities Act.