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Court of appeals halts Simplot mine expansion

The Ninth U.S. Circuit Court of Appeals has temporarily halted the expansion of the J.R. Simplot Co.’s Smoky Canyon phosphate mine in Southeast Idaho that environmentalists say would contaminate nearby waterways, harm wildlife, and damage roadless areas in the Caribou/Targhee National Forest near the Wyoming border.

In a ruling issued Friday, April 10, a three-judge panel ruled U.S. District Judge Mikel Williams failed to consider whether logging and topsoil removal would cause irreparable harm to the Sage Creek area when he declined in November to issue a preliminary injunction blocking the expansion. It remanded the case back to Williams. The mine provides 1.5 million annual tons of phosphate used in the production of liquid and dry fertilizers at Simplot’s Don Plant near Pocatello.

“We are aware of the court decision and are complying with the decision. At this time, no further comments,” said Susan Richardson, Simplot corporate communications director. U.S. Department of Justice spokesman Andrew Ames said his department is also reviewing the ruling.

In the past, Simplot officials have said the Smoky Canyon Mine’s phosphate reserves would be exhausted by 2010 if the company was not allowed to expand onto two forest parcels. Last June, the U.S. Forest Service and Bureau of Land Management approved the expansion, which company officials said would keep the Pocatello plant running for another 20 years.

Simplot attorney Albert Barker has warned if the expansion were stopped, mining layoffs and the eventual closure of the Pocatello plant could result. About 375 are employed at the plant and another 210 at the mine, accounting for a payroll that exceeds $52 million. Another estimated 1,450 people are indirectly employed by the operations.

In December, Simplot began its infrastructure work, which includes clearing trees, paving roads, and installing utilities. The company estimates it would take a year to complete those projects and make mining possible at the expansion parcels. Simplot indicated it would build a 100-foot-wide reinforced road to haul mining and timber equipment to the new mine site. Trees also would be cut and topsoil removed from areas to be mined.

Last fall, Earthjustice sued on behalf of the Greater Yellowstone Coalition, Natural Resources Defense Council, Sierra Club, and Defenders of Wildlife, contending that expanding the Smoky Canyon Mine would create a major environmental disturbance, and that inadequate scientific review failed to address impacts.

The appellate panel agreed there were serious questions about whether the U.S. Forest Service and BLM had violated the National Environmental Policy Act, the Clean Water Act,and the National Forest Management Act in approving the proposed expansion. The judges, however, said the lower court did not abuse its discretion when it found the environmental groups were unlikely to succeed on the merits of their case.

Pocatello attorney David Maguire, who represents nine parties that say they would be adversely affected by a disruption in Smoky Canyon operations, said he and Simplot would jointly file a petition on Monday, April 20, urging Williams to expedite addressing the Ninth Circuit’s concerns.

Maguire said he’s disappointed by the federal appeals court’s ruling, but he remains optimistic the issue will be settled in court and mining preparations will resume by this summer. He said Smoky Canyon has an $80 million regional economic impact and helps provide farmers with affordable, quality fertilizer.

Pocatello Mayor Roger Chase, who worked at Simplot’s Pocatello plant for many years, called the appellate court’s ruling a “big disappointment” and said it could have a “devastating impact” on Southeast Idaho’s economy.

Food safety bills stir TFI concern

Washington-Several proposals for new legislation to correct deficiencies in the food safety system that showed up during the pistachio and peanut recalls have caught the attention of the fertilizer industry. One of the bills is Rep. Rosa DeLauro’s, D-Conn., Food Safety Modernization Act (HR875), which would create regulations to “include, with respect to growing, harvesting, sorting, and storage operations, minimum standards related to fertilizer use, nutrients, hygiene, packaging, temperature controls, animal encroachment, and water.” The Fertilizer Institute has met with Rep. DeLauro’s office on this specific language, according to TFI spokeswoman Kathy Mathers, and expects this language will be eliminated and not be included in final legislation. “The vehicle for the food safety legislation will be a bill sponsored by Rep. John Dingell, D-Mich.,” Mathers explained. “This section from DeLauro’s bill will not be included in the Dingell bill (HR 759). However, 759 does refer to minimum standards for nutrients, although ‘fertilizer’ is not specifically mentioned. TFI is working to secure a meeting with Dingell’s staff to discuss this issue further.” A third bill not mentioned by TFI is the Safe FEAST (Food, Enforcement, Standards and Targeting) Act sponsored by Rep. Jim Costa, D-Calif., which likely will be incorporated into the Dingell bill. DeLauro’s already has stirred up a controversy with a group claiming it would “result in the death of organic farming or mandate the use of chemicals or certain types of seeds on organic farms.” DeLauro has responded that the bill contains “no language that would stop or interfere with organic farming which is under the jurisdiction of USDA’s National Organic Program.”

TFI disturbed by EPA publication

Washington-Larry Herz, The Fertilizer Institute’s Vice President, Scientific Programs, has sent a letter to the U.S. Environmental Protection Agency expressing concerns that TFI comments on the Final Greenhouse Gas Inventory (2007) were not addressed in the final publication. “We at TFI are very concerned in that it appears that none of our comments were addressed in the Final Greenhouse Gas Inventory (2007) and that EPA only had six days from the close of the public comment period to final publication to review and respond to stakeholder and public comments and complete the document in final publication form,” said Herz. “That does not appear to be nearly enough time to adequately address stakeholder comments. A large concern for us still outstanding is the assignment of industrial urea emissions to the domestic fertilizer industry (recall that 60 percent of all nitrogen is imported from other countries) and that the percentage you are using (43 percent approximately) for industrial urea seems to be too high by 30 percent (TFI estimates that 13 percent of urea goes to industrial uses). Finally, EPA has yet to explain the change in calculation for these and other anomalies regarding urea.” Herz requested a meeting with the EPA team to discuss these issues and to better understand EPA’s path forward in regard to the handling of stakeholder comments.

Cargill 3Q earnings off 68 percent

Minneapolis-Cargill reported net earnings of $326 million in the 2009 third quarter ended Feb. 28, down 68 percent from a record $1.03 billion in the same period a year ago. In the first nine months, the company earned $3.01 billion, up 4 percent from $2.9 billion a year ago. Excluding earnings from its majority investment in The Mosaic Co., Cargill’s results were below the year-ago levels in both the third quarter and the nine-month period. “Cargill’s earnings turned down in the third quarter, as the troubles in the global economy and financial system arrived at our company’s doorstep,” said Greg Page, Cargill chairman and CEO. “When conditions reversed course in mid-2008, we began preparing for tougher times ahead. We cut expenses, decreased debt and curtailed nonbase capital spending, but we kept the focus on our customers who need a strong, reliable partner to help them provide more value to the customers they serve.” The decrease in Cargill’s third-quarter earnings touched all five of the company’s business segments. Although performance within the segments was mixed, many businesses experienced weaker demand and lower sales volumes, as well as fewer trading opportunities as markets fluctuated within narrower ranges. Page said Cargill is encouraged by the depth of effort occurring around the world to stabilize the financial system and revive economic growth. “When conditions come into place for a recovery on the broader economic front, with our fundamentals in place, we’ll be ready to build on those trends.”

Gowan announces new fertilizer terminal in Mexico

Yuma, Ariz.-The Gowan Group has announced that affiliate Cortez Transfert (CT), will begin construction of a 40,000 mt dry and 20,000 mt liquid fertilizer terminal in Sonora, Mexico, this month. The terminal, located at the deepwater Port of Guaymas, will be ready to receive UAN solution during the third quarter of 2009, while the dry terminal construction will be completed the second half of 2010. Gowan says the liquid terminal will be the first in Mexico. CT will be the owner and operator of the terminal, which will be operated as a public facility. J-co Fertilizer is the wholesale marketing arm. Both companies are new and are affiliates of Gowan. In addition to the terminal storage capacity, CT has dry and liquid storage in the Mexicali Valley to allow for quick deliveries to Northwest Sonora, Baja California, Arizona, and Southern California. CT is still studying the possibility of adding more regional storage in northwestern Mexico and the southwestern U.S. “The ideal location of the terminal, strategically placed warehouses, and ability to provide customers with timely deliveries of both liquid and dry product will allow CT to quickly become a valuable partner to importers and retailers in northwest Mexico and southwest U.S.,” said Antonino Espinoza, general manager of the wholesale fertilizer group. Gowan is a family-owned group of companies committed to the development and stability of plant protection. The Group is comprised of over twenty entities, with sales in nearly seventy countries worldwide. For more information, see www.gowanco.com.

Wisconsin governor signs phos ban

Madison-Gov. Jim Doyle signed into law April 14 a bill that prohibits the statewide use of phosphates in lawn fertilizers. However, the bill allows use on first-year lawns and in areas with phosphate-poor soils. The bill takes effect in the spring of 2010. Farm fields will be exempt from the ban. The ban also does not include the use of animal manure, which can be high in phosphate, and biosolids produced from sewage sludge. Phosphate fertilizer will continue to be available from stores, but retailers will not be allowed to display the product and must post signs to let customers know it’s available.

Biosolids foes gain legislative support

Montgomery, Ala.-Synagro Technologies is facing a possible revolt of sorts in three counties over bringing in biosolids from New York and other states for use as fertilizer on area farms. Opponents are taking advantage of a unique law that allows local municipalities to gain jurisdiction in these matters through constitutional amendment and referendum. “The principal concern is that there are some biosolids being brought in from out of state and being land-applied,” Joseph Page, executive vice president and general counsel for Synagro, which has dealt successfully with similar concerns in other parts of the country, told Green Markets. “Part of our operation involves bringing in treated biosolids from New York. But there are also other land-appliers bringing in from Georgia and other states.” The state senate already has passed a local Franklin County amendment that would allow voters to decide whether to prohibit biosolids as fertilizer, and another proposed amendment is in the works for Colbert County. A third amendment is on the House calendar for Lawrence County. One of the sponsors in the Senate complained to the local press about sewage from out of state being applied to fields in Franklin County, likely because it’s cheaper than commercial fertilizer. “Residents don’t want New York waste dumped on fields in their county,” he declared. “I’ve been down there to where they do this. It smells.” Page said his company has been responding on several fronts. “We’ve engaged actively with local, county and state and also legislative officials trying to get good information to them about the biosolids industry and particularly the land application business in Alabama,” he reported. He said in reality the state does not have specific regulations, but does have oversight through the Alabama Dept. of Environmental Management, with which the company has good interaction. “It’s my understanding that some of the farmers also are sending letters and are engaging in the legislative process with other communication with their representatives and county in support of the program,” he added.

Fertilizer mixes with pool cleaner in explosion

Fayetteville, N.C.-Fayetteville fire department officials believe the accidental mixing of a high-nitrogen liquid fertilizer with a chlorine pool cleaner caused an explosion at a residence in a two-car attached garage late on April 8. The explosion blew off the garage doors but left the structure intact. There were no cars inside. “There wasn’t any other damage except what a good cleaning and paint job would fix up,” Dennis Jones, battalion commander, told Green Markets. Jones said the chemicals, which he described as a dry granular pool shock in one-pound packs used to eliminate algae, a liquid rose fertilizer, and a carburetor cleaner, had probably been stored for years with bowling balls and other items on plastic shelving. The shelving was melted in fire. He said it was difficult to determine from the burned pile which ignited first, but indications were some of the oil leaked into the pool cleaner. The chemicals were in packages and some of the half-gallon of fertilizer had spilled on the floor. Jones said there were no signs the contents had been tampered with and there was no propane tank or other combustibles in the area that could have contributed to the explosion. The residents were inside the house when they heard an explosion at about 10 p.m. and ran outside, where the garage doors were spread out in the driveway. “It was that loud and it shook the house,” he said. Someone else grabbed a water hose and put out a small fire that was burning inside the garage. Jones estimated damage at $3,000. He suggested that that such items should be stored in proper containers in an outside storage building.

Yara announces cancellation, new buy-back program

Oslo-Yara International ASA said that the board of directors at the annual meeting May 7 plans to cancel already bought-back shares and authorize a new share buy-back program. Yara has bought back 1.75 million shares as part of the existing share buy-back program. The country of Norway has committed itself to participate on a pro-rata basis so that Norway’s ownership remains constant at 36.21 percent. This will be implemented by the redemption of approximately 1.0 million shares owned by Norway. The price for the approximately 1.0 million shares will be equal to the average price paid for the 1.75 million shares bought back in the market with the addition of interest. After the cancellation/redemption of in total approximately 2.75 million shares, total issued shares in Yara will amount to approximately 288.8 million shares. The board proposes that a new program replace the existing buy-back program with up to 5 percent of Yara shares within the next 12 months. Shares may be purchased within a price range of NOK 10 to NOK 1,000.