Tampa-Florida’s Second District Court of Appeals at Tampa upheld the Florida Department of Environmental Protection’s approval of Mosaic’s permits to mine its 4,197-acre Ona-Ft. Green property in Hardee by upholding lower court decisions. The decision ended eight years of state permit proceedings, including multiple judicial and public hearings. “We’re obviously pleased with this ruling, as it validates the solid and comprehensive record of facts and science that have repeatedly verified not only the quality of the Ona permit application, but also Mosaic’s commitment to responsible stewardship of Florida’s environment,” said Richard Mack, Mosaic’s executive vice president and general counsel. “Our position has been consistently upheld at every step in the permitting process, despite many millions of taxpayer dollars spent on unwarranted litigation.” The Ona-Ft. Green case is one of four permit proceedings in recent years in which administrative law judges have ruled the mining will not adversely impact water quantity or quality in the Peace River or Charlotte Harbor. Most recently, an Administrative Law Judge recommended approval of Mosaic’s South Ft. Meade Mine extension in Hardee County, finding against Lee and Sarasota counties.
All posts by traceybg@gmail.com
Mosaic and county face suit over mine approval
Manatee County, Fla.-After the Manatee County, Fla., County Commission reversed itself and approved a mining permit for the Mosaic Co. to avoid a lawsuit from the company, citizens and environmentalists filed suits against both the county and the company last week, according to local news reports. Mosaic had filed a $600 million-plus taking suit against the county for its initial rejection. However, opponents, which included the Sierra Club, ManaSota-88, and three nearby residents of the 2,000-plus acre Altman Tract, charged the county violated its own procedures because a vote can be reconsidered only if sought by one of those who initially voted in the majority within 30 days of the original vote. They also alleged the company and county had used “illegal contract zoning” by offering to build a fire station and other considerations for approval. The tract will be added to Mosaic’s Four Corners Mine, but mining cannot begin until it receives final approval from the Army Corps of Engineers.
CHS distributes record returns to owners
St. Paul, Minn.-CHS Inc. owners in 48 states are sharing in an unprecedented up-to-$343 million disbursement as a result of the company’s record fiscal 2008 earnings. It marks the fifth consecutive record return to owners by CHS, and is the largest ever made by a U.S. cooperative. A $231 million distribution currently underway consists of cash patronage, equity redemption, and CHS preferred stock issued as equity redemption. Distributions of equity and preferred stock dividends later this year are expected to bring the fiscal 2009 total to $343 million. “Once again, CHS has demonstrated one of the most important ways we can deliver on our mission of adding value for all of our stakeholders,” said Michael Toelle, CHS board chairman. “The strong performance the company achieved during fiscal 2008 has enabled CHS to continue to grow, to be financially sound and to provide a return on our owners’ investment in diverse businesses ranging from energy to grain marketing to food processing.” CHS net income for its fiscal year ending Aug. 31, 2008, was $803 million. During 2009, distributions are being made to about 1,200 member companies and more than 35,000 individuals. Patronage is based on business done with CHS during fiscal 2008, while equity redemptions and preferred stock distributions represent retirement of ownership in CHS earned in past years.
Spectrum files for Chapter 11; posts 1Q loss of $112.7
Atlanta-Spectrum Brands, which exited its growing media business in January (GM Nov. 24, p. 1), filed for Chapter 11 bankruptcy earlier this month in U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division. Spectrum’s non-U.S. operations, which are legally separate, are not part of the proceedings. Spectrum failed to make a $25.8 million interest payment on its 7-3/8 percent senior note Feb. 2, triggering a default. However, Spectrum reports that it has reached agreements with noteholders, representing about 70 percent of the face value of its outstanding bonds, to pursue a refinancing that could reduce the company’s outstanding debt and put the company on a stronger financial footing. Spectrum said it could reduce the amount of debt by $840 million (one-third the company total) and eliminate about $95 million in annual cash interest payments for at least each of the next two years, freeing up additional cash for reinvesting in its three business segments ?Çô Home and Garden, Global Batteries and Personal Care, and Global Pet Supplies. Spectrum reports total debt at $2.6 billion. Spectrum reported a net loss of $112.7 million ($2.19 per diluted share) on sales of $564.2 million for the first quarter ending Dec. 28, 2008, versus a year-ago loss of $43.4 million ($.85 per share) on sales of $604.7 million. In the meantime, Spectrum has lost its place on the New York Stock Exchange and now trades with the symbol SPCB on the OTC market and on the Pink Sheet Electronic Quotation Service.
Business as usual despite loader fire
Victor, Iowa-A fire Feb. 15 that destroyed a front loader and slightly damaged a truck parked next to it has had no impact on the fertilizer and chemical business at Rohrer Brothers Inc., according to Manager Bill Shultz. Shultz told Green Markets that one of his employees, who also happens to be the town fire marshal, discovered the fire around 7 a.m. Sunday in the workshop and office area where the two vehicles were parked. “The fire had pretty well destroyed the loader and melted electrical wires in the ceiling,” he said. Only the paint was burned on the dump truck. Damage was estimated at $50,000. He said the loader had been used to move snow on Saturday, and that an electrical short was found to be the cause. “Other than that we’ve had smoke damage around the building, and we’ve got ServiceMaster in here cleaning as we speak,” Shultz reported. “It’s business as usual with no impact at all.” Victor is 35 miles west of Iowa City.
Simplot delivery backs up traffic
Rock Springs, Wyo.-An oversized load en route from Idaho to the J.R. Simplot Co. phosphate fertilizer plant near Rock Springs, Wyo., caused a lot of confusion and led to traffic getting routed through Green River for more than two hours late Friday, Feb. 13. Wyoming Highway Patrol Lt. Scott Keane said the flat bed truck, owned and operated by Energy Transportation of Casper, was hauling a large pressure tank 23 feet tall and more than 20 feet wide. The truck could not get under an overpass on Interstate 80 at LaBarge Road and had to stop. I-80 was closed for two miles as nearby mines were changing shifts. All eastbound traffic was diverted into Green River on the Jamestown Road and then back onto I-80. Even if it had been able to clear the overpass, the tank could not have gone through tunnels or under other overpasses between Green River and Rock Springs, Keane said. After traffic was rerouted, the driver of the oversized load had to back up and exit Interstate 80. “Once we got the truck off the highway, we left it to the engineers to figure out how to get the tank to the plant,” Keane said. After the truck exited the interstate it took a circuitous route to the Simplot plant, according to a company source. The evaporation unit finally arrived there on Monday afternoon, Feb. 16. Simplot said the company has another one ordered, but it is not yet built.
Fertilizer surcharge to fund bay cleanup
Annapolis, Md.-Legislative approval is expected for applying a surcharge of $2 per ton for specialty fertilizer distributed in the state to be allocated to the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund, according to the Maryland Department of Agriculture. MDA expects the bill to pass; however, the General Assembly does not end its session until the end of April. The target date for implementation is July 1, making Maryland the third state to adopt measures to reduce the impact of fertilizers on water quality. Minnesota prohibits the use of phosphorous lawn fertilizers except on newly established turf or where the need is shown in soil testing. Effective July 1, Florida will limit fertilizer products labeled for specified uses of “low phosphate” or “no phosphate” fertilizers, and will require labels pertaining to application rates. A 2007 report by the Minnesota Dept. of Agriculture estimated that in 2006 the use of lawn fertilizers containing phosphorous had decreased by 48 percent since the law took effect. The Maryland legislation (House Bill 136, sponsored by Delegate Joseline Pena-Melnyk) resulted from a 2006 memorandum of understanding signed by the Chesapeake Executive Council with members of the lawn care product manufacturing industry. The memorandum includes a commitment to achieve a 50 percent reduction from 2006 levels of phosphorous applied from lawn care products in the Chesapeake Bay. The memorandum extends beyond Maryland since governors of Pennsylvania and Virginia, the mayor of the District of Columbia, the EPA administrator, the head of the Chesapeake Bay Commission, and representatives from Delaware and West Virginia are council members. DuPont explained that specialty fertilizer is defined in Maryland law as “commercial fertilizer distributed primarily for nonfarm use such as home gardens, lawns, shrubbery, flowers, golf courses, municipal parks, cemeteries, greenhouses, and nurseries, and may include commercial fertilizers used for any research or experimental purposes.” She said some of the Chesapeake 2009 and 2010 trust funds could be used for cover crops that have been demonstrated as effective in reducing fertilizer runoff. According to the Maryland Farm Bureau, nearly 500,000 acres of farmland were enrolled for 2008 planting with environmentally protective crops such as wheat, barley, oats, and rye after corn and soybean crops are harvested. To qualify, farmers must plant by early November to make sure the plants are growing and using any excess nutrients left in the soil after the fall crop is harvested. DuPont noted that there are other uses for the trust fund, and an awarding process for 2010 is just beginning.
Ongoing drought compounds water woes in CA
Sacramento-California sources said much more moisture is needed to pull the state out of an ongoing drought, and winter moisture so far is well below normal. Recent surveys showed the statewide snowpack at just 61 percent of average, with snow levels in the Northern Sierra, where some of the state’s most important reservoirs are located, standing at only 49 percent of average. In January Sacramento saw just 1.5 inches of rain, compared with an historical average of 4.2 inches, according to the National Weather Service. Redding registered only 0.93 of an inch compared with the January average of 6.5 inches. Sacramento has never ordered water rationing in its 160-year history, but the Sacramento Bee recently reported that local water districts will soon announce Stage 2 and 3 conservation measures, and the city council on Feb. 24 will consider a water rationing mandate for the city. As far as agriculture is concerned, the water woes will likely put tens of thousands of acres out of production this year if February and March remain dry. The San Joaquin Valley’s Westlands Water District has warned customers they may not get any water this year, describing the situation as “very grim for all farmers.” A district spokesperson was quoted in the press as saying “there simply will be drastic fallowing and, in all likelihood, significant impacts that result in some businesses not making it through.” Sources told Green Markets that initial reports show more than 200,000 acres of rice may not be planted in the state, and cotton acreage in the southern San Joaquin Valley could fall to under 100,000 acres in 2009. “Right now we’re in a wait-and-see attitude,” said one source. Added another, “It’s pretty dire right now. The way it stands, there’ll be thousands of acres that won’t be planted.”
Enviros out to derail GSLM expansion
Salt Lake City-Environmentalists are misguided by appealing to the Utah Supreme Court in their attempts to derail Great Salt Lake Mineral’s plan to expand its potash recovery operations on the Great Salt Lake, according to a GSLM spokesman. More than a dozen activist groups maintained in their suit against the state early this month in the high court that they should be entitled to a formal hearing on the expansion and other specific projects even though they have already submitted written comments on the leases that state officials approved in July 2007. One of the petitioners, Friends of the Great Salt Lake, which advocates for protecting the lake’s natural resources, filed three separate petitions challenging the decision and claiming that it was entitled to an administrative hearing on possible adverse effects from the leases that were not considered. Dave Hyams, spokesman for the subsidiary of Overland Park, Kan.-based Compass Minerals, said GSLM, which is participating as an interested party, questions the merits of the suit since these interests are defined in the Great Salt Lake comprehensive management plan adopted by the state in 2000. “The state after a long process determined the different ways to balance the various needs, which include wildlife, industry, recreation, and population growth,” Hyams explained. “Having adopted that plan in our view defines meeting the public interest more than if every lease were subject to a public hearing. In fact, these areas are defined under the plan as suitable for mineral leasing.” He also said GSLM agrees with Assistant Utah Atty. Gen. Brent Burnett, who argued that the case should be heard in district court rather than “leap-frogging” to the supreme court.
SSC, SeaGate expand sulfur handling
Savannah-Southern States Chemical Inc. and its sister company, SeaGate Handling Inc., have announced plans to expand the sulfur handling systems at its Savannah, Ga., terminal. “This project is a natural progression for SSC as we currently operate a sulfur import terminal, sulfuric acid terminal, and sulfuric acid plant on our Savannah River based site” says Key Compton, SSC president. SeaGate will manage and operate the project, which will include sulfur prill storage space, an additional molten sulfur tank, and a sulfur forming station. Kevin Glover, SeaGate’s president, expects the expansion to be operational in 2009. SeaGate and Southern States Chemical are subsidiaries of Dulany Industries Inc., which also has ties to the industrial cleaning and environmental services business through Envirovac Inc. For more information, please contact Kevin Glover at (912) 944-3740, P.O. Box 546, Savannah, Ga. 31402, or at kglover@dulanyind.com.