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PotashCorp gives layoff notices to 940 workers

Featured, News

PotashCorp has confirmed that it has sent temporary layoff notices to some 940 potash workers at the Lanigan, Rocanville, and Allan mines in Saskatchewan. The layoff period is to span from Jan. 18 to March 14, 2009.

“We have given temporary (8 week) layoff notices to all hourly employees at three of our mines which total approximately 940 people,” Bill Johnson, PotashCorp spokesman, told Green Markets. “Not all of those people who received notices will be off work for the whole period of time.”

The layoffs follow earlier announcements by PotashCorp that it planned to cut potash production by some 2 million mt in 2009 (GM Dec. 15, p. 1), as well as another announcement in which the company announced reduced earnings guidance (GM Dec. 22, p. 1).

CHS signs purchase agreement for Winona River & Rail

Featured, News

CHS Inc., St. Paul, Minn., said Dec. 23 that it has signed a purchase agreement to acquire the assets of Winona River & Rail Inc., a subsidiary of Rosen’s Diversified Inc., Fairmont, Minn. Under the purchase agreement, several contingencies must first be satisfied before the parties will proceed to closing the transaction. If the parties proceed to closing the transaction, the acquisition will strengthen CHS Crop Nutrient’s Midwest and upper Mississippi River position through improved storage capacity and rail access.

“We are very excited about potentially adding the Winona River & Rail assets to our crop nutrients business,” says Cheryl Schmura, vice president, crop nutrients, for CHS. “These assets are well-positioned in an area of key, strategic market importance and the company’s talented workforce has a strong customer focus that has earned them solid business relationships.”

Winona River & Rail is located along the Mississippi River in Winona, Minn. Rochester is 35 miles to the west and Lacrosse, Wisc., 32 miles to the east.

Services offered by Winona include agricultural fertilizer marketing to the dealer network, blending and packaging of some fertilizers, storage (both short-term and long-term) availability, barge unloading to trucks and rail, rail unloading to trucks, and high speed inbound/outbound handling with conditioners.

Winona was formed in 1993 and is one of the newer river terminals on the upper Mississippi River. It says its business is the sales and distribution of agricultural fertilizers in a four-state area: southeast Minnesota, western Wisconsin, northeast Iowa, and southern Minnesota-extending west into South Dakota along the DME railroad corridor.

Winona says it handles most dry fertilizers – urea, potash, phosphates, and sulfates. In addition to fertilizers, it also has the capacity to store dry commodities for others. Dry storage as of 2003 was around 46,500 st, according to the company’s website. It also has tank space for liquid fertilizers, including UAN and 10-34-0.

Organic industry hit by synthetic contamination

California, News Briefs

Sacramento-The organic food industry was thrown for a loop last week when the Sacramento Bee reported that California Liquid Fertilizer had been doctoring its organic fish and feather fertilizer with ammonium sulfate for years. According to the paper, the company may have been doing so for up to seven years and had been under investigation since June 2004, when a whistle blower alerted the California Department of Food and Agriculture (CDFA). Even so, the CDFA took a long time to complete its investigation and did not order the company to take the product off the market until January 2007. The Bee said the CDFA kept the matter confidential for over a year and a half after the product was removed from the market. The farms that used the product have not been penalized since they did not know of the spiking. The CDFA told the paper that it did not pursue harsh penalties against the company because its goal was to focus on getting the product off the market in a case that was labeled complex. The company was believed to have one-third of the organic fertilizer market in California, according to the paper. The source of the ammonium sulfate was believed to have been by-product AS from a plant in Decatur, Ill., reportedly Archer Daniels Midland. California Liquid Fertilizer, with a plant in Gonzales, Calif., was a unit of United Organic Products LLC, which was bought by Converted Organics Inc., Boston, in January 2008 (GM Feb. 4, 2008, p. 12). In the acquisition, Converted Organics acquired a liquid fertilizer product line, as well as the production facility that services a West Coast agribusiness customer base through established distribution channels. The purchase price of $2.5 million was paid in cash of $1.5 million and a note payable of $1 million. United Organic Chief Executive Peter Townsley remained with Converted Organics as executive vice president and chief technology officer, overseeing California operations. Converted Organics had not responded to inquiries at press time.

Judge recommends approval of Mosaic’s Ona Mine

Florida, News Briefs

Tallahassee, Fla.-A Florida Division of Administrative Hearings judge recommended the state Department of Environmental Protection (FDEP) approve the Mosaic Co.’s request for a permit for its 10,000-plus acre Ona Mine. Despite objections filed by environmentalists and two counties, Lee and Sarasota, Judge Donald Alexander ruled the company’s mining plan would not significantly affect waters flowing into the Peace River, a major source of drinking water for Southwest Florida. He decided 641 acres of wetlands and 11 streams met FDEP’s restoration requirements. Earlier, the U.S. Environmental Protection Agency said the project would be a violation of the federal Clean Waters Act. The Army Corps of Engineers must still rule on the permit request before mining can begin.

Agrium to rebuild former Royster-Clark warehouse

News Briefs, Southeast

Lynchburg, Va.-Agrium Inc. has confirmed plans to rebuild the former Royster-Clark fertilizer warehouse that was lost to fire last Jan. 13. Agrium spokeswoman Lisa Parker told Green Markets that company officials submitted plans to the city council last month that she said will undergo a technical review Jan. 6. “We will be working closely with the city to get all the necessary approvals to proceed with reconstruction,” Parker reported. “We hope to break ground in early March and have the facility constructed in September.” She didn’t provide any cost estimates, but indicated the new structure at 22,400 square feet will be significantly smaller than the building it will be replacing. She said the new plant will become the Agrium Lynchburg distribution terminal and will supply the area surrounding Lynchburg with all types of fertilizer. According to the local press, investigators were never able to conclusively determine what sparked the enormous blaze. Fire Marshall Greg Wormser said conditions at the warehouse ?Çô an aging structure that contained asbestos and housed 3,500 tons of fertilizer ?Çô made it impossible to conduct a full site assessment. “We narrowed it down to a couple of things, but because there were so many hazards there, with all the chemicals and asbestos, we couldn’t completely evaluate the scene,” Wormser told reporters. He noted that his office continues to periodically review the case file and that the investigation won’t be officially closed until at least 18 months after the fire occurred. Lynchburg was part of Royster-Clark’s network of fertilizer granulation and blending and seed-processing plants, retail farm supply centers, and distribution terminals and warehouses when the company was acquired by Agrium in 2006.

Terra Environmental signs agreement with Brenntag

News Briefs, Western Cornbelt

Sioux City-Terra Environmental Technologies Inc. (TET), a wholly owned unit of Terra Industries Inc., has signed an exclusive distribution agreement with Brenntag North America. As a result, Brenntag will be the exclusive national distributor of TET’s diesel exhaust fluid (DEF) TerraCair?äó for the on- and off-road diesel motor application market in the U.S. and Canada, and TET will be the exclusive supplier of DEF to Brenntag. TerraCair is an ultra pure, nitrogen-based urea solution that helps clean the air by reducing harmful emissions from the exhaust stream of diesel engines. Terra says the agreement marks a significant first step toward establishing TET as a leading producer and supplier in the emerging North American DEF market. This market is driven by U.S. legislation set to take effect in 2010 that will require new light- and heavy-duty diesel trucks to meet more stringent emissions requirements. The affected diesel engines accomplish this through the use of selective catalytic reduction (SCR) systems in conjunction with DEF. In addition to improving air quality, the technology has the potential to increase fuel economy by three to five percent. TET will supply TerraCair to U.S. and Canadian customers from a number of plant locations directly and through Brenntag’s distribution channels. “We’re pleased to have accomplished with Brenntag this important first step in establishing the North American DEF infrastructure,” said Terra President and CEO Michael Bennett. “Each company brings significant strengths to the table. TET will ensure product quality and supply, and has the resources and expertise to be a leader in the DEF market. Brenntag has a substantial distribution infrastructure, high quality standards, excellent customer service and experience distributing DEF. We look forward to a long and productive working relationship. The agreement is also consistent with Terra’s strategic objective of growing the TET business. Green technology will play an important role in the U.S. economy of the future, and this agreement marks good progress toward positioning TET as a leading producer and supplier to green markets.” Brenntag North America, headquartered in Reading, Penn., is a part of the Brenntag Group, a global leader in the growth market for the distribution of industrial and specialty chemicals.

Jury awards trucker disabled by anhydrous $1.4 M

California, News Briefs

Oroville, Calif.-A 30-year veteran truck driver awarded $1.4 for permanent injuries from inhaling anhydrous ammonia while unloading the fertilizer at a farm will be back in court Jan. 21 to learn how much punitive damages will be assessed against the company found liable for the incident over three years ago. Last month a Butte County Superior Court jury found that B.C. Leaseco, a Dixon area trucking firm, was responsible because a flapper safety valve was removed from the pumping system, which the plaintiff’s attorney argued was done to speed up the flow of the liquid fertilizer. The jury awarded Raymond Kean, 67, of Oroville, $1 million for pain and suffering and $406,000 as compensation for lost wages and medical expenses. His attorney, Mark Velez of Rocklin, wouldn’t confirm press reports that he is asking the eight-person jury for $4.2 million in damages, which, if awarded, would probably be the largest verdict handled down locally. Velez declined to discuss the particulars of the case until after the punitive decision because of concerns about prejudicing the case. Velez told the press that Kean, who is described as 100 percent disabled and facing a lung transplant, suffered major chemical exposure when anhydrous ammonia liquid fertilizer backed up and sprayed on him while he was pumping from his tanker truck into holding tanks at a Richvale rice farm on April 29, 2005. A farm worker doused him with a hose before paramedics and fire crews arrived on the scene, but not before Kean had inhaled the toxic substance and sustained chemical exposure to his eyes and respiratory system, according to his lawyer. After a three-week trial the jury found B.C. Leaseco 100 percent negligent for removing the safety valve. Button Transportation, which employed Kean, was also found negligent, but was not assessed damages.

River tests show good signs after rail crash

News Briefs, Northern Plains

Dresbach, Minn.-Water quality tests so far are showing encouraging signs from the release of thousands of gallons of liquid nitrogen into the Mississippi River in the aftermath of a two-train collision early on Dec. 17 near here (GM Dec. 22, p. 11), according to state inspectors. The Canadian Pacific trains headed in the same direction sideswiped in a switching area and derailed a total of 26 cars, including three tankers, which ended up spilling an estimated 31,000 gallons of liquid fertilizer. Mike Schommer, spokesman for the Minnesota Dept. of Agriculture, which is monitoring the fertilizer cleanup, said right after the collision CP crews were able to skim 8,000 gallons of a mixture of diesel fuel, fertilizer, and oil from the surface of the river. He said water testing since then conducted by an engineering consultant hired by the railroad, both at the site of the incident and scattering 1,200 feet down stream, showed ammonia not exceeding safe levels. “They found some ammonia but none exceeded the un-ionized ammonia surface water standards and none of the detects were above that safety level,” Schommer reported. He said the samples were taken the day after and then two days after the incident, explaining that experts believe if tests continue to show these results, indications are that the river is diluting the liquid fertilizer. This information confirms the report earlier from CP spokesman Mike LoVecchio that the tests from eight water quality monitoring stations on the river showed nitrogen at non-detect levels and that no fish kill has been found. LoVecchio also said that everything was back to normal at the site a couple of days after the crash. Schommer said the next step will be for Canadian Pacific officials and their cleanup contractor to discuss soil sampling strategy and come up with a plan for approval by the state for the area along the river that soaked up some of the 28 percent liquid nitrogen. He said the plan will be reviewed both by the ag department and the pollution control agency. Meanwhile, the Federal Railroad Administration confirmed that it is participating in the investigation of why one of the westbound trains operating on a switching track broadsided the other. Kathy Rufshus, pollution control agency spokeswoman, reported that none of the fertilizer cars ended up in the river, and that the remaining product has been transloaded and three cars removed from the scene along with the rest of the damaged equipment. One tanker on level ground near the tracks leaked part of its load, which was contained at the scene and recovered. She said two other cars sat for awhile on an embankment and then shifted and moved down toward the river, with one actually landing on top of a locomotive.

City orders Allied to empty suspect tank

News Briefs, Southeast

Chesapeake, Va.-City officials are still waiting for a response from Allied Terminals after issuing an order late last month to empty one of the terminal’s large liquid fertilizer storage tanks believed to have the same welding defects that caused a nearby tank to break apart and release 2 million gallons of liquid fertilizer. “We’ve got a lot of nervous people worried about that tank,” city spokesman Mark Cox told Green Markets. “So we’ve issued a notice of violation giving Allied 15 days to respond.” He said as far as he knows the city hasn’t heard anything since Chesapeake Fire Chief Steve Best notified Allied that Tank 209, which has a 2 million-gallon capacity and is within 250 feet of some of the homes that were flooded Nov. 12 (GM Nov. 17, p. 12), has been declared an unsafe structure that poses an “imminent threat to public safety.” Best said at least six welding deficiencies have been discovered on Tank 209, and they are similar to the defects that likely caused the collapse of 201. He ordered the tank to be emptied within 15 days. Cox said the decision to issue the order regarding the suspect tank was based on recommendations issued to Allied by the U.S. Chemical Safety Board after the board’s inspection and the city’s own investigations. He said he didn’t know about CSB Chairman John Bresland suggesting that Allied may have known about welding defects on some of its tanks at least four years ago. He was quoted in the press as saying, “Part of our investigation will be what did they know and when did they know it?” In his published comments, Bresland also said he was dissatisfied with Allied Terminals’ response to the safety board’s urgent recommendations Dec. 8 to safeguard three other fertilizer tanks, including tank 209, with similar welding defects.

Authorities settle with Magellan pipeline over leak

News Briefs, Southern Plains

Wichita, Kan.-A consent decree has been reached between the State of Kansas, the U.S. Department of Justice, and Magellan Ammonia Pipeline, L.P. for a natural resource damages claim stemming from an anhydrous ammonia release in October 2004, roughly eight miles east of Kingman. A portion of the pipeline failed, releasing an estimated 4,000 barrels of anhydrous ammonia, some of which entered Smoots Creek and caused a widespread kill of aquatic life for approximately 13 miles. The settlement compensates the Kansas Natural Resource Trustee Council for the lost resources caused by the spill, and includes approximately 160 acres of native prairie on Smoots Creek to be donated to Wichita State University (WSU) and used as a field study area for its Department of Biological Sciences. WSU plans to use the area for scientific studies related to managing and enhancing the native prairie habitats and associated riparian corridors. Also included in the settlement is a payment of $452,535 to the council for past costs, future oversight costs, fish restocking, and monitoring, restoration, and maintenance of the property. The Kansas Natural Resource Trustee Council is comprised of the U.S. Department of Interior – Fish and Wildlife Service and the State of Kansas. The Secretary of the Kansas Department of Health and Environment is the natural resource trustee for state. The U.S. Fish and Wildlife Service is the trustee for federally protected resources in Kansas.