Agrium Inc. will have to pay $750,000 in civil penalties to settle violations of the New Source Review (NSR) provisions of the Clean Air Act uncovered by the Environmental Protection Agency at the former Royster-Clark Inc. North Bend, Ohio, nitric acid plant. It also agreed to install state-of-the-art pollution control equipment at the facility that will reduce nitrogen oxides (NOx) emissions by more than 200 tons per year. Agrium bought Royster-Clark in early 2006.

An Agrium spokesman told Green Markets that the company knew of possible liabilities at North Bend, but did not know their full extent until EPA took action.

EPA issued Notices of Violation to Agrium US Inc. and Royster-Clark Inc. in October 2006 for making construction modifications to a North Bend, Ohio, facility in the mid-1990s without first obtaining necessary federal pre-construction permits and installing the required pollution control equipment. The un-permitted modifications caused the facility to emit more NOx than allowed by federal law. The facility releases NOx as part of its nitric acid production process.

“This company increased its profits by ignoring environmental laws,” said Granta Nakayama, EPA’s assistant administrator for enforcement and compliance assistance. “The EPA will continue enforcing against companies that refuse to comply with regulations intended to protect public health and our air, water and land.”

The Clean Air Act requires that major sources of air pollution must first obtain a permit before making any changes that would result in a significant emissions increase of any pollutant. EPA’s regulations ensure that air quality is not significantly degraded from the addition of new and modified factories, industrial boilers, and power plants. EPA said its national goals include focusing on improving compliance among certain industries with significant potential for environmental harm due to air emissions. These industries include acid production, cement manufacturing, and glass manufacturing facilities.

The settlement will be filed with the Southern District Court of Ohio for 30 days to allow for public comment. The companies are required to pay the penalty within 30 days after the court approves the settlement.

Nearly 140 listeners, representing more than 55 companies from the U.S. and overseas, tuned in to Green Markets’ second annual Agricultural and Fertilizer Outlook audio conference on Feb. 7. The interactive event allowed registrants to listen via telephone to three industry experts who talked about a range of issues, including 2007 planting intentions, the volatile urea and phosphate markets, and the distribution pressures currently facing the retail market.

Rich Pottorf, chief economist and Washington editor of Doane’s Agricultural Services, headed off the conference by detailing the expected increase in corn acreage to 87.1 million acres in 2007, calling this “the most exciting time in 30 years” for agriculture. Pottorf noted other significant cropping changes and the economic factors driving them, and said corn acreage will need to rebound “a lot” in subsequent years to keep pace with the surging ethanol industry.

Don Lauriente, senior fertilizer industry consultant and president of DH Lauriente Consultants Ltd., offered a detailed analysis of global consumption and capacity figures for urea and ammonium phosphate, referring to urea as the nitrogen growth product that is dominating the global nitrogen trade. Lauriente said the world ammonium phosphate balance has strengthened, while production and capacity remains heavily concentrated.

Dave Coppess, vice president of sales and marketing for Heartland Co-op in West Des Moines, Iowa, wrapped up the event with an in-depth look at the issues facing the retail sector in 2007 and beyond, focusing on product availability, distribution challenges, and ongoing environmental pressures at the local level.

Listeners were allowed to pose questions to the panel, either by email or by telephone, at the conclusion of the presentations. An audio recording of the conference is available on CD-ROM for $199, and can be ordered by visiting http://www.pf.com/eventDetail.asp?id=43&type=2. Audio recordings of past Green Markets audio conferences can also be ordered at http://www.pf.com/events.asp.