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No injuries reported from explosion at Coffeyville UAN plant

Featured, News

No injuries were reported from an explosion at the Coffeyville Resources Nitrogen Fertilizer plant in Coffeyville, Kan., that occurred around 6:30 p.m., Thursday, Sept. 30. CVR Energy Inc., which owns the facility, said the explosion was in the UAN plant.

CVR said that while the explosion could be heard throughout the area, no impact was recorded beyond the fence line. Non-essential employees, as well as those at the adjacent CVR refinery, were evacuated. All employees were accounted for.

The explosion is under investigation, and no damage estimate was immediately available.

On Friday morning, Oct. 1, CVR told Green Markets the fertilizer plant was in recovery mode and the refinery had returned to normal operations.

BHP/PotashCorp hearing set for November 4; Saskatchewan advisory report due October 4

Featured, News

The hearing in Potash Corp. of Saskatchewan Inc.’s lawsuit (GM Sept. 27, p. 1) against BHP Billiton is scheduled for Nov. 4. In the meantime, scheduling for expedited discovery in the case was being worked out last week before a federal magistrate, with the latest round expected on Friday, Oct. 1. Much of the wrangling is over which documents would be made available and which executives would be deposed, according to sources close to the case, with indications that BHP CEO Marius Kloppers will likely give a deposition.

“We are pleased that the court has scheduled a hearing on Nov. 4, well in advance of the Nov. 18 scheduled expiration of our offer,” said BHP in a statement. “We are gratified that the court made clear that the Potash Corp. of Saskatchewan Inc. discovery proposals are excessively broad. As we said last week when PotashCorp filed its complaint, we believe the case is without merit and we intend to contest it vigorously, including by filing a motion to dismiss later this week. Today’s ruling did not address the sufficiency of the complaint or the merits of the case.”

A PotashCorp source said the judge is simply leaving the discovery up to the magistrate. As of Thursday morning, Sept. 30, BHP had yet to file a motion to dismiss.

In the meantime, a report commissioned by the province of Saskatchewan is due to be released Oct. 4. The report, by the Conference Board of Canada, an independent, not-for-profit applied research organization, will assess the impact of the BHP purchase of PotashCorp and its impact on jobs and government revenues, among other considerations. Potash royalties are a large portion of the province’s annual revenues. To date, Canadian authorities have been skeptical that the deal would have a “net benefit” to Canada under the Investment Canada Act.

As it currently stands, the regulatory hurdles may be BHP’s largest impediment to implementing the deal. No other bidder has yet to emerge, and the most cited potential bidder – China’s Sinochem – would also draw scrutiny from Canadian regulators.

Osceola terminal plans shift to new location; former site being actively marketed

Featured, News

Agricultural Solutions LLC, the Illinois-based company that announced plans in May to build a fertilizer terminal on the Mississippi River in Osceola, Ark., has reportedly shifted those plans to another property in Osceola.

Michael Brito-Amador, president of Agricultural Solutions LLC, told Green Markets his company is now negotiating for another site on the Mississippi River west of and about a quarter-mile from the Port of Osceola. He said the new property is currently being rezoned for the proposed fertilizer terminal, and Agricultural Solutions will close on the site as soon as the rezoning is complete.

Brito-Amador said he remains confident that Agricultural Solutions will break ground “early next year” on a 25,000-ton dry fertilizer storage facility at the new site, where the company plans to sell mostly urea along with some potash and micro nutrients. The fertilizer products will be delivered to the facility by barge, and Brito-Amador said the structure itself will most likely be constructed of a tubular frame on a concrete shear wall and foundation, with a canvas roof system.

Brito-Amador also disclosed that Agricultural Solutions is considering building more terminals, both liquid and dry, at two other Midwest locations, and is negotiating with several regional fertilizer suppliers to provide products to those locations. Brito-Amador is one of three panelists on Green Markets‘ Oct. 20 webinar, Fertilizer Distribution: Addressing Market Volatility in a Changing Landscape. He said more details on those projects may be released at that time.

Agricultural Solutions’ original plan in Osceola, announced on May 20 by Osceola Mayor Dickie Kennemore, Brito-Amador, and his business partner Donald V. Opal, called for a 35,000-40,000 ton dry facility to be built on part of an 88-acre site in Osceola (GM May 31, p. 1). That 88-acre site is owned by ND Arkansas LLC and North Development Ltd., a Chicago-based real estate development firm and owner of commercial properties and farmland geared toward the food and energy markets.

Jessica McDonogh, property manager for North Development, told Green Markets last week that North Development would consider leasing or selling the 88-acre site, which is divided into two parcels – one at 45 acres with more than 1,000 feet of Mississippi River frontage, and another at 43 acres that is situated behind a levee. She said the site’s relatively high “flood free” elevation, plus its access to Highway 198 and nearby rail lines, makes it suited to the exporting and importing of most products.

More information on the North Development site is available at http://osceola.arkansas.northdev.com/. McDonogh said interested parties can contact her at 312-850-4940.

Vale concludes acquisition of Mosaic shares; Mosaic retains position in Brazil

News

Brazil’s Vale S.A. said last week it has concluded the acquisition from The Mosaic Co. (Mosaic) of an additional stake of 20.27 percent in the equity capital of Vale Fertilizantes S.A. (Vale Fertilizantes, previously named Fertilizantes Fosfatados S.A. Fosfertil), for US$1.03 billion. Through its wholly-owned subsidiary, Mineração Naque S.A., Vale exercised a call option pursuant to a contract with Mosaic on Feb. 10, 2010. This contract was part of the process of acquisition of 100 percent of Bunge Participações e Investimentos, publicly announced on Jan. 27, 2010.

The acquisition of 20.27 percent in Vale Fertilizantes, which corresponds to 27.27 percent of the common shares and 16.65 percent of the preferred shares of the firm, was held at a price of US$12.0185 per share, the same price per share paid to Bunge Fertilizantes S.A., Fertilizantes Heringer S.A., Fertilizantes do Paraná Ltda, and Yara Brasil Fertilizantes S.A., which consolidated the acquisition of these direct and indirect stakes in Vale Fertilizantes, as publicly announced on May 27, 2010. Vale says it now owns 78.9 percent of Vale Fertilizantes, which corresponds to 99.81 percent of its common shares and 68.24 percent of its preferred shares.

Vale says the deal is consistent with its goal to become a global leader in the fertilizer business. It claims a large pipeline of projects involving potash and phosphates assets in Brazil, Argentina, Peru, Canada, and Mozambique, currently under different stages of development. In July 2010, the phosphate rock mine of Bayóvar, Peru, came on stream.

Mosaic said gross proceeds from the deal will be approximately $1 billion. It said the transaction will have no impact on Mosaic’s significant crop nutrient blending and distribution business in Brazil, or on its SSP production and port activities at the Paranagua complex.

Iowa farmers advised to inspect ammonia tanks

Ammonia, News

Iowa farmers have been advised by the state agriculture department to check their anhydrous ammonia nurse tanks for pinhole leaks or faulty welds that could undermine the integrity of the tank, because several tanks from American Welding & Tank were found by inspectors to have leaks. But American Welding is insisting that while it’s necessary to inspect tanks regularly, it is not aware of any incidents of serious injury from a pinhole leak in one of the company’s tanks or of any instance in which pinhole leaks led to a rupture or larger release of ammonia.

“Farmers will soon be taking anhydrous tanks out to the field for fall fertilizer applications, so it is important they take the time to look over their tanks and report any leaks to their local provider,” Iowa Secretary of Agriculture Bill Northey warned. “We have been in contact with fertilizer dealers across the state to share our concerns about these tanks, but wanted to share with farmers as well so they can take steps to check their tanks and make sure they are not leaking.”

Northey reported that several tanks from American Welding were found during annual inspections at commercial fertilizer dealers to have leaks. He added that “stop use” orders have been issued on 15 tanks found to be leaking during the inspection. “The department has sent a letter to all anhydrous dealers to share their concerns about the tanks, but wanted to communicate with farmers as well who will soon be starting fall fertilizer applications,” he explained. The U.S. Department of Transportation, which is also responsible for regulation of nurse tanks, has been informed of the findings.

In its statement, American Welding recommended that customary procedures be followed to make sure tanks are properly secured at all times and inspected daily before use for signs of a leak or any other damage, and that users should step away and have the equipment supplier contact the manufacturer. American Welding can be reached toll free at 866-431-8288. “Because anhydrous ammonia is stored under pressure, ice often forms at or around the area of the leak,” AWT cautioned. “If you notice a small patch of ice on the outside of your tank, step away from the tank and contact your equipment supplier, who will contact the manufacturer of the tank.”

EPA, ExxonMobil settle Pasadena acid waste case

News

The U.S. Environmental Protection Agency (EPA) and ExxonMobil have agreed to settle a case involving over one billion gallons of illegally stored hazardous waste at the Agrifos Fertilizer site in Pasadena, Texas. ExxonMobil is the prior owner of the site and retained closure and post-closure responsibility for the site’s massive waste impoundments when it sold the site to Agrifos Fertilizer in 1998. ExxonMobil was subject to Resource Conservation and Recovery Act (RCRA) violations due to the illegal commingling of hazardous waste with the acidic process wastewater stored in the impoundments.

The company will spend more than $150 million to close the impoundments and dispose of the hazardous waste at the site. As part of the settlement ExxonMobil will be responsible for post-closure care, including groundwater monitoring, from the impoundments for the next 50 years.

Agrifos, the property owner, purchased the 509-acre plot from ExxonMobil in 1998. The Agrifos site includes a mineral processing facility that extracts phosphorus from mineral ores to produce phosphoric acid. ExxonMobil will conduct the majority of the clean-up work at the site, while Agrifos is responsible for the remaining activities.

In 2008, Agrifos agreed with EPA to close its phosphogypsum stack (GM April 7, 2008) over a two-year period. As a result, Agrifos, which has the capacity to produce 400,000 st/y of phosphoric acid, is expected to wind down production of that product – along with super phos acid, DAP, and MAP – in the first or second quarter of 2011 (GM July 26. 2010).

EPA says its Toxic Release Inventory shows that mining and mineral processing facilities generate more toxic and hazardous waste than any other industrial sector, and that if not properly managed, these facilities pose a high risk to human health and the environment. Since 2003, EPA has been investigating a total of 20 phosphoric acid facilities in seven states.

In a national enforcement effort, EPA has focused on compliance in the phosphoric acid industry because of the high risk of releases of acidic wastewaters at these facilities, which can cause groundwater contamination and fish kills. A 2007 incident at the Agrifos phosphoric acid facility in Houston released 50 million gallons of acidic hazardous wastewater into the Houston Ship Channel.

Sulfuric acid lawsuit to proceed

News, Sulfuric Acid

A federal judge has ruled that a class action lawsuit against major sulfuric acid producers may proceed, some seven years after it was initiated (GM May 26, 2003). Plaintiff sulfuric acid buyers Ohio Chemical Services, Independent Chemical Corp., National Alum Corp., Producers Chemical Co., Old Bridge Chemicals Inc., and AG RX brought the suit against several U.S. and Canadian producers.

The plaintiffs alleged that defendants engaged in anticompetitive behavior by conspiracy to reduce the output and fix the price of sulfuric acid in Canada and the U.S. They alleged that U.S.-based producers GAC Chemical Corp., Boliden Intertrade Holdings Inc., Pressure Vessel Services Inc. (PVS), Koch Industries Inc., DuPont, Marsulex Inc., and Chemtrade Logistics allegedly shut down or curtailed production in favor of purchasing acid from Canadian defendants Noranda and Falconbridge Ltd.

The plaintiffs also alleged that Noranda, Falconbridge, and DuPont operated an illegal price fixing and output restriction agreement under the label of Noranda DuPont (now Norfalco), a joint venture.

The defendants sought a summary judgment to dismiss the case. The judge denied the motions for Noranda, Boliden, PVS, Norfalco, and Koch; denied in part and granted in part for Falconbridge; and granted the motion in full for GAC.

DuPont, Marsulex, and Chemtrade have already settled.

The timeframe at issue is 1988-2001. The case was filed in 2003 and achieved class status in 2007.

The case is before the U.S. District Court for the Northern District of Illinois, Eastern Division.

Mosaic, Sierra Club in mediation

News Briefs

Plymouth, Minn.-The Mosaic Co. and the Sierra Club participated in court-mandated mediation session last week with respect to the Sierra Club’s lawsuit over Mosaic’s South Fort Meade phosphate mine expansion. Mosaic confirmed that a mediation session occurred Sept. 29; however, to date, there is nothing more to report. The U.S. District Court has issued an injunction against the expansion, and the mediation was ordered by the U.S. Court of Appeals. Still before the lower court is a Mosaic proposal to allow it to mine the area for four months on areas where wetlands have already been disturbed.

Grain stocks up, says USDA

News Briefs

Washington-The U.S. Department of Agriculture on Sept. 30 released data indicating that Sept. 1 corn stocks are up 2 percent, soybeans 9 percent, and wheat 11 percent from year-ago levels. This negatively impacted grain prices at a time when they were already in question. Old crop corn stocks in all positions on Sept. 1, 2010, totaled 1.71 billion bushels, up 2 percent from September 1, 2009. Old crop soybeans stored in all positions on Sept. 1 totaled 151 million bushels, up 9 percent from the year-ago point. All wheat stored in all positions on Sept. 1 totaled 2.46 billion bushels, up 11 percent from a year ago.

Truck parked overnight loses half of ANFO load

News Briefs

Cameron, Missouri-A hopper truck driver transporting 44,000 pounds of Dyno Nobel ammonium nitrate and fuel oil (ANFO) to a mine in Illinois pulled off the highway to rest late Sept. 24 and found when he awoke he’d lost about half the load to a leak. The discovery touched off an evacuation of mainly business areas in a half-mile radius that lasted into early evening. Cameron Police Sgt. Marty Gray told Green Markets the driver pulled off Highway 36 into an empty lot to park overnight and ruptured the bottom of his hopper when he drove through a pot hole filled with water. Gray estimated that 22,000 pounds of the load were lost, with the balance remaining in the hopper. Dyno Nobel’s Salt Lake City office had a slightly different story, reporting that the emulsion leaked from a broken line on a trailer operated by an independent carrier that was parked overnight at a truck stop in Cameron. “Unbeknown to the driver the line underneath the trailer had been damaged when he pulled into the truck stop and hit a deep pot hole. The driver discovered the spill in the morning and immediately notified all appropriate authorities. All precautionary measures were taken. There were no injuries, and all product has been cleaned up. The incident is now under investigation.” There was no word who handled the cleanup, how the spilled ANFO was disposed of, or if the ANFO still in the hopper was salvaged. Sgt. Gray said the evacuated area was 96 percent businesses, with a couple of residences. Traffic, including I-35, was routed through the city from 8:30 in the morning until approximately 6:30 at night. Schools were allowed to stay in session.