Plymouth, Minn.-The Mosaic Co. laid off 140 Florida mine workers on Friday, Aug. 20. The workers were part of the 221 on a WARN notice Mosaic issued back in July (GM July 19, p. 1) due to an injunction that keeps the company from proceeding with phosphate rock mining at South Fort Meade. The workers, who were idle, will still be paid through the duration of the notice period, which ends Sept. 10. More workers are expected to be laid off in coming weeks but are currently being retained for mothballing of facilities and shipping existing rock.

Calgary-Agrium Inc. and AWB Ltd. said Aug. 24 that the AWB board has recommended Agrium’s proposed acquisition (GM Aug. 23, p. 1) to AWB shareholders. Under the terms of the definitive agreement for Agrium to acquire AWB, AWB will commence the scheme of arrangement process pursuant to which Agrium will purchase all of the outstanding shares and performance rights of AWB for A$1.50 per share in cash for A$1.238 billion. “We are pleased with the AWB board’s decision to support our offer and expect the transaction will bring immediate value to both AWB and Agrium stakeholders. We believe there are significant opportunities to provide efficiencies across the value chain, including offering new products and services, for the benefit of Australian growers,” said Agrium’s President and CEO Mike Wilson. “We are excited about the opportunity to work with AWB employees to build on the solid relationship that AWB has already developed with customers.” He expects the acquisition will be significantly accretive to Agrium’s earnings in the first year and will generate synergies of A$40-million or more on an annual basis, with limited synergies realized in the first year, the majority in 2012, and the full amount obtained in 2013 and thereafter. “This is expected to be achieved primarily through improved margins within the Landmark retail division, largely through enhanced purchasing efficiencies, expansion in product offerings and other improvements, as well as some reduction in expenses,” added Wilson. The AWB board recommendation is subject to no superior proposal being received by AWB and confirmation from an independent expert that the scheme is in the best interests of shareholders. The agreement with Agrium permits AWB to pay a dividend of up to A$0.20 cents per share, fully franked, subject to obtaining a favorable ATO ruling, which will be funded by a loan from Agrium. The price payable for the purchase of the AWB shares would be reduced by the cash amount of any dividend paid.

Wichita-OSHA has cited Hi Plains Feed LLC of Garden City, Kan., for what the agency terms serious violations of process safety management for hazards found with its anhydrous ammonia system. The proposed penalties total $48,500. In an investigation initiated in February under its site-specific targeting program, OSHA found a lack of employee participation in and training of system operators; failure to compile process safety information and to conduct process hazard analyses; lack of written operating procedures for the ammonia process; failure to evaluate contractor safety performance and to conduct a pre-startup review after a significant facility modification; failure to manage changes and mechanical integrity of process equipment; failure to perform anhydrous ammonia release incident investigations; and failure to have an adequate facility emergency plan and to have compliance certification of the program. Hi Plains Manager Ted Jackson responded that some violations occurred because the company was unaware OSHA had two sets of rules on anhydrous ammonia – one for manufacturers, the other for farm use. Jackson says the company has started to correct the violations under an OSHA plan that would substantially reduce the fines. Hi Plains Feed has 15 business days from receipt of the citations to comply, request an informal conference with OSHA’s area director in Wichita, or contest the findings before the independent Occupational Safety and Health Review Commission.

Kansas City, Kan.-Tanco Kansas City LLP, a bulk materials storage facility, has agreed to pay a $97,845 civil penalty to the U.S. to settle allegations that it violated federal laws by failing to properly document its storage of sulfuric acid and prepare a Facility Response Plan (FRP) to guard against spills of its materials into a tributary of the Missouri River. Tanco’s facility at 10520 Wolcott Drive, Kansas City, Kan., did not have an FRP in place at the time of a May 2009 EPA inspection, in violation of the federal Clean Water Act (CWA), according to an administrative consent agreement and final order filed in Kansas City, Kan. Inspectors also found Tanco had not properly implemented its Spill Prevention Control and Countermeasures plan, including requirements for secondary containment and tank integrity testing, both of which are designed to prevent or minimize the impacts from accidental releases. EPA’s review of the Tanco facility also found that the company violated the federal Emergency Planning and Community Right-to-Know Act (EPCRA) by not filing proper reports for the years 2006, 2007, or 2008 to disclose the quantities of sulfuric acid that it stored onsite. A subsequent report filed in March 2010 showed Tanco stored more than 2.1 million pounds of the hazardous chemical during 2009. Tanco’s facility has a documented storage capacity of more than 7.4 million gallons of products, including approximately 6.1 million gallons of tank capacity for the storage of liquid asphalt, with the remaining capacity divided between storage of sulfuric acid and calcium chloride. EPA determined that a spill of those materials from Tanco could reach Island Creek, which is directly adjacent to the business, and from there, flow into the Missouri River, causing harm to fish and wildlife and the environment and impacting downstream drinking water supply intakes. As part of its settlement with EPA, Tanco has agreed to conduct a survey and increase its levels of secondary containment to prevent spills from leaving the facility. The company will also document all of its required training, drills, and exercises. Since the May 2009 inspection, Tanco has submitted an amended Facility Response Plan to EPA, and has agreed to a schedule for making and testing its necessary facility improvements.

Coffeyville, Kan.-Coffeyville Resources Nitrogen Fertilizers LLC (CRNF), a unit of CVR Energy Inc., will be getting back some $4.79 million from the City of Coffeyville after disputing its electric bill. On Aug. 24, 2010, CRNF and the City entered into an amended and restated electric services agreement, with the rates and terms of the 2010 electric services agreement (ESA) effective as of Aug. 1, 2010. The parties reached agreement on the 2010 ESA in connection with settlement of litigation relating to their previous ESA, executed in 2004. CRNF initiated litigation against the City after the City rejected the 2004 ESA (which had a term extending through July 1, 2019) and passed an ordinance unilaterally imposing higher charges and new terms of service in 2008. CRNF had paid the City the higher charges under protest, but as a part of the settlement, a substantial majority of those funds (totaling approximately $4.79 million) will be returned to CRNF. Under the 2010 ESA CRNF and the City will share variable transmission costs based on their respective loads (previously CRNF paid a fixed transmission cost for both parties); the City will provide CRNF with electricity based upon its needs (previously CRNF had a 90 megawatt reservation); and CRNF obtained an option to extend the term of the 2010 ESA (currently extending through July 1, 2019) for an additional five years (extending through June 30, 2024) on the same terms, except for moderate increases on the City’s margin.