Othello, Wash. — The J. R. Simplot Co. has acquired a large warehouse in Othello, Wash., in order to expand its storage and customer service capabilities. The 48,000-square-foot warehouse will serve all Simplot Grower Solutions (SGS) units in Washington. The acquisition will provide faster service to SGS customers, according to SGS head Dave Dufault. “Acquiring this warehouse aligns with SGS’s long-term strategy to develop an efficient distribution system that will serve our customers well for years to come,” said Dufault. SGS area manager Greg Olson, based in Moses Lake, added, “This facility will enable us to better serve our current customers with dry fertilizer products, as well as handle new customers as we continue to grow our business in Washington.” The warehouse, which has a capacity of 30,000 st of dry fertilizer, was previously owned by Northwestern AG Warehousing LLC.
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CVR, Chamber take tax issue to legislature
Topeka — CVR Energy Inc. and the Kansas Chamber of Commerce are sponsoring a bill that would effectively overturn a recent Kansas Court of Tax Appeals decision against CVR (GM Jan. 23, p. 10). A property tax evaluation that valued equipment under real, rather than personal property, significantly increased Coffeyville Resources Nitrogen Fertilizer’s 2008 assessment by about $10.7 million. If left intact, the decision could mean about that amount each year in additional taxes for CVR. CVR Energy is the majority owner of CVR Partners LP, which owns the fertilizer plant.
Lack of winter snowfall lowers spring flood risk
Omaha — The National Weather Service on Feb. 16 reported that there is little chance of major spring flooding in Iowa this spring, citing a range of factors including below normal snowfall this winter and generally dry soil conditions that extended through late fall and early winter. From Iowa upstream in the Missouri River basin, the weather service reported below average mountain snowpack and very little snow in the Northern Plains. The risk of widespread spring flooding due to snowmelt is classified as below normal in western North Dakota as well, with the weather service reporting that drought conditions have expanded this winter across much of the state. About the only risk of flooding along the Missouri and James rivers in the Dakotas would be through heavy spring rains or ice jams, the report said. Figures for the Red River in eastern North Dakota show the chances for minor flooding along the river at less than 33 percent in most areas. Fargo, N.D., has a 53 percent chance of minor flooding and a 6 percent chance of major flooding this spring. The lack of winter snowfall in the upper Missouri River Basin has provided some flexibility for the U.S. Army Corps of Engineers, who have begun releasing more water from the Missouri’s reservoir system to prepare for spring runoff. The move will create an additional 500,000 acre-feet of flood control storage for the 2012 runofff season on the Missouri River Mainstem Reservoir System, the Corps reported. If February weather conditions allow it, the Corps says it will evacuate an additional 100,000 acre-feet of water in the coming weeks. The Corps said warmer-than-normal temperatures throughout the basin in the first half of January prevented ice formation on rivers, resulting in above-average runoff during January that totaled 980,000 acre-feet above Sioux City, Iowa, which is about 131 percent of normal. When colder temperatures hit later in January, those rivers froze over and inflows to the reservoir system were reduced. The Missouri River Basin runoff for the 2012 calendar year is forecast to total 25.6 MAF, just slightly above the historical norm of 24.8 MAF, the Corps said. By contrast, runoff for the 2011 calendar year totaled 61.2 MAF, 247 percent of normal and the highest amount in the Corps’ 114 years of record keeping for the basin.
Andersons took write-off on lime/gypsum facility
Maumee, Ohio — The Andersons Inc. told analysts Feb. 9 that a decision was made in the fourth quarter to suspend operations at its Fairmount, Ind., location. This resulted in charges of $1.4 million for various expenses related to the closure and the recording of an asset impairment, which factored into 2011 results (GM Feb. 13, p. 8). The facility, located about 55 miles northeast of Indianapolis, produced pelletized lime and gypsum for wholesale distribution, not retail. Production was suspended in December, but the company said there are still employees onsite serving customers until the inventory is depleted, through the spring season. At the same time, it is continuing to explore the options of rebuilding a more modern production system at Fairmount, or at another suitable greenfield location to continue to serve that market’s needs. The company said it is committed to the pelleted lime and gypsum business, and intends to arrive at a solution that will provide a long-term supply of superior pelletized products to the area.
Coalition sues EPA over water regulations
Pocatello, Idaho — Citing the release of toxic selenium by phosphate mining operations into prime trout habitat as one reason for filing its lawsuit (GM Feb. 13, 2012), the Greater Yellowstone Coalition has challenged the U.S. Environmental Protection Agency (EPA) in U.S. District Court for allegedly weakening water pollution regulations in Idaho, which it says are among the nation’s most lenient. In its suit, filed in Pocatello on Feb. 14, the conservation group asked the court to set aside EPA’s 2011 approval of new state rules that it says permit the polluting of Idaho’s waters without required state agency and public review. Idaho state regulators recently finalized and the EPA approved the rules that the coalition says undermine the U.S. Clean Water Act’s protections by allowing actions to degrade water quality by bypassing the required reviews to determine if there was a compelling need for the actions. The lawsuit seeks to force the federal government to set aside its approvals of Idaho’s rules until they are strengthened to comply with the Clean Water Act’s more protective standards, which require no degradation of a state’s highest quality waters unless it is economically and socially needed. Idaho and federal regulators are considering at least one new open pit mine in the Blackfoot River region of Southeast Idaho’s phosphate-rich Caribou County as the number of miles of contaminated streams in the watershed increases rapidly, said the coalition. One of the most immediate threats comes from a proposed dam in the Oneida Narrows section of the Bear River, which the coalition said would inundate the river’s last free-flowing stretch and irreparably harm one of the last strongholds of the Bonneville cutthroat trout. Earthjustice attorney Laura Beaton, who represents the Greater Yellowstone Coalition, said, “Idaho’s protections for its cleanest water bodies are among the weakest in the nation. A favorable ruling will not only protect Idaho’s best waters, but ensure that EPA does not approve similarly weak regulations in other states.”
Fire destroys fertilizer storage building
Edwardsburg, Mich. — As much as half of 1,000 tons of bulk potash and ammonium sulfate is considered a loss in a fire that destroyed a pole barn storage building here early Feb. 15. Edwardsburg Fire Chief Bruce Stack said the 10-to-15-year-old structure was completely destroyed by the flames, which had some 35 firefighters, including those from three mutual aid departments from nearby townships, battling for about an hour. Thick plumes of smoke could be seen pouring out of the building for nearly two hours as crews continued to work on hot spots. “There was a lot of smoke, but the situation wasn’t all that bad as it dissipated quite quickly,” Stack told Green Markets. He added that it caused no problems for the personnel because all were equipped with breathing apparatus. No one was hurt, but Stack said a firefighter was treated at the scene for minor heat exhaustion. For now the cause of the fire remains under investigation, which has been turned over to the police department. But the chief offered that “it probably didn’t have anything to do with the fertilizer.” He said the owners, who were not identified, had been using the building for storage for quite some time. They told him that it appeared that some 50 percent of the stored supplies probably could be salvaged.
Ammonia tank mishap causes evacuations
Walsh, Colo. — Approximately 60 to 70 residents of this small southeastern agriculture town were evacuated Feb. 8 for at least six hours while hazmat teams worked to seal off a leaking tank that came off a trailer being pulled by a pickup truck and released about 800 gallons of anhydrous ammonia. “The front axle came out from under the trailer and put the tank into the pavement,” explained Colorado Emergency Management spokesman Riley Frazee. “That busted off the fill nozzle and the overflow valve and released a large plume.” The hazmat team couldn’t get a valve replacement and so resorted to a makeshift plug to plug up the opening in the ammonia tank. In the meantime, a fire department pumper truck was used to spread 700 gallons of water a minute in an effort to disperse the ammonia plume. Frazee said the tank owner had to bring in a reverse pump to suck water out of the ditches and put it into a trailer. “But the water still created a cleanup problem, and they’ll have to come back and do monitoring of the soil,” Frazee reported. He said the contaminated soil will probably have to be removed and replaced with clean fill. The incident occurred on the south side of the town, and unfavorable winds blew south to north into the residential area. A school about 10 miles west was designated as an evacuation center but no one used it, preferring to stay with relatives or friends outside the plume area. The all-clear was given about six hours later, around 2 p.m. No road closures were required because traffic was not a problem.
Ammonia mishap empties food plant
Fargo, N.D. — Investigators are puzzled how a forklift operator accidentally struck and ruptured an overhead ammonia pipe at Food Services of America Feb. 10, resulting in the release of a small amount of vapor and emptying the work area for the rest of the day shift. There were no injuries to employees or firefighters, but Acting Assistant Chief Bob Cuchna told Green Markets there’s been some discussion regarding how the ammonia pipe got hit in the first place. “The pipe was located overhead and above some other pipeline that was actually supposed to protect it,” Cuchna explained. “Rough estimates were that approximately 10 pounds were released, but that is enough to fill up the building and make it unbearable.” He said workers onsite responded quickly and shut off the leak, but that it took some time to air out the work area. During that time another warehouse nearby was advised to shelter its workers in place, and a throughway into the business park was closed off.
PotashCorp reports spills at Aurora
Aurora, N.C. — Potash Corp. of Saskatchewan Inc. reported two chemical spills at its phosphate facility here Feb. 11-12. There were no injuries, and both were contained. The Feb. 11 spill was some 3,412 gallons of methyl isobutyl ketone. On Feb. 12, 89,760 gallons of phosphoric acid spilled. Both were reported to the National Response Center.
Orica suspends NH3 startup again, reports acid leak
Kooragang Island, Australia — Orica said Feb. 13 that it suspended the restart of its ammonia plant at Kooragang Island because one part of the plant is not operating to a satisfactory level. The facility went down Aug. 8, 2011, after a release of hexavalent chromium. Orica did report some good news last week regarding the Aug. 8 incident, saying tests now show that less of the product was released than originally thought. The original estimate of between 10kg and 20kg of Chromium VI emitted off site has now been corrected to 1 kg, which in turn translates to an estimated 35 grams to 60 grams of Chromium VI deposited across Stockton. Orica Managing Director and CEO Graeme Liebelt said, “These revised figures do not change the fact that we had an incident at Kooragang Island that we deeply regret. We have acknowledged that our response at the time was not what the community expected, and we are continuing to work hard to regain trust and improve our communications. At the time of the incident, the NSW Department of Health advised that the impact on human health from this incident was negligible. These revised figures reinforce this finding.” In the meantime, in a separate incident Feb. 13, Orica reported to authorities a minor release of an estimated three to five litres of nitric acid at its Kooragang Island Nitric Acid #3 Plant. During a routine inspection, operators detected the release from the plant onto the ground. The release was fully contained onsite. Orica is investigating the cause of the release. It said there was no risk to the community, the environment, or the plant from this event.