Plymouth, Minn. – The Mosaic Co. said Feb. 3 that it plans a reduction of up to 20 percent in planned potash production from February through May 2012. This curtailment will result in lower operating rates at Mosaic’s mines, but is not currently expected to result in any employee layoffs or material mine shutdowns. "Cautious dealer sentiment continues to delay purchases and lower near-term demand for potash," said Jim Prokopanko, president and CEO. "Farmer economics remain strong, and we continue to expect an above average application season in North America and record-setting global potash shipments in 2012. While we are confident fundamentals will ultimately prevail, we’ve taken steps that reflect the near-term supply and demand balance for potash."
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Fert bills could kill local Fla. ordinances
Tallahassee — Bills pending in the Florida Legislature could nullify local ordinances that restrict the use of fertilizers. Senate Bill 604 and its companion, House Bill 421, would exempt individuals who take a course in application procedures from local ordinances restricting the use of fertilizers during certain periods of the year. Many of the cities and counties that have adopted rules governing the use of fertilizers are on the Gulf Coast, where outbreaks of red tide have been a problem. Although the science has been incomplete, some claim allowing nutrients such as nitrogen and phosphate to enter waterways that feed into the Gulf of Mexico increases the red tide problem. A law was passed last year that precluded local governments from passing any new ordinances restricting the use of fertilizers, but allowed those adopted before the law was passed to remain in effect. As of late last week, HB 421 was awaiting action in the State Affairs committee, while SB 604 was pending approval of the Environmental Preservation and Conservation subcommittee but was on temporary hold.
Deputy hit with ammonia during co-op theft
Hawkeye, Iowa — A Fayette County sheriff’s deputy caught a heavy dose of anhydrous ammonia while trying to nab a thief at Fredericksburg Farmers Co-op Feb. 1 and had to be checked over for minor exposure at nearby Palmer Hospital. At last word, the thief is still being sought and the deputy is none the worse for the incident. “She was taken to be checked over just as a precautionary measure, and was treated and released later in the afternoon and is doing fine now,” Chief Deputy Jim Davis told Green Markets. Davis explained that Deputy Whitney Jarvis was on patrol in her car when she came across the co-op and spotted a man running from the tank area. The lock on the tank had been broken off and was causing a substantial leak. When the deputy turned her car around to talk to the suspect, she was hit by an ammonia cloud that was blowing across the highway. Fredericksburg Farmers Co-op Manager Ron Cruise said the problem developed when the wind shifted and blew ammonia from the open tank toward the officer. “It was a fairly substantial leak,” Davis reported. “The co-op told us the tank was 80 percent full, and by the time the hazmat team got it shut down it had leaked down to 20 percent. So that amounted to about half the tank contents being released.” Roads leading up to the co-op were closed during the investigation.
Ammonia releases to cost company $6.7 M
Washington — Food processor Columbus Manufacturing Inc., a wholly owned subsidiary of Columbus Foods LLC, has agreed to pay a penalty and make significant upgrades to settle Clean Air Act violations, according to the Department of Justice and the U.S. Environmental Protection Agency. The case stems from two releases of anhydrous ammonia that occurred in 2009 at its manufacturing facility located in South San Francisco. According to the agencies, the releases were the result of the company’s failure of its general duty of care to identify hazards and to maintain a safe facility, and its failure to comply with regulatory requirements for process safety management under Section 112(r) of the Clean Air Act. “This settlement appropriately penalizes Columbus for violations of the Clean Air Act that resulted in two illegal releases of poisonous gas that put the community at risk, including one release that caused the hospitalization of people in the affected community,” said Ignacia Moreno, assistant attorney general of the environment and natural resources division at the Department of Justice. “Today’s agreement will prevent future violations of the Clean Air Act safety standards by requiring Columbus to upgrade its refrigeration technology and emergency notification system.” As part of the consent decree, Columbus will pay a penalty of $685,446 and spend approximately $6 million converting its refrigeration system to a safer technology that uses glycol and ammonia. The company will also improve its alarm and ammonia release notification procedures. The first accidental ammonia release, in February 2009, sent 217 pounds of ammonia into the atmosphere. Six months later, in August 2009, the plant again released an ammonia cloud; this time approximately 200 pounds was released into the atmosphere. The August incident resulted in the evacuation of all facility employees and several neighboring businesses. Nearly 30 people from the downwind Genentech campus sought medical attention; 17 individuals were hospitalized, with one person remaining hospitalized for four days. In addition, off-ramps from Highway 101 and several local streets were shut down as a result of the release.
Oregon Potato faces ammonia release fine
Seattle — Oregon Potato Co. is being assessed a $66,235 penalty by the U.S. Environmental Protection Agency (EPA) for failing to report the release of approximately 300 pounds of anhydrous ammonia at the company’s facility in Warden, Wash., on July 2, 2009. The leak occurred when a circuit breaker failed, causing a pressure relief valve to open and release the anhydrous ammonia. EPA alleges that Oregon Potato failed to immediately notify local and state agencies about the release. While no injuries were reported at the time of the incident, EPA points out that ammonia can cause serious injury or death. The ammonia release and the failure to notify appropriate agencies are violations of the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA). According to Wally Moon, EPA preparedness and prevention unit manager in Seattle, these cases are about protecting workers, emergency responders, and the community. “When unintended chemical releases occur, every minute counts if it is an emergency,” commented EPA’s Moon. “Emergency responders need to be notified promptly to react effectively.”
Ammonia violations bring $142,000 fine
Braselton, Ga. — The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) proposes to fine poultry processor KD Acquisition I LLC, doing business as Coleman Natural Foods, $164,300 for a list of safety violations at its KD5 plant in Braselton, including handling of anhydrous ammonia. The other violations involve failing to install machine guards and sealing electrical enclosures after receiving a complaint in July about safety hazards. Proposed penalties total $142,150. The four ammonia violations, which are considered serious and invoke a $21,150 penalty, involve failing to provide an ammonia detector that would warn of gas dispersal into the air and failure to provide training to workers acting in the capacity of hazardous materials technicians when accessing equipment during emergency releases of ammonia. "OSHA will not tolerate conditions that endanger employee safety. The company has been cited for similar hazards in the past, and there is no excuse for OSHA finding them again during our latest inspection," said William Fulcher, director of the agency’s Atlanta-East area office. "Management must correct these violations before a serious injury occurs to one of KD Acquisition’s workers."
OCI proceeds with demerger
Cairo — Orascom Construction Industries on Jan. 29 submitted a formal request to the Egyptian Financial Supervisory Authority (EFSA) to ask for approval to call for an Extraordinary General Meeting (EGM) to obtain shareholder approval for the proposed demerger of the company’s construction business from its fertilizer business (GM Jan. 2, 2012). Once approved, OCI said it would call for an EGM and circulate all the information required for shareholders to vote on the demerger. Upon the completion of the demerger, OCI will continue to be listed on the Egyptian Stock Exchange (EGX), and its Global Depository Receipts (GDRs) will continue to be listed and traded on the London Stock Exchange (LSE). The demerged construction business company will be listed on the EGX, and its GDRs are expected to be simultaneously listed on the LSE.
CHS returns record $421 M in patronage
St. Paul — CHS Inc. reports that farmers, ranchers, and member cooperatives in the U.S. will share a record $421 million in disbursements, marking the largest cash return ever by a U.S. cooperative. The cash return is based on record CHS net income of $961.4 million for the fiscal year ending Aug. 31, 2011. The amount includes cash patronage paid on fiscal 2011 business done with CHS. CHS is also distributing cash to member cooperatives as redemption of equity in the company they earned in prior years. In addition, CHS will redeem equities of eligible individual members throughout 2012, and will also pay quarterly dividends to owners of CHS preferred stock. The top five states receiving their share of the $421 million include Minnesota, $93.3 million; North Dakota, $72.3 million; Wisconsin, $36.2 million; South Dakota, $32.4 million; and Iowa, $29.5 million. Since its inception in 1998, CHS has returned more than $2.5 billion in cash to its agricultural producer and member owners.
Bill expands HOS exemption, proposes weight changes
Washington — The Agricultural Retailers Association (ARA) and other agriculture trade groups are lining up in support of the American Energy and Infrastructure Jobs Act, which was announced on Jan. 31 by House Transportation Committee Chairman John L. Mica (R-Fla.) and other committee members as part of a long-term highway reauthorization bill. The legislation includes the agricultural hours of service (HOS) exemption, but increases the radius exemption for maximum driving and on-duty time for drivers of motor carriers transferring agricultural products at planting or harvest time from 100 air miles to 150 air miles. Supporters say the 150-air-mile radius is needed especially in states like Montana, Oklahoma, and others where greater distances are covered to service agricultural operations. The bill also includes a provision that allows states to increase truck weights through the addition of a sixth axle. “The provision will allow ag retailers to haul more fertilizer with fewer trucks and be more efficient in their transportation movements, ARA’s Richard Gupton told Green Markets. “The additional axle and brakes allows for the increased weight and greater braking power so there are not any additional safety issues.” The truck weight proposal contained in the American Energy and Infrastructure Jobs Act is based on federal legislation known as the Safe and Efficient Transportation Act (H.R. 763, S. 747). In a Jan. 24 letter to Reps. Mica and ranking member Nick J. Rahall II (D-W. Va.), ARA joined the American Farm Bureau Federation and nine other ag groups in urging support for the measure. “As members of the agriculture industry, we are hindered by antiquated transportation rules and regulations that are inconsistent and impede the flow of commerce for agri-businesses,” the letter said. “This measure gives states the option to increase truck-weight limits to 97,000 pounds with inclusion of a sixth axle on trucks. The additional axle maintains the current weight per axle level with the current standard and will also maintain the same braking capacity. This will increase hauling capacity and will result in fewer trucks on the roads, leading to fewer emissions and improved efficiency.” The letter says the federal weight limit has been set at 80,000 pounds for more than 25 years, but “farmers, ranchers, and agribusinesses need more efficient ways to transport their goods in order to keep up with increasing demand.”
Miss Phos achieves AQIS certification
Pascagoula, Miss. — Mississippi Phosphates Corp. said Feb. 2 that it has completed the storage and handling upgrades necessary to be certified an Australia Quarantine Inspection Services (AQIS) Level 1 facility. Miss Phos says it becomes one of only three phosphate producers in the Western Hemisphere to reach the AQIS Level 1. AQIS is responsible for reducing the risk of potentially harmful exotic pests or diseases entering the country. To assist the fertilizer industry in complying with Australia’s strict import requirements, AQIS and the Fertilizer Industry Federation of Australia (FIFA) have developed a set of standards that will streamline quarantine inspection processes and requirements. To achieve Level 1, companies must implement AQIS-recognized contamination management strategies across their supply chain, from the point of manufacture through, to, and including, the vessel’s voyage. The benefits for achieving the Level 1 standard include minimal intervention by AQIS at the border and upon arrival – the cargo hold does not need to be inspected, therefore the discharge of goods can commence at any time of the day or night. Miss Phos says with the ever growing demand for phosphates throughout the world, this facility upgrade opens up yet another market for its products.