The City of West, Texas, has sued CF Industries Holdings Inc., as the supplier of the ammonium nitrate involved in an explosion at West Fertilizer Co. April 17. The City is also suing Adair Grain, the owner of the local fertilizer supplier.

The City alleges that CF should have inspected West Fertilizer to adjudge the safety of supplying product to that location. It also said CF should have altered the product to keep it from exploding.

“CF Industries Holdings, Inc. has learned that on Friday, June 21, 2013, the City of West Texas filed a lawsuit against West Fertilizer Company and CF Industries and certain of CF Industries’ subsidiaries in the District Court of McLennan County Texas,” said in a statement. “ The lawsuit seeks recovery for damages the City of West Texas claims it sustained as the result of an explosion that occurred at the West Fertilizer Company on April 17, 2013.

“CF Industries is sympathetic to those whose lives were affected by this unfortunate incident. CF Industries believes, however, that there is no basis for this suit against CF Industries and its subsidiaries and that the company should not have been added to this lawsuit. The CF Industries’ companies will seek dismissal of this lawsuit and otherwise defend the company vigorously in court.”

CF Industries Holdings Inc. said June 23 that it conducted an orderly shutdown of its Medicine Hat, Alberta, nitrogen complex on Friday in advance of flooding along the South Saskatchewan River. The site on which the complex itself is located is approximately 200 feet above the normal river level. However, the pump house containing equipment used to draw river water for plant operations is near the river bank and within the area impacted by high water levels. Regional officials have reported that the river is expected to crest sometime Monday.

"In anticipation of flooding in the Medicine Hat area, we brought the plant down safely and have taken measures to protect the equipment in the pump house," commented Tony Will, CF senior vice president of manufacturing and distribution. "We are in contact with our customers and will let them know when we expect to resume production and deliveries from this facility. We are, of course, concerned with the well-being of our employees, their families and the Medicine Hat community as they deal with the high water."

Calgary-based Agrium Inc. told Green Markets today that there has been no impact to its operations from the flooding in Alberta. The only potential impact would be some delays of Canpotex potash shipments to the West Coast due to mudslides over railway tracks.

In Western Canada, an Agrium spokesman said “rain makes grain" as well as bugs and disease so it should be a net positive for farmers. Agrium said while some flooded acreage that had been seeded and fertilized will be lost; overall this will be very small amount of land.

Indiana Governor Mike Pence’s office said June 18 that despite his objections to a fertilizer plant proposed by Pakistani-based Fatima Group, that the state will not stand in the way of local authorities seeking to proceed with the project. As a result, Posey County will be able to issue some $1.3 billion in federal disaster bonds to assist the project.

"The State of Indiana stands by its decision to withdraw support for the Midwest Fertilizer project since Department of Defense officials still have not been able to independently confirm Fatima Group’s promise to replace their current fertilizer in Pakistan with a formula less susceptible to misuse by hostile forces in the region,” said Communications Director Christy Denault. “Despite a difference of opinion on the matter, Governor Pence respects the prerogative of local officials to continue to explore the possibility of moving forward and has instructed the Indiana Finance Authority not to stand in the way of Posey County officials pursuing the project on their own."

Cargill Inc. said it has reached an agreement to acquire the grain storage and crop inputs assets of Northstar Grain LLC, Decatur, Mich., and associated properties in Decatur in southwest Michigan.

The assets will be acquired from Northstar Grain LLC. The transaction is expected to be completed by the end of June, pending routine due diligence. Terms were not disclosed.

“Our ownership of these assets will mean that farmers will gain a competitive market for their grain, as well as an expert crop inputs team from a company that they can rely on,” said Ben Breazeale, leader of the Greater Indiana Farm Service group of Cargill AgHorizons U.S. “We also bring to the table industry-leading risk management products, personalized on-farm grain marketing services and excellent customer service.

The assets include 4.5million bushels of storage space for corn, soybeans and wheat, and a crop inputs business. The site is served by the Norfolk Southern railroad, which provides access to markets in the eastern and southeastern United States.

“We have had a sales presence in southwest Michigan for a number of years,” Breazeale said. “We have Farm Marketers and Grain Marketing Advisors who cover the area who can help farmer customers with all aspects of their business. Our crop inputs team will be another valuable resource for producers.”

Cargill will initially invest about $3 million in upgrades to the facility to complete the construction of a 500,000 bushel storage bin and increase the capability to ship 75-car unit trains. “We look forward to notably increasing the competitiveness of this facility as a market for our future customers and connecting it to the extensive grain and oilseeds supply chains we serve,” Breazeale said.