Mosaic settles major enviro case – Alert
Mosaic Fertilizer, LLC, a subsidiary of The Mosaic Co., today announced that it has reached settlements with federal and state environmental agencies to resolve claims about how the company has managed certain onsite waste materials at its fertilizer manufacturing facilities in Florida and Louisiana. The settlements are subject to court approval. Federal authorities estimated Mosaic would eventually pay up to $2 billion to fund the settlement initiatives.
"We are pleased to be bringing this matter to a close," said Joc O’Rourke, Mosaic president and CEO. “Mosaic is committed to meaningful environmental stewardship at all of our facilities, and we take our responsibility to be good corporate citizens–now and for the decades ahead–very seriously. The commitments we are making through these settlements further those stewardship efforts."
When the settlements become effective, the company will invest at least $170 million at its fertilizer manufacturing facilities to modify certain onsite waste management practices and implement innovative procedures to recover and beneficially use resources. The company also will place $630 million of cash into trust as financial assurance to support the closure and long-term care of its phosphogypsum stack systems. As part of the agreements with the government, Mosaic will pay a penalty of $8 million and will conduct two environmental projects valued at $2.2 million in Florida and Louisiana. The company does not expect the settlements or resulting operational changes to adversely impact production rates or volumes. Mosaic has previously discussed the potential of capital investment and financial assurance parameters of the settlements in its SEC filings.
The environmental agencies with whom Mosaic Fertilizer LLC is settling consist of the U.S. Environmental Protection Agency (EPA), the Florida Department of Environmental Protection (FDEP) and the Louisiana Department of Environmental Quality (LDEQ). The settlements will resolve all of the claims which the agencies have asserted relating to the federal Resource Conservation and Recovery Act (RCRA) and state hazardous waste law. EPA initially made those claims in 2005 and 2006 as part of an enforcement initiative involving the phosphate fertilizer manufacturing industry.
"In the years since EPA began this enforcement initiative, Mosaic has voluntarily made a number of major improvements to and significant capital investments in our facilities to enhance environmental performance, and the settlements will build upon that good work," said O’Rourke.